You are playing “Deal or No Deal” (simplified slightly). At this
point the amounts left are...
You are playing “Deal or No Deal” (simplified slightly). At this
point the amounts left are $20,000, $120,000 and $1,000,000, and
each has an equal chance of being in your case. The banker offers
you $400,000. If you turn down the $400,000 you get what is in your
case (no further offers).
If you reject the $400,000, can we conclude anything about
whether you are risk averse? Explain. What if you accept the
$400,000 offer, could we then draw a...
You are a contestant on a game show. There are three doors,
labeled A, B, and...
You are a contestant on a game show. There are three doors,
labeled A, B, and C. Behind two of the doors are prizes worth
nothing, and behind the third door is a prize worth $10,000. The
game show host knows which door contains the valued prize, but you
don’t. You get first move, at which time you must choose one of the
three doors. The game show host gets the second move, at which time
he must open one...
Problem 5.10.10
Suppose you have n suitcases and
suitcase i holds Xi dollars where
X1, X2,...
Problem 5.10.10
Suppose you have n suitcases and
suitcase i holds Xi dollars where
X1, X2, …,
Xn are iid continuous uniform (0, m)
random variables. (Think of a number like one million for the
symbol m.) Unfortunately, you don’t know
Xi until you open suitcase i.
Suppose you can open the suitcases one by one, starting with
suitcase n and going down to suitcase 1. After opening
suitcase i, you can either accept or reject
Xi dollars. If...
In the final round of a TV game show, contestants have a chance
to increase their...
In the final round of a TV game show, contestants have a chance
to increase their current winnings of $1 million to $2 million. If
they are wrong, their prize is decreased to $500,000. A contestant
thinks his guess will be right 50% of the time. Should he play?
What is the lowest probability of a correct guess that would make
playing profitable?
They should play because the payoff will be positive.
.50 X 1,00,000 = 500,000 Total gain if...
Suppose you are playing a game of five-card poker where you are
dealt a hand of...
Suppose you are playing a game of five-card poker where you are
dealt a hand of 5 cards from a standard deck of 52 playing cards.
Each card has one of 13 values, 2,3,…,10,J,Q,K,A2,3,…,10,J,Q,K,A,
and one of 4 suits, ♡,♢,♠,♣♡,♢,♠,♣
A hand called a royal flush consists of cards of
the values 10,J,Q,K,A10,J,Q,K,A, all from the same suit. For
instance, a royal flush with hearts would be
10♡,J♡,Q♡,K♡,A♡10♡,J♡,Q♡,K♡,A♡.
Now, actually getting a royal flush in poker is incredibly rare (in...
Question: Assuming that a vaccine is discovered in say 18
months, discuss what might have happened...
Question: Assuming that a vaccine is discovered in say 18
months, discuss what might have happened to the LRAS curve over the
period of the COVID crisis.
Although the virus has delayed the budget until October …. last
week the secretary to the Treasury dropped some big hints on what
to expect. In evidence to the Senate committee inquiring into the
response to the virus, Dr Steven Kennedy started with the outlook
for the labour market. The latest figures from...
THIS IS THE GENERAL EQUILIBRIUM PROBLEM THAT I PROMISED. YOU
FIRST SOLVE FOR THE INITIAL EQUILIBRIUM...
THIS IS THE GENERAL EQUILIBRIUM PROBLEM THAT I PROMISED. YOU
FIRST SOLVE FOR THE INITIAL EQUILIBRIUM AS POINT A. WE CONSIDER TWO
DIFFERENT AND SEPARATE SHOCKS (I CALL THEM SCENARIOS). THE FIRST
SHOCK IS TO THE IS CURVE, THE SECOND SHOCK IS A ‘LM’ SHOCK. AGAIN,
WE CONSIDER THESE SHOCKS SEPARATELY SO THAT AFTER YOU COMPLETE
SCENARIO 1 (THE IS SHOCK), WE GO BACK TO THE ORIGINAL CONDITIONS
AND CONSIDER THE SECOND SCENARIO WHICH IS THE ‘LM’ SHOCK.
Consider the...
Please answer all 9 questions with explanation. Thank you
On May 8, 1984, Hannah Eisenstat graduated...
Please answer all 9 questions with explanation. Thank you
On May 8, 1984, Hannah Eisenstat graduated from Louisiana State
University. She set to work opening a coffee shop in Baton Rouge
called HannaH and found a perfect location in a new development.
Using a $50,000 inheritance to finance the venture together with
her own sweat equity, she started the business on August 1, 1984 as
a sole proprietorship. The shop was profitable in the first year.
Hannah found, however, that...
What have we done? Daddy would know what to do, but I don't. I
really thought...
What have we done? Daddy would know what to do, but I don't. I
really thought growing this business would be an easy thing for us,
but now I am not so sure. All of the work that we did in 2005 was
supposed to set us up for new success, profits, and a bright
future. But now, we are showing losses on both the historical
investment and on our modernization and expansion. Gretchen Reeves
was talking in early February...