Briefly explain why quantifying sk is important to decision making Why is it important to quantity risk when making a decision? OA Quantifying risk is important so it can be measured against the benetits when making decisions approprate for our own personal ccam OB. Quantifying risk is important so it can be measured against the benefts when making decisions idealy the rik wil egual the benets OC. Quantifying risk is important so it can be measured against the benefits when making decisions ideally the risk will outweigh the benet OD. Quantifying risk is important so it can be measured across a population and help identity why pecple make the decisions they do.
Q: Firm B operates in a perfectly competitive market. What is the profit maximizing price? O a) $11 O…
A: The structure of a market where there are a large number of sellers that sell homogenous products in…
Q: Question 3 If "Abu Ahmed" buys a medicine produced by a Jordanian firm operating in Kuwait: "Jordan…
A: In the international market, when an individual makes an exchange with the people of another…
Q: continued to work in the company. At the end of the year 2014, however, she was recruited by a media…
A:
Q: Jacob manages a cloth manufacturing firm. He is deciding whelher of nol machinery costs $45,000…
A: Net present value (NPV) is the difference between the present value of cash inflows and the present…
Q: Explain briefly. Growth Rate of Gross National Product (GNP)
A: Gross domestic product (GDP) is the all out financial or market worth of the relative multitude of…
Q: Let K denote the quantity of capital a country has at the beginning of period t. Also, suppose that…
A: Capital refers to anything that provides value or advantage to its owner, such as a factory and its…
Q: The Penn Central Railroad has not paid local taxes since 1969, under federal bankruptcy court…
A: A liability is something an individual or organization owes, generally an amount of cash.…
Q: Robert V Y Lina (3, 2) (5, 3) (6, 2) (7, 3) (4, 5) (6, 2) (5, 4) (6, 3) (3, 5) (8, 4) (7, 6) (8. 3)…
A: The two players game is played between Lisa and Robert.
Q: Okun's law describes the_long-run v relationship between the unemployment rate and the growth rate…
A: Okun’s law states the long-run relationship between unemployment and real GDP growth rate. If a…
Q: An economy is described by the following equations: C=150+0.5 YD I=150 G=200 T=? What is the value…
A: Aggregate expenditure (AE) in closed economy is the sum of consumption, investment, and government…
Q: D(Pp) = 135 – 5pp and S(ps) = 7ps – 105 %3D - Suppose the Government imposes a Quantity Tax oft 4.80…
A:
Q: Machine A has a fixed cost of $40000 per year and a variable cost of S60 per unit. Machine B has an…
A: Cost refers to the total expenditure that is incur in an production process.Cost is made up of from…
Q: Which of the following appears to be a safe assumption when there is no difference between the…
A: The rate at which one currency of one nation may be exchanged for another is known as the exchange…
Q: The inverse demand curve a monopoly faces is p=110−2Q. The firm's cost curve is C(Q)=40+6Q…
A: Profit maximization is a process business firms undergo to ensure the best output and price levels…
Q: Economics Question
A: The Federal Bank conducts monetary policy using Federal Open Market Operations through the buy and…
Q: Public goods have features that distinguish them from private goods. Select and drag the correct…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Activity 1. Describe briefly the effect of the following in purchasing power Taxes Prices Investors
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Lowering the corporate income taxes results in Increase in output and decrease in price in the short…
A: Corporation tax that is also known as corporate tax, is a direct tax placed on a corporation's net…
Q: ie demand function for a company is p = 200 - 31 and the cost function is given by C(z) U+ 80z - z.…
A:
Q: Explain probability and nonprobability samplingtechniques.
A: Probability and Non probability Sampling Techniques are the sampling techniques used for research.
Q: University education: is the only way for people to earn an income above the median income. should…
A: University education is the upper level education that is required to gain specialized knowledge and…
Q: Question 8 of 10 Attempt 1 of 2 Use the information in the table below to answer questions 7 through…
A: Labor cost = wage* labor Marginal cost = change in total cost / change in labor
Q: 3. Use the best-response curves to find all Nash equilibria (in both pure and mixed strate- gies) of…
A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…
Q: Chapter 14, Problem 5, p. 530. (not answered) In the New Keynesian model, how should the central…
A: Note:- Since we can only answer one question at time, we'll answer the first one. Please repost the…
Q: Which of the following is not a way that globalization has increased? O the increase in trade…
A: Globalization means the movement of goods and services freely across the world in a particular way.…
Q: Which of the following statements about Type I and Type II errors is correct: a Type I: Do not…
A: Null hypothesis is a hypothesis that says there is no significant difference in a set of…
Q: Which of the following statements is correct? Multiple Choice ___ Marginal cost is the change in…
A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.
Q: QUESTIC A Raider fan buys a $500 shirt from Milan, Italy. O A O E OF H.
A: In an economy, when an individual makes any transaction, it will be considered in the GDP of the…
Q: For the demand function Q = 700 – 7P + 3A +0.008Y2 where P is the price of the good, A is the…
A: Positive cross price elaticity implies that goods are substitutes and positive income elaticity…
Q: flowing into Bangladesh burst their banks; the government is grappling with a disaster whose size it…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 question for you. If…
Q: 1. Banks can increase their return on equity by a. increasing interest rates on loans; a decrease b.…
A: In a market, banks generally owns equity to make banking transactions and to operate the business.
Q: Refer to Pessimism. How is the new long-run equilibrium different from the original one? O 1) both…
A: Due to pessimism, consumers will cut down their purchases of major items. This will lead to a fall…
Q: Use the orange points (square symbol) to plot the initial short-run industry supply curve when there…
A: We know that the supply curve is the same as the firm's marginal cost curve. In the competitive…
Q: The sensitivity graph of a project is presented below: Sensitivity Analysis Q6 Graph.pdf 70 What is…
A: Slope of a line is defined as the steepness of the line. It is the ratio of the rise with respect to…
Q: In microeconomics, profit maximization means that: Firms should produce up to the last quantity…
A: Profit maximization refers to a process that which businesses go through to guarantee that they have…
Q: Q= 700 7P+3A³ +0.008Y? %3D where P is the price of the good, A is the alternative price of an…
A: Since you have posted multiple subparts, as per the guidelines we can solve only the first three…
Q: Problem 2: An economy has the following sectors: private households, government, grape producers and…
A: Gross domestic product, or, GDP refers to the value of all the final products that is manufactured…
Q: external forces that are driving changes in the global economy for transportation. b. A…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: explains interest rate and its determinants. Please explain is 3 paragraph
A: The monetary payment made for the privilege of borrowing money is known as interest, and it is…
Q: 2: The price elasticity of demand for Nanay Flor's Photography is 0.5. If the %AQ=10%. What is the…
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: Suppose that we can describe the world using two states and that two assets are available, asset K…
A: Future Price refers to the price of an asset in the future. It is usually predicted using the…
Q: 2.5 The following diagram illustrates the demand curve facing a monopoly in an industry with no…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: Given the demand functions, (ii) P = 80 − 2Q, (iii) P = 45 (a) Write down the equations…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 2. Assume MPC = 0.9. Government increased its spending by 100. 2.a. How much would this increase…
A: Goods market is in equilibrium when Aggregate demand and aggregate supply are equal to eachother.
Q: Which one of the following models emphasizes on liberty and free choice? The American model…
A: There are different models to be used to explain the specfiic situation of the economy in terms of…
Q: Which of the following stocks is riskier if you are considering investing in X or Y only? Stock…
A: When there are alternatives available at the marketplace, an individual has to make economic…
Q: 5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…
A: Given: Cost at time 0=200,000 Interest rate=12%
Q: Dizz Cut price Maintain price Perlis Cut price (-1,-1) A (2,-2) B Maintain price (-2,2) (1,1) D…
A: A Nash equilibrium is an equilibrium outcome from which none of the players want to deviate. There…
Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x, x2 - 2x – x3/2, when the weekly…
A: Given that x1 = 132 and x2 = 760
Q: The annual equivalent of three investment (revenue) alternatives are -23,000 for Investment A-21.000…
A: Answer- Answer is (d) Not invest in any of the alternatives if possible since none generate…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate file traits they are seeking in a new employee?Suppose that the University of Alabama and Clemson are making spending decisions for theupcoming year. Assume that Alabama is currently spending $15 million on their recruiting andfacilities, and Clemson is spending $10 million. Each team has an additional $5 million to spendor keep as profits. If they both choose to not spend the additional $5 million then Alabama hasa 60% chance of getting the highest quality quarterback recruit to commit to them (getting thecommitment of the player is the goal). However, if they both choose to spend the additional $5million then there is a 57% chance that Alabama gets the high quality quarterback to commit. IfAlabama spends the additional $5 million but Clemson doesn’t then there is a 67% chanceAlabama gets the recruit. However, if Alabama does NOT spend the additional $5million butClemson does then there is a 50% change either team gets the recruit’s commitment. Setup thepayoff matrix and label the players, their strategies, and their payoffs, and…a Suppose you are given a choice between thefollowing options:A1: Win $30 for sureA2: 80% chance of winning $45 and 20% chance ofA2: winning nothing B1: 25% chance of winning $30B2: 20% chance of winning $45Most people prefer A1 to A2 and B2 to B1. Explainwhy this behavior violates the assumption that decisionmakers maximize expected utility.b Now suppose you play the following game: You havea 75% chance of winning nothing and a 25% chance ofplaying the second stage of the game. If you reach thesecond stage, you have a choice of two options (C1 andC2), but your choice must be made now, before youreach the second stage.C1: Win $30 for sureC2: 80% chance of winning $45 13.5 Bayes’ Rule and Decision Trees 767Most people choose C1 over C2 and B2 to B1 (from part(a)). Explain why this again violates the assumption ofexpected utility maximization. Tversky and Kahneman(1981) speculate that most people are attracted to thesure $30 in the second stage, even though the secondstage may never be…
- 64. (This problem assumes knowledge of the basic rulesof baseball.) George Lindsey (1959) looked at boxscores of more than 1000 baseball games and foundthe expected number of runs scored in an inning foreach on-base and out situation to be as listed in the fileP09_64.xlsx. For example, if a team has a man on firstbase with one out, it scores 0.5 run on average untilthe end of the inning. You can assume throughout thisproblem that the team batting wants to maximize theexpected number of runs scored in the inning.a. Use this data to explain why, in most cases,bunting with a man on first base and no outs isa bad decision. In what situation might buntingwith a man on first base and no outs be a gooddecision?b. Assume there is a man on first base with one out.What probability of stealing second makes an attempted steal a good idea?Suppose that an incumbent can commit to producing a large quantity of outputbefore the potential entrant decides whether to enter. So, the incumbent Örst chooseswhether to produce a small quantity or a large quantity. The rival then decides whether toenter. If the incumbent commits to the small output level and if the rival does not enter,the rival makes $0 and the incumbent makes $900. If it does enter, the rival makes $125and the incumbent earns $450. If the incumbent commits to producing the large quantity,and the potential entrant stays out of the market, the potential entrant makes $0 and theincumbent makes $800. If the rival enters, the best the entrant can make is $0, the sameamount it would earn if it didnít enter, but the incumbent earns only $400. Show the gametree. What is the SPNE?Susan was frustrated. As chair of the school of nursing at the local university, she wantedher students to get used to using electronic health records. Ideally, these students wouldleave her program and be able to use their employer’s EHR system without any additionalorientation. Other campus health profession leaders had similar concerns. However, thefaculty found that within a 100-mile radius of the university, the area’s many hospitals andthree main healthcare systems all used different EHR vendors.The local healthcare systems promoted electronic health information. They were allconcerned about the safety and security of the records and the needs of their patients. Theywere also aware of the national push for system to integrate EHRs. In reality, however, therecords housed in the variety of systems could not be shared. The software was toodisconnected and dissimilar.Susan wondered what her next step should be. Which system should she adopt, ifany? How could she help move these…
- Hello experts, I have posted this question many times in chegg, but every time people answering this question to use ai tool like chatgpt, please dont use gpt and other ai tool. Can we change one of the most fundamental definition of economic theory: The way we calcutale the cost of risk? Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer then i have 23 chegg study accounts, i told you if the answer wrong then i gave 23 dislikes for you and more from my friends accounts also.Suppose that a large discount retailer with a lot of purchasingpower in a supply chain requires that all suppliers incorpo-rate a new information system that will reduce the cost of placing orders between the retailer and its suppliers as wellas between the suppliers and their suppliers. Suppose alsothat order quantities and lead times are related; the smallerthe order quantity the shorter the lead time from suppliers.Assume that all members of the supply chain use a continu-ous review system and EOQ order quantities. Explain the im-plications of the new information system for the supply chainin general and the inventory systems of the supply chainmembers in particularElena applies for private insurance and resents the number of questions asked on the application. She states that since the primary contribution of insurance companies is to pool the risk of many individuals, they should care less about the characteristics of any one applicant and more about increasing the number of the patients that they insure. Furthermore, she states, when she had insurance through her employer, she hardly had to answer any questions. Use economic reasoning to explain to Elena the insurance company's behavior
- Suppose, unfortunately, your mathematics andeconomics professors have decided to give teststwo days from now and you can spend a total ofonly twelve hours studying for both exams. Aftersome thought, you conclude that dividing yourstudy time equally between each subject will giveyou an expected grade of C in each course. Foreach additional three hours of study time for oneof the subjects, your grade will increase one letterfor that subject, and your grade will fall oneletter for the other subject.48 PART 1 • Introduction to EconomicsCopyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.a.…12. Consider a game where each player picks a number from 0 to 60. The guess that is closest to half ofthe average of the chosen numbers wins a prize. If several peopleare equally close, then they share theprize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers 13. Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30; (C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization. Can you help me answer number 13 please?A risk-averse agent, Andy, has power utility of consumption with riskaversion coefficient γ = 0.5. While standing in line at the conveniencestore, Andy hears that the odds of winning the jackpot in a new statelottery game are 1 in 250. A lottery ticket costs $1. Assume his income isIt = $100. You can assume that there is only one jackpot prize awarded,and there is no chance it will be shared with another player. The lotterywill be drawn shortly after Andy buys the ticket, so you can ignore therole of discounting for time value. For simplicity, assume that ct+1 = 100even if Andy buys the ticket How large would the jackpot have to be in order for Andy to play thelottery? b) What is the fair (expected) value of the lottery with the jackpot youfound in (a)? What is the dollar amount of the risk premium that Andyrequires to play the lottery? Solve for the optimal number of lottery tickets that Andy would buyif the jackpot value were $10,000 (the ticket price, the odds of winning,and Andy’s…