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Advocard [28]
1 year ago
7

Two friends are playing with water balloons. They each start at the bucket of balloons and walk in opposite directions before to

ssing their balloons at each other. Joy walked 14 steps
forward, and Shaunte walked 5 steps backwards. Which expression correctly represents the distance between the friends?
O 14+1-51 19 steps
O 14+5=19 steps
O-141 +1-51 = 19 steps
O-141+5=19 steps
Mathematics
1 answer:
oksian1 [2.3K]1 year ago
6 0

Answer:

B

Step-by-step explanation:

because is joy walked 14 steps and her friend walks 5 steps the answer is 19 steps 14+5=19

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uppose that​ Mary's utility function is​ U(W) = W0.5​, where W is wealth. She has an initial wealth of​ $100. How much of a risk
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Answer:

Mary's risk premium is $0.9375

Step-by-step explanation:

Mary's utility function,  U(W) = W^{0.5}

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The gamble has a 50% probability of  raising her wealth to $115 and a 50% probability of lowering it to $77

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Calculate the expected utility (EU) of Mary:-

E_u = [0.5 * U(115)] + [0.5 * U(77)]\\E_u = [0.5 * 115^{0.5}] + [0.5 * 77^{0.5}]\\E_u = 5.36 + 4.39\\E_u = \$ 9.75

The expected utility of Mary is $9.75

Mary will be willing to pay an amount P as risk premium to avoid taking the risk, where

U(EW - P) is equal to Mary's expected utility from the risky gamble.

U(EW - P) = EU

U(94 - P) = 9.63

Square root (94 - P) = 9.63

If Mary's risk premium is P, the expected utility will be given by the formula:

E_{u} = U(E_{w} - P)\\E_{u} = U(96 - P)\\E_u = (96 - P)^{0.5}\\(E_u)^2 = 96 - P\\ 9.75^2 = 96 - P\\95.0625 = 96 - P\\P = 96 - 95.0625\\P = 0.9375

Mary's risk premium is $0.9375

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