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1. An insurance company writes policies for a large number of newly-licensed drivers each year. Suppose 40% of these are low-risk drivers, 40% are moderate risk, and 20% are high risk. The company has no way to know which group any individual driver falls in when it writes the policies. None of the low-risk drivers will have an at-fault accident in the next year, but 10% of the moderate-risk and 20% of the high-risk drivers will have such an accident. If a driver has an at-fault accident in the next year, what is the probability that he or she is high-risk?
If there is a law restricting late-night parties then what the college students do? Can there be an efficient outcome?
What is the optimal order quantity when Lisa purchases more than 10,001 pieces? What is the total annual cost, including ordering, holding, and purchasing the silverware?
Suppose a 6-month put option on a stock with a strike price of $32. The current stock value is $30 and over the next six months it is expected to rise to $36 or fall to $27.
What are the two primary factors that influence a firm manager's choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager's choice.
Lasola Corporation's stock has a 50 percent chance of producing a 25 percent return, a 30 percent chance of producing a 10% return, and a 20% chance of producing a -28% return.
Write down the game table of the above simultaneous-move game. What are the (complete) strategy sets of the players?
Does the marginal product of labor measure how output changes as wage price changes, or is it the average product of labor divided through the quantity of capital stock and can it be negative or is it any two of the above?
There are several celebrated investors and stock pickers frequently mentioned in the financial press who have recorded huge returns on their investments over the past two decades. ?
The short run marginal cost of the Ohio Bag corporation is 2Q. Price is $100. The corporation operates in a competitive industry.
Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry, so they ask you for a report considering the following p..
Why might market-orientated supply-side policies have undesirable side-effects on aggregate demand?
1.Make out a case for adopting a policy of individual tradable carbon permits, allocated to all citizens within a country. Could such a policy be extended globally?
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