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
konstantin123 [22]
3 years ago
5

Nina has a convex utility of wealth function, u(x). She is contemplating two prospects, L and M, where L is a mean preserving sp

read of M. Which of the following statements is therefore true?
a. Nina will prefer M to L.
b. Nina will prefer L to M.
c. Ninaâs ranking of L and M cannot be determined without more information.
d. Nina must be risk averse, but that is the most one can say.
Business
1 answer:
Lerok [7]3 years ago
6 0

Answer:

b. Nina will prefer L to M.

Explanation:

Convex utility of wealth indicates that an individual tends to be comfortable with taking risks.

A concave utility function shows an aversion for risk.

A mean preserving spread occurs when one variable has greater variance than another but they both have the same mean.

In the given scenario prospect L will have a greater variance than prospect M since it is a mean preserving spread.

Given Nina's risk taking preference she will most likely take prospect L that offers more variability over prospect M

You might be interested in
PA11.
NARA [144]

Answer:

Using Traditional allocation method

Allocation rate per unit

=<u> Budgeted overhead</u>

  Budgeted direct labour hours

Brass

Overhead allocation rate

= <u>$47,500</u>

  700 hours

=  $67.86 per direct labour hour

Gold

= <u>$47,500</u>

   1,200 hours

=  $39.58 per direct labour hour

Using activity-based costing

Brass

Allocation rate for material cost pool                                                                                                                                                  

= <u>$12,500</u>

   400

=  $31.25 per material moved

Gold

Allocation rate for material cost pool

= <u>$12,500</u>

   100    

= $125 per material moved

Brass

Allocation rate for machine set-up pool

= <u>$35,000</u>

  400

= $87.50

Gold

Allocation rate for machine set-up pool  

= <u>$35,000</u>

   600

= $58.33                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Explanation:

Using traditional allocation method, the overheads for material cost pool and machine set-up pool will be added. The overhead allocation rate per unit is the division of total overhead by the direct labour hours for each product.        

Using activity-based costing, the material cost pool overhead  will be divided by the material moved for each product in order to obtain allocation rate for each product.                                                                                                                                                                

The allocation rate for machine set-up pool is obtained by dividing the machine set-up overhead by the number of machine set-up for each              product.                                                                                      

4 0
3 years ago
Request the entrepreneur to share his/her key success factors and elaborate on this success factors
Bogdan [553]
I interviewed a successful salon owner, and this is what determine her success according to her :

- Persevere ,  do not give up if somehow something doesn't go how you want it to be
- Care about your customer, and your business should live to fulfill what they need from you

hope this helps<span />
6 0
3 years ago
Read 2 more answers
The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,470,000, $154,000 in the common stock account
devlian [24]

Answer:

The cash flow to creditors during 2014 was $139000,the amount by which net working capital investment has reduced.

The stockholders invested $241,000 more into the business

The net cash flows from asset is the $1,100,000 net firm's capital spending

Lastly,the operating cash flow is $240,000 as calculated below

Explanation:

Net working capital investment denotes the amount of cash the company parted with in 2014 in financing its current obligations.

Stockholders as the owners of the company made more cash available to the company in 2014 by investing more cash resources in it as follows:

Common stock account increased by $10000($164000-$154000)

Additional paid-in surplus increased by $300000($3090000-$2790000)

The gives $400000 cash from stockholders minus dividends of $159000

Operating cash flow

Net income                                    $0

add interest                                   $101000

Reduction in net working capital $139000

Operating cash flow                     $240000

6 0
3 years ago
(WILL GIVE 29 Points &amp; Brainlest) PLEASE HELP!!!!!!!! ):
Tanzania [10]

Answer:

Career Clusters have the knowledge and skills that learners need as they follow a pathway toward their career goals.

6 0
3 years ago
California's gdp per capita is $60,000, while nevada's gdp per capita is $40,000. if both grow at 2 percent per year, how long w
NeTakaya

California's GDP in step with capita is $60,000, even as Nevada's GDP according to capita is $forty,000. if both grow at 2 percent in step with yr two states to have the equal GDP per capita, they'll never have the same GDP per capita.

GDP stands for "Gross Domestic Product" and represents the overall monetary cost of all very last items and services produced (and offered available on the market) inside a country during a time period (normally 1 year). reason. GDP is the most usually used degree of economic interest.

GDP is measured via taking the portions of all items and services produced, multiplying them by way of their fees, and summing the full. GDP may be measured either through the sum of what is purchased inside the economy or by using what's produced. call for may be divided into consumption, investment, government, exports, and imports.

We realize that during an economy, GDP is the monetary price of all very last items and offerings produced. for instance, let's say u. s. a . B simplest produces bananas and backrubs. items and offerings Produced in the united states B In yr 1 they produce five bananas which might be really worth $1 each and 5 backrubs which are worth $6 every.

GDP is important because it gives records approximately the size of the economy and how an economic system is performing. The booming rate of actual GDP is frequently used as an indicator of the general fitness of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economic system is doing well.

Learn more GDP  here: brainly.com/question/1383956

#SPJ4

3 0
1 year ago
Other questions:
  • Process tailoring is best undertaken on agile projects when
    15·2 answers
  • Pablo was reviewing the water bill for his carwash business and determined that the highest​ bill, $5,000, occurred in july when
    10·1 answer
  • First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compound
    7·1 answer
  • Under the TILA-RESPA Integrated Disclosure Rule (TRID), a lender must extend the closing how many days if the annual percentage
    15·1 answer
  • Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and 37 percent debt. Its co
    13·1 answer
  • Book Bound sells a wide variety of books to retail bookstores. Book Bound recently published two new books: a popular mystery no
    8·1 answer
  • In 1969, Malcolm bought a Pontiac Firebird for $2,500. If the price index was 36.7 in 1969 and the price index was 235 in 2013,
    14·1 answer
  • Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put
    14·1 answer
  • Everett Company has outstanding 30,000 shares of $50 par value, 6% preferred stock and 70,000 shares of $1 par value common stoc
    11·1 answer
  • What is accountancy​
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!