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Amir operates a large lobster boat. The operating cost for the boat is $2,250 each day. At the end of each day, he sells allhis freshly caught lobster to either the local restaurant or the local grocery store with the following conditions:
.
The price per pound that the restaurant is willing to pay follows a triangular distribution with minimum value $1.50,
maximum value $5.50, and likeliest value $3.50.
• The price per pound that the grocery store is willing to pay is decreasing with more lobsters: $3.85 - $0.0005 *y,
where y is the total lobster amount sold in pounds.
• The amount of lobster that Amir catches in a single day follows a normal distribution with mean 1,500 pounds and
standard deviation sqrt(12,500) pounds.
Amir decides to sell a fixed percentage of lobster to the local restaurant and the rest to local grocery stores. Using either
math or simulation, can you help Amir determine what percentage he should choose in order to maximize his expected profit
in the long run?
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- You are a University student who must live off-campus in the second year. There are two types of one-bedroom apartment where you prefer to live because it is near the campus. One rents for $400 per month and the other $360. According to the University Students’ Housing Bureau 80 percent of apartments in the area consists of the $400 type while the remaining 20 percent are of the $360 type. You need to visit the apartments to discover the rent. Suppose the first apartment you visit cost $400 and the opportunity cost of your visit is $6 per visit. 1. If you are risk neutral person should you visit another apartment or rent the one you have found.2. Suppose you visit another apartment and find out that it rents for $400, should you visit another apartment?John is planning to travel to a country where there is some risk of contracting yellow fever. The direct market price for the medication that prevents yellow fever is $125. It would take him 2 hours to visit his doctor and get the prescription filled. The opportunity cost of his time is $25/hour. If he contracts yellow fever we assume that he will be sick and not able to work full days for two weeks. Under these conditions, let's assume he can work half days and has no vacation or sick time to use. His company will not pay him when he is sick and not working. His out of pocket expenses for medication, doctors’ visits, and lab tests to treat the yellow fever will be $500. His normal salary is $1,000 per week. John believes that his chance of getting yellow fever without preventative medicine is about 20%. His chance of getting yellow fever with the medication is 0%. There is no pain and suffering to be considered in this problem. What is the maximum price that John would pay…7 4. Profesör Çabuk homotetik bir fonksiyonu γ’ıncı dereceden homojen bir fonksiyonun monotonik artan bir fonksiyonu olarak tanımlamaktadır. Profesör Varian ise homotetik bir fonksiyonu birinci dereceden homojen bir fonksiyonun monotonik artan bir fonksiyonu olarak tanımlamaktadır. Hangisi doğrudur ve niçin?