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Hank Steinbrenner, the owner of the New York Yankees, has a utility function of wins in a season given by Mr. Steinbrenner has been offered a trade. He believes if he completes the trade, his probability of winning 121 games is 45%. There is also a 55% chance the team won't gel and the Yankees will win only 81 games. Without the trade, Mr. Steinbrenner believes the Yankees will win 100 games. Given Mr. Steinbrenner's risk attitude, will he complete the trade?

Econometrics, Economics

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