Answer:
$6 per game
Explanation:
The probability of getting a head on a toss is given as 0.5 for a fair coin.
Therefore the expected number of times that the coin would be tossed to get the first head would be given as the expected value of the geometric distribution with parameter of p = 0.5. therefore the expected value here would be 1/0.5 = 2
Therefore, we expect to get 22 = 4 dollars but we paid initially $10, therefore in long run we expect to lose $6 per game.
The best answer would be answer choice c.
Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
Answer:
2 CD and 2 MP3 will provide the maximum utility: 220 units
Explanation:
MP3 Q Utility Marginal Utility CD Q Utility Marginal Utility
2 70 70 1 80 80
4 130 60 2 150 70
6 180 50 3 210 60
8 220 40 4 260 50
10 250 30 5 300 40
Andrew can Purchase up to 18 dollars
Cost of a CD: 6 dollars
MP3 cost: 3 dollars
He will look at the marginal utlity (utility from additional unit) at the moment of make a desition:
The first CD will provide more utility than 2 MPE (80 to 70)
Then, Andrew will purchase his first pair of MP3 to get 70 more utility for 6 dollars
and then, between the second of each will prefer CD against as the marginal utility is higher: 70 against 60
Andrew will spend all of his budget $12 on CD's and $6 on MP3
Total utility: 80 + 70 + 70 = 220 Utility
