Answer:
Step-by-step explanation:
x= 1/4 , -9/4
when you set the function to equal to zero you will get these values
Answer:
- equation: (7x-4) +19 +(10x+3) = 52
- x = 2
- red: 10
- blue: 19
- yellow: 23
Step-by-step explanation:
The equation is based on the relation that the perimeter is equal to the sum of the side lengths.
P = red + blue + yellow
52 = (7x -4) +(19) +(10x +3)
52 = 17x +18 . . . . . . . . . . . . . . simplify
34 = 17x . . . . . . . . . . . . . subtract 18
2 = x . . . . . . . . . . . . divide by 17
__
red = 7(2) -4 = 10
blue = 19
yellow = 10(2) +3 = 23
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:-
![E_u = [0.5 * U(115)] + [0.5 * U(77)]\\E_u = [0.5 * 115^{0.5}] + [0.5 * 77^{0.5}]\\E_u = 5.36 + 4.39\\E_u = \$ 9.75](https://tex.z-dn.net/?f=E_u%20%3D%20%5B0.5%20%2A%20U%28115%29%5D%20%2B%20%5B0.5%20%2A%20U%2877%29%5D%5C%5CE_u%20%3D%20%5B0.5%20%2A%20115%5E%7B0.5%7D%5D%20%2B%20%5B0.5%20%2A%2077%5E%7B0.5%7D%5D%5C%5CE_u%20%3D%205.36%20%2B%204.39%5C%5CE_u%20%3D%20%5C%24%209.75)
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