In each of Problems 1 through 26: (a) Find the general solution in terms of real functions. (b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type. (c) Use the general solution obtained in part (a) to find a two parameter family of trajectories X = x 1 i + x 2 j = y i + y ' j of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories. 9 y ' ' + 6 y ' + y = 0
In each of Problems 1 through 26: (a) Find the general solution in terms of real functions. (b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type. (c) Use the general solution obtained in part (a) to find a two parameter family of trajectories X = x 1 i + x 2 j = y i + y ' j of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories. 9 y ' ' + 6 y ' + y = 0
(a) Find the general solution in terms of real functions.
(b) From the roots of the characteristics equation, determine whether each critical point of the corresponding dynamical system is asymptotically stable, stable, or unstable, and classify it as to type.
(c) Use the general solution obtained in part (a) to find a two parameter family of trajectories
X
=
x
1
i
+
x
2
j
=
y
i
+
y
'
j
of the corresponding dynamical system. Then sketch by hand, or use a computer, to draw a phase portrait, including any straight-line orbits, from this family of trajectories.
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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