Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an ann
2 answers:
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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:-
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
Answer:
(20,-4)
Step-by-step explanation:
We are given;
One end point as (2,5)
Point of division as (10,1)
The ratio of division as 4:5
We are required to calculate the other endpoint.
Assuming the other endpoint is (x,y)
Using the ratio theorem
If the unknown endpoint is the last point on the line segment;
Then;
=
+
Therefore; solving the equation;
solving for x
x = 20
Also
solving for y
y= -4
Therefore,
the coordinates of the end point are (20,-4)
Answer:
Step-by-step explanation:
Given
Required
Solve for
So, we have:
Invert both sides
Take of both sides
--- approximated
Convert to minutes:
So: