Scenario 4:Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below:OutcomePayoffs$100ProbabilityA.0.3?500.2The expected value of the investment is $25. Although all the information is correct, information is missing.Refer to Scenario 4. What is the probability of outcome B?O A. 0.2O B. 0- 0.5O D. 0.5O E. 0.4

Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below Outcome Probability Payoffs A 0.3 $100 ? 50 0.2 The expected value of the investment is $25. Although all the information is correct, information is missing. Refer to Scenario 4. What is the probability of outcome B? A. 0.2 В. О Oc. -0.5 O D. 0.5 O E. 0.4

Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below Outcome Probability Payoffs A 0.3 $100 ? 50 0.2 The expected value of the investment is $25. Although all the information is correct, information is missing. Refer to Scenario 4. What is the probability of outcome B? A. 0.2 В. О Oc. -0.5 O D. 0.5 O E. 0.4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

We consider the following decision problem, with 4 decisions di,i∈{1,…,4}, and four possible outcomes ωi,i∈{1,…,4}, with the following table of profits: ω1 ω2 ω3 ω4 d1 30 30 0 30 d2 20 20 20 20 d3 0 50 10 40 d4 15 30 10 25 Which decision should be chosen for rewards depending on four different possible outcomes, according to the maximin rule, maximax rule, and optimism-pessimism rule with α<1/3?
Checking my answers.
solve d please
please only do: if you can teach explain steps of how to solve each part what is the optimizatio formula that was use for foc? please solve each part
Let X be a random variable and the payoff of an investment. Suppose the investment has a fee of 10 so that the net payoff is (X-10). The variance of the net payoff, i.e., V( X - 10) must be: OA. 0. Ов. 10. Oc. 10 O D. none of the above. Click Save and Submit to save and submit. Click Save All Answers to save all answers. esc 20 F3 D00 F1 F2 000 F4 F5 ! $ % 1 2 4 Q W E tab 5 # 3
Q5
Please answer question on screenshot (which of the folowing statements....) q1) Janet offers her friend Sam (who has identical preferences and initial wealth) the following proposition: They buy the ticket together, and share the cost and proceeds equally.
. If you examine the decision tree in Figure 9.12 (orany other decision trees from PrecisionTree), you willsee two numbers (in blue font) to the right of each endnode. The bottom number is the combined monetaryvalue from following the corresponding path throughthe tree. The top number is the probability that thispath will be followed, given that the best strategy isused. With this in mind, explain (1) how the positiveprobabilities following the end nodes are calculated,(2) why some of the probabilities following the endnodes are 0, and (3) why the sum of the probabilitiesfollowing the end nodes is necessarily 1.
Asap
6 Consider Bob's utility function. a. What is Bob's expected value of a gamble with a 50% chance of $0 and a 50% chance of $100? 4 d b 30 50 75 100