using the following:
The manager's utility function for profit is U(π) = 10 ln(π), where π is the dollar amount of profit. The manager is considering a risky decision with the four possible profit outcomes shown below. The manager makes the following subjective assessments about the probability of each profit outcome:

-What is the expected profit?
A) $12,000
B) $13,000
C) $14,000
D) $15,000
E) none of the above

Question

using the following:
The manager's utility function for profit is U(π) = 10 ln(π), where π is the dollar amount of profit. The manager is considering a risky decision with the four possible profit outcomes shown below. The manager makes the following subjective assessments about the probability of each profit outcome:
 
-What is the expected profit?
A) $12,000 
B) $13,000 
C) $14,000 
D) $15,000 
E) none of the above

Quizplus · Accepted Answer

Without specific information regarding costs, revenues, or any other financial details, it's impossible to calculate the expected profit.

Using the Following: The Manager's Utility Function for Profit Is U(π) = 10