In Exercises 23-28, solve the game with the given payoff matrix. [HINT: See Example 3.]
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- . The table below states the payoffs in political points (measured in billions of rubles) to two nations that are rivals in world politics, Russia and Ukraine. Each country can take one of two courses: peace; or war. In each cell, the first payoff is for Russia, and the second payoff is for Ukraine. (a) Assume that neither country observes the military strategy of its rival, and solve the game (if it can be solved). Explain your solution step-by-step. Does this outcome maximize total political points? (b) In general, what is a Nash equilibrium? Is the solution to this game a Nash equilibrium? (c) Suppose that each country deposits a fund of two billion rubles with the United Nations. Either country would forfeit this fund if it wages war. What is the solution now to the game? Is this a Nash equilibrium? Russia, Ukraine Peace War Peace 4,4 1, 5 War 5, 1 2,2arrow_forwardSolve the game with the given payoff matrix. [ -9 0 1 -10 0 0 0-1 -2 Find the optimal row player strategy. P =arrow_forwardIf he allocates equal proportion to three stocks what would be his return?arrow_forward
- Calculate the expected payoff of the game with payoff matrix 2 0-2 3 -1 0 0 -3 P = -2 0 1 3 1-1 2 using the mixed strategies supplied. HINT [See Example 1.] R = [0 0 0 1], C = [0 0 1 0]" %3Darrow_forward4arrow_forwardCalculate the expected payoff of the game with payoff matrix 20-1 0-3 P = 0 1 42-2 2 using the mixed strategies supplied. HINT [See Example 1.] R= [0 0 0 1], C = [1 0 0 0] x -10 -2 0arrow_forward
- Investing: Inverse Mutual Funds Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of February 27, 2015.† Year-to-date Loss SHPIX (Short Smallcap Profund) 4% RYURX (Rydex Inverse S&P 500) 3% RYCWX (Rydex Inverse Dow) 6% You invested a total of $14,000 in the three funds at the beginning of 2015, including an equal amount in RYURX and RYCWX. Your year-to-date loss from the first two funds amounted to $360. How much did you invest in each of the three funds? SHPIX $RYURX $RYCWX $arrow_forwardSubject:arrow_forwardDevarrow_forward
- Investing: Inverse ETFs (Exchange Traded Funds) Inverse ETFs, sometimes referred to as "bear market" or "short" funds, are designed to deliver the opposite of the performance of the index or category they track, and so can be used by traders to bet against the stock market. The following table shows the performance of three such funds as of August 5, 2015.† Year-to-Date Loss (%) MYY (ProShares Short Midcap 400) 6 SH (ProShares Short S&P 500) 5 REW (ProShares UltraShort Technology) 7 You invested a total of $13,000 in the three funds at the beginning of 2011, including an equal amount in SH and REW. Your year-to-date loss from the first two funds amounted to $570. How much did you invest in each of the three funds? MYY$ SH$ REW$arrow_forward+ STATE per Course Schedule - Business Mat ge.brightspace.com/02/e/calendar/8203/event/13707/detailsview #13707 All the Best Class Questions 1. 0+3×3-32 + 10 2.3(6+4)²-5(17 - 20)² 3. Victoria Developments has obtained $3.6 million of total capital from three sources. Preferred shareholders contributed $550,000 (preferred equity), common shareholders contributed $1.2 million (common equity), and the remainder was borrowed (debt). What is the firm's ratio of debt to preferred equity to common equity? 4.0.025% of $200 is what amount? 5. A local hydro company uses smart meters to measure hydro consumption. Off- peak rates in the winter months apply from 7 p.m. to 7 a.m. mid-peak hours apply from 11 a.m. to 5 p.m., and on-peak hours apply from 7 am to 11 a.m. and again from 5 p.m. to 7 p.m. What percentage of the total daily hours is attributed to off- peak, mid-peak, and on-peak rates?arrow_forwardDiscuss the validity of the statement. If the statement is always true, explain why. If not, give a counterexample. If a payoff matrix has a row consisting of all 0's and a column consisting of all 0's, then the game is fair. Choose the correct answer below. A. The statement is true because the game matrix will have no saddle value. Game matrices without saddle values are always fair. B. The statement is false because −1 0 0 0 fits the criteria and is not a fair game because the minimum matrix value is −1. C. The statement is false because the saddle value will be 0, meaning the game matrix is strictly determined. Since the saddle value is also the value of the strictly determined game, the game is not fair. D. The statement is true because the saddle value will be 0, meaning the matrix game is strictly determined. Since the saddle value is also the value of the strictly determined game, the game is fair.arrow_forward
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