Question 1: Consider the questions below
The year is 1849, and you just came to California looking for gold. After panning all day long, you find a piece of gold but are unsure of its quality. You believe that there is a 10% chance it is high quality, a 40% chance it is medium quality, and a 50% chance it is fake gold. You can either sell your piece of gold to Sheriff Jessie for $10 guaranteed, or you can try to sell it to Sheriff Woody, who would first test the quality of the piece and then give you $40 for a high quality piece, $25 for a medium quality piece, and nothing for a fake piece of gold.
1a) Construct the decision tree. What should you do to maximize your expected monetary value?
Your friend, Buzz Gold year, offers to test your gold piece's quality for a certain amount of money and promises that his prediction is 80% accurate. If he is inaccurate, he is equally likely to say either of the wrong quality levels. For instance, if the gold piece is high quality, he predicts that it is high quality with probability 80%, medium quality with probability 10%, and fake with probability 10%.
b) How much should you be willing to pay in order to have your gold tested?
c) What is an upper bound for what you should be willing to pay for any prediction, regardless of its accuracy?
Question 2: Answer all questions below
Paragraph Question 5c (ib) Styles Use the market for foreign exchange to determine the impact on exports, Imports and the Balance of trade due to the following: (ib) Increased remittance flows to your country during the Christmas Season Exports Answer 1 Choose.. Choose. Balance of Trade Answer 2 balance of trade remain unchanged cheaper Imports Answer 3 balance of trade decrease balance of trade increase more expensive remain unchanged PhotoGrid Question 5c (jib) Use the market for foreign exchange to determine the impact on exports, Imports and the Balance of trade due to the following (ii) The local interest rates increase relative to the rest of the world Exports Choose. Answer 1 Choose. Balance of Trade Answer 2 more expensive remain unchanged Imports balance of trade decrease Answer 3 balance of trade increase cheaper balance of trade remain unchanged PhotoGridQ1: (Hypothetical) In IIIE total 800 students applied in MSc programs, 200 in IBF, 250 in Economics and 350 in Economics and Finance program. A test of 100 marks was conducted for admission into these degree programs. Note Following information: marks obtained by Economics students are normally distributed with mean 60 marks and SD 12marks marks obtained by Economics and Finance students are normally distributed with mean 58 marks and SD 13marks Now answer following questions: L How many of the economics students obtained marks between a 35 and 65 b. 20 and 80 C. 5 and 95 ii. Grade "A" is assigned to student who obtained marks 80 or more, how many students of Economics and finance got "A" grade? Suppose in previous MSc IBF class there were 20 students, out of which 5 were foreigners. Suppose 5 students are randomly selected for a group discussion on Islamic and Conventional Banking. What is the probability that a. Exactly three foreigners students are selected b. Less than three foreigners students are selected c. At least three foreigners students are selected d. At most three foreigners students are selectedE. One month Question 5: An increase in real wealth in India will . Select all that apply. Choose one or more: A. increase Indian aggregate demand B. decrease Indian aggregate demand C. increase U.S. aggregate demand D. decrease U.S. aggregate demand Question 6: Choose the right answer: Net exports will increase/decrease/stay the same when the value of the dollar result, the aggregate demand curve will shift left/increase. ECON 1204-001 Principles of Macro Spring 2019 Question 7:The marginal benefit of an additional beach towel is $12. The marginal cost of producing an additional beach towel is $8. If producers are minimizing the average costs of production, then we can conclude: O beach towel production is neither allocationly nor productively efficient O beach towel production is not allocationly efficient but is productively efficient. O beach towel production is allocationly efficient but not productively efficient. beach towel production is both allocationly and productively efficient
