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If you ______________ it relies on a double coincidence of wants.
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- ⚫ Lottery A gives $2 million with 10%, $1 million with 80%, and $0 with 10%. ⚫ Lottery B gives $2 million with 12%, $1 million with 6%, and $0 with 82%. ⚫ Lottery C gives $2 million with 40%, $1 million with 20%, and $0 with 40%. ⚫ Lottery D gives $2 million with 3%, $1 million with 24%, and $0 with 73%. Show one example of preference relations which violate Independence of the expected utility theorem, and explain the reason.an entrepreneur is setting up a storage facility which will provide storage bothat peak times and off peak times.The entrepreneur need to decide how much money storage Q1 t to supply at peak times, and how much storage Q2 to supply off peakit also needs to decide how to set up capacity K, where capacity is such that both K is equal or plus Q1 and K is equal or plus Q2The peak period demand fan storage is given by PI=7200 -Q1 and the off peak is give by P2=5400 -Q2 where P1 and P2 are the prices for units of storage at peak times and off peak respectively.the variable cost is 200 per unit of storage supplied and capacity costs are 100 per unit. Hence profits fpr the entrepreneurs are given by:(7200-Q1) Q1+ (5400-Q2) Q2 - 200 (Q1+Q2)-100 K where Q1 is less or equal K and Q2 is less or equal Ka) write down the Kuhn-Tucken conditions for this proble. b) Find the optimal outputs and capacity for this problemc) now suppose there is a substancial increqse in capacity costs, which rise to 2000…Two coins are tossed : (a) if A, is the event that the first coin is a tail and A, is the event that the second coin is a tail and A, is the event that the second coin is a head are A, and A, mutually exclusive ? Obtain P(A, U A) and P(A, n A,), (b) if further the event A, is that both the coins are heads and A, is that both the coins are tails are A, and A, mutually exclusive ? Are they exhaustive ? Obtain P(A, UA,).
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- which is the write option?Discuss the monetizing and regulating components of the work that is being done on the project.those determinations. Respond to the following questions in a minimum of 175 words: . Consider a situation that you might need to use your understanding of probability to make an informed decision. • What sorts of information would you collect? • How might you use what you have learned about probability to determine a course of action? What are the possible benefits and limitations of this approach? Due Monday Reply to at least 2 of your classmates. Be constructive and professional in your responses. Copyright 2020 by University of Phoenix. All rights reserved. New Group 1 17 Responses 33 Replies
- Leo needs one unit of capital from a bank to launch a business. His profits depend on the interest rate of the contract r and the level of effort. Leo can either put high effort in the project, in which case his profits 7 equal y -r with probability 1/2 and 0 with probability 1/2. H | Leo incurs a cost of high effort c=2- Otherwise Leo can put low effort, in which case his profits 7 equals y,-r with probability 1/3 and 0 with probability 2/3. Leo incurs a cost of low effort L c=0: %3D Leo's utility function is 271/2- c where A represents his profits and c the cost of efforts. For a given an interest rate r, the risk-neutral bank receives r if the entrepreneur is successful or -1 if he is not. The bank knows that there are many entrepreneurs like Leo who either make high or low effort. It then proposes two types of loans. The first loan is designed for entrepreneurs who make high effort, with an interest rate r=r,. The second loan is designed for entrepreneurs who make low effort, with…The question is the relationship between offshore banking and money launderingThere is a city, which looks like a trapezoid, as shown below. Citizens liveuniformly distributed all over the city. Two ice-cream vendors, A and B, must independently set up stores in the city. Each citizen buys from the vendor closest to their location and when equidistant from both vendors they choose bycoin toss. Each vendor’s aim is to maximize the expected number of customers. A choice oflocation by the two vendors is a Nash equilibrium if no vendor can do better by deviatingunilaterally. Does this game have a Nash equilibrium? If so, describe it. If not, explain why not.