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Aulani Keehu
Answers (6)
AK
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Which one of the following is most apt to be a nondiversifiable risk?
A) A fire at a petroleum refinery.
B) An airline pilot's strike.
C) A sudden increase in inflation.
D) A shortage of peaches cane due to a hail storm.
E) A lawsuit arising from faulty refrigeration units.
A) A fire at a petroleum refinery.
B) An airline pilot's strike.
C) A sudden increase in inflation.
D) A shortage of peaches cane due to a hail storm.
E) A lawsuit arising from faulty refrigeration units.
On Jul 24, 2024
C
AK
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Dexter's Shell owns his own Waffle-Cone business and lives 50 kms from a beach resort. The sale of Waffle-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $180 per day in fair weather, $40 per day in foul weather. At home, he will profit $110 in fair weather, $70 in foul weather. Assume that on any particular day, the weather service suggests a 40% chance of fair weather.
a. Construct Dexter's payoff table.
b. What decision is recommended by the expected value criterion?
c. What is the EVPI?
a. Construct Dexter's payoff table.
b. What decision is recommended by the expected value criterion?
c. What is the EVPI?
On Jul 21, 2024
(a) The payoff table is
Profit Fair weather Foul weather Probability =0.4 Probability =.6 Sell at the resort 18040 Sell at home 11070\begin{array} { | l | l | l | } \hline \text { Profit } & \text { Fair weather } & \text { Foul weather } \\\hline & \text { Probability } = 0.4 & \text { Probability } = .6 \\\hline \text { Sell at the resort } & 180 & 40 \\\hline \text { Sell at home } & 110 & 70 \\\hline\end{array} Profit Sell at the resort Sell at home Fair weather Probability =0.4180110 Foul weather Probability =.64070 (b) the EMV for sell at the resort = .4 ∗ 180 + .6 ∗ 40 = 96; The EMV for sell at home = .4 ∗ 110 + .6 ∗ 70 = 86. The better value is $96, so Earl should sell at the resort.
(c) EVwPI = .4 ∗ 180 + .6 ∗ 70 = $116; EVPI = $116 - $96 = $20.
Profit Fair weather Foul weather Probability =0.4 Probability =.6 Sell at the resort 18040 Sell at home 11070\begin{array} { | l | l | l | } \hline \text { Profit } & \text { Fair weather } & \text { Foul weather } \\\hline & \text { Probability } = 0.4 & \text { Probability } = .6 \\\hline \text { Sell at the resort } & 180 & 40 \\\hline \text { Sell at home } & 110 & 70 \\\hline\end{array} Profit Sell at the resort Sell at home Fair weather Probability =0.4180110 Foul weather Probability =.64070 (b) the EMV for sell at the resort = .4 ∗ 180 + .6 ∗ 40 = 96; The EMV for sell at home = .4 ∗ 110 + .6 ∗ 70 = 86. The better value is $96, so Earl should sell at the resort.
(c) EVwPI = .4 ∗ 180 + .6 ∗ 70 = $116; EVPI = $116 - $96 = $20.
AK
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As the inventory of a firm rises
A) there is no change in its capital.
B) its intangible capital increases.
C) its tangible capital increases.
D) its social capital decreases.
A) there is no change in its capital.
B) its intangible capital increases.
C) its tangible capital increases.
D) its social capital decreases.
On Jun 24, 2024
C
AK
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Like intentional torts,negligence involves the willful desire to harm another's person or property.
On Jun 21, 2024
False
AK
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Continuous reinforcement means that the behavior is reinforced each time it occurs and is the simplest schedule of reinforcement.
On May 25, 2024
True
AK
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In which conflict communication style do people go along, giving in to the other person's wishes, fearing that not doing so will damage the connection?
A) Accommodating
B) Withdrawing
C) Confronting
D) Collaborating
A) Accommodating
B) Withdrawing
C) Confronting
D) Collaborating
On May 22, 2024
A