An individual has utility function U(x)=x1/4U(x)=x1/4 for salary, and is considering new job offer which pays $80,000 with a bonus. The bonus will be $0, $10,000, $20,000, $30,000, $40,000, $50,000, or $60,000, each with equal probability. What is the certainty equivalent of this job offer?

Answers

Answer 1

Answer:

108,280.22

Explanation:

Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable

U(x) = x^1/4

U^-1(x) = x^4

U^-1(x) === x^4

CE(x) = x^4

Salary   Bonus   Total income   U(x)= x^(1/4)       P(x)        U(x)*P(x)

80000       0          80000               16.82                1/7             2.4

80000    10000     90000               17.32                1/7            2.47

80000    20000    100000              17.78                1/7            2.54

80000    30000    110000               18.21                 1/7            2.6

80000    40000    120000              18.61                 1/7            2.66

80000    50000    130000              18.99                1/7            2.71

80000    60000    140000              19.34                1/7             2.76

Sum                                                                                             18.14

CE(x) =  18.14^4

CE(x) = 108280.22

So therefore,  the certainty equivalent of this job offer is 108,280.22


Related Questions

Click this link to view O*NET’s Work Styles section for Biomedical Engineers. Note that common work styles are listed toward the top and less common work styles are listed toward the bottom. According to O*NET, what are some common work styles needed by Biomedical Engineers? Check all that apply.


analytical thinking

negotiation

dependability

integrity

dominance

attention to detail

Answers

Answer: analytical thinking

dependability

integrity

attention to detail

Explanation:

Biomedical engineering is also referred to as medical engineering and it has to do with how the principles of engineering are applied to medicine.

According According to O*NET, the common work styles that are needed by the Biomedical Engineers are analytical thinking, dependability, integrity and attention to detail.

Answer:

analytical thinking

dependability

integrity

attention to detail

Explanation:

Which of the following is a characteristic of a for-profit healthcare facility?

run by government

uses public funds

focuses on services everyone can afford

owned by private citizens

Answers

Answer:

D. owned by private citizens

Explanation:

A for-profit organization can be defined as a type of organization that is created to primarily generate more revenue than its operating costs by providing lawful services to customers. By generating more revenue than operating costs, a for-profit organization is able to make profit.

Some examples of for-profit organizations are privately owned establishments such as hospitals, hotels, restaurants, supermarkets, gas stations, etc.

Hence, a characteristic of a for-profit healthcare facility is that it is owned by private citizens.

Unlike government agencies or organizations which are being run with public funds and at a subsidized rate (focuses on services everyone can afford), for-profit are mostly owned by private citizens, who are always after making profits from the business.

Answer:

D

Explanation:

edge

Zoowawa's nominal GDP rose by 6% between 2017 and 2018. If its inflation rate was 2.5%, by how much did its real GDP increase?

Answers

Answer:

3.5%.

Explanation:

Real GDP is understood to be that which arises from the difference between the economic growth (that is, of the GDP) of a country during a given period, and the inflation that occurred during that period. That is to say, inflation is subtracted from said economic growth.

Thus, since Zoowawa's nominal GDP grew by 6 percent, while inflation was 2.5 percent, the real GDP of that nation grew by 3.5 percent (6 - 2.5) during the mentioned period.

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Question 1 (6.66 points)
What will a business typically do next after it reviews applications and resumes for a
position?
5
6
8
9
Interviews are scheduled.
Set up at a job fair.
11
12
They post a job opening.
Schedule meetings with department heads.

Answers

Answer:

Interviews are scheduled.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.

Generally, the category of people who are seeking employment or willing to change their job usually submit an application to job vacancies (positions) that are being posted by various companies or organizations.

After a business reviews applications and resumes for a position, what it would do next is to schedule an interview with the job applicants (candidates) that were selected because their skills and experience matches the minimum requirements of the business.

The interview process typically involves assessing the knowledge and skills set of all of selected the job candidates so as to enable the human resources manager (interviewer) pick the best candidate for the job.

Which method of backing up digital photographs involves physical storage of files?

A: online backup
B: fireproof safe
C: internal hard drive
D: external hard drive

Answers

Answer:

D, external hard drive :)

Explanation:

Hope this helps :D

In this, external hard drive method of backing up digital photographs involves physical storage of files. The correct option is (D).

What do you mean by the external hard drive?

An external hard drive is a gadget that you plug into a computer port as opposed to an internal disc, which is securely tucked away inside your computer. You can keep your files in greater storage with an external hard drive.

A computer's outside is connected to an external hard disc. Computer backups and data transmission between PCs are both facilitated by external hard drives.

You can unplug an external hard disc from your computer. Depending on their size, they can be used to backup individual files or an entire computer.

Therefore, in this, external hard drive method of backing up digital photographs involves physical storage of files.

To know more about the external hard drive, visit:

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A healthcare organization’s insurance coverage is:

the amount that the insurance company will pay for costs associated with risks

the amount that the healthcare organization pays to the insurance company

the amount that the healthcare organization pays for costs associated with risks

the amount that the healthcare organization will pay for a legal case

Answers

Answer:

A

Explanation:

the answer to this question is a

Answer:

A

Explanation:

- the amount that the insurance company will pay for costs associated with risks

correct on Edge

Which of the following are examples of reportable incidents? choose all that apply


a healthcare provider’s unexplained absence


a malfunctioning heart monitor


a patient asking for additional pain medication


a healthcare provider failing to respond to a patient’s alarm

Answers

Answer:

a healthcare provider failing to respond to a patient’s alarm

a malfunctioning heart monitor

a healthcare provider’s unexplained absence

Answer:

a b d

Explanation:

Tyreek pitches four investors. They agree to each invest $25,000 and value Tyreek's company at 200,000. How much of the company will Tyreek still own after the investment?

a) 41%
b) 45%
c) 50%
d) 56%

Answers

Answer:

50%

Explanation:

The percentage of the company which Tyreek will still own after the investment can be calculated as follows:

Value of Tyreek's company = $200,000

Total amount contributed by the four investors = $25,000 * 4 = $100,000

Let P represents the percentage of the company which Tyreek will still own after the investment.

Therefore, we have:

P = (Total amount contributed by the four investors / Value of Tyreek's company)

P = ($100,000 / $200,000)

P = 0.5 or 50%

Therefore, the percentage of the company which Tyreek will still own after the investment is c) 50%.

Learn more here: https://brainly.com/question/1974199.

An elementary school student brings her mother, Kathryn, in for parent career day. Kathryn discusses what she does on a daily basis in her career as a firefighter. She also tells the students that firefighting is a family tradition, because her father and brother are firefighters too.

What roles is Kathryn fulfilling while at the school?

Answers

Answer:

isnt it an elementary school student is her role?

Explanation:

Answer:

l

Explanation:

A business has a fixed costs of US$100 000 and variable costs of US$5 per unit.
Units of output are sold for US$25.
What is total variable cost if 50 000 units are produced?

Answers

Answer:

$250,000

Explanation:

50,000 units × $5 per unit = $250,000

Answer:
$250,000 is the variable cost .
Explanation:
50,000 units x $5 per unit = $250,000 variable cost

Pete, a broker, advised Ollie to invest in Rocky Road Inc. When the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud, claiming reliance on Pete’s advice. The reliance that gives rise to liability for fraud requires ____.

Answers

Answer:

Misrepresentation of a fact knowing it is false.

Explanation:

Fraud is defined as an intentional act of deception by an individual to unlawfully gain the property of another person.

For fraud to be committed facts must be misrepresented intentionally with the aim of deception.

In the given scenario Pete advised Ollie to invest in Rocky Road Inc. and the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud.

If Ollie can show that Pete knew the price of the shares would fall, he can now accuse him of fraud.

How would inventions such as the smart fitting room affect retail jobs???

Answers

Answer:

ummm because it is bigger

Explanation:

Guya paid 20% more for a name-brand entertainment system than a generic one would have cost.assuming the generic system was $400, how much did he pay for his entertainment system

Answers

Answer:

$480

Explanation:

Find 1% of the cost.

100% = 400

1% = 400 ÷ 100 = 4

Since they are asking for entertainment system, which costs 20% more than the generic, find out 120%.

120% = 4 x 120 = 480

how does supply and demand factor into ticket prices

Answers

Tickets are things you use to go into theme parks

Which type of data does your company collect from customers or potential customers?

Answers

Answer:

primary data

Explanation:

I dont really know about this but im think this is the answer

Primary data is the data your company have

List any THREEshopping skill that you will follow.

Answers

1. Comparing prices
2. Negotiating major purchases
3. Evaluating competing products
4. Separating quality from quantity when clothes shopping
5. Determining want versus need
6. Learning how to just say NO
7. Identifying the right times to buy things
8. Seeing the value in used goods
9. Avoiding shopping hungry OR emotional
10. Knowing your shopping triggers and staying away from them


There are 10 shopping skills that we can follow , you can choose any 3 from these and answer your question.

HELLLPPPP


The Kids have been asked to decide whether India has more wealth than Peru. Mary says they should use the GDP while jann says they should use the GDPP. Who is right?

1. Mary
2. Jann
Neither, they should use the exports and imports

Answers

Answer: Mary

Explanation:

GDP simply means the gross domestic product and it is the value in terms of money based on the goods and services that a country produces.

With regards to the question, Mary is right as the GDP can be used to denote economic growth and also know how a particular economy is doing. Wealthy nations usually have a huge GDP.

Tyler is a recent college graduate that has a large private student loan debt. He is
single with no children. He wishes to get some cheap life insurance that will pay off
the debts in case he passes away. Which life insurance policy will fit his needs
best?
A. Term policy
B. Neither
C. Debt policy
D. Permanent policy

Answers

Answer: Term Policy

Explanation:

Term policy life insurance policy will fit his needs best. Thus, the correct option is A.

What is insurance?

Insurance is a contract between an individual or organization (the policyholder) and an insurance company (the insurer) that provides financial protection against certain types of risks or losses.

The policyholder pays premiums to the insurer, and in exchange, the insurer agrees to pay out benefits or compensation in the event of covered losses or damages.

Insurance works on the principle of risk pooling, which means that the premiums paid by all policyholders are pooled together to cover the losses of the few who experience them.

This allows individuals and organizations to transfer the financial risks of certain events to the insurer, which helps to mitigate the impact of those events on their finances.

Learn more about insurance, here

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Due Jan 1
What does this quote mean to you?
"There is no end to education. It is not that you read a
book, pass an examination, and finish with education.
The whole of life, from the moment you are born to
the moment you die, is a process of learning." Jiddu
Krishmamurti
100 points
O class comments
Your answer (visible to other students)

Answers

Answer:

This quote means we keep learning and never stopping. The only time we stop learning is when we die. But till then, we must continue learning n improving our knowledge

The expansion phase of a business cycle is a period during which:
A. the economy steadily grows.
B. the economy steadily declines.
C. the economy hits its highest point.
D. the economy hits its lowest point​

Answers

Answer:

A. the economy steadily grows.

Explanation:

A business cycle is the periodic fluctuations of economic activities in the country. Naturally, the economy will experience seasons of boom and periods of downturns.

The expansion phase is the period where a business experiences steady growth, as indicated by a rise in GDP value. The expansion comes after a recession where the economy was experiencing minimal or negative growth.  At the expansion phase, demand for goods and services is increasing, job opportunities are being created, and incomes are rising.

Answer:A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.A. the economy steadily grows.

Explanation:

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