Answer: Jamal Should choose option B
Explanation:
The question is unclear with regards to the requirements, we will assume the question wants us to find an option that will maximize jamal's wealth.
Utility Function reflects Jamal's satisfaction that he derives from his wealth.
U = w12
a. Wealth (w) = $4million
U = 12w = (4000 000) x 12
U = 48000 000
b. Wealth = $1 million with probability 0.6 and $9 million with probability 0.4.
We first need to calculate expected wealth before we can calculate how much utility will Jamal derive from this option
Expected Utility = 1 000 000 x 0.4 + 9000 000 x 0.4 = $4200 000
Utility = w12 = (4200 000) x 12 = 50 400 000
Jamal will have a utility of 48000 000 if he chooses option A and Option B provides Jamal with a Utility of 50 400 000. Option B provides a higher utility than option A, therefore the option that will maximize Jamal's Utility is Option B.
Answer:
A. Check the image
B. The probability that a student is able to construct a tree diagram if it is known that he or she passed is 79.2%
Explanation:
a) A tree diagram is a tool that simplifies the distribution of probabilities. So we start making branches (lines) according to the probability of each succes to happen, so in this case we first divide the tree diagram between those who can construct tree diagrams that represent the 88% so it means it has a probability of 0.88 and those who can't construct tree diagrams, so if 88% can just 12% can't construct tree diagrams that is a probability of 0.12. This is the first part of the tree diagram.
After that tere is another condition that is passing so for those who construct it is the 90% (0.9 probability) for passing, so in this group it is just 10% (0.1 probability) that doesn't pass. Now for those who don't construct tree diagrams, 60% (0.6 probability) pass so 40% losses (0.4)
See in the diagram that if you add the numbers that compound each of the vertices the result is a 100% or 1.0 probability, this is what you have to take into account when you are constructing a tree diagram.
b) For calculating a probability after constructing the tree diagram you just need to multiply each of the factor in which you are interested. In this case:
Construct tree diagram X Pass = 0.88 x 0.9 = 0.792
So the probability for a student that can construct a tree diagram to pass is 0.792, now for having in percentage we just need to multiply by 100% then:
0.792 x 100 = 79.2%
Answer:
The journal entries are given as follows;
Explanation:
Jan 5
Cash Dr.$20,520
Sales Tax Payable 20,520-(20,520/1.08) Cr.$1,520
Inventory Cr.$19,000
Unearned Service Revenue Dr.$12,000
Service Revenue Cr.$12,000
Employee payroll Expense Dr.$452,000
Social Security payable Cr.$3,978
Federal Income Tax payable Cr.$5,686
State Income Tax payable Cr.$1,706
payroll Expenses payable (452,000-3,978-5,686-1,706) Cr.$440,630
Answer:
The correct answer is option d.
Explanation:
The 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10.
The profit to a firm is maximized when the marginal revenue earned and marginal cost incurred are equal.
When the firm is producing the 100th unit of output the marginal revenue is $1 higher than the marginal cost. This implies that the production of the 100th unit increases the firm's profit by $1.