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Compare and contrast two quantitative tools for decision-making in conditions of certainty
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- Isabella understands that if she were to play golf, she would be able to spend time outdoors (where she likes to be) with people she enjoys. However, because she has taken golf lessons 10+ times and still cannot hit the golf ball, she does not believe that she can actually play golf. Based on what you know about Expectancy Theory, will she join her friends to play golf this summer? Group of answer choices Yes. Instrumentality and Valence are high. No. Valence is too high. No. Expectancy is low. Yes. Instrumentality is high.While eating at Lizzy's "Taco Taco Taco" shop, Gabi gained 10 utils from her first taco and would only gain 5 additional utils from a second taco, at the same price. Based on this information, we can conclude that Lizzy may have to lower the price to convince Gabi to buy a second taco. Gabi will not eat a second taco, even if it is given to her at no charge. Gabi will definitely want to buy a second taco. Even if Gabi buys a second taco, she will not buy a third taco.The town of Fenerbahce has hired world‐class econometricians to investigate their criminal justice system. The researchers report an interesting finding. People who were previously detected and punished by law enforcers gain a better understanding of the functioning of the law enforcement system, and are better able to exploit laws designed to protect defendants against the state. Thus, people who have been detected and punished before are better able to avoid detection and punishment. In particular, theyreport the following facts: ‐ The offense of jay‐walking causes social harm of $100.‐ A person who has never been punished for jaywalking before faces a 0.5probability of being detected while jaywalking.‐ A person who has been punished before for jaywalking faces a probability of0.25 of being detected while jaywalking. The town wants to implement optimal punishment schemes. It is well known thateveryone in Fenerbahce is risk‐neutral and rich (i.e. not judgment proof). Moreover, the…
- The market for lemons refers to a situation where sellers are better informed than buyers about the quality of the good for sale, like used cars. While sellers know the true quality of the car, buyers can’t distinguish the good cars from the bad cars (a.k.a. lemons). Consequently, from the buyer's perspective, there is a 50-50 chance that cars are either high or low quality, and therefore they will perceive all cars as medium quality cars. Which of the following statements are true? Multiple Choice From the seller's point of view, the price that buyers are willing to pay is too low. Therefore, they will find it difficult to sell their cars at "true" value. For the sellers who are selling lemons, the offered price will be higher than what they have expected. Therefore, they will sell lemons to the buyers at a higher price. Because buyers perceive all cars as medium quality cars they will pay a price that is between the price of good cars and the price of lemons.…QUESTION 17 ID probabilistic model and safety stock In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time? Ⓒ15 100 154 13,125Suppose that I am willing to pay $400 for anti-lock brakes that reduce my chance of dying in a car accident from 9 in 10,000 (0.0009) to 5 in 10,000, (0.0005). Based on this choice, what would be an estimate of the minimum value that I place on a statistical life? Show your work
- Part e,f and d solution needWhat is the key assumption in the difference-in-differences method? Two groups of people should have the same potential outcomes Two groups of people should have the same time trend in their potential outcomes Two groups of people should have the same potential outcomes before the policy is in place Two groups of people should have the same potential outcomes after the policy is in placeWhich of the following economic models is useful for examining the effects of drinking on cancer likelihood exercise = f (drinker, age, education, employment) cancer likelihood = f (drinker, age, exercise, education) cancer likelihood = f (age, exercise, education, employment)
