3 P62682RA Turn over 2. Jenny can choose one of three options, A, B or C, when playing a game. The profit, in pounds, associated with each outcome and their corresponding probabilities are shown on the decision tree in Figure 1. A C B 0.6 0.4 0.75 0.25 0.8 0.2 350 −140 260 −190 220 −230 Figure 1 (a) Calculate the optimal EMV to determine Jenny’s best course of action. You must make your working clear. (3) For a profit of £ x, Jenny’s utility is given by 1 400 − −e x (b) Using expected utility as the criterion for the best course of action, determine what Jenny should do now to maximise her profit. You must make your working clear. (4) (Total for Question 2 is 7 marks)