5.q1 1C. (Hajikhameneh) Find and describe the Bayesian-Nash equilibrium in the following game.There are two players in this game; Player 1 and 2. Actions available to Player 1 are {a, b, c, d}and to Player 2 are {A, B}. The top and bottom payoffs belong to Player 1 and Player 2,respectively.NatureProbability-0.4Probability=0.6Player 1Player 12030Player 2A3010201020406040

From player 2's perspective, He will choose (10, 40) over (30 , 20) as 40 > 20 Similarly, player…

Answered: neneh) Find and describe the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Becky is deciding whether to purchase an insurance for her home againtst burglary. the payoff for her is shown as follow: Net worth of her Net worth of her home: $ 20000 burglary(10%) Net worth of her Net worth of her home: $50000 burglary (90%) The insueance would cover all the loss from burlary and the insurance fee is $8000. Her utility funtion is given as u=w ^0.3 Should Beck purchase the insurance Explain.
5 players must simultaneously choose a number from the interval [0, 9]. Let xi denote the number chosen by player i; x = (x1, . . . , x5) all the selected numbers; x−i = x\xi all the selected numbers except the one chosen by player i. If player i chooses the number xi ∈ [0, 9], while the others choose numbers x−i, then the utility of player i is given by ui(xi, x−i) = 4(9 − xi) + 2Σ5 j=1 xj. Find the Nash equilibrium of the game and the corresponding utilities. Would all players be better off if they signed a binding contract before the game, obligating them to choose the number 9?
2. Consider the following information about random variables X, Y, A, and B: Hx = 30 Ox = 10 Hy = 40 Oy = 20 A = 0.6X + 0.4Y B = 0.8X – 0.2Y Suppose that pxy = 0.5. What is og? Round your final answer to four decimal places if necessary.
(Ch 7) Suppose a standard normal random variable has an 80 percent chance falling in an interval (–z, z). The value of z is approximately ____ (use Appendix C-1). a. 1.45 b. 1.35 c. 1.96 d. 1.28

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