Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with these 4 questions! You are in the market for a used car. At a used car lot, you know the blue book

Please help with these 4 questions!
image text in transcribed
image text in transcribed
You are in the market for a used car. At a used car lot, you know the blue book value for the type of cars that you are looking at ranging from $50k to $60k. If you believe the dealer knows as much as you do about the cars as you do, what are you willing to pay in \$s, assuming the car values are symmetrically distributed? Question 2 2 pts Referring to the information from the prior question: Now, you believe the dealer knows more about the cars than you do. What price will you ultimately be willing to pay for the car? Please answer in dollars. Prior Problem: You are in the market for a used car. At a used car lot, you know the blue book value for the type of cars you are looking at ranging from $50k to $60k. If you believe the dealer knows as much as you do about the cars as you do, what are you willing to pay in $s, assuming the car values are symmetrically distributed? You wish to hire Ricky to manage your new Chicago office. The profits will depend partially on how Ricky does his job. If Ricky is lazy, he will surf the internet and game with his friends all day - he views this as a $0 opportunity. However, if he works hard, he will view it as having a $12,000 personal cost. Assuming the outcomes shown in the probability table below, what percentage of profits should you offer Ricky to get his engaged behavior? Question 4 2 pts You own a house along a river that floods severely and destroys the house once every 20 years. If your house is worth $210k, what would be your annual insurance premium in dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Finance Guide

Authors: DK Publishing

1st Edition

078948157X, 978-0789481573

More Books

Students also viewed these Finance questions

Question

How would you respond to each of the girls?

Answered: 1 week ago

Question

Identify three types of physicians and their roles in health care.

Answered: 1 week ago

Question

Compare the types of managed care organizations (MCOs).

Answered: 1 week ago