User Account

All Pages

What is the expected value of this bet

Assignment Help Macroeconomics
Reference no: EM131344690

A coin has probability p of landing heads. You are offered a bet in which you will be paid $21 if the first head occurs on the jth flip.

(a) What is the expected value of this bet when p = 1/2?

(b) Suppose that your expected utility function is u(x) = lnx. Express the utility of this game to you as a sum.

(c) Evaluate the sum. (This requires knowledge of a few summation formulas.)

(d) Let wo be the amount of money that would give you the same utility you would have if you played this game. Solve for wo.

Reference no: EM131344690

Questions Cloud

What are the economic risks of not building such a wall : There are multiple issues associated with such an action and since this is an economics class, what are the economic impacts of building such a wall? What are the economic risks of not building such a wall
Most important metrics for operations managers : Develop a listing of what you believe are the most important metrics for operations managers. (Hint: Be sure to consider the triple bottom line.) Howdoes each metric support the overall financial performance of the organization?
Draw the swim-lane process flow diagram : Draw the swim-lane process flow diagram and identify the bottleneck. Label everything clearly and completely.
Will you change your style of communication if so how : BUS 302- Imagine you are a Baby Boomer managing a team of Generation Y, X, and Millennials. How will you get their respect for your leadership? Will you change your style of communication? If so, how? If not, why?
What is the expected value of this bet : A coin has probability p of landing heads. You are offered a bet in which you will be paid $21 if the first head occurs on the jth flip. What is the expected value of this bet when p = 1/2
In what ways are warehouses beneficial to customers : When stages of the supply chain are considered separately, why is sub-optimzation likely to occur? In what ways are warehouses beneficial to customers?
Implement this multiplication algorithm : Implement this multiplication algorithm. (Note: Doubling and halving operations correspond to "shift" operations which are very efficient on most computers.)
Develop a project plan : For this Assignment, you will develop a project plan, using as your focus a work-related project you are doing now or will be doing in the future.
What impact does the fed raising the interest rate : What impact does the Fed's raising the interest rate have on the money supply and on the price level

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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