Amanda has a von Neumann-Morgenstern utility function given by U= VM , where Mis her income. If she becomes an economicsprofessor, she will make M- 64/yr with probability 1. If she becomes an attorney, she will make M= 900/yr if she becomes a partner ina Wall Street firm, but only M 49/yr if she fails to make partner. The probability of her becoming a partner is 0.3. Ellis is an infallibleJudge of legal talent. After a brief interview, he can state with certainty whether Amanda will become a partner. What is the mostAmanda would be willing to pay for this information? (Set up the relevant equation and solve it.)Instructions: Round your answer to 2 decimal places.

Answered: Image /qna-images/answer/1d5b0338-8e6f-4a6e-bab1-53a2622c9852.jpg

Answered: Amanda has a von Neumann-Morgenstern…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Suppose that a decision maker's risk atitude toward monetary gains or losses x given by the utility function(x) = (50,000+x) 34/2. Suppose that a decision maker has the choice of buying a lottery ticket for $5, or not. Suppose that the lottery winning is $1,000,000, and the chance of winning is one in a thousand. Then..... O The decision maker should not buy the ticket, as the utility from not buying is 223.6, and the expected utility from buying is 223.59. The decision maker should not buy the ticket, as the utility from not buying is 223.6067, and the expected utility from buyingis 223.6065. O The decision maker should buy the ticket, as the utility from not buying 223.60, and the utility from buying is 224.4. The decision maker should buy the ticket, as the utility from not buying 223.6065, and the utility from buying is 223.6067.
f the probability of a new employee in a fast-food chain still being with the company at the end of the year is 0.7, what is the probability that out of 8 newly hired people (A) 5 will still be with the company after 1 year? (B) 5 or more will still be with the company after 1 year? Round each of the calculations to three decimal places when going through the solution process.
An individual has a vNM utility function over money of u(x) = Vx, where x is final wealth. Assume the individual currently has $16. He is offered a lottery with three possible outcomes; he could gain an extra $9, lose $7, or not lose or gain anything. There is a 15% probability that he will win the extra $9. What probability, p, of losing $7 would make the individual indifferent between to play and to not play the lottery? (Make sure to answer in the form, 0.X, i.e. 0.25) Enter your answer here
Show work for every step. Two types of customers (Preferred and Regular) call a service center. Preferred customers call with rate 3 per hour, and Regular customers call with rate 5 per hour. The interarrival times of the calls for each customer type are exponentially distributed. If the call center opens at 8:00 AM, what is the probability that the first call (regardless of customers type who calls) is received before 8:15 AM?
Sarah and Thomas are going bowling. The probability that Sarah scores more than 175 is 0.5 , and the probability that Thomas scores more than 175 is 0.1 . Their scores are independent. Round your answers to four decimal places, if necessary. (a) Find the probability that both score more than 175 . (b) Given that Thomas scores more than 175 , the probability that Sarah scores higher than Thomas is 0.4 . Find the probability that Thomas scores more than 175 and Sarah scores higher than Thomas.
For the M/M/N/o system, the probability that an arrival will find all servers busy and will be forced to wait in queue is an important measure of performance of the M/M/N/∞ system. This probability is given by PQ N!(1 – p/N) | and is known as the Erlang C formula. Please derive the equation. What is the expected number of customers waiting in the queue (not in service)?
Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 250 numerical entries from the file and r = 60 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. Test the claim that p is less than 0.301 by using α = 0.01. What does the area of the sampling distribution corresponding to your P-value look like? a. The area in the right tail of the standard normal curve. b. The area not including the right tail of the standard normal curve.…
From observations of the weather, it is known that on October 20 the probability of rain is 0.85. A certain forecast method for October 20 is correct 0.9 times if rain is predicted and 0.75 times if no rain is predicted. How much information does a real weather forecast provide 20 th of October? n.b the picture is example of solution
A student goes to the library. Let events B=B= the student checks out a book and D=D= the student check out a DVD. Suppose that P(B)=0.59PB=0.59, P(D)=0.45PD=0.45 and P(D|B)=0.50PD|B=0.50. Round each answer to four decimal places. Find P(B′) Find P ( D and B) Find P (B\D) Find P (D and B') Find P (D\B')

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