7. Clive has 2 pairs of yellow socks, 3 pairs of red socks, 4 pairs of black socks and 6 pairs of white socks in his sock drawer. There is a power failure while he is getting dressed and he cannot see which colour socks he is putting on. a. What is the probability that he will put on red socks? b. What is the probability that he will put on yellow socks? C. What is the probability that he will put on white socks? d. What is the probability that he will put on black socks?

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Q: Question 16 Suppose a firm hires a new worker, Jens H. Because the firm knows Jens H. can work hard…

A: The correct answer is given in the second step.

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A:

Q: Probability is the likelihood or chance of an event occurring. Discuss its significance in real…

A: Probability is the chance of an event to occur. Probability are used in real life to predict the…

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A: A dealer decides to sell an antique automobile by means of an English auction with a reservation…

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Q: #2. Hannah gets 50 utils from visiting her family for Thanksgiving. But there is a 1% chance that…

A: "Since you have asked multiple questions,we will solve the first question for you.If you want…

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A: Given information Income=72 When accident income=24 Probability of accident=0.5625

Q: A gamble based on a fair coin toss which pays $6.65 if the coin lands heads and $9.85 if the coin…

A: the utility function estimates the government assistance or fulfillment of a customer as a function…

Q: A dealer decides to sell a rare book by means of an English auction with a reservation price of 54.…

A: Answer in Step 2

Q: What do we call the probability of a Type I error?

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Q: Question 2   A potential criminal enjoys a gain of g > 0 from committing an illegal act. If the…

A: Qe are going to use expectation principle and bayesian probabilty to answer this question.

Q: A risk-averse individual is offered a choice between a gamble that pays £2000 with a probability of…

A: Risk-averse means the investor who chooses the preservation of money over the ability for a…

Q: Suppose that an individual is just willing to accept a gamble to win or lose $1000 if the…

A: Expected gain or loss can be calculated from the following formula  = Probability of winning*amount…

Q: 4. Marvin is given a number of choices between various lotteries where the possible outcomes include…

A: The possible outcomes are: X={v, m, s, a} Marvin is indifferent in the below two choices;…

Q: Consider Bob's decision problem:   Sunny Cloudy Rainy Beach 2 3 2 Park 3 3 2 Mall -1 1 x   Suppose…

A: An expected utility maximiser may be a theoretical agent that examines its actions, calculates the…

Q: 5. Amanda has a utility of money function of u(w)- w. Her initial wealth is w-$20,000 a she faces…

A: Given: U = w0.75  Inital wealth = $20,000 Probability of loss = 0.1 Loss = $5000 Probability of no…

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A: In economics, utility refers to the value or pleasure a consumer can derive from a service or good.…

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A: Equal odds of something happening is there in classical theory of probability.

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Q: 13. In a dice game, the player rolls a single die. The payouts for a dice game are given below: roll…

A: Answer: Given, Let us first find the probabilities of all the outcomes: P1,2=26=13P3,4,5=36=12P6=16…

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Q: 17. A salesperson at Joe's Exotic Pets is trying to sell iguanas. The number of iguanas that she…

A: We have given probability of efforts and sales with cost of effort for a salesperson.

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Q: Donna just paid $800 for a new iPhone. Apple offers a two year extended warranty for $200 and Donna…

A: here we can find the minimum probability and Donna Decision as follow-

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Q: 6) Suppose that an individual makes an income of y = $50,000. There is a probability, p that an…

A:

Q: Sadija has a concave utility function of U(W) = In(W). She has inherited a ring from a relative, but…

A: Part a: ln (W) = 1/3 ln(6000) + 2/3ln(3000) ln(W) = 8.69951474821(1/3) + 8.00636756765(2/3) ln(W) =…

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A: As there are fixed number of trials and probability of each and every trial is same and independent…

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A: Since Yang believes that he is making a fair bet, expected value from his lottery should be x. If…

Q: An individual is offered a choice of either $50 or a lottery which may result in $0 or $100, each…

A: The utility function is given as follows; So, the utility of the person at first choice will be:

Q: What is the probability of getting a king if a card is drawn from a pack of 52 cards?

A: Given: Number of cards in a deck = 52 Number of Kings in a deck of a card =4

Q: 5.100 Tossing a die. You are tossing a balanced die that has probability 1/6 of coming up 1 on each…

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Q: 9. The probability of a woman having a baby boy is 50% and that of having a girl is also 50% What is…

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Risk and Uncertainty

Uncertainty refers to a situation when there is one possible outcome of a decision but where the probability of occurrence of each particular outcome is not known or cannot be estimated.