Utility index and selecting choices based on utility

Assignment Help Advanced Statistics
Reference no: EM13114460

Part 1

Entrepreneur Jones has a utility index of 5 for a loss of $1,000, and 12 for a profit of $3,000. He says that he is indifferent between $10 for certain and the following lottery: a 0.4 chance at a $1,000 loss and a 0.6 chance at a $3,000 profit. What is his utility index for $10?

Part 2

Suppose that Smith has a utility function U(x) = x^(2/3) where x is in dollars (0 < x < 100). Smith is offered the following choices:

A: $8 for sure.

B: A lottery with a one-half chance for zero dollars and a one-half chance for $64.

Which choice would you predict Smith will choose?

Reference no: EM13114460

What is expecte number of user able to continue using system

What is the probability that a particular user, say user 1, is able to continue using the system? What is the expected number of users able to continue using the system?

Construct a normal probability plot from the data

Construct a Normal Probability Plot from the data below and graph your results in the space provided. Is this data normal? Why or why not? (6 points: 2 points for graph, 2 p

Notions of mathematical differences

Explain the notions of mathematical differences, managerially important differences, and statistical significance. Can results be statistically significant and yet lack mana

Market values of stocks

Given the following market values of stocks in your portfolio and their expected rates of return, what is the expected rate of return for your common stock portfolio?

Calculate the measures of location and dispersion of cgpa

Calculate the measures of location and dispersion of CGPA, age and work experience for all backgrounds and specializations. Combine these measures, wherever possible, for al

Find the mean delay from t until the process leaves state i

Given that the process is in state i at time t, find the mean delay from t until the process leaves state i. Find πi, the time-average fraction of all transitions that go into

Presentation on statistical test of snack foods

List at least three qualitative attributes of the snack food about which they might want to ask consumers. Make sure at least one of them is nominal.

Description of sampling

A polling company obtains an alphabetical list of names of voters in a precinct. They select every 20th person from the list until a sample of 100 is obtained. They then cal


Write a Review

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