List the four possible decision functions

Assignment Help Business Economics
Reference no: EM132445915

On the tapas menu in a local Spanish restaurant customers can order a dish of 20 roasted chillies for £5. There is always a mixture of hot chillies and mild chillies on the dish and these cannot be distinguished except by taste. The restaurant produces two types of dish: one containing 4 hot and 16 mild chillies and one containing 8 hot and 12 mild chillies. When the dish is served, the waiter allows the customer to taste one chilli and then offers a 50% discount to customers who correctly guess whether the dish contains 4 hot chillies or 8 hot chillies. A hungry actuary who regularly visits the restaurant is trying to work out the best strategy for guessing the number of hot chillies.

  • List the four possible decision functions the actuary could use.

Reference no: EM132445915

Questions Cloud

Determine how much Aco should report for investment : January 2 2018 Aco purchased 11,000 shares of stock of Bco at $14 per share. Determine how much Aco should report for its investment in Bco on December
Determining the ex-rights price : Problem: A company's ordinary shares have a current market price of $2. The company is making a 2 for 5 rights issue at a price of $1.50.
Annual number of claims on the portfolio : State the conditions under which the annual number of claims on the portfolio can be modelled by a binomial distribution B(n, p) with n = 10,000
What attitude did laura bohannan have : What attitude did Laura Bohannan have about cross-cultural translation of Shakespeare before visiting the Tiv? What differences in custom and belief hampered.
List the four possible decision functions : A hungry actuary who regularly visits the restaurant is trying to work out the best strategy for guessing the number of hot chillies.
How the chiefs were exposed to tql processes : How The chiefs were exposed to TQL processes,The chiefs' buy-in to the plan was obtained. The chiefs contributed a work-oriented perspective to the plan.
Discuss the appropriate investigative methods : Discuss the appropriate investigative methods/techniques that you would suggest. Provide a detailed plan on how you would develop and carry out investigation.
How much of the first payment should Charles include : Charles paid $180,000 for the annuity. How much of the first $20,000 payment should Charles include in his 2018 gross income
Explain the taxation implications of leasing : Explain the taxation implications of leasing these assets rather than purchasing them outright.

Reviews

Write a Review

Business Economics Questions & Answers

  Systematic relationship between concentration and price

Numerous studies have shown that there is usually a systematic relationship between concentration and price. What is this relationship? Offer two brief explanations for this relationship.

  Consensus of economists and business analysts

The consensus of economists and business analysts is for faster economic growth in the U.K. relative to the U.S. Firms in the U.K. are also projecting excellent profits. What are the implications for the exchange rate of the dollar for the British po..

  Specify what is the exchange-rate system

Please specify what is the exchange-rate system of Brazil? Describe briefly the advantages and disadvantages of the specific exchange-rate system. Do you think the world will move toward an international monetary system more characteristic of floatin..

  What does bob consume after this price change

Bob’s utility function is given by . 0.5 0.5 U = X Y Bob earns $400. The price of X is $2 and the price of Y is $4. a. What is Bob’s optimal consumption bundle before any price change? b. Suppose the price of X increases to $4. What does Bob consume ..

  Regulate initial public offerings of companies going public

How does the Securities Act of 1933 regulate the initial public offerings of companies going public? Compare and contrast the two rules developed by the U.S. Supreme Court for determining the lawfulness of a restraint under Section 1 of the Sherman A..

  Determine the depreciation allowance

Each truck cost $30,000 and has an expected life of 4 years. The trucks can each be sold for $8000 after 4 years. Using MACRS depreciation

  Key determinant of the price elasticity of supply

A key determinant of the price elasticity of supply is the:

  How are constraints on time and money related

Over the last several years, a number of municipalities in California have adopted restrictions on the bags that grocers are allowed to give to customers. The nature of the restrictions varies by municipality, but generally a customer must either pro..

  Relate concepts of cross elasticity and income elasticity

Think of a good product that you have purchased recently. If the price of this item increases, how would this affect the quantity of the good that you consume? Is the Demand for this good Price elastic or Price inelastic? Using specific examples, rel..

  Philosophy influenced by the ideas of immanuel kant

1. How was Georg Hegel's philosophy influenced by the ideas of Immanuel Kant?

  Economist to estimate the price elasticity of demand

You work at a Gazebo company (Shady Tents) and you hire an economist to estimate the price elasticity of demand for your product, and the estimate is .9 (in absolute value) and this has been fairly stable over the last year.

  Performing needed by each of the individual components

If the system is to have a 0.8 probability of performing, what is the minimum probability of performing needed by each of the individual components?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd