Jack is a talented investor, but his earnings vary considerably from year to year. In the coming year he expects to earn $250,000 with good luck or $90,000 with 2 bad luck. Somewhat oddly, given his chosen profession, Jack is risk averse, so that his utility is equal to the square root of his income. The probability of Jack’s having good luck is 0.5. Required:
a. What is Jack's expected utility for the coming year?
b. What amount of certain income would yield the same level of utility for Jack as the expected utility in part (A)?

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?