A farmer believes there is a 50-50 chance that the next growing season will be abnormally rainy. Let YNr and YR represent the farmer's income in the states of "normal rain" and "rainy," respectively. If the farmer's objective is to maximize expected income which of the following will he/she choose
Q: A farmer believes there is a 50–50 chance that the next growing season will be abnormally rainy. His…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: Suppose that there are two types of workers: high and low. Employers cannot distinguish between…
A: Two wage rates are given:- $200,000 and $100,000 for high and low type worker Reservation wages are…
Q: A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this…
A: A company invests in selling computers unit worth Php 32000 The probability of maintaining this…
Q: In the past four years, the annual returns of one company’s stock are 12%, 18%, and –14%, and 7%. a)…
A: We have given the annual returns as : 12%, 18%, and –14%, and 7%
Q: A restaurant manager classifies customers as regular, occasional, or new, and finds that of all…
A: Probability refers to the chance or the happening of an event which may or may not take place. It is…
Q: Probability is the likelihood or chance of an event occurring. Discuss its significance in real…
A: Probability is the chance of an event to occur. Probability are used in real life to predict the…
Q: 1- An employee gains work experience by staying in a job for a long period of time. This will…
A: Note: Since you asked multiple question, we will solve the first question for you. If you want any…
Q: Half of a set of the parts are manufactured by machine A and half by machine B. Five percent of all…
A: Solution - Given - Half set of parts manufactured by machine A and half by machine B. Percentage of…
Q: A statistics professor plans classes so carefully that the lengths of her classes are uniformly…
A: The provided information are: Maximum value (b) = 59 Minimum value (a) = 49 Consider X be the random…
Q: The daily consumption of milk in a city, in excess of 20,000 litres, is and A = 2. The approximately…
A:
Q: A presidential election poll contacts 2,000 randomly selected people. Should the number of people…
A: The two types of random variables discrete and continuous can be described as:- A discrete random…
Q: Consider the following decision problem with monetary outcomes: State: Si S2 Probability:
A: There are two states : S1 & S2 Probability of S1 = 0.5 Probability of S2 = 0.5 Actions : { a ,…
Q: Example is given: A petrol pump is supplied with petrol once a day. If its daily volume of sales (X)…
A:
Q: Using the normal table or software, find the value of z that makes the following probabilities true.…
A: * SOLUTION :- * The OPTION E is correct answer.
Q: A manager has to decide whether to prepare a bid or not. It costs P5,000 to prepare the bid. If the…
A: According to the provided information, At the end of the success branch, P100000 is the return, but…
Q: Suppose that a family has 4 children. Also, suppose that the probability of having a boy is Find the…
A: Here we calculate the probability having boy in a family so calculation of the following as follow-
Q: Given a choice between two investments with the same expected payoff: Answer a. Most people will…
A: Standard deviation measures the variations in an investment's returns from the average return. It is…
Q: A farmer believes there is a 50-50 chance that the next growing season will be abnormally rainy. His…
A: The following problem has been solved as follows:
Q: Anticipated consumer demand in a restaurant for free-range steaks next month can be modeled by a…
A: Let X=demand X~N(μ,σ2)Given μ=1200 poundsσ=100 pounds
Q: Prospect X ($14, 0.5; $18, 0.5) Prospect Z ($A, 0.5; $24, 0.5) You know that Prospect Z is a mean…
A: Given that Prospect Z is a mean preserving spread of Prospect X. Thus the expected values of Z and X…
Q: A psychologist determined that the number of sessions required to obtain the trust of a new patient…
A: The concepts used to solve this problem are the probability distribution function and…
Q: [True/False] Let a, b and c represent constants, and X, Y and Z represent random variables. If…
A: A random variable is a mathematical portrayal of the result of a measurable examination. A random…
Q: Let X and Y be continuous random variables with joint pdf fxy (x, y) = 3x, 0sy<xs and zero…
A: *Answer:
Q: Let r, be a stationary AR(1) process with r=1.5+0.8 r-1+Vt, where the error terms v1, V2, V3, ...…
A:
Q: Your production line has an automatic scanner to detect defects. In recent production, 2% of items…
A: Probability: It is a mathematical tool that is used to study randomness.
Q: Exercise 3: Risky Investment Charlie has von Neumann-Morgenstern utility function u(x) = ln r and…
A: "Expected utility" is an economic term that describes the utility that an entity or the aggregate…
Q: A health economist is conducting the analysis and making a choice between the following two choices:…
A: The following problem has been solved as follows:
Q: UST ANSWER SUBPART 1 There are two individuals, Individual A and Individual B. Individual A has an…
A: In Finance, Insurance is defined as the protection from financial loss. Insurance is a form of risk…
Q: In real life it is possible that people are risk-averse in some situations, and risk-loving in some…
A: In a market, an individual is considered as a risk-averse if he is choosing an investment with lower…
Q: Suppose a country has 100 million inhabitants. The population can be divided into the employed, the…
A: When talking about total population, it is computed by summing up the employed, unemployed, and out…
Q: Applied Machines produces large test equipment for integrated circuits. The machines are made to…
A: Month Number produced Number reworked Proportion reworked 1 23 3 0.13043478 2 28 3 0.10714286…
Q: For a Binomial Distribution with n=3, p=0.6 where p is the probability assigned to the success event…
A: As given Random variable follow the Binomial Distribution with n = 3 and p = 0.6 X ~ Bin(n,p) Where…
Q: 3. P(z >0.52) 6. P(-2.73 <z <-0.73)
A: (3) Given: P(z>0.52)
Q: A mutual fund company has 6 funds that invest in the U.S. market and 4 that invest in international…
A: It is given that : Company has 6 funds to be invested in US. Company has 4 funds to be invested in…
Q: A proprietor of a food-stall has invented a new item of food delicacy which he calls WHIM. He has…
A:
Q: An investment of $10,000 generates a return of $4,000 in a bull market or a return of -$1,500 in a…
A: We have given that Return probability 4000 0.4 -1500 0.6
Q: 3. The number of major snowstorms that shut down business, X, has the following probability mass…
A:
Q: Given a choice between two investments with the same expected payoff: a. Most people will choose the…
A: Expected payoff is the expected value of profit that one can expect from an investment or project.…
Q: A committee of 4 persons is to be appointed from 3 officers of the production department, 4 officers…
A:
Q: Speedy Oil provides a single-channel automobile oil change and lubrication service. Customers…
A: Given Data λ = the mean number of car arrivals per hour. = 4. μ = the mean number of service hours =…
Q: JUST ANSWER SUBPART 2 There are two individuals, Individual A and Individual B. Individual A has an…
A: In Finance, Insurance is defined as the protection from financial loss. Insurance is a form of risk…
Q: According to a 2017 Wired magazine article, 40% of e-mails that are received are tracked using…
A: Let's consider the variable X the number of emails tracked, with a binomial distribution, a…
Q: Airline passengers arrive randomly and independently at the passenger-screening facility at a major…
A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…
Q: A factory production process produces a small number of defective parts in its daily production. Is…
A: The quantities derived in a random experiment are called as random variables.
Q: The success of a project depends on the effort level of a worker. In case of success the revenues…
A: The optimal contract is represented in the following form: Salary=s If the…
Q: You work at a mechanic shop. On average, 10 cars come into your shop each day. Assuming a poisson…
A: Poisson Distribution: Where e = Euler's constant = 2.71828 λ = mean number of occurrences in the…
Step by step
Solved in 3 steps
- EXERCISE 1Below is a production possibilities table for consumer goods (Food) and capital goods(Robots):A B C D EFood 0 1 2 3 4Robots 10 9 7 4 01. Show these data graphically. Upon what specific assumptions is this productionpossibilities curve based?2. If the economy is at point C, what is the cost of one more food? Of one morerobot? Explain how the production possibilities curve reflects the law ofincreasing opportunity costs.3. If the economy characterized by this production possibilities table and curvewere producing 3 food and 2 robots, what could you conclude about its use ofavailable resources?4. What would production at a point outside the production possibilities curveindicate? What must occur before the economy can attain such a level ofproduction?EXERCISE 2Explain how (if at all) each of the following affects the location of a country’s productionpossibilities curve:1. The quality of education increases.2. The number of unemployed workers increases.3. A new technique…. On a given evening, J. P. enjoys the consumption of cigars (c) and brandy (b) according to thefunctionU (c, b) = 20c - c2 +18b- 3b2.How many cigars and glasses of brandy does he consume during an evening? (Cost is no objectto J. P.)b. Lately, however, J. P. has been advised by his doctors that he should limit the sum of glasses ofbrandy and cigars consumed to 5. How many glasses of brandy and cigars will he consumeunder these circumstances?Figure#5 Quantily of M&M's (or'o) 10 7. 6-7 Quantly ol Skittles 2. 6. 4.
- Ewa spends all her 600 PLN bonus on the purchase of sweets and cosmetics. Draw the Ewa's budget line, knowing that her favorite sweets cost PLN 10 per pack and the price of cosmetics is PLN 25. •How will Ewa's situation be affected by the PLN 50 bonus increase? •What will happen if the price of cosmetics increases to PLN 30? •How, from the point of view of initial situation, we will evaluate the following quantitative combinations: –30 packages of sweets and 15 cosmetics –60 packages of sweets and 24 cosmetics –20 packages of sweets and 10 cosmetics –10 packages of sweets and 15 cosmeticsA farmer believes there is an equal chance that the next growing season will be abnormallyrainy. His expected return function has the formExpected return = 0.5lnYNR + 0.5lnYRwhere YNR and YR represent the farmer’s income in the states of “normal rain”and “rainy,” respectively.Suppose the farmer must choose between two crops that promise the following incomeprospects:Crop YNR YRMaize $14,000 $5,000Cotton $9,500 $7,500a) Which of the crops will he plant?b) Suppose the farmer can plant half his field with each crop. Would he choose to do so?Explain your result.c) What mix of Maize and Cotton would provide maximum expected utility to this farmer?d) Would Maize crop insurance, available to farmers who grow only Maize, which costs$2,000 and pays off $4,000 in the event of a rainy growing season, cause this farmer tochange what he plants?IF demand equation is Qdx=20+3M assume that the income of individuals are 500RO .What will be the Qd a )1520 b) 1250 c) 1500 d) 520
- Quantity of D 10 8 N 0 to 2 000 Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is Multiple Choice 4 6 8 10 Quantity of C two. one-half. five. ten. 20 10,981 AUG 22 < Prev 7 of 12 átv (@Co. XYZ manufactures a productand sells it for $8 per unit. Her fixedcosts are $5,000 and her variablecost per unit is given by the equationCalculate the equilibrium quantity qalgebraically. 2.444 (X)-2200 A. (q-800) B. q=900 C. (q 650) D. None of the above In the previous problem (27), calculate the amount ofequilibrium Total Income. A. 4,500 B.$3,000 C. $7,200 D. $9,000 In the above problem (27), calculate thebreak-even Total Cost amount. A. 4,500 B. $3,000 C. $9,200 D. 7,200 In the previous problem (27)determine the profit when q-1800.modes of A. $4,500 B. 5,000 C.$6,000 D. 7,000 In the previous problem (27), determine the gain when q-450. A. $2,500 B. -$2,500 C.$6,000 D. -$4,500 In the aboveproblem (27), find the required output (q), to make a profit of$10,000. A. 3,000 B. 4,000 C. 2,500D. 2,70053. The annual demand for Prizdol, a prescription drugmanufactured and marketed by the NuFeel Company,is normally distributed with mean 50,000 and standarddeviation 12,000. Assume that demand during each ofthe next 10 years is an independent random numberfrom this distribution. NuFeel needs to determine howlarge a Prizdol plant to build to maximize its expectedprofit over the next 10 years. If the company builds aplant that can produce x units of Prizdol per year, it willcost $16 for each of these x units. NuFeel will produceonly the amount demanded each year, and each unit ofPrizdol produced will sell for $3.70. Each unit of Prizdol produced incurs a variable production cost of $0.20.It costs $0.40 per year to operate a unit of capacity.a. Among the capacity levels of 30,000, 35,000,40,000, 45,000, 50,000, 55,000, and 60,000 unitsper year, which level maximizes expected profit?Use simulation to answer this question.b. Using the capacity from your answer to part a,NuFeel can be 95%…
- Pls help with belwo homework.Uz U3 U. Us 30 42 54 80 Income The consumer has $42 saved. This gives the consumer a utility of They consider an investment project where there is an 76% chance they lose $12 and 24% chance they win $38. This would give them a utility of . The consumer accept this investment. They consider another investment project that will give them an expected income of $60. The consumer + accept this investment. For this consumer to accept an investment project it must have an income equal to, or greater than $Task 5: Consumption as young and consumption as old Now suppose Mary is thinking about her retirement and wants to understand how much to save. Today she can either con- sume or save for retirement. During her young, working life she will make 100.000 euros. Thus, her current budget constraint is Cy + S = 100.000. In her retirement she has no income, only the amount she saved as young. She can save at a rate of (1+r). So, her budget constraint as old is Co = (1+r)S. (a) Write Mary's lifetime budget constraint as plot it in a graph. Tip: Solve for savings while old and substitute in the young budget constraint. (b) Mary's utility from consumption as young and consumption as old is U(Cy,Co) = 1-0 Solve Mary's maximization problem. What is the MRS and the MRT? (c) Suppose Mary wins the lottery while young. What is the effect on her optimal decision for consumption as young and as old? (d) The local bank decided to increase the interest rate on savings. Discuss the effect of this increase…