Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Mia Dribble has a utility function u=W 2/3 . Mia is a basketball star starting her senior year. If she makes it through her senior year without a serious injury, she will receive a $8,000,000 contract for playing in the new professional women's basketball league (the $8,000,000 includes endorsements). If she injures herself, she will receive a $64,000 contract for selling concessions at the basketball arena. There is a 20 percent chance that Mia will injure herself badly enough to end her career.

(i) What is Mia's expected utility? What is the expected value and the variance of her income?

(ii) What is Mia's risk premium?

(iii) Suppose that Mia; is offered an insurance policy at the rate p=0.25 How much of insurance would Mia buy?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91676608

Have any Question?


Related Questions in Microeconomics

Question managing organizational change a multiple

Question: Managing Organizational Change: A Multiple Perspectives Approach 3nd edition By Ian Palmer and Richard Dunford and David Buchanan Lesson 1 Discussion This assignment will require you to research at least one of ...

Question pop-o popcorn inc sells bags of flavored gourmet

Question: Pop-O Popcorn, Inc. sells bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, Cara estimates the demand for flavored popcorn to be: Q 1,500- 50P +4A, where A denotes advertising week ...

Question the cost of maintaining a new care is estimated at

Question: The cost of maintaining a new care is estimated at $295 the first year and to increase by $50 each year thereafter. How much should be set aside for maintenance, if the car is to be kept 10 years and if the mon ...

Question suppose a market with the following production

Question: Suppose a market with the following production function F(K, L) = (K - 1) 1 4L 1 4 . Consider the wage w = 1 and the capital return r = 4. Suppose in the short run K = 2. a) What is the demand for labor in the ...

Question what economics priniciples discussed by

Question: What Economics priniciples discussed by Stonebraker should have warned us that ObamaCare (PPACA) would increase premiums rather than reduce them? Should government protect workers by capping premiums? Why or wh ...

Question 1 have you personally experienced globalization

Question: 1) Have you personally experienced globalization? How? 2) Write a two argument bullet points in favor or against globalization citing minimum one source. The response must be typed, single spaced, must be in ti ...

Question what is marketing myopia and how can it be

Question: What is marketing myopia, and how can it be avoided? What is customer-perceived value, and what role does it play in customer satisfaction? Explain the roles of market segmentation, market targeting, differenti ...

Qestion consider the two-sector endogenous growth model y

Question: Consider the two-sector endogenous growth model Y = F[K, (1-u)LE] Output per effective worker is y = f(k, 1-u) a. What is the steady-state growth rate of output per worker Y/L? How do the savings rate s and the ...

Quesiton where does the inspiration for new technology

Quesiton: Where does the inspiration for new technology (knowledge, not material items) come from? How is it moved from thought to fruition? Your APA paper should be typed, double-spaced on standard-sized paper. You shou ...

Question you work for dinch plumbing supply your customers

Question: You work for Dinch Plumbing Supply. Your customers tend to be of two types: 1. Plumbers and plumbing companies who buy in large quantities, know exactly what they want, and insist on competitive prices or they' ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved