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
Complete the square
isolate x terms
y=(x^2-14x)+53
take 1/2 of -14 and square it ((-7)^2=49
add plus and minus of that inside the parntehasees
y=(x^2-14x+49-49)+53
factor perfect suqrae
y=((x-7)^2-49)+53
get rid of parnthasees
y=(x-7)^2-49+53
y=(x-7)^2+4
C isi answer
Answer: 
Step-by-step explanation:
For this exercise is necessary to remember the following formula:

Where "V" is the speed, "d" is the distance and "t" is the time.
In this case you must solve for the time, then:

Based on the information provided in the exercise, you can identify that:

Therefore, knowing this, you can make the substitution into the formula
.
Through this procedure you get that the equation that can be used to find the amount of hours "h" that it will take Sandra to drive "m" miles at her constant speed, is:

Answer:
the common denominator is 21
Step-by-step explanation: Because