Game Theory
1. Reading newspapers: A survey on student behavior in some major Bschools in India asked a randomly selected group of 240 students on the number of hours a week he/she reads a newspaper. The sample mean was 4.1 and standard deviation 3. We can assume that the underlying distribution (of number of hrs reading newspaper) is approximately normal.
a) What will be a 99% confidence interval of the population mean (number of hours a Bschool student read newspapers/week)?
b) Suppose you perform a similar survey at IIMA with 24 randomly selected students; the sample mean and the sample standard deviation were 4.5 and 2.8 respectively. What will be a 99% confidence interval of the population mean …show more content…
(i) From the six televisions of brand A, draw a random sample of size two without replacement.
(ii) From the ten televisions of brand B, draw a random sample of size two without replacement.
(iii) Reject if and only if both the televisions in at least one of the two samples are defectives.
a) What is the probability of type I error for the above test procedure?
b) Find the probability of type II error for this procedure when M equals 3.
5. Anorexia in teenage girls: Anorexia is an eating disorder that can cause a person to be dangerously underweight. A recent study analysed the effect of cognitive behavioural therapy in aiding weight gain on 29 teenage girls affected with Anorexia. Each girl’s weight was measured before and after the therapy and the weight change (positive: weight gain; negative: weight loss) was noted. The weight changes for the 29 girls had a sample mean of = 3 kilos and a standard deviation of s = 7.32 kilos. Let µ be the population mean weight change. It can be assumed that weight change follow a normal distribution in the population.
a) What would be a reasonable set of hypotheses (null and alternative) for this problem?
b) How many standard errors separate the sample average weight change of the 29 girls and the null value (for the hypotheses you choose in

Game Theory and Oligopoly Fall
2627 Words  11 PagesEcon 101: Principles of Microeconomics Chapter 15  Oligopoly Fall 2010 Herriges (ISU) Ch. 15 Oligopoly Fall 2010 1 / 25 Outline 1 Understanding Oligopolies 2 Game Theory The Prisoner’s Dilemma Overcoming the Prisoner’s Dilemma 3 Antitrust Policy Herriges (ISU) Ch. 15 Oligopoly Fall 2010 2 / 25 The Oligopoly Monopolies are quiet rare, in part due to regulatory eﬀorts to discourage them. However, there are many markets that are dominated by a relatively few ﬁrms, known as oligopolies…

Game Theory, Deal or No Deal
929 Words  4 Pagesintroduction in December 2005, NBC has had tremendous success with the game show Deal or No Deal. The game show, which was created in the Netherlands, pits acontestant against the mysterious banker. The contestant is trying for the case with $1 million,while the banker's stated goal is to get the contestant to go home with as little money as possible while also trying to keep the game going for as long as possible. Deal or No Deal is a unique game show in that it takes virtually no skill on the part of the…

Taking a Look at Game Theory
1231 Words  5 PagesGAME THEORY Introduction: Game theory is the study of strategic decision making, cooperation and conflicts. The concepts appear when the actions of several agents are independent. The agents are like groups, individuals, firms or any combination of these. These ideology of provides a language to formulate, structure, analyze, and strategic scenarios. Specifically, it is the study of mathematical models of conflict and cooperation between intelligent rational decision makers. This is mainly used…

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2695 Words  11 PagesGAMES THEORY IN INTERNATIONAL RELATIONS 1.0 INTRODUCTION The field of game theory came into being with Émile Borel's researches in his 1938 book ‘Applications aux Jeux des Hazard’, and was followed by the 1944 book ‘Theory of Games and Economic Behaviour’ by John von Neumann and Oskar Morgenstern. This theory was developed extensively in the 1950s by many scholars. Game theory was later explicitly applied to biology in the 1970s, although similar developments go back at least as far as the 1930s…

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1385 Words  6 PagesGame Theory Picture if you will a group of people making decisions. The decisions that are made do not have to be significant at all. They have to be just significant to the situation at hand. This concept is considered to mathematicians as Game Theory. Game Theory is broken down into tree different types of games. As stated by Thomas S. Ferguson of UCLA “There are three main mathematical models or forms used in the study of games, the extensive form, the strategic form and the coalitional form”…

Game Theory and Economic Analyst
83847 Words  336 PagesGame Theory and Economic Analysis Game Theory and Economic Analysis presents the wide range of current contributions of game theory to economics. The chapters fall broadly into two categories. Some lay out in a jargonfree manner a particular branch of the theory, the evolution of one of its concepts, or a problem that runs through its development. Others are original pieces of work that are signiﬁcant to game theory as a whole. After taking the reader through a concise history of game theory,…

Outline Game Theory
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Entry Deterrence in Game Theory
1519 Words  7 PagesIntroduction Game theory, in this essay, means the study of strategies adopted by rational decisionmakers of economic agents in specific situations, analyzing outcomes of mathematical models of conflict and cooperation (Myerson, 1991). Its basic elements include players, actions, information, strategies, payoffs, outcome and equilibrium, among which, players, strategies and payoffs are the most essential; actions and outcome are called as rules of the game (Rasmusen, 2000). The objective of the…

Defining Game Theory in Economics
545 Words  2 PagesA Theory of Games Main Arguments: The main purpose of the chapter entitled "A Theory of Games" is to explain what is known as game theory. Game theory is a mathematical approach to economics which uses a special language and notation. Specifically, the chapter explains that games theory studies the strategies that people use when they make decisions. There is strategy employed any time a person makes a decision, whether or not they themselves are aware that they are employing any type of strategy…
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