Answer:
I should not accept the bet; the precise level of risk aversion does matter.
Explanation:
Risk averse person is the one who is not willing to take the risk even if he is given high returns. Risk averse person will always avoid the risks. In the given scenario the person is risk averse. If he rolls out the dice he has to pay $200 times the dice number which means he just have two chance (dice rolls 1 or dice rolls 2) for getting return otherwise he will loose the bet and he will have to pay money from the pocket.
Answer:
hope the images above answer your question.
Explanation:
Hope this helps!
✧◝(⁰▿⁰)◜✧
Answer:
The decision rule for rejecting H0 is if the test statistic falls outside the region bounded by the critical values.
Explanation:
Null hypothesis: The actual percentage that do not fail is the same as the stated percentage.
Alternate hypothesis: The actual percentage that do not fail is different from the stated percentage.
Test statistic (z) = (p' - p) ÷ sqrt[p(1-p) ÷ n]
p' is sample proportion = 0.51
p is population proportion = 0.48
n = 1700
z = (0.51 - 0.48) ÷ sqrt[0.48(1-0.48) ÷ 1700] = 0.03 ÷ 0.012 = 2.5
The test is a two-tailed test. At 0.01 significance level, the critical values are -2.576 and 2.576
Decision rule:
Reject H0 (null hypothesis) if the test statistic falls outside the region bounded by the critical values -2.576 and 2.576.
Answer:
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.