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
FromTheMoon [43]
3 years ago
5

Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. T

he probability of nice weather is 60% and the probability of bad weather is 40%. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______. Select one: a. $1,200 b. $1,250 c. $1,220 d. $1,000
Business
1 answer:
Vinvika [58]3 years ago
6 0

Answer:

Mel

If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.

c. $1,220

Explanation:

a) Data and Calculations:

Mel's value of a cruise in nice weather = $2,000

Mel's value of a cruise in bad weather = $50

Probability of nice weather = 60%

Probability of bad weather = 40%

Expected value:

Weather              Outcome Probability    Expected Value

Nice weather      $2,000          60%           $1,200

Bad weather            $50           40%               $20

Total expected value of a cruise               $1,220

You might be interested in
A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
saul85 [17]
Tell them to wait patiently, and give them a
drink
7 0
3 years ago
Read 2 more answers
3. A los factores productivos, dentro del proceso<br> de producción, también se conoce como..
emmainna [20.7K]

Answer:

El capital es uno de los tres factores de producción, se puede dividir en capital físico y capital humano, el capital físico son todas las máquinas y recursos que utiliza en su negocio. El capital humano se refiere a todos los conocimientos adquiridos.

6 0
2 years ago
Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will ________ the price
Blizzard [7]

Money supply is the total amount of money in circulation which includes coins, cash and balance in savings account in a country at a period of time.

  • Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will <u>not change</u> the price paid for its use, otherwise known as the <u>discount rate.</u>

  • A change the money supply in a country causes a change in aggregate demand.

  • An increase in the money supply causes increase in aggregate demand and a decrease in the money supply causes decrease in aggregate demand.

Therefore, an increase in money demand will not change the price paid for its use, otherwise known as the discount rate.

Read more:

brainly.com/question/12225192

8 0
3 years ago
A beneficiary acquired stock from a decedent. The stock's fair market value at the date of the decedent's death was $500,000. Th
Ivanshal [37]

Answer:

Beneficiary recognized gain is $510000.

Explanation:

The amount paid by the decedent for the stock = $280000

The market value of the stock at the time of death = $500000

The selling price or the amount received by the beneficiary by the sell of stock = $510000

Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.

Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.

= $510000 – 0

= $510000

7 0
3 years ago
A researcher wants to find out if adults who watch violent television shows will behave more aggressively. Name the dependent va
densk [106]

The scientists are trying to find if TV causes aggressions. TV is the independent variable and aggression depends on if the adults watch the TV.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Lola wants to own a small restaurant. In order to achieve this goal, which action should she perform first?
    14·2 answers
  • Which of the following is a subsystem of computers providing access to the Internet and offering multimedia and linking capabili
    8·1 answer
  • Current information for the Healey Company follows:
    13·1 answer
  • The labor-force participation rate tells us the fraction of the population that has chosen to participate in the labor market.
    6·1 answer
  • Willow Creek Nursery, with an authorization of 72,000 shares of preferred stock and 210,000 shares of common stock, completed se
    13·1 answer
  • total quality management. B : enterprise resource planning. C : a balanced scorecard. D : corporate social responsibility.
    14·1 answer
  • When consumers need to purchase a refrigerator, they usually evaluate different models across a set of features or characteristi
    11·1 answer
  • Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operat
    8·1 answer
  • Explain briefly the purpose<br> of the Computer Management Console in Microsoft Windows.
    12·1 answer
  • A unit volume objectives for pricing should be used judiciously because higher volume goals can sometimes result in Blank______.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!