A gamble pays $450 with prob. p and pays $150 with prob. 1 - p, where p is the probability. If the expected value is 345, then p 0.55 0.6 O 0.65 O 0.70
Q: ar The twentieth century saw unprecedented growth in O the United States; Western Europe O Western…
A: In the 2nd half of the nineteenth century, the industrial upheaval was knowledgeable about numerous…
Q: would you rather maximize your total utility or your marginal utility?
A: Total Utility is the total satisfaction that a consumer receives when he consumes different units of…
Q: Consider the following. Demand Function Quantity Demanded p = 128 x2 + 2 x = 6 Find the…
A: Answer: Given, Demand function: p=128x2+2Let us write the above equation in terms of…
Q: 2. Explain economies of scope and provide an example.
A: The firms and businesses tend to operate in the markets with the motive of maximizing the level of…
Q: Question 17 Of the following creditors, who is paid last in a bankruptcy liquidation? O General…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: A two-good economy is in a competitive equilibrium. The price of a piece of candy is $2 and the…
A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…
Q: Why should heterodoxy be better than orthodoxy to fight inflation from the point of view of the…
A: The term "heterodoxy" refers to the policies which are generally focused upon realism. But orthodoxy…
Q: SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the…
A: Annuity is the payment of Equal amount which is constant at each period. When Annuity amount is…
Q: Make a simple statement (Which do you think among the 3 ethical theories fits in a business…
A: Ethics of Utilitarianism Utilitarianism, the first ethical paradigm in normative ethics, is commonly…
Q: Suppose that demand for anchovy pizza is given by PD = 50 – QD, and the supply of anchovy pizza is…
A: Since you have given multiple questions, we will solve the first one for you. If you want any…
Q: Does Elon Musk suffer from scarcity? Explain.
A:
Q: Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased…
A: bank net worth is calculated by the following formula:- Net Worth = Total Assets – Total…
Q: The manager's job in leading the previously mentioned production process is twofold: (1) to…
A: Managers of the firm has a place with the Middle level of the management. Managers generally goes…
Q: If the profit maximizing ma rkud factor in a 10imm Cournot ol gopoly is -2, what is the comespond ng…
A: An oligopoly structure known as the Cournot competition is when companies compete with identical…
Q: 24- A firm producing lamps has fixed costs of €1000 per week. 1) If a kamp costs E15 to produce. (a)…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: what is the difference between nash equilibrium and dominated strategy?
A: Game theory is defined as the science of strategic decision-making that occurs in situations which…
Q: Consider the following. Demand Function Quantity Demanded 242 + 2 p = x = 3 Find the price…
A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…
Q: It is estimated that a certain piece of equipment can save $16,000 per year in labor and materials…
A: A certain piece of equipment can save $16000 per year in labor and material costs So A= $16000 Life…
Q: On the standard Phillips curve diagram, why do both the Y axis (unexpected inflation) and the X axis…
A: The Philips curve is an economic concept stating that inflation and unemployment have a stable and…
Q: Pretend your company won a license to build a U.S. cellular system (the application cost for the…
A:
Q: QUESTION 5. The approach by Borjas (2003) on evaluating the effects on immigration ignores: (a)…
A: Question 5 The cross elasticity of demand refers to the change of one commodity's quantity with…
Q: Which best describes the decision criterion for implementing either a private or public project?…
A: Private Project : The Private project can be defined as any proposal which is primarily initiated or…
Q: 2. A company produces an item at a unit cost of Rs. 5. If the supply finction is given by q= 150+6p…
A: Here, given information is, Per unit cost: Rs. 5 Supply curve: 160+6p Total profit: Rs. 500 To…
Q: It refers to the number of years that the original capital investment for the project will take to…
A: Profitability index(PI) is the ratio of PV(present value) of future cash flows which are expected…
Q: Calculate average cost when total cost Is 100 and total quantity is 8
A: We know that:-Average cost= Total CostQuantityAs per question,Total cost is 100 amd quamtity is 8.
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Comparative advantage depends on opportunity cost, which is the decrease in production of one good…
Q: It is an expression of the increase in the cost of goods and services from one year to the next. О…
A: When the prices of goods and services increase then consumers are unable to maintain their current…
Q: 3. The neoclassical theory of the firm suggests that firms produce outputs by combining inputs that…
A: The Coase Theorem is the legal and economic concept on property rights proposed by economist Ronald…
Q: The goods markets of countries A and B are described by the following equations: C = co + c¡ (Y –…
A: Given C=c0+c1Y-T .... (1) I=b0+b1Y-d2i .... (2) G=G For country A: T=t0 For country B:…
Q: 3. In a model of quantity competition, duopolists compete for a market where demand is given by P =…
A: In Stackelberg duopoly, two firms compete in quantity where one firm is a leader and the other is a…
Q: 1. A study indicated that the optimal price for a consumer product is $32.45. Most products in the…
A: The markets are the place where the buyers and the sellers of various goods, services and other…
Q: Do you think that higher education in engineering should receive a greater government subsidy…
A: Education plays a very significant role in increasing the cognitive skills, efficiency and knowledge…
Q: 43. Which of the following does not explain what currently backs the money supply in the United…
A: The money supply is the stock of money with people during the year . Supplier of money are the…
Q: rice Ceiling of Low-Cost Homes The Malaysian government has implemented a price ceiling on…
A: A price ceiling is an upper limit on the price.
Q: When the perfectly elastic supply curve shifts upwards (increase in price), does producer surplus…
A: Supply curve being perfectly elastic simply means that even a small change in price of the product,…
Q: Hi i have an question to do with business economics. What is inflation, how it is measured, and…
A: Inflation Definition Inflation is characterized by a rise in the price of goods and services…
Q: Question 19 12 11 10 9 6 4 3 1 10 20 30 40 50 60 70 80 90 100 110 120 2 The go ent imposes a $3 tax.…
A: Consumer surplus is the area above the market price and below the demand curve up to equilibrium…
Q: The economy of country B is characterized by the following: • Aggregate output: Y • Investment…
A: At equilibrium, aggregate output is equal to the sum of consumption, investment and government…
Q: USD/AUD=1.44 What is the GBP/AUD exchange rate?
A: The AUD/GBP exchange rate is expected to climb in 2021, according to banks. After a decline of…
Q: To combat a recession, the Indian government enacts expansionary fiscal policy, which increases…
A:
Q: 11 If accounting were a production system, a journal would be an "output." Group of answer choices…
A: A journal records all financial transactions of a firm or an organization. It records debit and…
Q: Suppose that firm uses 3 units of labor (L) with 4 proportion. Which of the following is correct?…
A: Marginal Rate of Technical Substitution:- The MRTS can be explained as the proportion at which one…
Q: WA waste disposal company is considering getting into bio-disposal business. The incinerators cost…
A: Fixed costs refers to that expenses that do not change depending on how much is produced. Interest…
Q: ! Thank you.
A: Given: B=0
Q: QUESTION 1 Debt (-) items in the balance of payments correspond to anything that: Oa. Involves…
A: The correct answer is given in the second step.
Q: For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high,…
A: The game theory is the investigation of the manners by which communicating decisions of monetary…
Q: Is optimal consumption basket the same as associated level of utility?
A: Consumption is the process through which institutional units consume products or services; it may be…
Q: Question 16 What type of annuity is represented by the graph below? P 2 3 k-1 k А, А, Аз Ak-1 Ak A…
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
Q: Required information The Briggs and Stratton Commercial Division designs and manufacturers small…
A: The annual worth is the net of the relative multitude of advantages and costs caused by more than a…
Q: Suppose the government forces the price to be above the equilibrium. Is this called a price floor…
A: Price control refers to the form of government interference in the free market to influence the…
Step by step
Solved in 2 steps with 1 images
- Suppose an investor is concerned about a business choice in which there are three projects, the probability and returns are given below. Probability Return 0.4 $100 0.4 40 The expected value of the uncertain investment is $ ----------- (round off to the nearest dollar.Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero. a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000. c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 % probability of earning a profit of K10,000 and a 30% probability of incurring a loss of K10,000. His utility at the moment is 20 utiles with the current K10,000. With K20, 000 his utility would be 25 utiles and with K0 his utility would be zero.a) What is the expected profit of the project? b) What is the expected marginal utility of the project? Is Mr Phiri likely to invest in the project? Mr Sinkala also has K10,000 from which he derives 20 utiles. However, Mr Phiri derives 15 utiles from the profit of K10,000.c) What is the expected marginal utility for Mr Sinkala? d) How can you describe Mr Phiri and Mr Sinkala in terms of their attitude towards risk?
- Project NOLA has an initial after-tax cost of $150,000 at t = 0 The project is expected to produce after-tax CFs of $60,000 for the next three years. The project's WACC is 10%. The project's CFs depend critically upon customer's acceptance of the product. There's a 60% probability that the product will be successful and generate annual after-tax CFs of $100,000, and a 40% probability that it will not be successful and hence produce annual after-tax of -$20,000. Should the company abandon the project after a year ?please so working for everything. Thank you.The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses for operating andmaintaining the lift are estimated to be $1,500 per day when operating. The U.S. Weather Service estimates thatthere is a 60% probability of 80 days of skiing weather per year, a 30% probability of 100 days per year, and a 10% probability of 120 days per year. The operators of the resort estimate that during the first 80 days of adequate snow in a season, an average of 500 people will use the lift each day, at a fee of $10 each. If 20 additional days are available, the lift will be used by only 400 people per day during the extra period; and if 20 more days of skiing are available, only 300 people per day will use the lift during those days. The owners wish to recover any invested capital within five years and want at least a 25% per year rate of return before taxes. Based on a before-tax analysis, should the lift be installed?Pls do fast and i will rate instantly for sure Solution must be in typed form Calculate the covariance for the returns of stock 1 and stock 2 given the six years of historical returns presented below: Given that the standard deviation of stock 1 and stock 2 in the table above is 0.2236 and 0.3225, respectively, use your answer in (A) to calculate and interpret the correlation between the 2 assets. Based on the characteristics of NSC and JSE above you are considering forming a portfolio comprising the two stocks such that you invest the following amounts: i. $40000 and $60000 in company NSC and JSE respectively in the first instance, and alternatively ii. $70000 and $30000 in company NSC and JSE respectively. C. What is the expected return and standard deviation of the portfolio in the two instances above? What is the expected return and standard deviation of the portfolio in the two instances above?
- ‘Lottery A’ refers to a lottery ticket that pays $2,000 with a probability of 0.3, $8,000 with a probability of 0.4, $12,000 with a probability of 0.2, and $18,000 with a probability of 0.1.What is the expected value of Lottery A?A) $7200B) $8000C) $9000D) $7900E) None of the aboveYou’re the manager of global opportunities for a U.S. Manufacturer, who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines, and Singapore as described next: Success Level Malaysia Philippines Singapore Probability Units Probability Units Probability Units Big 0.3 1,200,000 0.3 1,000,000 0.7 700,000 Mediocre 0.3 600,000 0.5 320,000 0.2 400,000 Failure 0.4 0 0.2 0 0.1 0 The product sells for $10 and has unit costs of $8. If you can enter only one market, and the cost of entering the market (regardless of…Given ten historical returns: [-15%, -13%, -10%, -5%, -3%, 1%, 4%, 7%, 11%, 20%], what is the 20% conditional value at risk (CVaR) under the empirical distribution? Select one: a. -15% b. -14% c. -13% d. -10% e. 11%
- Suppose XYZ Corporation's stock price rises or falls with equal probability by $25 each month, starting where it ended the previous month. What is the value of a three month at the-money European call option on XYZ's stock if the stock is priced at $100 when the option is purchased?$______The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. Use expected value to recommend a decision. b. Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): state of nature low demand medium demnad high demand Decision alternative s1 s2 s3 manufacture d1 -20 40 100 purchase d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. a. A test market study of the potential demand for the product is expected to report either a favourable (F) or unfavourable (U) condition. The relevant conditional probabilities are as follows: P(F|S1)=0.10 P (U|S1)=0.90 P(F|S2)=0.40 P (U|S2)=0.60 P(F|S3)=0.60 P (U|S3)=0.40 A.Compute the probabilities by completing the table Sate of…
