While uncertain, they have estimated the net revenue from this patentto have the p robability distribution, x} = rew( ‘1″) in which]!05 and x=m…

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It’s a project management question which make me confused about it, plz followed the background and given information, to answer this question in detail. Thank you very much!

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While uncertain, they have estimated the net revenue from this patentto have thep robability distribution, fix} = rew( ‘1“)in which]! 2 0.05 and x=m illion dollars [x2 0]. The expected value ofthe profits [EMV] is EDI] = 171 = $20771, andthevarianceisVar[x] = 11—2 = 4001712. Lulu has worked with the SUAR’s Board ofDirectors to understand the corporate attitudetoward risk. The company is notvery large, so they are quite averse to risk. She has approxi mated the c orporate utility function a s,El— u(x) = 1 — 9—”szin whichx=million dollars [x e 0] [Figure 2.]. What price should SOAR Technologies be willing to accept in exchange for the patent?

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