Instructions: Show all your work (including bi-matrix and/or game tree when relevant).1. Two investors have each deposited 4 (all amounts are in $10,000s) with a bank. The bankhas invested these deposits in a long-term project.If both investors make withdrawals at date 1 then each receives 2 and the game ends. Ifonly one investor makes a withdrawal at date 1 then that investor receives 4, the otherreceives 0, and the game ends. Finally, if neither investor makes a withdrawal at date 1 thenthe project matures and the investors make withdrawal decisions at date 2.If both investors make withdrawals at date 2 then each receives 8 and the game ends. Ifonly one investor makes a withdrawal at date 2 then that investor receives 10, the otherreceives 6, and the game ends. Finally, if neither investor makes a withdrawal at date 2 thenthe bank returns 8 to each investor and the game ends.Find the subgame-perfect outcomes.

Given Information: Consider a given information in which two investors have each deposited 4…

Answered: Instructions: Show all your work…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Duffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O'Hagan had the opportunity to participate in all three initial public offerings (partly because he and Marjory Duffin are good friends). He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company. Purchase Priceper Share ($) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $25,000 in a total of 2,600 shares and made a $4,350 profit from the transactions. How many shares in each company did he purchase? Duffin House shares Higgins Press shares Sickle Publications shares I have x+y+z=2600 8x+10y+15z=25,000 160x+150y+225z=435,000 i keep getting y=506, i know im doing something wrong :(
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out $26,500 to the policy holder. Executives at Avicenna are considering offering these policies for $497 each. Suppose that for each holder of a policy there is a 2% chance they will experience property damage in the next five years and a 98% chance they will not.(If necessary, consult a list of formulas.) If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the holder. Avicenna can expect to make money from offering these policies. In the long run, they should expect to makedollars on each policy sold. Avicenna can…
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out $23,600 to the policy holder. Executives at Avicenna are considering offering these policies for $791 each. Suppose that for each holder of a policy there is a 3% chance they will experience property damage in the next five years and a 97% chance they will not. (If necessary, consult a list of formulas.) If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the holder. O Avicenna can expect to make money from offering these policies. In the long run, they should expect to make dollars on each policy sold. O Avicenna can expect to lose money from offering these policies.…
2. A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 11% chance of returning $5,000,000 profit, a 44% chance of returning $1,000,000 profit, and a 45% chance of losing the million dollars. The second company, a hardware company, has a 12% chance of returning $6,000,000 profit, a 24% chance of returning $2,500,000 profit, and a 64% chance of losing the million dollars. The third company, a biotech firm, has a 8% chance of returning $7,000,000 profit, a 37% of no profit or loss, and a 55% chance of losing the million dollars.Order the expected values from smallest to largest. first, third, second third, second, first second, first, third first, second, third second, third, first third, first, second
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The Chinese government has created a fund worth more than 20 trillion won to foster the semiconductorindustry. Although there is a large technological difference between memory semiconductors, systemsemiconductors can be developed in a short period of time. The number of companies producinghomogeneous quality products has increased.￭Question (a) In the Cournot game, when the number of firms increases from 2 to n, compare the output,total output, and profit of each firm with N.E. in the Cournot model. ￭Question (b) If the number of companies participating in the semiconductor market increases to infinity,that is, in a perfectly competitive market, what will be the equilibrium point?
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Duffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O’Hagan had the opportunity to participate in all three initial public offerings. He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company: Purchase Price (per share) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $20,000 in a total of 2,000 shares and made a $3,400 profit from the transactions.
You are analyzing stocks of three companies you are interested in investing in. Suppose that these three stocks are Apple stock (AAPL), Microsoft (MSFT), and Tesla (TSLA). At the end of this month, each month may move up (increase in value), move down (decrease in value) or stay the same. In this case, an experiment consists of observing the price condition across the three stocks. Each of the three conditions (move up, move down, stay same) are equally likely. How many outcomes are in the sample space? List 7 of the outcomes. (use U for move up, D for moving down and S for staying the same) Let A be the event that all the stocks have the same performance. List the outcomes in A. Let B be the event that all of stocks are different. List the outcomes in B. Let C be the event that at least two stocks move up. Are events A and C mutually exclusive? Are events B and C mutually exclusive? What is the probability of ? What is the probability of ? What is the probability of ? What is the…
You are analyzing stocks of three companies you are interested in investing in. Suppose that these three stocks are Apple stock (AAPL), Microsoft (MSFT), and Tesla (TSLA). At the end of this month, each month may move up (increase in value), move down (decrease in value) or stay the same. In this case, an experiment consists of observing the price condition across the three stocks. Each of the three conditions (move up, move down, stay same) are equally likely. How many outcomes are in the sample space? List 7 of the outcomes. (use U for move up, D for moving down and S for staying the same) Let A be the event that all the stocks have the same performance. List the outcomes in A. Let B be the event that all of stocks are different. List the outcomes in B. Let C be the event that at least two stocks move up. Are events A and C mutually exclusive? Are events B and C mutually exclusive? What is the probability of ? What is the probability of ? What is the probability of ? What is the…
A customer has approached a bank for a $50,000 one-year loan at 12% interest. If the bank does not approve the loan, the $50,000 will be invested in bonds that earn a 6% annual return. WIthout further information, the bank feels that there is a 4% chance that the customer will totally default on the loan. If the customer totally defaults, the bank loses $50,000. At a cost of $500, the bank can thoroughly investigate the customer's credit record and supply a favorable or unfavorable recommendation. Past experiences indicates that p(favorable recommendations|customer does not default) =77/96 p(favorable recommendations|customer defaults)= 1/4 How can the bank maximize its expected profits? Find EVSI and EVPI.
Three businesswomen are trying to convene in Cincinnati for a business meeting. The first women (Woman 1) is arriving on a flight from Atlanta, the second (Woman 2) is arriving on a flight from Dallas, and the third (Woman 3) is arriving on a flight from Chicago. Historical data suggests that the Atlanta flight is “on time” 90% of the time, the Dallas flight is “on time” 95% of the time, and the Chicago flight is “on time” 80% of the time. Furthermore, historical data suggests that the three flights are independent with respect to on time behavior. Define the sample space for this random experiment. Compute the probability for each of the outcomes in the sample space. Let W denote the number of business women that arrive on time. Construct the probability mass function of W Construct the cumulative distribution function of W Find the expected value of W Compute the standard deviation of W

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