What alternative would be chosen according to expected value

Assignment Help Mathematics
Reference no: EM13180044

For the payoff table below, the decision maker will use P(s1)=.15, P(s2)=.5, and P(s3)=.35

a. What alternative would be chosen according to expected value?

b. For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1-p), the decision maker expressed the following indifference probabilities

Payoff Probability
10,000 .85
1000 .60
-2000 .53
-5000 .50

Let U(40,000)=10 and U(-15,000)=0 and find the utility value for each payoff.

c. What alternative would be chosen according to expected utility?

Reference no: EM13180044

Questions Cloud

State atoms the molecular symmetry will decide the polarity : A molecule can be polar or nonpolar depending upon the nature of the bonds and the shape of the molecule. For a molecule that has different outer atoms the molecular symmetry will decide the polarity.
How many students should receive a c : For a class of 43 students, for a certain exam, the mean grade is 67 and the standard deviation is 7, how many students should receive a C?
How is unemployment measured and reported : What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect..
Component of the equity section of the balance sheet : What else is a component of the Equity Section of the Balance Sheet? Please explain to the class how the retained earning comes about. You are correct. It is not contributed. How is Treasury Stock shown?
What alternative would be chosen according to expected value : What alternative would be chosen according to expected value?
Determine pw-aw and fw as measures of performance : The Company IIE Inc. is considering upgrading their distribution center (DC) and have received investment proposal from four different vendors. The budget limitation for the investment is $1 million. The investment proposals are listed in Table 1...
What is the approximate pressure : A tank holds liquid waste comprised mostly opf water. It is vented to the atmosphere. the tank has a diameter of 50 feet and a total depth of 30 feet, it is only half full. At a poin t five feet above the bottom of the tank, what is the approximat..
Calculate expected profit and rate of return on investment : Calculate the expected profit and rate of return on investment for each division and for the company as a whole in the coming year, if Division B purchases its motors from Division A, and sells its entire output to retailers.
What are dimensions of box that would maximize volume : What are the dimensions of the box that would maximize the volume.

Reviews

Write a Review

Mathematics Questions & Answers

  Even functions and integrability

Prove that if f(x) is even on [-a, a] and integrable on [0, a] where a>0, then f(x) is integrable on [-a, a] and Int([-a, a], f(x)dx) = 2*Int([0, a], f(x)dx).

  Graphing and linear equations

Find the slope and the line through the points (2,8) and (7,3). Find the slope and the y-intercept of the line 9x + 3y =81. On Friday, Shawn drove to the lake in 45 minutes. On Sunday he returned up in 9 less minutes and averaged 12 more miles per h..

  Test the claim that the proportions of agree or disagree

Using a 0.025 significance level, test the claim that the proportions of agree/disagree responses are same for the subjects interviewed by men & the subjects interviewed by women.

  Correlation and determination

Difference and relationship between correlation and determination as it applies to linear regression analysis

  Find the intervals

find the intervals on which f(x) is increasing and decreasing and find the x- and y- coordinates of all the local extrema

  Write a program that allows a user to enter a line of text

Write a graphical user interface class called SentenceCounterGUI. It should be able to manipulate the sentence of words

  Find probability that 1 card is king and 2 card is a queen

Find the probability that the first card is a king and the second card is a queen.

  What is the alpha for the fad followers

The market has an expected return of 12% and the risk-free rate is 4%. What is the alpha for the fad followers?

  Write an algebraic expression that represents the area

The perimeter of a rectangle is twice the length plus twice the width. The area of a rectangle is the product of its length and width. Suppose we let l represent the length and w represent the width of a rectangle.

  Find the probability that at least customers pay in cash

What is the probability that at least 50 customers pay in cash? What is the probability that no more than 15 customers pay in cash? What is the probability that more than 20 and less than 40 customers pay in cash?

  Finding the equation of plane

Find the equation of the plane passing through (3,4,-1) and parallel to the vectors A=2i+j+k and B=i-3k.

  Explanation of systems of equations word problems

Supppose a baseball is thrown at 85 miles per hour.The ball will travel 320 ft when hit by a bat swung at 50 miles per hour and will travel 440 ft when hit by a bat swung at 80 miles per hour.

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