Answer:
Hence Bob will pay a maximum of 35 thousand dollars for the insurance.
Step-by-step explanation:
The expected Utility for Bob is given by:
wealth w is measured in thousands of dollars
E(U) = Probability of storm * Utility if storm happens + (1- Probability of storm) * Utility if there is no storm)
E(U) = 0.38 * ln(20) + 0.62 * ln(83)
=0.38 * 2.9957 + 0.62 * 4.4188
=1.138378 + 2.73968
=3.878059
≅3.88
E(U) = 3.88
The wealth corresponding to this expected utility is given by w = exp(E(U)) = exp(3.88) = 48.33
≅48
= 48 dollars.
Hence the maximum Bob is willing to pay for the insurance can be given by = 83- 48
= 35 dollars.
<u>Since it in unit of thousand dollars</u>
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Hence Bob will pay a maximum of 35 thousand dollars for the insurance.
Plug in 12 for t in the given equation and solve
A calculator works well for this. If you want the actual rational number (not just an approximation), you have to do a little rearranging.
= 209804658 / 123937
≈ 1692.833117
Answer:
384cm
Step-by-step explanation:
This is because if each side length is 8cm, then you would multiply 8x8 to get 64. After that, you would multiply 64 and 6 because there are six sides on a cube and each side has an area of 64 cm.
Ok so the perimeter is the sum of all four sides, in this case, 26cm. The sides are then x, x, x+5, and x+5. 26=x+x+x+5+x+5 OR 26=4x+10.
x+5=length
x=width
subtract ten from each side:
16=4x
divide both sides by four:
x=4
Now we know the width. The length is the width plus 5.
4+5=9
Length: 9cm
Width: 4cm