What is my expected benefit?, Microeconomics

Assignment Help:
I am risk averse, and trying to maximize my expected value of c0, 5, where c is my fortune.
I have 50.000 in cash, and also art with a value of 200.000 which I keep in my
basement. I live in an area that may experience basement flooded during heavy
rains. If my basement is flooded, my art only 40.000 worth.
The probability of a flooded basement is 1 per cent.

Related Discussions:- What is my expected benefit?

Applyimg supply/denabde due to illness and hospital :), If a 10% increase ...

If a 10% increase in the price of computers leads to a 20% reduction in the quantity demanded, what is the coefficient of demand elasticity? 2. A local government wants to increase

Natural factors and availability of credit, Natural Factors: Seasonal va...

Natural Factors: Seasonal variations may affect the demand for a commodity at certain times of the year. For example, during the raining season, demand for commodities such as j

What do you mean by consumption set, What do you mean by Consumption Set? ...

What do you mean by Consumption Set? Consumption Set: We notice a consumer faced along with possible consumption bundles within consumption set X. We generally assume that X

Econometrics, Due April 8 a) Produce some initial summary statistics of the...

Due April 8 a) Produce some initial summary statistics of the data. b) State the hypotheses that will be tested. Show me advanced results (analyses, not write-up/paper) Due April

Demand Supply, Ask qIf the supply and demand curves for labor are represent...

Ask qIf the supply and demand curves for labor are represented by the following equations: Wd= -- (1/100)Ld + 30 Ws= (1/200)Ls Ws=Wd Ld=Ld a. Graph the results and show the equili

Estimating the level of output for the target year, MRP Technique - Estima...

MRP Technique - Estimating the Level of Output for the Target Year Taking into account several parameters of economic growth such as past trends, present as well as proposed

Determine the net present value, A potential investment project has the fol...

A potential investment project has the following stream of annual social (benefits minus costs), where you may assume the project starts with the capital payment of $12,000 on Day

Marginal revenue productivity, to what extent does Marginal revenue product...

to what extent does Marginal revenue productivity theory explain wage determination in Zimbabwe

Write Your Message!

Captcha
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!

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