User Account

All Pages

Formula for the amount of insurance

Assignment Help Basic Computer Science
Reference no: EM131886758

Sally owns a factory on the banks of a river that occasionally floods. She has no other assets. If there is no flood this spring, Sally's factory will be worth $500,000. If there is a flood, the factory will be worthless. Sally is an expected utility maximizer with a utility function u(W) = lnW where W is her wealth. She believes that the probability of a flood is 1/10. Sally is offered a chance to buy as much flood insurance as she likes at a cost of p per dollar's worth of insurance. To purchase C worth of flood insurance coverage she must pay a total of pC in insurance premiums. If there is a flood she receives a payment of C from the insurance company.

Write down a formula for the amount of insurance that Sally will buy as a function of the cost p per dollar of insurance. What is the price elasticity of demand of Sally's demand for insurance?

Reference no: EM131886758

Questions Cloud

Global trends towards isolation globalization : Could you explain by giving an example, how does current global trends towards isolation affect globalization? Are these trends temporary or permanent?
How do you think budget influences demand curve for products : Do you expect beef prices to increase next year? Why or why not? How do you think this influences the demand curve for indoor grill products?
Creating the core of the portfolio : In the first project piece you created the core of the portfolio and filled in the initial purchase data (e.g. number of stocks purchased, purchase price).
Why is competition important for the efficient : Why is competition important for the efficient use of resources? What must a firm do to compete effectively?
Formula for the amount of insurance : Write down a formula for the amount of insurance that Sally will buy as a function of the cost p per dollar of insurance. What is the price elasticity
Conduct an in-depth investigation about the managerial issue : Conduct an in-depth investigation about the Managerial issues of a networked organization and Emerging enterprise network applications.
Sharing the wealth of the commons : Read Peter Barnes, "Sharing the Wealth of the Commons" (Real World Micro, article 1.6, pages 27-34). What is the "Commons"?
Write legal memorandum addressing the controversial issue : CJ 500 Module Four Legal Policy Memorandum Guidelines. Write a legal policy memorandum to the district court judge addressing the controversial issue
Calculate the market level : Depreciating Kenyan currency makes it expensive to buy foreign currency with which to pay for foreign goods leading. Calculate the market level.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd