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
bonufazy [111]
3 years ago
8

Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility

function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation-ruining illness (V = 0) is 20%. What is the expected value of V?
Business
1 answer:
Harlamova29_29 [7]3 years ago
5 0

Answer:

2 Days

Explanation:

First, there is the need to rewrite the utility function for clarity

U=V^{1/2}

1. The Probability of Falling ill by someone in the family is given as 20%

2. If someone should fall ill, the total number of days that would be spoiled is calculated as:

Total number of vacation= 10 days x Probability to fall ill = 20%

= 10 x 0.2 = 2 days

This means if someone should fall ill based on the probability, then 2 out of the total 10 days can be ruined

3. The number of days for vacation days to enjoy is 10-2 = 8 days

This means if the family gives up 2 days of probable illness, they can still enjoy their vacation.

V= 2 days

You might be interested in
Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given prod
sesenic [268]

Answer:

<u>$35</u>

<u>Explanation</u>:

Note the formula:

Total revenue (TR)= Price (P) x Q and Marginal revenue (MR) = Change in TR / Change in Q

<u>Total Revenue for 2 units of output sold</u>

= 2 x $50 = $100

<u>Total Revenue for 3 units of output sold</u>

= 3 x $45 = $135

<u>The Marginal Revenue=</u>

Change in TR (135-100) / Change in quantity (3-2)

= $35/1

= <u>$35</u>

Therefore, the Marginal Revenue If the firm sells 3 units of output, will be $35.

7 0
3 years ago
Here is economic calendar for the United Kingdom for August 2013, Examine indicators like PMI (Market UK PMI Manufacturing), emp
Gelneren [198K]

Based on the majors indicators, the U.K economy perform above expectations as the UK surprised the world in the second half to 2013 with the robustness of its economy.

<h3>What are the three major indicators of the economy?</h3>

Economic indicators cover measurements of stability and macroeconomic performance, such as gross domestic product (GDP), consumption, investment, and international commerce (central government budgets, prices, the money supply, and the balance of payments).

The GDP, unemployment rate, and inflation are the main three indicators that economists look at to determine how the economy is performing overall. The primary gauge of macroeconomic performance is generally acknowledged to be the Gross Domestic Product (GDP). An economy's overall size can be determined by looking at its GDP in absolute terms, whereas its overall health can be determined by observing fluctuations in GDP, which are frequently quantified as real GDP growth.

To learn more about macroeconomic, visit:

brainly.com/question/11262295

#SPJ1

3 0
1 year ago
Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. she considers herself an
Naya [18.7K]

Arianna is engaged in the category management of the store. Category management is involved in the retailing and the purchasing concept by which it ranges the products that are being purchased or the products that are being sold into categories that are being broken down in discrete groups that are in similar or products that are related.

4 0
3 years ago
Read 2 more answers
A way of buying, in which you can purchase goods or services and pay later, is called:
Trava [24]
A credit Xdxdxxdxdxdxd
5 0
3 years ago
Indicating where an idea or fact came from is known as:
Morgarella [4.7K]
The indication for where the fact came from is called citation
8 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owne
    14·1 answer
  • Team cohesiveness tends to be higher when A. the team is sufficiently small. B. members have limited interaction. C. entry into
    5·1 answer
  • What are the three types of check endorsements used to deposit checks into a bank account? A. Blank endorsement, in-person endor
    14·1 answer
  • If the government requires a natural monopoly to price at marginal cost, Group of answer choices monopoly firms will earn zero e
    8·1 answer
  • 17- Dell was one of the first companies to change the customer​ experience, allowing customers to order and configure their own
    6·1 answer
  • Carol Cagle has a repetitive manufacturing plant producing trailer hitches in​ Arlington, Texas. The plant has an average invent
    10·1 answer
  • When a stock transaction occurs in the secondary market, the company receives: Group of answer choices Nothing The dollar value
    9·1 answer
  • If Acme Corporation's current share price is $40 and it has issued 1 million shares of stock, then its market cap is
    7·1 answer
  • Which statement best explains why reporters should use mostly primary sources?
    14·1 answer
  • Zappos' product selection includes performance athletic shoes, outdoor coats, contemporary shirts, couture accessories, and more
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!