### Discuss the utility functions

Assignment Help Engineering Mathematics
##### Reference no: EM131524536

Question: Utility functions need not relate to dollar values. Here is a problem in which we know little about five abstract outcomes. What is important, however, is that a person who does know what A to E represent should be able to compare the outcomes using the lottery procedures we have studied. A decision maker faces a risky gamble in which she may obtain one of five outcomes. Label the outcomes A, B, C, D, and E. A is the most preferred, and E is least preferred. She has made the following three assessments.

? She is indifferent between having C for sure or a lottery in which she wins A with probability 0.5 or E with probability 0.5.

? She is indifferent between having B for sure or a lottery in which she wins A with probability 0.4 or C with probability 0.6.

? She is indifferent between these two lotteries:

1. A 50% chance at B and a 50% chance at D

2. A 50% chance at A and a 50% chance at E,

What are U(A), U(B), U(C), U(D), and U(E)?

### Write a Review

#### What constitutes the option cost and the trigger strategy

Perhaps at some point in your life you have taken each of the actions a-e that follow. In doing so, you exhibited "options thinking."

#### Commenting on the influence of a and l

Justify your answer by commenting on the influence of a and l

#### Find the probability that a strike lasts less than one day

The length of time until a strike is settled is distributed uniformly from 0 to 10.5 days. (See the previous problem for an introduction to the uniform density.

#### Rule for objective function coefficients

Use the 100% rule for objective function coefficients and right hand side ranges where appropriate. Do not run the changed model. Assume that any changes given in a of the problem are the only changes being made in the model

#### Find probability that normal variable exceed two-sigma limit

What is the probability that a normal variable exceeds two-sigma limits? (That is, what is the probability of observing a value of the random variable larger).

#### Check the given events are independent or not

Suppose that we have two everts. A and B, with P(A) = 50. P(B) = .60, and P(A ? B) = .40.

#### Calculate the hotel breakeven point

A resort hotel has total annual sales revenue of \$1,000,000, variable costs of \$350,000, and fixed costs of \$570,000. The fixed costs include \$80,000 a year.

#### Determine the mode for each given series

Given the following series of numbers, determine the mode for each series. Series A: 50, 45, 55, 55, 45, 50, 55, 45, 55 and Series B: 89, 87, 88, 83, 86, 82, 84.

#### Develop a behavioral state machine diagram for the situation

Ultimately, the case investigation is closed when the case is closed by settlement agreement or judicial verdict. Develop a behavioral state machine diagram for this situation.

#### Example of a good decision

Give an example of a good decision that you made that resulted in a bad outcome. Also give an example of a bad decision that had a good outcome. Why was each decision good or bad?

#### How do prime ideals relate to ordinary prime numbers

Define carefully what a prime ideal is. How do prime ideals relate to ordinary prime numbers? State and prove a theorem connecting between prime ideals and integral domains

#### What is the rejection rule using the critical value

Considered the following hypothesis test: A sample of 50 provided a sample mean of 19.4. The population standard deviation is 2.