This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Mike owns a car worth 20,000, and that is his only wealth. There is a 10 percent chance that Mike ... (Read 95 times)

faduma

  • Hero Member
  • *****
  • Posts: 528
on: Jun 29, 2018
Mike owns a car worth 20,000, and that is his only wealth. There is a 10 percent chance that Mike will have an accident within a year. If he does have an accident, his car is worthless. What is Mike's expected wealth?
 
  What will be an ideal response?

Question 2

The income that measures a household's earnings in the absence of government redistribution is called
 
  A) market income.
  B) real income.
  C) money income.
  D) cash income.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jun 29, 2018
Answer to Question 1

The probability of an accident is 0.1, and the probability of not having an accident is 0.9. So Mike's expected wealth is 20,000  0.9 + 0  0.1 = 18,000.

Answer to Question 2

A


faduma

  • Member
  • Posts: 528
Reply 2 on: Jun 29, 2018
Excellent

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

If you get a chance, look through popular read-aloud books for young children, such as The Very ... If you get a chance, look through popular read-aloud books for young children, such as The Very ...
How to solve any percent change problem How to solve any percent change problem
Approximately 40 percent of farmers in the United States are 55 years old or older Approximately 40 percent of farmers in the United States are 55 years old or older
Agricultural Land as a Fraction of Total Wealth in the United Kingdom Agricultural Land as a Fraction of Total Wealth in the United Kingdom
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
Video: Introduction to Dysrhythmia

For a complete list of videos, visit our video library