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Problem PS11.1.1a 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 1 in the single period (single day] during which Adwoa watches it, and a utility of 0 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 0 thereafter. Adwoa's utility function at time t is U; = 15(013} + ,3 ZZH _1 iu (q) representing the fact that she discounts the utility of future consumption. First. suppose that [9 = 0.5 and 5 = 0.92. What is Adwoa's present value of seeing the movie today? - 1 What is Adwoa's present value of reading the book, starting today? 0.6748 v 0.6748 Problem PS11.1.1b 1/1 point (graded) Which will she choose today? She is indifferent The book O The movie Submit You have used 1 of 1 attempt Show answer Problem PS11.1.2a 0/2 points (graded) What is Adwoa's present value of seeing the movie tomorrow (one period from now)? 0.4232 0.4232 What is Adwoa's present value of reading the book, starting tomorrow (one period from now)? 0.04232 X L 0.04232 Submit You have used 1 of 2 attempts SaveNow suppose that B = 0.92 and 6 = 0.5. What is Adwoa's present value of seeing the movie today? 1 What is Adwoa's present value of reading the book, starting today? 0.146 x 0.146 Submit You have used 1 of 2 attempts SaveProblem P811.1.5a Of2 points {graded} What is Adwoa's present value of seeing the movie tomorrow (one period from now)? - 0.23 What is Adwoa's present value of reading the book, starting tomorrow (one period from now)? - 0.023 You have used 1 of 2 attempts Save