.Answer the questions in the attachment.
4. Consider the following two player game. Note that the dashed line indicates an information set. P1 LI R P2 P1 PI L2 R2 (a) Give an example of a pure strategy for Player 1. (b) Write down the normal-form representation of this extensive-form game. (c) Find all the pure strategy Nash equilibria of the game, if any. (d) Find all the pure strategy subgame perfect Nash equilibria, if any. Show your procedure. (e) Are there any other subgame perfect Nash equilibria? If yes, find one. If no, explain.Q4. (a) Survival times are available for four insureds, two from risk class A and two from risk class B. The two from risk class A passed away at times t = 1 and t = 9. The two from risk class B died at times t = 2 and t = 4. Using the Empirical Credibility Model I, estimate the credibility factor Z. [Marks 8] (b) An investigative journalist comes across information about two policy groups administered by an insurance company. The data however has missing values for some years in total losses and numbers in policy groups as shown in the following table. The missing values are represented by the symbol * Policy group Year 1 Year 2 Year 3 Year 4 Total Losses 750 600 Number in group 3 2 Total Losses 975 1200 900 Number in group 5 6 4 5 Using the Empirical Credibility Model II, determine the premium for each policyholder in Year 4. [Marks 8]3. (a) Below are a countour map of a function f and a curve with equation g(r, y) = 15. Estimate the maximum and minimum values of f subject to the constraint that g(r, y) = 15. Explain your reasoning. (ry) = 15 50 (3 marks] (b) Explain in your own words how the method of Lagrange multipliers works in finding the extreme values of /(r, y) subject to the constraint g(r, y) = k. (Note that in this question you are not asked to show what steps you would take to find the extreme values. You are instead expected to briefly explain the theory behind why it works). [2 marks] (c) Your ecommerce company regularly couriers rectangular packages overseas. The girth of a rectangular package is defined to be the perimeter of a cross section perpendicular to the length. You prefer to use CheapAsChips Couriers for your international deliveries, but they will only carry rectangular packages where the sum of length and girth is at most 150 cm. Find The dimensions of the nurlPART B Emissions reduction treaties between nations have been proposed as a key method with which to tackle climate change and its negative impacts. One such treaty is the Paris Agreement. Adopted by 197 nations in 2015, the deal aims to substantially reduce carbon emissions and to limit the global temperature increase in this century to 2 degrees Celsius. A summary of the Paris Agreement can be found here. The Paris Agreement includes commitments from all nations to reduce their emissions and work together to adapt to the impacts of climate change and calls on a strengthening of commitments over time. The agreement provides a pathway for developed nations to assist developing nations in their climate mitigation and adaptation efforts. Nations can set their own 'nationally determined contributions' towards emissions reductions that reflect their capabilities, level of economic development, and contribution to emissions over time. Question 4 Binding treaties to abate emissions between groups of nations are often difficult to achieve. Explain why this is the case. You must cite at least one reputable source from your own research. Include the full reference at the end of your answer, which will not count towards the word limit. Use a standard referencing system (e.g. Harvard style). [3 marks] [max words: 200] MACQUARIE MACQUARIE BUSINESS SCHOOL University Department of Economics Question 5 Discuss three reasons why the Paris Agreement treats developing nations differently from developed nations. You must cite at least one reputable source from your own research. Include the full reference at the end of your answer, which will not count towards the word limit. Use a standard referencing system (e.g. Harvard style). [3 marks] [max words: 200] Question 6 Evaluate the decision to distinguish between developed and developing nations in the Paris Agreement from the perspective of substantive and procedural judgements of fairness. Be sure to define both judgements of fairness in your answer. [5 marks] [max words: 500] Question 7 The Paris Agreement is based on voluntary carbon emissions reduction pledges made by participating nations. Using either a consequentialist or a deontological framework, discuss if it would be ethically acceptable to legally impose these emission reduction pledges and enforce these goals with penalties? Explain your reasoning. Be sure to define your chosen ethical framework in your answer. [5 marks] [max words: 500]
