1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
postnew [5]
3 years ago
13

Option A has an expected value of $2,000, a minimum payoff of -$4,000, and a maximum payoff of $18,000. Option B has an expected

value of $2,200, a minimum payoff of -$1,000, and a maximum payoff of $6,000. Option C has an expected value of $1,900, a minimum payoff of $100, and a maximum payoff of $2,000. In this situation, a risk-averse decision maker would pay __________ for his risk aversion, and a risk-seeking decision maker would pay __________ for his risk seeking.
Business
1 answer:
Alecsey [184]3 years ago
4 0

Answer:

Option A is the answer

Explanation:

A risk-averse decision maker will go for the option with the least chance of loss incurred (the highest minimum payoff of $100) and settle for an expected value of 1900. He'll pay for his risk avoidance in this way (2200-1900 = 300) while a risk-seeking decision maker will go for the option with the highest payoff chances ($18,000), regardless of the possibility of failure. This would make the risk-seeking decision maker go for option A.

You might be interested in
Lily's apparel, a renowned apparel store, focuses on gen y customers and provides them with a customized clothing experience. th
lara [203]
 lily's apparel has defined its target market by : <span>Psychographic characteristics
A psychograhic characteristic is a way to define a target market by finding similar attitudes, lifestyle , or value.
By knowing this similarities, we could find a product that will fulfill all the needs that is required by the majority of that market</span>
5 0
3 years ago
The activity concerned with the production of goods and services is called​
kifflom [539]
Answer: Labor
Explanation: Human Resources (labor) The quantity and quality of human effort directed toward producing goods and services (also called labor).
8 0
2 years ago
if my movie starts at 11:26 am but it takes 48 minutes to get there what time will it be when I get there
MrRissso [65]

Answer:

12:34

Explanation:

It will be 12:34 if you leave at 11:26

3 0
2 years ago
Read 2 more answers
Exhibit 5-2 price and quantity demanded data price quantity demanded 5 20 4 25 3 30 2 35 1 40 using exhibit 5-2, what is the pri
Yuki888 [10]

Answer:

The price elasticity of demand is -5

Explanation:

Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Using mid point method

Change in Demand = $20 - $25

Change in Demand = -$5

Change in price  = $5 - $4

Change in price  = $1

As we know

Elasticity of Demand = Change in demand / Change in price

Elasticity of Demand = -$5 / $1

Elasticity of Demand = -5

4 0
3 years ago
Read 2 more answers
What is one medical use for x-rays​
MakcuM [25]

Answer:

X-rays can be used to see what areas of a bone a broken or injured. It helps understand what parts of the body may have injuries.

Hope this helps.

6 0
3 years ago
Other questions:
  • Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
    6·1 answer
  • Explain the following statement: Marketing is more than just promotion.
    5·2 answers
  • This résumé format focuses on both the skills and the work experience of the applicant: a. Chronological b. Functional c. Skills
    9·2 answers
  • In one test before product launch, customers try a sample product and are then surveyed to understand whether they would buy/use
    15·1 answer
  • A bottling operation has a mean fill level of 10.01 ounces with a standard deviation of 0.25 ounces. Random samples of 20 bottle
    9·1 answer
  • Government Spending
    8·1 answer
  • The role of the financial manager is closely related to three main cash-related activities: Financing Investing Operating.
    11·1 answer
  • What does Marketing mean to you?
    11·2 answers
  • Provide an explanation of how his/her life will change economically, socially, and politically in a centrally planned economy.
    14·1 answer
  • What's the key difference between term life insurance and straight-life insurance?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!