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Unformatted text preview: (Assume a total of 70 students). (See Example 8.6 in the textbook). WT Plan #1 3min Plan #2 2.5min Answer: Utility function (nonrandom): WT U * 967 . 106 . So, for plan #1 795 . 2 3 * 967 . 106 . 1 U For plan #2 312 . 2 5 . 2 * 967 . 106 . 2 U The probability of Plan #1: 382 . ) 1 # Pr( 312 . 2 795 . 2 795 . 2 2 1 1 e e e e e e Plan U U U The probability of Plan #2: 618 . ) 1 # Pr( 1 ) 2 # Pr( 312 . 2 795 . 2 312 . 2 2 1 2 Plan e e e e e e Plan U U U Predicted number of students that choose Plan #1 is=70*0.382 = 27 Predicted number of students that choose Plan #2 is=70*0.618 = 43...
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This document was uploaded on 02/05/2011.
 Spring '11

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