Dorothy is indifferent between a certain payoff of $x and this gamble. What is x?
What is a confidence interval, and why do some prefer them to single point estimates?
August 4, 2017What were some of the key characteristics of Vans’ earliest customers in the 1960s and 1970s? What was the public perception of skateboarding during this era?
August 4, 2017
Dorothy has a utility function of the form U = w^0.5 , and faces a situation in which income is $36 with probability 0.5 and $100 with probability 0.5.
- Dorothy is indifferent between a certain payoff of $x and this gamble. What is x?
- Suppose Dorothy is offered, for $32, full insurance for the $64 (potential) loss. Will she buy it? Why?
