What is the maximum number of hostages required

Assignment Help Business Economics

Reference no: EM131009764

There are N hostages and one bad guy, who needs a password from the hostages. One by one, the bad guy asks each hostage for the password. If the hostage squeals, the game ends; otherwise, the hostage dies, and the bad guy moves on to the next hostage. There are two types of hostages: `sacrificial' types, and `selfish' types. Sacricial hostages receive payoff of -1 from dying, and -9 if the bad guy gets the password. Selfish types get -1 from dying, but don't care if the bad guy gets the password. Each hostage is sacrificial with probability 0.95, and selfish with probability 0.05.

(i) If the first hostage questioned is a sacricial type, calculate this type's payoff from not giving up the password, in terms of N.

(ii) What is the maximum number of hostages required for the sacrificial type in part (i) to not give up the password? (Hint: log xn = n log x)

(iii) Now assume that N = 50, and the probability each hostage is sacrificial is p. How large should p be to ensure that the sacricial type does not give up the password?

Reference no: EM131009764

Questions Cloud

Assume that the country is in period of high unemployment : Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable le..

Figure out the price he should pay for a corporate bond : Zach is trying to figure out the price he should pay for a Corporate Bond with a $10,000 face value. His minimum acceptable return is 10% per year, compounded semi-annually. Sally, the company representative wants him to pay $8,500 for the bond and i..

Using derive the least square estimators : Using derive the least square estimators. Where the lower case letters represent deviation from the variable’s mean. If you use upper case notation then the estimators become:

Consider monopoly platform which serves two sides of market : Consider a monopoly platform which serves two sides of a market (e.g. an auction website which brings together buyers and sellers). Each side of the market consists of two agents. What are the access prices that the platform will charge in the subgam..

What is the maximum number of hostages required : There are N hostages and one bad guy, who needs a password from the hostages. One by one, the bad guy asks each hostage for the password. If the hostage squeals, the game ends; otherwise, the hostage dies, and the bad guy moves on to the next hostage..

Interpret the slope coefficient estimate : A researcher is using data for a sample of 274 male employees to investigate the relationship between hourly wage rates Yi (measured in dollars per hour) and firm tenure Xi (measured in years). Preliminary analysis of the sample data produces the fol..

Two firms supply coffee at market : Two firms supply coffee at a market. Firm 1 has lower marginal costs than firm 2, reflected by constant marginal costs c1

About the get a student loan : Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate, 2 years from now. Then, you will make 15 yearly payments (starting 2 years from now). What are your payments? The interest rate is 8%/year.

When the government imposes a payroll tax on workers : When the government imposes a payroll tax on workers

User Account

All Pages