Math

StatisticsQ&A Library2/cfi/120!/4/4@O.00:52.9100 with a favorable market is too high. Howmuch lower would this figure have to be for Kento change his decision made in part b?Mickey Lawson is considering investing some3-20money that he inherited. The following payoff tablegives the profits that would be realized during thenext year for each of three investment alternativesMickey is considering:# 3-STATE OF NATUREPOORGOODDECISIONALTERNATIVEECONOMYECONOMY-20,00020,00023,0000.580,000Stock market30,000Bonds23,000CDsProbability0.5(a) What decision would maximize expected profits?(b) What is the maximum amount that should bepaid for a perfect forecast of the economy?:3-21 Develop an opportunity loss table for the investmentproblem that Mickey Lawson faces in Problem 3-20.What decision would minimize the expected oppor-tunity loss? What is the minimum EOL?Question

Asked Oct 25, 2019

281 views

question 3-20

Step 1

Given data

Step 2

b)

Best way is to invest in stock market with payoff of 80000 and invest in CDs with a...

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: Assume that 26.6% of people have sleepwalked. Assume that in a random sample of 1517 adults, 418 ha...

A: It is given that p is 0.266 and n is 1,517.

Q: In the 1992 presidential election, Alaska's 40 election districts averaged 1898 votes per district f...

A: Given:

Q: Help!

A: Measures of position:The most common measures of position are percentiles, quartiles and standard sc...

Q: Hello - i asked the question before, but do not fully understand. Do you mind breaking it down? Ac...

A: Given:Average = 7% = 0.07We know that according to the Central Limit Theorem (CLT), th...

Q: When tall and colorful plants are crossed with short and colorless plants, four types of plants will...

A: Computing the probability:It is given that tall and colourful with probability, 0.37. That is, p1 = ...

Q: Survey question asked among people 12 and older how many cell phones are being used in your house? 2...

A: The probability if a randomly selected person is chosen his or her household will have four or more ...

Q: Private colleges and universities rely on money contributed by individuals and corporations for thei...

A: The sample mean will be used as a point estimate for the mean endowment of all private colleges.

Q: A jar contains 34 red marbles numbered 1 to 34 and 28 blue marbles numbered 1 to 28. A marble is dra...

A: Total number of red marbles = 34Total number of blue marbles = 28Total number of marbles = 34+28 = 6...

Q: Please help me with question 1D. thank you

A: 1d)From the given information, Joe comes out head for the year if his average payoff is greater than...