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1. Your welfare depends on how much time you travel T and how much time you play P and is the product of the two, i.e., W = T * P
(a) The total amount of time you have is 10 hours, i.e., T+P=10.
(b) If you spend 2 hours travelling and 8 hours playing, how much is your welfare?
(c) If you spend 8 hours travelling and 2 hour playing, how much is your welfare?
(d) Consider the simple average of the outcomes in (b) and (c). Is that possible given your time constraint? How high is your welfare in this case? What does it suggest about your feeling for averages versus extremes?
how can management use financial ratios
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