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.
Answer:what does the graph look like
Step-by-step explanation:
Answer:$117 over 9 hours of work
Step-by-step explanation:
$156 over 12 and then divide those two numbers which gets you 13 now we know you earn $13 per hour. Now, divide 117 by 13 and gets you 9 therefor you earn $117 from 9 hours of work.
Answer:
i think 3rd
Step-by-step explanation:
value of x = -2 and value of y = 6
The graph is shown in figure below.
The point of intersection is: (-2,6)
Step-by-step explanation:
We need to graph the system of linear equations.
Let:
First we will find the values of x and y to plot it on the graph.
-2x+y=10
x+2y=10
Multiply eq(2) by 2 and add both equations:
Putting value of y in eq(2)
So, value of x = -2 and value of y = 6
Now plot on the graph x=-2 and y=6
The graph is shown in figure below.
The point of intersection is: (-2,6)
Verifying the solution:
Verify the solution by putting value of x and y in eq(1) or 2
Keywords: System of equations
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