on October 17, 2006 in an article called US Population Reaches 300 million, the BBC reported that the US gains 1 person every 11
1 answer:
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Answer:
Step-by-step explanation:
Having the following equation given in the exercise:
You can solve for "a" following this procedure:
1. You can apply the Subtraction property of equality and subtract from both sides of the equation:
2. Now you must subtract the terms on the left side of the equation. Notice that the Least Common Denominator is "d". Then:
3. Finally, you can apply the Multiplication property of equality and multiply both sides of the equation by "b". So, you get:
Note that
Answer:
Mary's risk premium is $0.9375
Step-by-step explanation:
Mary's utility function,
Mary's initial wealth = $100
The gamble has a 50% probability of raising her wealth to $115 and a 50% probability of lowering it to $77
Expected wealth of Mary,
= (0.5 * $115) + (0.5 * $77)
= 57.5 + 38.5
= $96
The expected value of Mary's wealth is $96
Calculate the expected utility (EU) of Mary:-
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:
Mary's risk premium is $0.9375