This topic contains a solution. Click here to go to the answer

Author Question: For each of the following statements, state whether the statement is true, false, or uncertain and ... (Read 63 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
For each of the following statements, state whether the statement is true, false, or uncertain and explain why.
 
  i. A risk neutral person is indifferent to a gamble and the expected value of the gamble.
  ii. A risk-averse person will never accept a gamble.
  iii. A risk-loving person will accept any gamble.

Question 2

The Social Security program is like a private pension plan in that _____.
 
  a. it is a pay-as-you-go system
  b. it is voluntary
  c. benefits are a function of earlier contributions
   d. you have a legal right to your benefits



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ilianabrrr

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

i. True, the expected utility of a gamble equals the utility of the expected value for a R.N. individual.
ii. False, a risk averse person will not accept a fair gamble (or worse) but may accept a gamble with a positive expected value.
iii. False, a risk loving individual will accept any fair gamble, but if the expected value is sufficiently negative, they will not accept the gamble.

Answer to Question 2

c




Sufayan.ah

  • Member
  • Posts: 512
Reply 2 on: Jul 1, 2018
Wow, this really help


Animal_Goddess

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

For a complete list of videos, visit our video library