A chemical company is in the process of studying two long-term plans.The first plan involves expansion of their industrial division.The second plan emphasizes expansion in the business of consumer pharmaceuticals.Market research reveals the following (preliminary)results (returns are in $ millions):
The planning committee has the (risk averse)utility function U = 10M - 0.05M2.Discuss the long-term planning decision based on the preliminary predictions and the given utility function:

Question

A chemical company is in the process of studying two long-term plans.The first plan involves expansion of their industrial division.The second plan emphasizes expansion in the business of consumer pharmaceuticals.Market research reveals the following (preliminary)results (returns are in $ millions):
   The planning committee has the (risk averse)utility function U = 10M - 0.05M2.Discuss the long-term planning decision based on the preliminary predictions and the given utility function:

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The Answer of A chemical company is in the process of studying two long-term plans.The first plan involves expansion of their industrial division.The second plan emphasizes expansion in the business of consumer pharmaceuticals.Market research reveals the following (preliminary)results (returns are in $ millions):
   The planning committee has the (risk averse)utility function U = 10M - 0.05M2.Discuss the long-term planning decision based on the preliminary predictions and the given utility function:

A Chemical Company Is in the Process of Studying Two