« previous next »

Author Question: If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with ... (Read 37 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
on: Jul 1, 2018
If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with probability 1/5, and 3600 with probability 4/5, then her Arrow-Pratt measure of risk aversion is
 
  A) 0.5/w.
  B) 1/w.
  C) 1.5w.
  D) 3/w.

Question 2

Which of the following is a sequential game?
 
  A) rock-paper-scissors (Roshambo)
  B) paintball
  C) Monopoly
  D) boxing


ndhahbi

  • Sr. Member
  • ****
  • Posts: 390
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
« previous next »
 

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

How to find an angle in radians degrees for any given reciprocal trigonometric function How to find an angle in radians degrees for any given reciprocal trigonometric function
Hepatic Acinus Model of Liver Function Hepatic Acinus Model of Liver Function
Graph the function by hand & label key points on graph: Graph the function by hand & label key points on graph:
Sketch a graph of the function h(x), by hand on the following interval: Sketch a graph of the function h(x), by hand on the following interval:
Calculus help: Find a cubic function f (x) = ax3 +bx2 +cx+d that has a local maximum value of 3 ... Calculus help: Find a cubic function f (x) = ax3 +bx2 +cx+d that has a local maximum value of 3 ...
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Video: Neural Reflex Arc Animation

For a complete list of videos, visit our video library