(1) You are given 2 choices:
(a) getting $500,000 tax-free for sure, and (b)taking a chance on a gamble that has a probability p of getting $1 million tax-free and probability 1-p of getting nothing. Clearly, if probability p is 100% in the gamble, as a rational and sane person, you will choose the gamble because you will have a 100% chance of getting $1 million; on the other hand, if p is 0%, you will choose $500,000 for sure. Now, by gradually reducing the probability p of getting $1 million in the gamble from 100% towards 0, find the probability p* for you will feel choice
(b) has about the same degree of attractiveness or desirability as (a) to you. Use p* to compute your utility of $500,000.
(2) Repeat (1) by changing choice (a) to getting $200,000 tax-free for sure. Note: the probability p* for the case will generally be smaller than the one for (1).

Answers

Answer 1

Answer:

The answer is "0.02%"

Step-by-step explanation:

It will propose the percentage model i.e ([tex]\frac{500000}{100}=5000[/tex]) to find a good bid Therefore one percentage means [tex]\$5000[/tex] or one individual gets [tex]\$5000[/tex] taxable income if the probability is [tex]1\%[/tex] . For even a chance of [tex]2\% \ of \ \$10000[/tex] 

However if we increase the chances of 0-100% the amount also increases accordingly from 0-1 million, we get much more than $500,000 also as the degree of attraction. In[tex]\$200,000[/tex] respectively [tex]0-100\%[/tex] implies that its total will rise appropriately from [tex]0-\$200,000[/tex]. Thus, p* is at [tex]50\% =\$ 100,000[/tex] .


Related Questions

HELP PLEASE
(Look at the picture)

A. 100
B. 130
C. 160
D. 200
E. 260

Answers

Answer: I think it B (130)

Step-by-step explanation: .........

b. (130) ...
In the picture

Fill in the blank so that the ordered pair is a solution of y = 6x +7: 4,25)
a) 13
b) 1
c) 18
d) 3

Answers

Answer:

it is either A OR B

Step-by-step explanation:

the measures of the angles of a triangle are shown below. solve for x ​

Answers

Answer:

x = 7

Step-by-step explanation:

As in right triangle, the other two angles sum up equal to 90 degree, so 6x + 15 + 33 = 90, then solve for x, 6x = 90 - 15 - 33 = 42, then x = 7.

{362 – [63 + (48 ÷ 2) x 2]} + 3(9 +4)

Answers

{362- {6x3+(48/2) x2]}+3(9+4)

{362- {6x3+24 x2]}+3(9+4)

{362- 66+3(9+4)

{362- 66+3(9+4)

{296+3(13)}

(296+39)

335

hope this help you

have a good day

Answer:

290

Step-by-step explanation:

Solving with one operation at each step:

{362 – [63 + (48 ÷ 2) x 2]} + 3(9 +4) ={362 – [63 + 24 x 2]} + 3(9 +4) =[362 – (63 + 48)] + 3(9 +4) =(362 – 111) + 3(9 +4) = 251 + 3(13) = 251 + 39 =290

Parker ran 600 meters, 7 kilometers, and 1,000 centimeters.

How many meters did he run all together?

Answers

Answer:

7610 m

Step-by-step explanation:

600m = 600m

7km = 7000m

1000cm = 10m

The required distance = 600 + 7000 + 10 = 7610 m

In which number is the value of the digit in the hundreds place one-tenth the value of the digit in the thousands place?
A. 384,403
B. 655,286
C. 887,510
D. 909,273

Answers

Answer:

A.

Step-by-step explanation:

I'm pretty sure that's right.

PLEASE HELP ASAP I WILL MARK BRAINLIEST!
This expression was evaluated incorrectly.

Answers

Answer:

Step 2

Step-by-step explanation:

Step 2 b/c [tex]4\frac{1}{8}[/tex] = [tex]\frac{33}{8}[/tex]

A square painting has an area of 9 square metres. How long is each side?

Answers

The length of each side would be 3 square meters

Answer:

2

Step-by-step explanation:

The area of a rectangular rug is 4(2x - 5). Which other expression represents the same area?

Answers

Answer:

8x-20

Step-by-step explanation:

Use the distributive property. Multiply 4 by 2x. Multiply 4 by -5.

Please send help. I really need this asap

Answers

Answer:

Part a) The area of the figure is [tex]\frac{9}{2} (4+\pi ) cm^{2}[/tex]

Part b) The perimeter of the figure is [tex]3(2+2\sqrt{2} +\pi )cm[/tex]

What is the measure of angle B?
Triangle A B C. Angle A is 50 degrees and angle C is 28 degrees.
78°
92°
102°
282°

Answers

102 because all angles in a triangle add up to 180 no matter what. 102+50+28=180

Answer is 103

- took the test on edge!

- Have a good day :)

A manufacturer of a new nicotine nasal spray claims that their product has a 30% success rate for smoking cessation. In a clinical study involving 150 smokers, 93 of them quit smoking. Test the hypothesis that the success rate claimed by the manufacturer is valid at the 5% level of significance.

Answers

answer:

we reject null and conclude that this manufacturers claim is false

Step-by-step explanation:

p = 30% = 0.30

p^ = 93/150 = 0.62

we state the hypothesis

H0: p = 0.30

h1: p not equal to 0.30

we find the z test stattistics

[tex]z=\frac{p^--p}{\sqrt{\frac{p(1-p)}{n} } }[/tex]

[tex]z=\frac{0.62-0.30}{\sqrt{\frac{0.30(1-0.30)}{150} } }[/tex]

[tex]z=\frac{0.32}{\sqrt{\frac{0.30*0.70}{150} } }[/tex]

[tex]z=\frac{0.32}{0.03741}[/tex]

z = 8.5538

at alpha = 0.05

z-critical = Z₀.₀₅/₂ = Z₀.₀₂₅

= 1.96

we compare z critical with the test statistic

z statistic > z critical so we have to reject H₀ and conclude that the manufacturers claim is not valid at 0.05 level of significance.

Assume that customers arriving at a DMV are requested to fill out an optional survey. Assume that one of the survey questions asks customers to rate the quality of the service provided at the DMV. Customers typically assess service quality on different dimensions. We highlighted some of these dimensions in BA270. These highlighted dimensions are:

Answers

Answer:

b. Timeliness, Assurance, Needs, Reliability and Empathy.

Step-by-step explanation:

The customer rating is necessary for a business to improve its performance. A company will be able to improve its customer service based on customer reviews and feedback. The feedback of the customers is important in terms of service provision whether they rate the company based on responsiveness to the queries, timeliness of query resolution and other similar criteria.

mr sigmon has 24 students in his classroom 1/4 of them are girls

Answers

Answer:

6 of his class are girls

Step-by-step explanation:

24/4=6

In ΔMNO, the measure of ∠O=90°, the measure of ∠N=38°, and OM = 87 feet. Find the length of NO to the nearest tenth of a foot.

Answers

Answer:

111.4

Step-by-step explanation:

trust

How many license plate numbers consisting of three letters followed by
two numbers are possible when repetition is not allowed?

Answers

Is there a picture so I can see ?

1. What is asked in the problem?

2.What are the given facts?

3.What is the operation to be used?

4.what is the mathematical sentence?

5.what is the solution?

Answers

Answer:

See Explanation

Step-by-step explanation:

Given

See attachment

Solving (1): What is asked

The requirement of the question is to determine the difference between the amount of sugar used between yesterday and today

Solving (2): The given facts

[tex]Yesterday = \frac{9}{10}kg[/tex]

[tex]Today = \frac{3}{5}kg[/tex]

Solving (3): Operation to be used

We use subtraction operation

Solving (4): The mathematical sentence

[tex]D = Yesterday - Today[/tex]

[tex]D = \frac{9}{10}kg - \frac{3}{5}kg[/tex]

D represents the difference

Solving (5): The solution

[tex]D = \frac{9}{10}kg - \frac{3}{5}kg[/tex]

Take LCM

[tex]D = \frac{9 - 6}{10}kg[/tex]

[tex]D = \frac{3}{10}kg[/tex]

Question 2 of 10
What is the slope-intercept equation of the line below?
O A. y = -2x-3
O B. y = -2x + 3
O C. y = 2x-3
O D. y = 2x + 3

Answers

Answer:

y=2x-3

Step-by-step explanation:

First we find the y-intercept of this graph whic in this case is -3. Then we plot two pints on the graph and caculate the rise over run which is 2/1=2. Finally, we get the equation- y=2x-3.

A ball is thrown straight up into the air. The height of the ball t seconds after it is thrown is modeled by the equation h(t) = 48t – 16t2. After how many seconds will the ball hit the ground?
A. 1

B. 1.5

C. 3

D. 3.5

Answers

Answer:

b

Step-by-step explanation:

gravity

3^5 + 6^3 evaluate the expression

Answers

Answer:

459

Step-by-step explanation:

because 3^5 is 243 and 6^3 is 216 then add up 243+216=459

patrick walks at 6/8 kilometer per 8 hour. how far will he in 5 hours?​

Answers

Answer:

In 5 hours, he will go 3 ¾ kilometers far.

Step-by-step explanation:

10 PONITS

Can someone help me

Answers

Answer:

1st step

Step-by-step explanation:

7/10 is greater than 1/2

Answer:

Step 1

Step-by-step explanation:

is 9.75 a rational number?

Answers

Answer:

yes, 9.75 is a rational number.

34,977 ×2,344 is even are odd number

Answers

Answer:

81986088

its even

Step-by-step explanation:

just look it up on your search bar? Im confused on what your asking. Sorry if  I answered wrong

The total service time of a multistep manufacturing operation has a gamma distribution with mean 18 minutes and standard deviation 6 minutes.
(a) Determine the parameters alpha and lambda of the distribution. (solving these two parameters using the mean and the standard deviation)
(b) Assume that each step has the same exponential distribution for service time. What distribution for each step and how many steps produce this gamma distribution of total service time?

Answers

Answer:

The answer is "[tex]\bold{r=9, \lambda=\frac{1}{2}\ and \ \ \text{exponential, 9 steps}}[/tex]"

Step-by-step explanation:

In point a:

We are aware of the random gamma variable X:

[tex]\to \mathbb{E} =\frac{r}{\lambda}\\\\\to Std(X) =\frac{\sqrt{r}}{\lambda}\\\\[/tex]

It is given:

[tex]\to \mathbb{E} = 18 \\\\\to std(X)=6[/tex]

[tex]\to 18=\frac{r}{\lambda}\\\\ \to 6=\frac{\sqrt{r}}{\lambda}\\\\[/tex]

Substituting the value:

[tex]\to \frac{\sqrt{r}}{6}=\frac{r}{18}\\\\\to r=9\\\\\to \lambda=\frac{1}{2}\\\\[/tex]

In point b:

When building the Erlang/Gammas distribution, these could reasonably be assumed to become an exponential distribution only with \lambda = 1/2 parameter with one step but to be r = 9 for one step.

24, 3, 29, 24, 8, 38, 62
Find the range of the data set

Answers

Answer:

Subtract the minimum data value from the maximum data value to find the data range. In this case, the data range is 62−3=59 62 - 3 = 59 .

Step-by-step explanation:

Answer:

The answer is 59

Step-by-step explanation:

A bucket that weighs 3 lb and a rope of negligible weight are used to draw water from a well that is 50 ft deep. The bucket is filled with 42 lb of water and is pulled up at a rate of 2.5 ft/s, but water leaks out of a hole in the bucket at a rate of 0.25 lb/s. Find the work done in pulling the bucket to the top of the well. Show how to approximate the required work by a Riemann sum. (Let x be the height in feet above the bottom of the well. Enter xi* as xi.)

Answers

Answer:

the work done in pulling the bucket to the top of the well is 2125 ft-lb

Step-by-step explanation:

Given that;

Weight of the bucket is 3 lb

weight of water which can be filled in the bucket is 42 lb

Total weight of bucket and water = 3 + 42 = 45 lb

distance, the bucket filled with water is to be pulled 50 ft

now, let at any time t be the bucket at distance x ft from the bottom of the well

then, t = x/2 × S

where S is the rate at which water is leaking from the bucket

so at this time t, the amount pf water which leaked from the bucket is;

⇒ x ft / 2.5 ft/s × 0.25 lb/s

= 0.25 lb.s⁻¹ / 2.5 ft.s⁻¹ × x ft

= 0.1 lb/ft × x ft

= 0.1x lb

now, as x represent the distance that the bucket has been raised, we the force F applied to the bucket x to be;

F = ( 45 - 0.1x ) lb

so, the required worked by Riemann sum as;

[tex]\lim_{n \to \infty}[/tex]ⁿ∑_[tex]_{i=1}[/tex] ( 45 - 0.1x[tex]_i[/tex]* ) Δx

so, the work done, pulling the bucket up will be;

[tex]\lim_{n \to \infty}[/tex]ⁿ∑_[tex]_{i=1}[/tex] ( 45 - 0.1x[tex]_i[/tex]* ) Δx  =  [tex]\int\limits^{50}_0 {(45-0.1x)} \, dx[/tex]

= [ 45x - 0.1[tex]\frac{x^2}2}[/tex] ]⁵⁰₀

= 45 × 50 - 0.1/2 × (50)²

= 2250 - 125

= 2125 ft-lb

Therefore, the work done in pulling the bucket to the top of the well is 2125 ft-lb

If 26 feet 10 inches is cut from a wire that is 44 feet 8 inches long what is the length of wire that is left ?

Answers

Answer:

17 feet 10 inches

Step-by-step explanation:

26 feet 10 inches is cut from a wire that is 44 feet 8 inches

Therefore the length of wire that is left can be calculated as follows

44 feet 8 inches - 26 feet 10 inches

= 17 feet 10 inches

help me
please and i give you points

Answers

Answer:

30-100

28-100

25-100

7-100

Step-by-step explanation:

It's hard to explain but I try

part in this means how many seeds we can place in those parts

and the whole it he whole amount of the part

hope that make sense

I
216
Solve the linear equation.
9x - 9 = 5x + 19
x=-7
x = 7
x = 5
x = 2


Answers

Answer:

x=7

Step-by-step explanation:

9x-9=5x+19

Combine like terms

9x-5x=19+9

4x=19+9

4x=28

x=7

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