Excursions in Modern Mathematics (9th Edition)
9th Edition
ISBN: 9780134468372
Author: Peter Tannenbaum
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3, Problem 61E
To determine
(a)
To explain:
The reason that C is guaranteed a fair share.
To determine
(b)
To explain:
The reason
To determine
(c)
To explain:
The reason
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working q hours and not working at all, where q > 0. Suppose that dividend income is zero, and that the consumer pays a tax T if he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment.
a. If the wage rate increases, how does this affect the consumer’s hours of work? What does this have to say about what we would observe about the behavior of actual consumers when wages change? Explained also with the graph
b. Suppose that the unemployment insurance benefit increases. How will this affect hours of work? Explain the implications of this for unemployment insurance programs. Explained also with the graph
Suppose that you would like to create composite indexes from three stocks: stk1, stk2, stk3. Their stock prices (Pt) and total shares outstanding (Qt) from day 0 to day 1 are shown as follows: stk3 splits two-for-one in day 1.
P0
Q0
P1
Q1
stk1
40
250
50
250
stk2
50
100
50
100
stk3
60
150
50
300
Which answer is the closest value to the rate of return on a price-weighted index of the three stocks?
A.
20%
B.
25%
C.
30%
D.
35%
Suppose a company charges a premium of $150 per year for an insurance policy for storm damage to roofs. Actuarial studies show that in case of a storm, the insurance company will pay out an average of $8000 for damage to a composition shingle roof and an average of $12,000 for damage to a shake roof. They also determine that out of every 10,000 policies, there are 7 claims per year made on composition shingle roofs and 11 claims per year made on shake roofs. What is the company’s expected value (i.e., expected profit) per year of a storm insurance policy? What annual profit can the company expect if it issues 1000 such policies?
Determine the probability of a composition shingle roof claim out of 10,000 = ______
Determine the probability of a shake roof claim out of 10,000 = ______
How many claims are made out of 10,000? = _______
What is the probability of no claims out of 10,000? = _______
How much does each shingle roof claim cost the company, don’t forget each person pays $150…
Chapter 3 Solutions
Excursions in Modern Mathematics (9th Edition)
Ch. 3 - Henry, Tom, and Fred are breaking up their...Ch. 3 - Alice, Bob, and Carlos are dividing among...Ch. 3 - Angie, Bev, Ceci, and Dina are dividing among...Ch. 3 - Mark, Tim, Maia, and Kelly are dividing among...Ch. 3 - Allen, Brady, Cody, and Diane are sharing a cake....Ch. 3 - Carlos, Sonya, Tanner, and Wen are sharing a cake....Ch. 3 - Four partners Adams, Benson, Cagle, and Duncan...Ch. 3 - Prob. 8ECh. 3 - Suppose that Angelina values strawberry cake twice...Ch. 3 - Suppose that Brad values chocolate cake thrice as...
Ch. 3 - Suppose that Brad values chocolate cake four as...Ch. 3 - Suppose that Angelina values strawberry cake five...Ch. 3 - Karla and five other friends jointly buy the...Ch. 3 - Marla and five other friends jointly buy the...Ch. 3 - Suppose that they flip a coin and Jackie ends up...Ch. 3 - Suppose they flip a coin and Karla ends up being...Ch. 3 - Suppose that they flip a coin and Martha ends up...Ch. 3 - Suppose that they flip a coin and Nick ends up...Ch. 3 - Suppose that David is the divider and Paula is the...Ch. 3 - Suppose that Paula is the divider and David is the...Ch. 3 - Three partners are dividing a plot of land among...Ch. 3 - Three partners are dividing a plot of land among...Ch. 3 - Four partners are dividing a plot of land among...Ch. 3 - Four partners are dividing a plot of land among...Ch. 3 - Mark, Tim, Maia, and Kelly are dividing a cake...Ch. 3 - Allen, Brady, Cody; and Diane are sharing a cake...Ch. 3 - Prob. 27ECh. 3 - Four partners are dividing a plot of land among...Ch. 3 - Prob. 29ECh. 3 - Five players are dividing a cake among themselves...Ch. 3 - Four partners Egan, Fine, Gong, and Hart jointly...Ch. 3 - Four players Abe, Betty, Cory, and Dana are...Ch. 3 - Exercises 33 and 34 refer to the following...Ch. 3 - Exercises 33 and 34 refer to the following...Ch. 3 - Exercise 35 through 38 refer to the following...Ch. 3 - Exercise 35 through 38 refer to the following...Ch. 3 - Prob. 37ECh. 3 - Prob. 38ECh. 3 - Exercises 39 and 40 refer to the following:...Ch. 3 - Exercises 39 and 40 refer to the following:...Ch. 3 - Jackie, Karla, and Lori are dividing the foot-long...Ch. 3 - Jackie, Karla, and Lori are dividing the foot-long...Ch. 3 - Ana, Belle, and Chloe are dividing four pieces of...Ch. 3 - Andre, Bea, and Chad are dividing an estate...Ch. 3 - Five heirs A,B,C,D, and E are dividing an estate...Ch. 3 - Oscar, Bert, and Ernie are using the method of...Ch. 3 - Anne, Bette, and Chia jointly own a flower shop....Ch. 3 - Al, Ben and Cal jointly own a fruit stand. They...Ch. 3 - Ali, Briana, and Caren are roommates planning to...Ch. 3 - Anne, Bess and Cindy are the roommates planning to...Ch. 3 - Prob. 51ECh. 3 - Three players (A,B and C) are dividing the array...Ch. 3 - Three players (A,B,andC) are dividing the array of...Ch. 3 - Three players (A,B,andC) are dividing the array of...Ch. 3 - Five players (A,B,C,D,andE) are dividing the array...Ch. 3 - Four players (A,B,C,andD) are dividing the array...Ch. 3 - Prob. 57ECh. 3 - Queenie, Roxy, and Sophie are dividing a set of 15...Ch. 3 - Ana, Belle, and Chloe are dividing 3 Choko bars, 3...Ch. 3 - Prob. 60ECh. 3 - Prob. 61ECh. 3 - Prob. 62ECh. 3 - Prob. 63ECh. 3 - Prob. 64ECh. 3 - Three players A, B, and C are sharing the...Ch. 3 - Angeline and Brad are planning to divide the...Ch. 3 - Prob. 67ECh. 3 - Efficient and envy-free fair divisions. A fair...Ch. 3 - Suppose that N players bid on M items using the...Ch. 3 - Asymmetric method of sealed bids. Suppose that an...Ch. 3 - Prob. 73E
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Suppose one canoe rents for 40,and2 is taken off the price for each additional canoe rented by a ground. What size group gives the most income? Assume that there are 20 canoes available.arrow_forwardWhat is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?arrow_forwardThe following table indicates the unit prices (in Rands) and quantities of three goods purchased every month by a small restaurant for the years 2023 and 2024. GOOD 2023 2024 Unit Price (p0) Quantity (q0)) Unit Price (p1) Quantity (q1) Milk R12.60 2555 R12.85 2705 Eggs R11.00 114 R14.00 107 Flour R65.00 350 R68.50 400 Q.3.1 Using 2023 as the base year, compute the price relative in 2024 for milk and eggs. Interpret your answers. Q.3.2 Using 2023 as the base year, compute the Laspeyres price index for all of the goods for 2024. Interpret your answer. Q.3.3 Using 2023 as the base year, compute the Paasche price index for all of the goods for 2024. Interpret your answer.arrow_forward
- Consider the following model of a market for a good, in which Qs is quantity produced, Qd is quantity purchased and P is the price of the good. Qs=j+kP Qd=l-mP When Qs=Qd, what will Qs be equal to? a. (jm-kl)/(k+m) b. (jk+lm)/(k-m) c. (jk+lm)/(k-m) d. (jm+kl)/(k+m)arrow_forwardConsider the information below relating to the monthly rates of return for two companies X and Y over a period of 4 months: Y 2 xRate of return yRate of Return Date Month 1 -4.76 -4.75 Month 2 5.34 7.65 Month 3 12.09 6.98 Month 4 -2.98 9.65 Calculate the covariance per month between the two companies. Show all your working.arrow_forwardIt is known that in any given year, • 90% of the people in a city move to the suburbs; • 80% of the people in the suburbs do not move to the city. Given an initial city population of 55,000 and an initial suburb population of 77,000, what are the long-term population levels of the city and the suburb?arrow_forward
- Find the mean and standard deviation for each uniform continuous model U(1, 13) U(70, 200) U(3, 92)arrow_forwardYou have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product. The following cross tabular output appears. Under $10 $11-$15 over $15 All A 50 30 20 100 50.00 30.00 20.00 33.33 27.27 50.00 16.67 10.00 6.67 50.00 36.67 13.33 0.000 1.212 3.333 B 40 50 10 100 40.00 50.00 10.00 26.67 45.45 25.00 13.33 16.67 3.33 50.00 36.67 13.33 2.000 4.848 0.833 C 60 30 10 100 60.00 30.00 10.00 40.00 27.27 25.00 20.00 10.00 3.33 50.00 36.67 13.33 2.000 1.212 0.833 All 150 110 40 300…arrow_forwardConsider an individual who is risk-loving instead of risk-averse. a. Is U(I) concave or convex?b. Suppose this person is offered an actuarially fair insurance product that guarantees her a certain income, E[I]. Graph the consumer surplus this person receives from buying this insurance as p, the probability of being sick, varies from 0 to 1. You should plot p on the horizontal axis and consumer surplus on the vertical axis.c. Suppose, finally, that this person is offered a subsidy (perhaps from her parents) for buying insurance so that, if she buys insurance, she will be guaranteed an income γ E[I], where γ >1. With the subsidy, insurance is now actuarially unfair in her favor. Graph how her consumer surplus (M) changes as p, the probability of being sick, varies from 0 to 1. [Hint: draw a coordinate plane with p on the x-axis and M on the y-axis.] Based on this graph, under what conditions is she least likely to buy the subsidized insurance?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:9781133382119
Author:Swokowski
Publisher:Cengage
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
Use of ALGEBRA in REAL LIFE; Author: Fast and Easy Maths !;https://www.youtube.com/watch?v=9_PbWFpvkDc;License: Standard YouTube License, CC-BY
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY