Scenario 5.3: Wanting to invest in the computer games indust…
Scenario 5.3: Wanting to invest in the computer games industry, you select Whizbo, Yowzo and Zowiebo as the three best firms. Over the past 10 years, the three firms have had good years and bad years. The following table shows their performance: Company Good Year Revenue Bad Year Revenue Number of Good Years Whizbo $8 million $6 million 8 Yowzo $10 million $4 million 4 Zowiebo $30 million $1 million 1 Refer to Scenario 5.3. Where is the highest expected revenue, based on the 10 years’ past performance (the number of good years over 10 years is used to calculate the probability)?
Read DetailsScenario 5.1: Upon graduation, you are offered three jobs. S…
Scenario 5.1: Upon graduation, you are offered three jobs. Some job only offers a fixed salary, some job also offers a potential bonus. Company Income without Bonus Income with Bonus Probability of Receiving Bonus Samsa Exterminators 100,000 200,000 .10 Gradgrind Tech 100,000 190,000 .90 Goblin Fruits 115,000 115,000 .50 Assuming that your utility for income is U=I0.5, your utility of expected income from working at Gradgrind Tech is
Read DetailsConsider the following information about job opportunities f…
Consider the following information about job opportunities for new college graduates in Megalopolis: Table 5.1 Major Probability of Receivingan Offer in One Year Average Salary Offer Accounting .95 $25,000 Economics .90 $30,000 English .70 $24,000 Poli Sci .60 $18,000 Mathematics 1.00 $21,000 Refer to Table 5.1. Ranked highest to lowest in expected income, the majors are:
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