Your explanation is so far so good, but please avoid some calculation error like 19/3 is not 6.66 rather than 6.333. Moreover I have one question what is the importance of calculating the expected value of the certain income. Overall I apricate your idea through out your work, continue via this trend.
Sir please solve this question for my MEC-101 IGNOU exam will be after one week: Two players have the opportunity to participate in a gamble with two possible outcomes of ₹10 with probabilities 0.3 and ₹30 with probabilities 0.7. The players' utility functions for the money outcomes are as follows: Player 1: U1(M)=√ M+6 Player 2:U2(M)=(M+5)^2 Determine the difference in the amounts that you must offer to these two players. Thanks Sir
Sir please please solve this very important QUESTION for my upcoming exam on this Friday of IGNOU...........the question is like this below :- Consider a LOTTERY with 3 possible outcomes: Rs.100 will be received with probability of 0.1 Rs.50 will be received with probability of 0.2 Rs.10 will be received with probability of 0.7 1) What will be the Expected payoffs of the Lottery? 2) what would be the Risk neutral person pay to play the Lottery? 3) Suppose an individual have a VNM utility functions u(y)= √y. What would she pay to play the Lottery ?...
Your explanation is so far so good, but please avoid some calculation error like 19/3 is not 6.66 rather than 6.333. Moreover I have one question what is the importance of calculating the expected value of the certain income. Overall I apricate your idea through out your work, continue via this trend.
Good explanation
Thanks for the appreciation
Sir please solve this question for my MEC-101 IGNOU exam will be after one week:
Two players have the opportunity to participate in a gamble with two possible outcomes of ₹10 with probabilities 0.3 and ₹30 with probabilities 0.7.
The players' utility functions for the money outcomes are as follows:
Player 1: U1(M)=√ M+6
Player 2:U2(M)=(M+5)^2
Determine the difference in the amounts that you must offer to these two players.
Thanks Sir
19÷3= 6.333.... not 6.66.
There is no 6.66 on 19/3. Please update this. Thank you.
A good economist need not be a good mathematician
Sir please please solve this very important QUESTION for my upcoming exam on this Friday of IGNOU...........the question is like this below :-
Consider a LOTTERY with 3 possible outcomes:
Rs.100 will be received with probability of 0.1
Rs.50 will be received with probability of 0.2
Rs.10 will be received with probability of 0.7
1) What will be the Expected payoffs of the Lottery?
2) what would be the Risk neutral person pay to play the Lottery?
3) Suppose an individual have a VNM utility functions u(y)= √y. What would she pay to play the Lottery ?...
I have uploaded the solution
@@ECONMATHS share the link sir....
@@mewanchelangkisuchiang9861 check latest video on this channel
Is that initial income equal to expected value, pleases try to analysis for tomorrow exam ,l am really appreciate