(13) Consider a person with the following value function under prospect theory: when z 20 v(2) - -2(-2)5 when z<0 Assume that this individual weights values by probabilities, instead of using a prospect theory weighting function. Which of the following prospects would be preferred? (A) P1(.8, 1000, -800) (B) P2(.7, 1200, -600) (C) P3(.5, 2000, -1000) (D) P4(.4, 2000, -1000) Liannn lne to
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- An investor is considering the following two investments.•Investment 1 has an expected rate of return (profit) of 8% and costs $40 per share.•Investment 2 has an expected rate of return (profit) of 5% and costs $30 per share.The investor has $100 to invest to maximize her total expected rate of return, and shemust buy whole shares (not partial/factional shares) of the investments.(a) Formulate the investor’s integer programming problem.(b) Solve the investor’s problem using branch and bound and explain youranswer. How much of each investment does the investor purchase?The demand for a product of Carolina Industries varies greatly from month to month. The probability distribution in the following table, based on the past two years of data, shows the company's monthly demand. Unit Demand Probability 300 400 500 600 0.20 0.30 0.35 0.15 (a) If the company bases monthly orders on the expected value of the monthly demand, what should Carolina's monthly order quantity be for this product? (b) Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month (indoitars) if it places an order based on your answer to part (a) and the actual demand for the item is 300 units?seve LA If a society has 250 million people over the age of 16, 145 million who are working, and 5 million who are looking for work, with 100 million others neither working nor looking for work, the labor force participation rate is Multiple Choice 42% ((5+100)/250) O 60% (150/250) 40% (145/250) 58% (145/250)
- Use the following setting for questions 7-8. Players A and B play a dynamic version of matching pennies described below. The game follows in 3 stages. First, player A chooses the order of play, i.e. who makes the first move: player A or player B. This decision is public. Then this chosen (first) player chooses between heads and tails. Then the second (other) player observes that choice and also chooses whether to play heads or tails. For example, player A could choose that player A (themselves) makes the first move; then player A chooses tails; then player B observes it and also chooses tails. Since both of them choose to play tails, their payoffs are 1 and 1 as follows from the payoff matrix below. Player B T H H 1,-1-1,1 T-1,1 1,-1 7. How many pure strategies does player A have in this dynamic game. (a) 4 (b) 6 (c) 8 Player A 2How did you come about these rates/Values: 14.29;24.4;17.49;12.49;8.93; 8.92;8.93 ???Eastman Publishing Company is considering publishng an electronic textbook about spreadsheet applications for business. The fixed cost of manuscrpt preparation, textbook design, and web site construction is estimated to be $160,000, Varable processing costs are estimated to be $6 per book. The publisher plans to sell single user access to the book for $46. (a) Buld a spreadsheet model in Excel to calculate the profit/loss for a given demand, What profit can be anticipeted with a demand of 3,500 copies? For subtractive or negative numbers use a minus sign. (b) Use a data table to vary demand from 1,000 to 6,000 in increments of 200 trn test the sensitivity of profit to demand. Breskeven occurs where profit goes from a negabve to a positive value, that s, breakeven is where total revenue - total cast yielding a profit of zero. In which interval of demand dons breakeven occur? (1) Breakeven appears in the interval of 4,200 to 4,800 copies. (i) Breakeven appears in the interval of 4,000 to…
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