the following table showsthe relationship between your wealth and your utility. WealthUtility11.01015.01519.02022.02525.03027.03529.0You can invest in asset A, which offers a riskless payoff of $20,000 or in asset B, whichpays $15,000 with 40% probability and $25,000 with 60% probability. Whichinvestment do you choose?O A A, because its utility is greater than the expected utility of B. which is 21.4.O B. I am indifferent between A and B because I am risk neutral.O C. B, because its expected utility of 22.6 is greater than the utility of A.O D. B, because its expected utility of 23.4 is greater than the utility of A.nsure

Answered: he following table showsthe…

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section: Chapter Questions

Problem 35T

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Similar questions

A Game of Chance A box contains 100 envelopes. Ten envelopes contain $10 each, ten contain $5 each, two are “unlucky", and the rest are empty. A player draws an envelope from the box and keeps whatever is in it. If a person draw an unlucky envelope, however, he must pay $100. What is the expectation of a person playing this game?
Population Genetics In the study of population genetics, an important measure of inbreeding is the proportion of homozygous genotypesthat is, instances in which the two alleles carried at a particular site on an individuals chromosomes are both the same. For population in which blood-related individual mate, them is a higher than expected frequency of homozygous individuals. Examples of such populations include endangered or rare species, selectively bred breeds, and isolated populations. in general. the frequency of homozygous children from mating of blood-related parents is greater than that for children from unrelated parents Measured over a large number of generations, the proportion of heterozygous genotypesthat is, nonhomozygous genotypeschanges by a constant factor 1 from generation to generation. The factor 1 is a number between 0 and 1. If 1=0.75, for example then the proportion of heterozygous individuals in the population decreases by 25 in each generation In this case, after 10 generations, the proportion of heterozygous individuals in the population decreases by 94.37, since 0.7510=0.0563, or 5.63. In other words, 94.37 of the population is homozygous. For specific types of matings, the proportion of heterozygous genotypes can be related to that of previous generations and is found from an equation. For mating between siblings 1 can be determined as the largest value of for which 2=12+14. This equation comes from carefully accounting for the genotypes for the present generation the 2 term in terms of those previous two generations represented by for the parents generation and by the constant term of the grandparents generation. a Find both solutions to the quadratic equation above and identify which is 1 use a horizontal span of 1 to 1 in this exercise and the following exercise. b After 5 generations, what proportion of the population will be homozygous? c After 20 generations, what proportion of the population will be homozygous?
If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the expected value of this game is E=0.9+0.1= .

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