Author Question: Jason is a Web page designer. He estimates that this summer, he has a 0.6 probability of making ... (Read 15 times)

WhattoUnderstand · **on:** Jun 29, 2018

Jason is a Web page designer. He estimates that this summer, he has a 0.6 probability of making 10,000 and a 0.4 probability of making only 2,000. What is Jason's expected income this summer?

A) 12,000
B) 6,800
C) 6,000
D) 10,000

Question 2

Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix above gives the economic profit that each firm can make.

If Felix cheats on the agreement but Oscar complies, Felix makes an economic profit of ________ and Oscar makes an economic profit of ________. A) 10 million; 10 million
B) 1 million; 1 million
C) -2 million; 12 million
D) 12 million; -2 million