« previous next »

Author Question: If a payout is certain to occur, then the variance of that payout equals A) zero. B) one. C) ... (Read 81 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?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

The following terms describe types of body movement that occur at the diarthrotic joints The following terms describe types of body movement that occur at the diarthrotic joints
Where Earthquakes Occur— Convergent Boundaries Where Earthquakes Occur— Convergent Boundaries
Bone fractures that occur before death show signs of healing. The process of fracture healing starts Bone fractures that occur before death show signs of healing. The process of fracture healing starts
Rates of Childhood Overweight and Obesity Worldwide The highest rates occur in the most affluent re Rates of Childhood Overweight and Obesity Worldwide The highest rates occur in the most affluent re
Calcium metabolism in osteoporosis: (a) bone deposition equals bone resorption; (b) bone resorption ... Calcium metabolism in osteoporosis: (a) bone deposition equals bone resorption; (b) bone resorption ...
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: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library