Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Calculating expected profit and utility values
An individual is considering two investment projects. Project A will return a zero profit if conditions are poor, a profit of $4 if conditions are good, and a profit of $8 if conditions are excellent. Project B will return a profit of $2 if conditions are poor. a profit of $3 if conditions are good, and a profit of $4 if conditions are excellent. The probability distribution of conditions is as follows:
Conditions: Poor Good ExcellentProbability 40% 50% 10%
a) Using excel, calculate the expected value of each project and identify the preferred project according to this criterion.
b) Assume that the individual's utility function for profit is U(X) = X -0.05X2. Calculate the expected utility of each project and identify the preferred project according to this criterion.
c) Is this individual risk averse, risk neutral, or risk seeking? Why?
Describe and answer in economic terms the question, should a company hire temp teachers or hire new teachers?
Show the new utility maximizing bundle of gasoline and all other goods. What is the slope of the new budget line? What is the consumer's new MRS of all other goods for gasoline?
If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.
It all begins two years ago when the officials in Plentiful decided to raise the tipping fees at their Raw End
Illustratr what is the Keynesian solution to a recession or depression. Explain how does the Keynesian multiplier work.
A contry's currency will depreciate if its inflation rate is less than that of its trading partners.
Illustrate fiscal policies also monetary policies which would be appropriate at this time.
Elucidate what would you expect to happen to the nominal yields changes in inflation expectations and required real yields occurred.
Explain when we look at the macro economy the similar terms are known as Aggregate Demand
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
What is the opportunity cost of going to a doctor to be examined for skin cancer? Would eliminating research reduce or increase the cost of U.S. health care?
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd