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Genetic Testing and Insurance Prices. Suppose the likelihood that a person will get disease X is determined in large part (but not exclusively) by his or her genes. Initially, it is impossible to determine who carries the gene for the disease, and many people spend $500 on special health insurance to cover the costs of treatment for the disease. Suppose scientists uncover the gene responsible for the disease and develop a simple test for the gene.
a. Suppose the government passes a law that prevents insurance companies from getting the results of a customers genetic test for X. Will the new price of X insurance be greater than or less than $500?
b. Suppose insurance companies have access to the results of genetic tests and they require all customers to get the test. How will the insurance company change its price of X insurance?
In your 1st position as a Finance manager you have been given responsibility for decreasing use of residential heating fuel in state. Choose one of three legislative proposals to accomplish this target
The average retail price of the cookbook will be $30, and the average cost will be $20. Assume that the equation for demand is Q = 10,000 - 9,000P, where Q = the number of cookbooks sold per month P = the retail price of books.
Discuss the analogy between the K-means clustering algorithm and the EM algorithm for fitting this mixture model in detail. Show that in the limit σ → 0 the two methods coincide.
Suppose that the w=1, r=4 and the production function is given by: Q = K1/3L2/3. This means that the marginal product of labor and marginal product of capital are given by: MPL=(2/3)(K/L)1/3 and MPK=(1/3)(L/K)2/3. If the firm wants to produce 32 unit..
What is the relationship between velocity and the exchange rate?
Would it be possible to create such a market? If so how? If not, why not?
Suppose the community has the right to clean water. The factoryowner wants to increase the level of pollution from the current 10gallons per day to the optimal level. What is the maximum totalpayment that the factory will be willing to offer
Tangent distance nearest-neighbors. In each case choose the number of neighbors by tenfold cross-validation. Compare the results.
Suppose customers believe that the good they are buying is of high quality with a probability of p, and of low quality with probability 1 - p. A high quality good is valued at vH and costs cH to produce, while a low quality good is valued at vL an..
The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows: Family PF = $40 - $0.0004QF MRF = $40 - $0.0008Q..
The current managers are often the high bidders for the company
When she charges $4 per pie, she sells 30 pies per week. When she charges $5 per pie, she sells 24 pies per week. If she charges $4.50, she sells 27 apple pies per week.a. Is the apple pie market perfectly competitive
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