Complete question:
Consider the game of chicken. Two players drive their cars down the center of the road directly at each other. Each player chooses SWERVE or STAY. Staying wins you the admiration of your peers (a big payoff) only if the other player swerves. Swerving loses face if the other player stays. However, clearly, the worst output is for both players to stay! Specifically, consider the following payouts. Player two Stay swervePlayer one stay -6 -6 2 -2 swerve -2 2 1 1
a) Does either player have a dominant strategy?
b) Suppose that Player B has adopted the strategy of Staying 1/5 of the time and swerving 4/5 of the time. Show that Player A is indifferent between swerving
and staying.
c) If both player A and Player B use this probability mix, what is the chance that they crash?
Explanation:
a. There is no dominant strategy for either player. Suppose two players agree to live. Then the best answer for the player is to swerve(-6 versus -2). Yet if the player turns two, the player will remain one (2 vs 1).
b. Player B must be shown to be indifferent among swerving and staying if it implements a policy (stay= 1⁄4, swerving= 5/4).
When we quantify a predicted award on the stay / swerving of Player A, we get
E(stay)= (1/5)(-6)+ (4/5)(2)= 2/5 E(swerve)= (1/5)(-2)
c. They both remain 1/5 of the time. The risk of a crash (rest, stay) is therefore (1/5)(1/5)= 1/25= 4%
Daniel Kahneman and Amon Tversky believe that when we suffer a $1 loss, compared to a $1 gain, we suffer 2.25 pain.
<h3>What did Daniel Kahneman and Amon Tversky believe?</h3>
Based on some models that the two ran, they came up with a conclusion that we suffer more from losses than we get help from gain.
Their prediction was that a loss of $1 can hurt us about 2.25 more times than a gain of $1 can help us.
Find out more on losses at brainly.com/question/1165724.
Answer:
Playing the accounting system
Explanation:
Playing the accounting system means fraudsters introduces false information or influences the way the accounting system operates so that results will give higher amounts than one would normally get.
For example creating fictitious customers and assigning sales figures to them, aimed at inflating sales.
In the given instance the fraudster manipulates the way the accounting system calculates depreciation in order to gain from the inflated figures.
Effect of Contribution Margin on the other costs is given below
Explanation:
1.Contribution margin per unit is the net amount that each additional unit sold contributes towards a company's fixed costs and profit. It equals the difference between the product's sales price and variable cost per unit.It represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company. It provides one way to show the profit potential of a particular product offered by a company and shows the portion of sales that helps to cover the company's fixed costs. Any remaining revenue left after covering fixed costs is the profit generated.
2.The Formula for Contribution Margin Is
The contribution margin is computed as the difference between the sale price of a product and the variable costs associated with its production and sales process.
Contribution Margin=Sales Revenue - Variable Costs
3.The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. The contribution margin helps to separate out the fixed cost and profit components coming from product sales and can be used to determine the selling price range of a product, the profit levels that can be expected from the sales, and structure sales commissions paid to sales team members, distributors or commission agents.
4,The contribution margin represents the portion of a product's sales revenue that isn't used up by variable costs, and so contributes to covering the company's fixed costs.
The concept of contribution margin is one of the fundamental keys in break-even analysis.
Low contribution margins are present in labor-intensive companies with few fixed expenses, while capital-intensive, industrial companies have higher fixed costs and thus, higher contribution margins
Answer: c) having limited ability to respond to changes in product and quality
Explanation:
JIT or Just In Time is a system that eliminates waste, reduces the time of production and improves product quality by focusing on customers' wants and having as little lag as possible between order to delivery time.
It is based on rapid throughput, inventory is purchased in discrete quantities as at when needed and production is carried out based on customers' orders or what is believed will be sold. This system does not leave room for any variances in product or quality.
