For 11-18: GIVEN TREATMEN T CHOICES Treatment COST Treatment D $15,000 31 Treatment $17,000 29 W Treatment B Treatment C Treatment Y Treatment X Treatment A Treatment Z no B) W is OD by C LIFE EXPECTANCY treatment 11. Which of the following is true? A) X OD C C) COD W D) W is OD by D $7,000 18 $11,000 26 $9,000 19 $13,000 23 $3,000 10 $5,000 16 $0 2 B) X only C) X and W years years years years years years years years years E) all the choices are true 12. Identify all the obviously dominated treatments A) A and Z D) W only 13. Name all the obviously DOMINATING treatments. (only the treatments that obviously dominate other treatment(s) A) Y and B B) X and W C) C only D) C and D E) A,Z,B,Y,Z,D: all these treatments that are not obviously dominated, obviously dominate some treatment

For 11-18: GIVEN TREATMEN T CHOICES Treatment COST Treatment D $15,000 31 Treatment $17,000 29 W Treatment B Treatment C Treatment Y Treatment X Treatment A Treatment Z no B) W is OD by C LIFE EXPECTANCY treatment 11. Which of the following is true? A) X OD C C) COD W D) W is OD by D $7,000 18 $11,000 26 $9,000 19 $13,000 23 $3,000 10 $5,000 16 $0 2 B) X only C) X and W years years years years years years years years years E) all the choices are true 12. Identify all the obviously dominated treatments A) A and Z D) W only 13. Name all the obviously DOMINATING treatments. (only the treatments that obviously dominate other treatment(s) A) Y and B B) X and W C) C only D) C and D E) A,Z,B,Y,Z,D: all these treatments that are not obviously dominated, obviously dominate some treatment

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 11RQ: What is an actuarially fair insurance policy?

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