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A friend offers you a chance to play a game in which there are only two outcomes, each with equal probability.  If you get the "good" outcome, you win $80.  But if you get the bad outcome, you only win $20. What price to play would make this a fair game (fair bet)?  Carefully follow all mathematical instructions in your answer.

What is heuristics

d. Use expected utility to make a recommended decision. e. Should the decision maker feel comfortable with the final decision recommended by the analysis?

1. Imagine a person who wants to find a job within two months. Define X corresponding to the outcome, such that X = 1 if the person finds a job and X = 0 otherwise. (a) Explain why X can be viewed as a random variable. What is the support of X? (b) Suppose the probability of finding a job is 0.75. What is the probability distribution of X? Be specific.

Give typing answer with explanation and conclusion

4. $1000 with of $325. (a) (b) Adam is risk averse. He is offered a choice between a gamble that pays a probability of 25% and $100 with a probability of 75%, or a sure payment What is the expected payment of the gamble? Will Adam prefer gamble over sure payment? Would he change his mind if the sure payment is $320 instead of $325? (c) If this individual has a utility function u(x) = lnx, would he prefer the payment of $320 or the gamble? (d) In the CRRA utility family u(x) = x¹-7. If this individual has a utility where y = 0.01, would he prefer the payment of $320 or the gamble?

17-2 Game Show Uncertaninty In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable?

What is the decision rule? when is it used?

FIVE. Which of the following is true about standard deviation?     The first step in calculating the standard deviation is calculating the square root.   The second step in calculating the standard deviation is to subtract each measurement from the intermediate value and then square that difference.   The last step in calculating the standard deviation is to sum the squared values and divide by the number of values minus one.   Standard deviation is a type of average where the positive and negative numbers sum to zero.   The amount of difference of the measurements from the central value is called the sample standard deviation.

Answer letter D only. Show complete solution. Thank you!

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Note :Hand written solution should be avoided.

The project manager of Good Public Relations gatheredthe data shown in Table 7.15 for a new advertisingcampaign.a. How long is the project likely to take? b. What is the probability that the project will take more than38 weeks?c. Consider the path A–E–G–H–J. What is the probability thatthis path will exceed 38 weeks?

Which anxiety disorder involves a fear of being in places or situations where escape might be difficult? A) Social B) Agoraphobia C) Specific D) GAD

Im confused on how to complete this

Question 5-/ problems A-F.

1. Individual Problems 18-1 You hold an oral, or English, auction among three bidders. You estimate that each bidder has a value of either $88 or $110 for the item, and you attach probabilities to each value of 50%. The winning bidder must pay a price equal to the second highest bid. The following table lists the eight possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder. Combination Number Bidder 1 Value Bidder 2 Value Bidder 3 Value Probability Price ($) ($) ($) 1 $88 $88 $88 0.125      2 $88 $88 $110 0.125      3 $88 $110 $88 0.125      4 $88 $110 $110 0.125      5 $110 $88 $88 0.125      6 $110 $88 $110 0.125      7 $110 $110 $88 0.125      8 $110 $110 $110 0.125        The expected price paid is   .   Suppose that bidders 1 and 2 collude and would be willing to bid up to a maximum of their values, but the two bidders…

question attached

Mete is Esra's boyfriend. Esra is expecting a marriage proposal from Mete. Today is Sunday. Mete says Esra that: (1) he is going to propose Esra on Monday or Tuesday or Wednesday or Thursday or Friday, at 10:00 pm. (2) he knows right now the day when he will propose (3) but the day of proposal will be a surprise to Esra: On the day of the proposal, she would not be expecting the proposal that day. Esra says Mete that what he says is impossible. Explain why Esra is right in a few sentences.

1. A dealer decides to sell a rare book by means of an English auction with a reservation price of 54. There are two bidders. The dealer believes that there are only three possible values, 90, 54, and 45, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue is approximately ______. 2. A seller knows that there are two bidders for the object he is selling. He believes that with probability 1/2, one has a buyer value of 5 and the other has a buyer value of 10 and with probability 1/2, one has a buyer value of 8 and the other has a buyer value of 15. He knows that bidders will want to buy the object so long as they can get it for their buyer value or less. He sells it in an English auction with a reserve price which he must…

QUESTION 26 A deck of 52 playing cards consists of 4 suites: clubs, spades, hearts, and diamonds. Each suite consists of 13 cards. Draw one from a deck of cards. Let A=a card "2" is drawn, B=a "diamond" card is drawn. Which is the value of P(A and B), i.e., {probability that the card drawn is "diamond" and "2"} ? 1/52 4/52 13/52 16/52

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Garret bought a leather football that cost $22. He then bought 10 more footballs for his friends. How much money did he spend for all 11 footballs? Show work by using slope-intercept form?

Betting on Events Suppose there is a 75% chance of rain tomorrow. You are offered a "contract" that will pay you $1 if it rains tomorrow and $0 if it doesn't. Suppose there is a 75% chance of rain tomorrow. You are offered a "contract" that will pay you $1 if it rains tomorrow and $0 if it doesn't. Question 4 What is the expected (average) value of the contract's payout in dollars?

#17 A local club plans to invest $10000 to host a baseball game. They expect to sell tickets worth $14759. But if it rains on the day of game, they won't sell any tickets and the club will lose all the money invested. If the weather forecast for the day of game is 20% possibility of rain, what is the expected value of investing in the baseball game? Probability Leave money in bank Invest in Baseball game Submit Answer format: Number: Round to: 1 decimal places. Rain 0.2 No Rain 10000 10000 0 14759 unanswered not_submitted Attempts Remaining: 2 #18 At the carnival, we found a bean bag toss booth. There's a 0.64 probability of throwing the bean bag into the outer ring, a 0.11 probability of throwing it into the middle ring, and the remaining probability throwing it into the center of the target. Tickets are awarded depending on which ring the bean bag lands in. We get 1 ticket for the outer ring, 2 tickets for the middle ring, and 3 tickets for the center. What is the expected value…

Uncertainty The Utility function is U = W1/3Flood occurs with Probabilities=1/25. The Value of a house is $450,000 if no flood. Aftera flood, the value is $50,000. Cost of insurance is 10 cents per dollar.a. Calculate EU b. Calculate EV c. Calculate CE d. Calculate RP e. Calculate the variance and standard deviation f. How much insurance should you buy? Assume your are paying premium in all events.g. What is the expected profit of the insurance company? h. Calculate the coefficient of absolute and relative risk aversion

ONLY SOLVE D   An investor with a total wealth of $100 is faced with the following opportunities. First, he may invest $100 now and receive $144 if there are good times, but receive $64 if there are bad times. The investor estimates that good times happen with 50% probability.He can also buy an investor newsletter whether good times or bad times will occur. (a) Draw the decision tree that illustrates the options available to the investor and the payoffs to the different options. Define P as the price of the newsletter. (b) If the investor is risk-neutral with U(M) = M, where M is income, how much would he be willing to pay for the subscription to the newsletter? (c) If the investor is risk-averse with utility U(M) = M0.5, where M is income, how much would this investor be willing to pay for the subscription to the newsletter? (d) Suppose that the owner of the newsletter estimates that there are 75 risk-averse investors like those of part (c) and 25 investors like those of part(b). If…

Decisions Involving Uncertainty - End of Chapter Problem You're a project manager overseeing five teams that are developing a new app. Each team must complete their work by July 1 in order to release the app by the end of the year. Based on your work managing the project, you know that each team has about a 75% chance of meeting the deadline. a. The probability that your firm will complete the project by the end of the year is b. Suppose that before you calculate the probability of completing the project, you walk into a weekly status meeting with the CEO. When she asks you for your "gut feeling" about the probability of finishing the project by the end of the year, you respond with an answer that exhibits the anchoring bias. Your response will likely be, "About 70%." "About 90%." "About 25%."

Many decision problems have the following simplestructure. A decision maker has two possible decisions, 1 and 2. If decision 1 is made, a sure cost of c isincurred. If decision 2 is made, there are two possibleoutcomes, with costs c1 and c2 and probabilities p and1 2 p. We assume that c1 , c , c2. The idea is thatdecision 1, the riskless decision, has a moderate cost,whereas decision 2, the risky decision, has a low costc1 or a high cost c2.a. Calculate the expected cost from the riskydecision.b. List as many scenarios as you can think of thathave this structure. (Here’s an example to get youstarted. Think of insurance, where you pay a surepremium to avoid a large possible loss.) For eachof these scenarios, indicate whether you wouldbase your decision on EMV or on expected utility

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What is “nonresponse”? Identify four types of nonresponse in surveys.

QUESTION 24 A deck of 52 playing cards consists of 4 suites: clubs, spades, hearts, and diamonds. Each suite consists of 13 cards. Draw one from a deck of cards. Let A=a card "2" is drawn, B=a "diamond" card is drawn. Which is the value of P(A|B), i.e., {probability that the card drawn is "2" given that we have known it is "diamond"} ? 1/52 1/4 1/13 16/52