We have seen that an orthogonal matrix with determinant 1 has at least one eigen- value = 1 , and an orthogonal matrix with determinant = − 1 has at least one eigen-value = − 1. Show that the other two eigenvalues in both cases are e i θ , e − i θ , which, of course, includes the real values 1 (when θ = 0 ), and − 1 (when θ = π ). Hint: See Problem 9, and remember that rotations and reflections do not change the length of vectors so eigenvalues must have absolute value = 1.
We have seen that an orthogonal matrix with determinant 1 has at least one eigen- value = 1 , and an orthogonal matrix with determinant = − 1 has at least one eigen-value = − 1. Show that the other two eigenvalues in both cases are e i θ , e − i θ , which, of course, includes the real values 1 (when θ = 0 ), and − 1 (when θ = π ). Hint: See Problem 9, and remember that rotations and reflections do not change the length of vectors so eigenvalues must have absolute value = 1.
We have seen that an orthogonal matrix with determinant 1 has at least one eigen- value
=
1
,
and an orthogonal matrix with determinant
=
−
1
has at least one eigen-value
=
−
1.
Show that the other two eigenvalues in both cases are
e
i
θ
,
e
−
i
θ
,
which, of course, includes the real values 1 (when
θ
=
0
), and
−
1
(when
θ
=
π
). Hint: See Problem 9, and remember that rotations and reflections do not change the length of vectors so eigenvalues must have absolute value
=
1.
Quantities that have magnitude and direction but not position. Some examples of vectors are velocity, displacement, acceleration, and force. They are sometimes called Euclidean or spatial vectors.
Starting with the finished version of Example 6.2, attached, change the decision criterion to "maximize expected utility," using an exponential utility function with risk tolerance $5,000,000. Display certainty equivalents on the tree.
a. Keep doubling the risk tolerance until the company's best strategy is the same as with the EMV criterion—continue with development and then market if successful.
The risk tolerance must reach $ ____________ before the risk averse company acts the same as the EMV-maximizing company.
b. With a risk tolerance of $320,000,000, the company views the optimal strategy as equivalent to receiving a sure $____________ , even though the EMV from the original strategy (with no risk tolerance) is $ ___________ .
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