« previous next »

Author Question: If a payout is certain to occur, then the variance of that payout equals A) zero. B) one. C) ... (Read 62 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
on: Jul 1, 2018
If a payout is certain to occur, then the variance of that payout equals
 
  A) zero.
  B) one.
  C) the expected value.
  D) the expected value squared.

Question 2

Sarah buys little stuffed animals for 5 each. They come in different varieties. If the producer stops making (retires) a certain variety, a stuffed animal of that variety will be worth 100; otherwise it is worth 0. There is 50 chance that any variety will be retired. What is the value to Sarah of knowing ahead of time whether a variety will be retired?
 
  A) 50
  B) 5
  C) 2.50
  D) 0
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


mistyjohnson

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Engineer

  • Hero Member
  • *****
  • Posts: 527
Reply #2 on: Jul 1, 2018
Correct answers!


mistyjohnson

  • Sr. Member
  • ****
  • Posts: 331
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Changes that occur during an action potential. Changes that occur during an action potential.
Two important changes occur in the upper airway in croup:The epiglottis swells, thereby occluding th Two important changes occur in the upper airway in croup:The epiglottis swells, thereby occluding th
Pus-forming infection. Such infections occur more frequently in individuals with immunoglobulin ... Pus-forming infection. Such infections occur more frequently in individuals with immunoglobulin ...
Modification steps (1–4) that occur in maturation of E. coli tRNATyr from its transcript Modification steps (1–4) that occur in maturation of E. coli tRNATyr from its transcript
Although the highest rates of disordered eating patterns occur among females, males are not immune Although the highest rates of disordered eating patterns occur among females, males are not immune
Energy Balance Is Achieved When Energy (Calories) In Equals Energy (Calories) Out Energy Balance Is Achieved When Energy (Calories) In Equals Energy (Calories) Out
Video: Darwin's Observation (Fossils, Galapagos Islands & Africa ) and Natural Selection (Adaptive Traits)

For a complete list of videos, visit our video library