pleaseplease do this urgently 4. You are a bitcoin trader. You have $1,000,000, and today one bitcoin costs $2000. To-morrow bitcoins will either cost $1000 or $4000, each with equal probability. (Assumethe prices are constant all day and change instantly at midnight.)For each of the following, give a strategy and why it's correct:(a)If you want to maximize the expected amount of money you havewhat should you do?tomorrow,(b)tomorrow, what should you do?Ifyou want to maximize the expected number of bitcoins you have 5.A company is hiring for an open position and has n interviews set up, oneper day. Each day, if the candidate is better than the current employee, the employeeis fired and the candidate is hired. Otherwise, the current employee keeps the job.What is the expected number of hirings the company will make?

4. You are a bitcoin trader. You have $1,000,000, and today one bitcoin costs $2000. To- morrow bitcoins will either cost $1000 or $4000, each with equal probability. (Assume the prices are constant all day and change instantly at midnight.) For each of the following, give a strategy and why it's correct: (a) If you want to maximize the expected amount of money you have what should you tomorrow, do? (b) tomorrow, what should you do? If you want to maximize the expected number of bitcoins you have

4. You are a bitcoin trader. You have $1,000,000, and today one bitcoin costs $2000. To- morrow bitcoins will either cost $1000 or $4000, each with equal probability. (Assume the prices are constant all day and change instantly at midnight.) For each of the following, give a strategy and why it's correct: (a) If you want to maximize the expected amount of money you have what should you tomorrow, do? (b) tomorrow, what should you do? If you want to maximize the expected number of bitcoins you have

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.5P

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