Hi can you please help me with this study case please. I am not very sure about my answers.
Thanks© BrainMass Inc. brainmass.com October 25, 2018, 12:42 am ad1c9bdddf
Excel file contains formulation, solution and sensitivity report of Traffic problem.
In the past few years, the traffic problems in Lynn McKell's hometown have gotten worse. Now, Broad Street is congested about half the time. The normal travel time to work for Lynn is only l5 minutes when Broad Street is used and there is no congestion. With congestion, however, it takes Lynn 40 minutes to get to work. I f Lynn decides to take the expressway, it will take 30 minutes regardless of the traffic conditions. Lynn's utility for travel time is: U(15 minutes) = 0.9, U(30 minutes) = 0.7, and U(40 minutes) = 0.2.
(a) Which route will minimize Lynn's expected travel time?
(b) Which route will maximize Lynn's utility?
(c) When it comes to travel time, is Lynn a risk seeker or a risk avoider?