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Suppose a family have saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U=V^1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation-ruining illness (V=0) is 20%. What is the expected value of V?
Continuing with the same family from the preceding question, what is the greatest (integer) number of vacation days the family would be willing to give up in order to guarantee a healthy vacation?
Continuing with the same family from the preceding question, suppose a risk neutral insurance company exists to provide vacation insurance. Suppose further that each vacation day requires a constant expenditure, and this expenditure is standard across everybody. This allows us to simplify the problem by considering all payments to be in terms of vacation days. What is the least the insurance company would charge (in terms of vacation days)?
study of individual behaviour - individual industry like education, meat industry, tourism and agriculture. Choose any ONE industry from this list and discuss the reforms been done in that industry.
In 1980, Stewie bought a Walkman for $29. If the price index was 25 in 1980 and the price index today is 129, then what is the price of the Walkman in today's dollars?
In any event, the difference between what is wanted and what is obtained can cause issues. In marketing implementation, we term these "intended" versus "realized" marketing strategy. When these two items are very close to one another, the implementat..
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q 100,000 -1.25P, illustrate what price should you charge in order to maximize revenues from sales of the Highlander.
You are a turnaround artist, specializing in identifying underperforming companies, buying them, improving their performance and stock price, and then selling them. You have found such a prospect, Sicco. What should you bid if you want to maximize yo..
q. you sell a commodity in a market that resembles perfect competition and your cost function is cq 2q 3q2.
What kinds of treatments will comparative effectiveness research compare?
Evaluate why only the convexity of preference relation cannot guarantee that the indifference curve is strictly convex to the origin.
The Fed has conducted quantitative easing for about 6 years: QE1 – QE3 and has increased the size of their balance sheet more than 4 fold. Discuss the level of bank reserves, excess reserves and cash in the system and why this has not lead to massive..
Recommend at least two (2) strategies an administrator can apply to ensure that the budget is performing according to the established performance indicators. Justify your response.
What are the commonalities of mental health services and long-term care? What are the challenges both areas of care continue to face today and in the future?
The market for cereal is characterized by the demand equation: QD=35-20P And supply is characterized by: QS=5P-40. Find the equilibrium in the market for cereal. Show your work. Compute the elasticity of demand and supply at the equilibrium. Show you..
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