Business, 18.01.2021 14:00, destineenikole17
Simone has a concave utility of wealth function, u(x). She is contemplating two prospects, Y and Z. EV(Z) > EV(Y). Which of the following statements is true?
a. Simone will necessarily prefer Z to Y.
b. Simone’s ranking of Y and Z cannot be determined without knowing the distribution of the outcomes that result in EV(Y) and EV(Z).
c. Simone will necessarily prefer Y to Z.
d. Because EV(Z) > EV(Y), EU(Z) > EU(Y), but that is not sufficient information to determine her preference ranking.
Answers: 2
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John is a journalist he went to a product demonstration for a new computer some of what he heard was informative while the rest was meant to persuade consumers to buy the product which two statements in the excerpt are persuasive rather than informative
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Simone has a concave utility of wealth function, u(x). She is contemplating two prospects, Y and Z....
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