The closing price of Martin's Sporting Goods Inc. common stock is uniformly distributed between $25 and $36 per share. What is the probability that the stock price will be more than $32?

If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he expects a crop of 50,000 bushels.  The cost of pesticides is $30,000 and the other costs associated with planting and harvesting the crop total $450,000. The price of corn at harvest time will either be $9.00 with probability of 0.50 or it will be $11.00 with probability 0.50, so if the farmer decides to sell the crop at harvest, the expected price per bushel that he will receive is $10.00. If the farmer decides to sell the crop at harvest, then:     a. He should not use pesticides because not using pesticides ensures greater expected profit.   b. He should not use pesticides because not using pesticides ensures lower expected profit.   c. He should use pesticides because using pesticides ensures greater expected profit.   d. He should use pesticides because using pesticides ensures lower expected profit.

Your company must decide whether to introduce a new product. The sales of the product will be either at a high (success) or low (failure) level. The conditional value for this decision is as follows   Decision High Low Introduce $4,000,000 -$2,000,000 Do Not Introduce 0 0 Probability 0.3 0.7   You have the option to conduct a market survey to sharpen you market demand estimate. The survey costs $200,000. The survey provides incomplete information about the sales, with three possible outcomes: (1) predicts high sales, (2) predicts low sales, or (3) inconclusive. Such surveys have in the past provided these results   Result High Low Predicts High 0.4 0.1 Inconclusive 0.4 0.5 Predicts Low 0.2 0.4   a) Using expected monetary value, what is your decision? b) What is the expected value of perfect information before taking the survey? c) Draw the complete decision tree, including the survey option. d) What is the…

a) (3) Consider two investments X and Y, where X pays $0 and $10 with equal probability and Y pays 0 with probability 0.75 and $20 with probability 0.25. What investment would an investor choose if her utility function is u(x) = x? u(x) = x u(x) = 1-e 10 () (i) (ii)