question archive 1) A male and a female manager of a company try to de- cide which product will be developed
1) A male and a female manager of a company try to de- cide which product will be developed
Subject:FinancePrice: Bought3
1) A male and a female manager of a company try to de- cide which product will be developed. If product A is de- veloped, it will yield $5 million net return with 0.2 proba- bility, $8 million net return with 0.5 probability, and $9 million nct return with 0.3 probability. If product B is de- veloped, it will yield $8 million net return for sure. The utility function for the male manager is: 4;(x)= x The utility function for the female manager is: 14(1) 022 01.1: Tells the risk attitudes of the male and female man- ager respectively? Q1.2: According to the expected utility criterion, what is the choice for the male and the female manager respec- tively?
