Problem PS1'I.1.1a 2;? points [graded] Adwoa's friend tells her that 200?:A Space Odysseyis good. Adwoa is trying to decide between reading the book and watching the movie. Assume that the movie yields an immediate utility of \"I in the single period [single day} during which Adwoa watches it, and a utility of C- thereafter. Assume that the book yields a utility of 0.1 for each of 100 periods during which she reads it, and a utility of C- thereafter. Adwoa's utility function at time t is U; = 11(ng + BEEN] 5511. (Cg), representing the fact that she discounts the utility of future consumption. First, suppose that = 0.5 and t5 = 0.92. What is Adwoa's present value of seeing the movie today? l1 I\" 1 What is Adwoa's present value of reading the book; starting today? 0.6748 V 0.6748 You have used 1 of 2 attempts Save Slim\" 3'15"\" V Correct (2..\"2 points} Problem PS1'I.1.1b 1H point (graded) Which will she choose today? 0 She is indifferent O The book @ The movie if l-'FODIEIT'I Pt: I |.|.Za UH! points (graded) What is Adwoa's present value of seeing the movie tomorrow [one period from now}? 0.4232 R 0.4232 What is Adwoa's present value 01 reading the book; starting tomorrow [one period from now]? ' 0.04232 l K 0.04232 You have used 1 of 2 attempts at Incorrect {0!2 points} Problem P811.1.2b 1 point possible [graded] Which does she plan to choose tomorrow? 0 She is indifferent Q The book 0 The movie SUDWT You have used 0 of'l attempt Problem P811.1.3 2 points possible [graded] Which does she actually choose tomorrow? 0 She is indifferent O The book 0 The movie This utility function is time inconsistent. Did this particular example actually demonstrate time inconsistency? 0 Yes O No Submit You have used CI of \"I attempt Problem P811.1.4a 2 points possible (graded) Now suppose that 3 = 0.92 and 5 = 0.5; What is Adwoa's present value of seeing the movie today? What is Adwoa's present value of reading the bookJ starting today? Submit You have used CI of 2 attempts Problem P811.1.4b 1 point possible [graded] Which will she choose today? 0 She isindifferent O The book 0 The movie 51mm\" You have used 0 of 1 attempt Problem P811153 2 points possible (graded) What is Adwoa's present value of seeing the movie tomorrow {one period from now]? What is Adwoa's present value of reading the book, starting tomorrow [one period from now]? Submit You have used 0 of 2 attempts Problem P811.1.5b 1 point possible [graded] Which does she plan to choose tomorrow? 0 She isindifferent Q The book 0 The movie Submit You have used 0 of 1 attempt Problem P811163 2 points possible (graded) Which does she actually choose tomorrow? 0 She is indifferent O The book 0 The movie This utility function is time inconsistent. Did this particular example actually demonstrate time inconsistency? 0 Yes O No SUDmit You have used 0 of \"I attempt save
