Problem 2: Show your work. Five salesmen of B, C, D and E of a company are considered for a three member trade delegation to represent the company in an international trade conference. Construct the sample space and find the probability that : (i) A is selected. (ii) A is not selected, and (iii) Either A or B (not both) is selected. (Assume the natural assignment of probability.)

Problem 2: Show your work. Five salesmen of B, C, D and E of a company are considered for a three member trade delegation to represent the company in an international trade conference. Construct the sample space and find the probability that : (i) A is selected. (ii) A is not selected, and (iii) Either A or B (not both) is selected. (Assume the natural assignment of probability.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

See similar textbooks

Similar questions

Asap
1. Consider you toss two dices separately, and you get whatever the number above the dice. You know that the first dice is fair, but there is a 0.30 probability that outcome will be 6, and 0.30 probability that outcome will be 1 in the second dice. Each of the other outcomes has a probability 0.10 for the second dice. Which dice has the higher variance?
1. A dealer decides to sell a rare book by means of an English auction with a reservation price of 54. There are two bidders. The dealer believes that there are only three possible values, 90, 54, and 45, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue is approximately ______. 2. A seller knows that there are two bidders for the object he is selling. He believes that with probability 1/2, one has a buyer value of 5 and the other has a buyer value of 10 and with probability 1/2, one has a buyer value of 8 and the other has a buyer value of 15. He knows that bidders will want to buy the object so long as they can get it for their buyer value or less. He sells it in an English auction with a reserve price which he must…
The injured football player Bad news everyone! There is 1 second left in the game, and Tom Brady has injured himself. The matrices below depict the relative probabilities of winning givenan offensive and a defensive play call. (The row player is the New England Patriots and the column player is the opponent.) How much has the all star's home team probability of winning decreased due to the injury? Pass uny Patriots D Pass .4, .6 D Run .9,.1 .8,.2 .5,.5 Pass Run Opponent D Pass D Run .06, .94 .32, .68 .8,.2 .5,.5
When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 30 or to bet $10 that the outcome is any one of the three possibilities 00, 0, or 1. 3 The gambler knows that the expected value of the $10 bet for a single number is - 53¢. For the $10 bet that the outcome is 00, 0, or 1, there is a probability of 38 of making a net profit of $30 and a probability of losing $10. 35 38 a. Find the expected value for the $10 bet that the outcome is 00, 0, or 1. b. Which bet is better: a $10 bet on the number 30 or a $10 bet that the outcome is any one of the numbers 00, 0, or 1? Why? a. The expected value is $. (Round to the nearest cent as needed.) b. Since the expected value of the bet on the number 30 is C than the expected value for the bet that the outcome is 00, 0, or 1, the bet on is better.
Consider the game shown in Figure 3. Let A denote the probability that player 1 plays a, B the probability that player 1 plays b, C the probability that player I plays e, and D the probability that player I plays d. For player 2 X denotes the probability that player 2 plays x, Ý that he/she plays y, and Z that he she plays z. Figure 3 Player 2 O 3,7 4,6 5,4 b5,1 2,3 1,2 C 2,3 | 1,4 | 3,3 d 4,2 1,3 6,1 Player 1 In a NE what is: C, the probability that player 1 plays e a. Z, the probability that player 2 plays z b. D, the probability that player 1 plays d с. d. X, the probability that player 2 plays x e. A, the probability that player 1 plays a
Cat, who owns the same type of house and faces the same probability distribution of losses as Rainie, also purchases full insurance for an actuarially fair premium from Lemonade Insurance Company. We assume that the two houses are independent of each other. In other words, if one house has a fire, this has no impact on the probability of the other house having a fire. 2. What is the probability distribution of total losses for Lemonade Insurance Company if they sell contracts to both Rainie and Cat? Show your work a. b. What is the expected loss or expected payout for Lemonade Insurance Company if they sell contracts to both Rainie and Cat? What is the amount of risk Lemonade Insurance Company faces if they sell contracts to both Rainie and Cat? Show your work с. d. Briefly explain the benefit(s) to Lemonade Insurance Company as the number of insurance contracts sold increases?
Safe Brave 2, Copy Copy Innovate Innovate 5/2 5/12 10/10 10/6 Assume player 2 believes player 1 plays "safe" with probability p and "brave" with probability 1-p. What it the highest p so that a risk-neutral player 2 to should play "copy"? Please give an answer with two decimal places. Answer:
Consider the game shown in Figure 3. Let A denote the probability that player I plays a, B the probability that player 1 plays b, C the probability that player I plays e, and D the probability that player I plays d. For player 2 X denotes the probability that player 2 plays x, Ý that he/she plays y, and Z that he she plays z. Figure 3 Player 2 O 3,7 4,6 5,4 b 5,1 2,3 1,2 c 2,3 1,4 3,3 d 4,2 1,3 6,1 Player 1 In a NE what is: C, the probability that player 1 plays e a. Z, the probability that player 2 plays z b. D, the probability that player 1 plays d c. d. X, the probability that player 2 plays x e. A, the probability that player 1 plays a
A lottery has a grand prize of $1,000,000, 2 runner-up prizes of $100,000 each, 6 third-place prizes of $10,000 each, and 19 consolation prizes of $1,000 each. If a 4 million tickets are sold for $1 each, and the probability of any ticket winning is the same as that of any other winning, find the expected return on a $1 ticket. (Round your answer to 2 decimal places.
Player 1 L 20, 12 4,8 10, 2 6,6 R 0, 14 8,4 2,18 6,6 ). If 1 believes that 2 plays a mixed strategy (0.25, 0.75), i.e. with 25% probability of L and 75% probability of R, which of 1's strategies has the highest expected payoff? N E S W N E S W Player 2 2. If 2 actually plays a mixed strategy (0.25, 0.75), i.e. with 25% probability of L and 75% probability of R, which of 1's strategies would give 2 the highest expected payoff? N E S W
Suppose that there is limited commitment in the credit market, but lenders are uncertain about the value of collateral. Each consumer has a quantity of collateral H, but from the point of view of the lender, there is a probability a that the collateral will be worth p in the future period, and probability 1 - a that the collateral will be worthless in the future period. Suppose that all consumers are identical. (a) Determine the collateral constraint for the consumer, and show the consumer’s lifetime budget constraint in a diagram. (b) How will a decrease in a affect the consumer’s consumption and savings in the current period, and consumption in the future period? Briefly explain your results. Please do fast ASAP fast