Consumer Demand Analysis

Consumer Demand Analysis

Problem 1

The total expected utility will be calculated for the each school on the basis of its rankings, location and price. ASU + UOP

Expected Utility (ranking) = 80 (80! /100!) + 70 (70! /100)

= 6.13 + 8.98

= 15.11

Expected Utility (location) = 50 (120!) + 70 (120!)

= 3.34 + 4.68

= 8.02

Expected Utility (price) = 45 (90!) +45 (90!) = 6.687 + 6.687

= 13.374

The expected utility of each school on the basis of its rank, location and price is calculated above which shows that the highest expected utility is the rank of each ...