Qa consumer who conforms to the von neumann morgenstern, Ask an Expert

Economics

Q. A consumer who conforms to the Von Neumann Morgenstern axioms is faced with four situations A, B, C, D. He prefers A to B, B to C and C to D. Suppose the consumer is indifferent between B and a lottery ticket with probabilities of 0.4 and 0.6 for A and D respectively and that he is indifferent between C and a lottery ticket with probabilities 0.2 and 0.8 for B and D respectively. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9721529

Have any Question?Write your Review or question?

Related Questions in Business Economics

What does the term the ten principles of economics and how

what does the term the Ten Principles of Economics and how it's applied to the consumer buying trends?

For a particular production facility the total milk yield

For a particular production facility, the total milk yield per goat (for a 10-month lactation period) has averaged 1180 pounds. In an experiment, 14 goats were randomly selected from the facility and, in addition to thei ...

Suppose that the weight x in pounds of a 30 year old man is

Suppose that the weight (x) in pounds of a 30 year old man is a normal random variable with mean 182.9 and standard deviation of 20lbs. in what percentile is a 30 year old man who weighs 150lbs?

50 of the cars in a dealer lot are red 20 are black and 16

50% of the cars in a dealer lot are red, 20% are black, and 16% are white. The remainder are some other unspecified color. Salespersons randomly shows three cars to three different customers. What is the probability the ...

From a random sample of 41 teens it is found that on

From a random sample of 41 teens, it is found that on average they spend 31.8 hours each week online with a standard deviation of 3.65 hours. What is the 90% confidence interval for the amount of time they spend online e ...

In 2011 new jersey governor chris christie announced that

In 2011, New Jersey Governor Chris Christie announced that he would pull the state out of the Regional Greenhouse Gas Initiative (RGGI), which is a coalition of 10 states that agreed to reduce their emissions of carbon d ...

What are the main things to remember about elasticity

What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories?

Why do we say there is no unemployment in our standard

Why do we say there is no unemployment in our standard frictionless model? And why do we HAVE unemployment in a labor market with frictions?

Arrows theorem that states there is no true fair method for

Arrow's Theorem that states there is no true fair method for voting. Do you agree or disagree with this statement? Why?

Determine whether the given value is a statistic or a

Determine whether the given value is a statistic or a parameter. Thirty percent of all dog owners poop scoop after their dog

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

Recent Questions

Ask Business Economics Expert