Answer:
Fraction x = 0.8
Explanation:
As we know that consumers value a non-defective car at $11,000, so we make assumption that only used cars for sale will be defective ones.
The used car price of $6000 is the value to consumers of a defective car.
For a risk-neutral buyer, the reservation price for a new car will be the expected value of a non-defective car( i.e., the value of a good car times the probability of getting a good car, plus the value of a bad car times the probability of getting a bad car.)
So to find x, we solve:
Expected value = (prob. of non-defective car) (value of non-defective car)
+ (prob. of defective car)(value of defective car)
$7000 = ( 1 − x )11,000 + ( x )6000
7000= 11000 - 11000x + 6000x
5000x = 4000
x = 4000/5000
x= 0.8
Answer:
A large marketing department is answer
Explanation:
I hope it's helpful!
Answer:
statutory control
Explanation:
Statutory controls are controls imposed by provisions contained in an Act (or a law).
Statutory controls are enforced by government agencies. Federal government agencies enforce control over federal acts, while state government agencies enforce control over states acts.
Students should understand that every saving and investment product has different risks and returns. Differences include how readily investors can get their money when they need it, how fast their money will grow, and how safe their money will be.