Using the finished version of the file for , use a data table to perform a sensitivity analysis on the risk tolerance. Specifically, let the risk tolerance in cell B12 vary from $10,000 to $100,000 and keep track of two outputs in the data table, the TRUE/ FALSE value in cell B14 and the certainty equivalent in cell C15. Interpret the results.

Using the finished version of the file for , use a data table to perform a sensitivity analysis on the risk tolerance. Specifically, let the risk tolerance in cell B12 vary from $10,000 to $100,000 and keep track of two outputs in the data table, the TRUE/ FALSE value in cell B14 and the certainty equivalent in cell C15. Interpret the results.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.6: The Role Of Risk Aversion

Problem 26P

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