•lf you buy a raffle ticket for $2.00 and win, you will get $19.00; else, you will receive nothingfrom the ticket.• The probability of winning is 1/3• Your utility function for final wealth x is u(x) = log(x)• Your initial wealth (before deciding whether to buy the ticket) is $10•What is your certainty equivalent (selling price) for the opportunity to buy this raffle ticket?-Please submit one number-Note: The question is not what is the CE of your uncertain final wealth if you buy the ticket,but what is the change in CE of your final wealth if you buy the ticket.Change in CE of your final wealth if you buy the ticket : $

Given Information: The probability of winning = 1/3 The probability of losing = 2/3 One will get $19…

Answered: •If you buy a raffle ticket for $2.00…

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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1. ABC inc. stock is currently selling for $30, one year from today the stock price can either increase by 20% or decrease by 15%. The probability of an increase in the stock price is equal to 0.3. The one-year risk-free rate is 5% What is the value of a European put that expires in one year with an exercise price of $24. 2. Graphically, show the value and the profit and loss of the following butterfly position: Long in a call with an exercise price of $30, short in 2 calls with an exercise price of $45, and long in a call with an exercise price of 60. All calls are written on the same stock and have the same maturity. 3. "Early exercise of an American option on a stock that does not pay any dividend is not optimal regardless of whether the option is a Call or a Put". True, False, or Uncertain. Explain.
solve and give me explanation
Please solve all the parts
Qn 11
8. Exponential candy A student opened a bag of M&M'S® Chocolate Candies, dumped them out, and ate all the ones with the "M" on top. When he finished, he put the remaining 30 M&M'S back in the bag and repeated the same process over and over until all the M&M'S were gone. Here are data on the number of M&M'S remaining at the end of each of the first 6 courses. Course Number remaining 1 2 3 4 5 6 30 13 10 3 2 1 (a) Calculate an exponential model for these data using course as the explanatory variable. (b) Sketch the scatterplot, along with the exponential model. (c) Calculate and interpret the residual for the first course.
75. You complete a runs test on daily data for a thinly traded stock and the Z statistic is 4.55. If the stock has a return of -0.33% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would: Buy or long the stock in late trading. Sell or short the stock in late trading. Wait an additional day to buy the stock. Wait an additional day to short the stock. Take neither a long or short position in the stock. None of the above answers is correct.
Explain the conceptual significance of odds in logistic regression. of P(Y=1) is 0.60 calculate odds. For what value of P(Y-1), will the odds be 1? The graph for probabilities of logistic distribution can explain the consumer behavior and reducing rate of marginal utility. Do you agree? Explain with a diagram
6
A graphing calculator is recommended. Straight-line depreciation is a method for estimating the value of an asset (such as a piece of machinery) as it loses value ("depreciates") through use. Given the original price of an asset, its useful lifetime, and its scrap value (its value at the end of its useful lifetime), the value of the asset after t years is given by the formula for 0 ≤ t ≤ (Useful lifetime). (a) A farmer buys a harvester for $40,000 and estimates its useful life to be 20 years, after which its scrap value will be $4000. Use the formula above to find a formula for the value V of the harvester after t years, for 0 ≤ t ≤ 20. (Do not use commas in your answer.) V = Value = Price - (b) Use your formula to find the value of the harvester after 5 years. V(5) = No Solution (c) Graph the function found in part (a) on a graphing calculator on the window [0, 20] by [0, 40,000]. (Hint: Use x instead of t.) Help 40000 30000 Price (Scrap value) (Useful Lifetime) 20000 10000 10 Fill…

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