Below is the Exit, Voice, and Loyalty game between the state and the citizen.Recall that E is the payoff that the citizen gets when she exits, L is the payoff that thestate gets from retaining a loyal citizen, O is the payoff that the citizen gets fromremaining loyal, and C is the cost that the citizen must pay for using voice.Let E = 0:5, let L> 1, and let C = 0:25.%3D%3DVoiceExit(E;1)(0;1+L)(1-c,L)(E-c,1)(0-c,1+L)What is the expected sequence of actions in the game if you use these payoff values?O Citizen uses voice, State responds.HomD Citizen uses voice, State responds. Citizen exits.If yaCitizen exits.RespondLoyaltyIgnoreLoyaltyExit (1-c,L)(E-e,1)(0-c,1+L)What is the expected sequence of actions in the game if you use these payoff values?Citizen uses voice, State responds.Citizen uses voice, State responds, Citizen exits.Citizen exits.O Citizen remains loyal.O Citizen uses voice, State ignores.Loyalty

Answered: Image /qna-images/answer/48b9c9a7-fbe9-4734-8188-48767629e04f.jpg

Answered: Below is the Exit, Voice, and Loyalty…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Consider a "modified" form of "matching biased coins" game problem. The matching player is paid Rs.8 if the two coins turn both heads and Rs.12 if the coins turn both tails. The non-matching player is paid Rs.3 when the two coins do not match. Given the choice of being the matching or non-matching player, which one would you choose and what would be your strategy?.
The National Highway Association is studying the relationship between the number of bidders on a highway project and the winning (lowest) bid for the project. Of particular interest is whether the number of bidders increases or decreases the amount of the winning bid. Bidders Price 9.0 5.1 9.0 8.0 3.0 9.7 10.0 7.8 5.0 7.7 10.0 5.5 7.0 8.3 11.0 5.5 6.0 10.3 6.0 8.0 4.0 8.8 7.0 9.4 7.0 8.6 7.0 8.1 6.0 7.8 Given: Correlation of Coefficient: 0.7064 (This is correct) Coefficient of determination: 49.90% (This is correct) ŷ = 11.2360 + (-0.4667)x (This is correct) Create a scatter plot of the data Complete a regression analysis of the relationship. Slope = ______ Estimate the winning bid if there were seven bidders. Winning bid cost ______ millions. Compute the 95% prediction interval for a winning bid if there are seven bidders. [ _____________, ______________]
The National Highway Association is studying the relationship between the number of bidders on a highway project and the winning (lowest) bid for the project. Of particular interest is whether the number of bidders increases or decreases the amount of the winning bid. Bidders Price 9.0 5.1 9.0 8.0 3.0 9.7 10.0 7.8 5.0 7.7 10.0 5.5 7.0 8.3 11.0 5.5 6.0 10.3 6.0 8.0 4.0 8.8 7.0 9.4 7.0 8.6 7.0 8.1 6.0 7.8 GIVEN: correlation coefficient: - 0.7064 Slope: -0.4667 Coefficient of determination: 49.90% regression equation: ŷ= 11.2360 + (-4467)x FIND: Estimate the winning bid if there were seven bidders. Winning bid cost _________ millions. Explain. Compute the 95% prediction interval for a winning bid if there are seven bidders. [ _______________ , _______________ ] (Explain).
Consider a symmetric game with 10 players. Each player chooses among three strategies: x, y, and z. Let nx denote the number of players who choose x, ny denote the number of players who choose y, and nz denote the number of players who choose z. (So, nz = 10−nx−ny.) The payoff to a player from choosing strategy x is 10−nx (note that nx includes this player as well), strategy y is 13−2ny (again ny includes this player as well), and strategy z is 3. (a) Show that a Nash equilibrium must have at least one person choosing x and at least one person choosing y. (Hint: In a Nash equilibrium, no player can do better by doing something different.) b) Find all Nash equilibria.
An agent makes decisions using U(ct) = {[ct−χc(t−1)]^(1−γ)} /(1−γ) . Answer the following: (a) Suppose χ = 0. Derive an expression for the coefficient of relative risk aversion RR(ct)? (b) Suppose 0 < χ ≤ 1. Derive an expression for the coefficient of relative risk aversion RR(ct) (c) Suppose 0 < χ ≤ 1. How does this utility function help address the equity premium puzzle? (d) Suppose χ = .4, γ = 0.5, ct = 105, and ct−1 = 100, what is the coefficient of relative risk aversion? (e) Suppose 0 < χ ≤ 1. Suppose the agent is confronted with a mean preserving spread where ˜RB is riskier than ˜RA and where E[˜RA] = E[˜RB] and ˜RA SSD ˜RB. Derive the restriction for the value of γ where the agent saves more today under ˜RB than ˜RA. (f) Suppose χ = .4, γ = 0.5, ct = 105, and ct−1 = 100, what value must γ be greater than for the agent to save more today under the mean preserving spread
Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. Students in group A are given food (F) when they walk in, and students in group B are given a drink (D). Refer to Scenario 1. Suppose that all members of both groups have identical preferences where food and drink provide utility U = FαDβ. The exchange would be such that (a) both would be guaranteed to be better off than when they entered.(b) both would be guaranteed to be at least as well off as when they entered. (c) students in group A would end up with more utility. (d) students in group B would end up with more utility.
3. Consider the following scenario: Let P(C) = 0.4, P(D) = 0.5, and P(C|D) = 0.6. Find P(C or D). Find P(D|C).
A friend who lives in Los Angeles makes frequent consulting trips to Washington, D.C.;50% of the time she travels on airline #1, 30% of the time on airline #2, and the remaining 20% of the time on airline #3. For airline #1, flights are late into D.C.30% of the time and late into L.A.10% of the time. For airline #2,these percentages are 25% and 20%,whereas for airline #3 the percentages are 40% and 25%.If we learn that on a particular trip she arrived late at exactly one of the two destinations, what are the posterior probabilities of having flown on airlines #1,#2, and #3? Assume that the chance of a late arrival in L.A.is unaffected by what happens on the flight to D.C. [ Hint: From the tip of each first generation branch on a tree diagram, draw three second-generation branches labeled, respectively, 0 late,1late, and 2 late.]
In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y1 already made by the leader, firm 1?
A producer of pocket calculators purchases the main processor chips in lots of1,000. The producer would like to have a 1 percent rate of defectives but willnormally not refuse a lot unless it has 4 percent or more defectives. Samples of50 are drawn from each lot, and the lot is rejected if more than two defectives arefound.a. What are p0, p1, n, and c for this problem?
A random sample of 32 retail stocks such as Toys ‘R’ Us, Best Buy , and Gap were studied for x1, profit as a percentage of stockholder equity. The result was ?̅1 = 13.7. A random sample of 34 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas Utilities, were studied for x2, profit as a percentage of stockholder equity. The result was ?̅2 = 10.1. (Source: Fortune 500, Vol. 135, No. 8.) Assume that ?1 = 4.1 and ?2 = 2.7. a. Let ?1 represent the population mean profit as a percentage of stockholder equity for retail stocks, and let ?2 represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 95% confidence interval for ?1 − ?2 (by the calculator).b. Explain what this interval means in the context of this problem. Can we make any conclusion comparing μ1and μ2
A fast food company is offering a prize promotion game. The company claims that in 0.5 % 0.5% of all orders will receive $ 100 $100 cash, 1 % 1% of all orders will receive $ 10 $10 cash, and 10 % 10% of orders will receive a coupon for a free soft drink. The remaining orders will receive no prizes. A group of long-time customers were excited about the new promotion, and over the course of the promotion, they placed 651 orders 651 orders. Of these orders, 2 2 ended up winning $ 100 $100, 6 6 won $ 10 $10, and 52 52 won a free soft drink. The group wants to do a chi-squared goodness of fit test to test the advertised odds. Are the conditions met for this test?

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