Jack has two options next year, Job A and Job B. The earnings in the two jobs differ and arerandom. In Job A, earnings will be $25 with probability 1/2, $36 with probability 1/6, or $81 withprobability 1/3. In Job B, earnings will be $36 with probability 2/3 or $64 with probability 1/3.If Jack has preferences over earnings given by u(e) = √e, where e denotes actual earnings,which job should he take and why?b. Calculate the Certainty Equivalents and risk premiums for Jack for both Job A and Job B.

Answered: Image /qna-images/answer/918ad64a-de66-4c0c-a846-fd8c95f706f6.jpg

Answered: Jack has two options next year, Job A…

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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The probability of an integrated circuit passing a quality test is F. In a batch of 10 integrated circuits find the probabilities thati. 2 will failii. 8 will passiii. at least 2 will failiv. fewer than 2 will fail.
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Becky and Carla take an advanced yoga class. Becky can hold 29% of her poses for over a minute, while Carla can hold 35% of her poses for over a minute. Suppose each yoga student is asked to hold 50 poses. Let B the proportion of poses Becky can hold for over a minute and C = the proportion of poses Carla can hold for over a minute. What is the probability that Becky's proportion of poses held for over a minute is greater than Carla's? Find the z-table here. O 0.159 O 0,259 0 0.448 O 0,741 Save and Exit Next Submit Math and rem 96 & 7 8 9. 10
Sarah and Thomas are going bowling. The probability that Sarah scores more than 175 is 0.5 , and the probability that Thomas scores more than 175 is 0.1 . Their scores are independent. Round your answers to four decimal places, if necessary. (a) Find the probability that both score more than 175 . (b) Given that Thomas scores more than 175 , the probability that Sarah scores higher than Thomas is 0.4 . Find the probability that Thomas scores more than 175 and Sarah scores higher than Thomas.
1.A family wishes to adopt 4 pets from a total of 13 dogs and 7 cats available at an animal shelter. The variable "x" being measured is the number of dogs. Show the probability distribution table, using 3 columns: one for x, one for P(x), and one for x*P(x). The second column should show calculations using C(Dt). 2. A student forum at a high school needs to elect 5 people from 10 Grade 11 students and 15 Grade 12 students who are available. The variable"" being measured is the number of Grade 12 students. Show the probability distribution table, using 3 columns: one for x, one for P(x), and one for x*P(x). The second column should show calculations involving C(Dt).
The route used by a certain motorist in commuting to work contains two intersections with traffic signals. The probability that he must stop at the first signal is 0.45, the analogous probability for the second signal is 0.5, and the probability that he must stop at at least one of the two signals is 0.9. (a) What is the probability that he must stop at both signals? X (b) What is the probability that he must stop at the first signal but not at the second one? X (c) What is the probability that he must stop at exactly one signal?
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Answers must be in 4 decimals |1. Ben plans to enforce speed limits using radar traps at 4 different locations within the campus. The radar traps at each of the locations L1, L2, L3, and L4 are operated 40%, 30%, 30%, and 20% of the time, and if a person who is speeding on his way to work has probabilities of 0.2, 0.1, 0.5, and 0.2, respectively, of passing through these locations, what is the probability that he will not receive a speeding ticket? 2. Barangay Scout Fernandez has one fire truck and one ambulance available for emergencies. The probability that the fire truck is available when needed is 0.95, and the probability that the ambulance is available when called is 0.90. in the event that there is a fire in the barangay, find the probability that both the ambulance and the fire truck will be available.
H6.
Suppose that on any given day, there is a 20% chance that Lebron has a bad day, a 50% day that Lebron has a so-so day, and a 30% chance that Lebron has a good day. On a bad day, the probability that Lebron makes any given 3-point shot is 0.5. On a so-so day, the probability that Lebron makes any given 3-point shot is 0.7. On a good day, the probability that Lebron makes any given 3-point shot is 0.9. Suppose that tomorrow, Lebron takes a 3-point shot, and we record whether he hits or misses and what kind of day he was having. What is the probability that Lebron hits? What is the probability that if Lebron is having a bad day given that he misses a shot that day?
Consider the following game in a game arcade. The probability of winning a game is p and hence loosingthe game is 1 − p. In order to win a prize you are given three choices:• A: win at least once in 6 games;• B: win at least twice in 12 games; and• C: win at least 3 times in 18 games.1. If p = 16 which of A, B, or C should you choose to maximize your probability of winning the prize?You are required to compute the probabilities for each option to justify your answer.2. Using the formulas derived in part (1), write a R-code to compute (not simulate) and plot the probabilityof winning the prize for options A, B, and C for different values of p varying from 0.1 to 0.9 inincrements of 0.1. Summarize your observation.Regarding the plot: i) All three curves should be drawn in the same plot, ii) Make sure that the threecurves are distinguishable (using different line styles, colors, and/or markers), and iii) make sure toadd a legend that identifies the curves for the three different options…

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