« previous next »

Author Question: If a payout is certain to occur, then the variance of that payout equals A) zero. B) one. C) ... (Read 105 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?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Mutualisms, such as those that occur among plants and pollinators, generally involve large numbers o Mutualisms, such as those that occur among plants and pollinators, generally involve large numbers o
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
The nonionic form does not occur in significant amounts in aqueous solutions The nonionic form does not occur in significant amounts in aqueous solutions
Changes that occur during the processing of tyrosine pre-tRNA Changes that occur during the processing of tyrosine pre-tRNA
If a fire were to occur, follow the evacuation plan. If a fire were to occur, follow the evacuation plan.
Regulation can occur at any stage in the expression of genetic material in eukaryotes Regulation can occur at any stage in the expression of genetic material in eukaryotes
Video: Phlebotomy

For a complete list of videos, visit our video library