List all of the possible outcomes under each strategies

Assignment Help Business Economics

Reference no: EM1351098

The conventional wisdom for urban economic development is: "Don't put all your eggs in one basket. Diversify the economy." To explain the idea of diversification, consider old McDonald, who must carry a dozen eggs from the barn to the house. The ground between the barn and the house is slippery, so there is a 50 percent chance that McDonald will slip on a given trip and break all the eggs in his basket. Consider two strategies: a one-basket strategy (a single trip with all 12 eggs) and a two-basket strategy (two trips, with 6 eggs per trip).

a. List all of the possible outcomes under each of the strategies.b. What is the expected number of delivered (unbroken) eggs under eachstrategy?c. What are the trade-offs between the two strategies? If you were McDonald,which strategy would you adopt?d. What are the lessons for economic development strategies?

Reference no: EM1351098

Questions Cloud

Auditing standards and requirements : Describe the elements of the Generally Accepted Auditing Standards (GAAS). Describe how these standards apply to financial, operational, and compliance audits.

Explain how does monetary policy affect aggregate : Explain How does monetary policy affect aggregate demand in the short run? How does monetary policy affect aggregate demand in the long run?

Explain how this country can gain from free trade in winter : A tropical country can produce winter coats, but there is no domestic demand for these coats. Explain how this country can gain from free trade in winter coats.

Auditing and monitoring : The following is a common example of a circumstance imposed scope limitation. An auditor might identify a material weakness at an interim date, and the entity implements new controls to correct the deficiency. If the new controls are placed in ope..

List all of the possible outcomes under each strategies : List all of the possible outcomes under each of the strategies. What is the expected number of delivered (unbroken) eggs under eachstrategy.

Calculate the magnitude of the accerlation : The bullet becomes embedded in the block. If the bullet-block system compresses the spring by a maximum of 88.0 cm, what was the speed of bullet at impact with the block.

Successful brand in a diversed product category : You already have a successful brand in a diversed product category than the new product you plan to introduce

Predictors of delinquency in adolescents : What are the predictors of delinquency in adolescents? What causes adolescent delinquency? What are the deterrents to juvenile delinquency? Discuss in some detail and give examples.

Auditing sample methods : Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these risks affect the audit conclusion?

User Account

All Pages