Amanda has a von Neumann-Morgenstern utility function given by U VM, where Mis her income. If she becomes an economics professor, she will make M- 64/yr with probability 1. If she becomes an attorney, she will make M=900/yr if she becomes a partner in a Wall Street firm, but only M 49/yr if she fails to make partner. The probability of her becoming a partner is 0.3. Ellis is an infallible Judge of legal talent After a brief interview, he can state with certainty whether Amanda will become a partner. What is the most Amanda would be willing to pay for this information? (Set up the relevant equation and solve it.) Instructions: Round your answer to 2 decimal places.

Amanda has a von Neumann-Morgenstern utility function given by U VM, where Mis her income. If she becomes an economics professor, she will make M- 64/yr with probability 1. If she becomes an attorney, she will make M=900/yr if she becomes a partner in a Wall Street firm, but only M 49/yr if she fails to make partner. The probability of her becoming a partner is 0.3. Ellis is an infallible Judge of legal talent After a brief interview, he can state with certainty whether Amanda will become a partner. What is the most Amanda would be willing to pay for this information? (Set up the relevant equation and solve it.) Instructions: Round your answer to 2 decimal places.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter7: Analytic Trigonometry

Section7.6: The Inverse Trigonometric Functions

Problem 92E

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