Answer:
x = 1.5 , y = 3 + 2at.
Step-by-step explanation:
For the parabola = 4aX ,
General form will be
(X = a , Y = 2at) ,
Thus , for the parabola = 6(x +8)
Here , a = 1.5 and Y from the above equation should be substituted by y - 3 and X must be substituted by x + 8. After substitution of the same we can use the general equation formula for this parabola also.
Thus , general equation comes out to be :-
x + 8 = 1.5 , y - 3 = 2at
x = 1.5 , y = 3 + 2at.
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:-
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