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Author Question: Assume that one of two possible outcomes will follow a decision. One outcome yields a 75 payoff and ... (Read 63 times)

sc00by25

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on: Jul 1, 2018
Assume that one of two possible outcomes will follow a decision. One outcome yields a 75 payoff and has a probability of 0.3; the other outcome has a 125 payoff and has a probability of 0.7. In this case the expected value is
 
  A) 85.
  B) 60.
  C) 110.
  D) 35.

Question 2

Suppose your utility function for food (F) and clothing (C) is u(F,C) = F + 4C. If you reduce your clothing consumption by 2 units, how much do you have to increase your food consumption in order to maintain the same utility level?
 
  A) 2 units
  B) 4 units
  C) 6 units
  D) 8 units


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nathang24

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

D


sc00by25

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

softEldritch

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Reply 3 on: Yesterday
:D TYSM

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