summer rent money. Anticipating this, she opens a savings account that cannot be withdrawn from, and transfers a portion of her income into the account every month so that she will have enough money to live during the summer. The remainder of her salary is placed in a checking account which is not allowed to fall below zero. I How much money does she transfer into her savings account every month? How much money does she have remaining in her checking account every month? II Her bank decides to provide her with \"overdraft protection.\" That is, if she ever tries to purchase an item that she does not have the money to pay for, the bank will allow the charge to go through, and then charge Roseanne with a small fee. The bank says they are adding this additional feature because people seem to want it. Does Roseanne want overdraft protection? Will Roseanne use overdraft protection? III At this point, the bank begins to mail Roseanne balance transfer checks: all she has to do is ll out the amount she wants to spend and it will bill her credit card. Argue how Roseanne, even with her sophistication, is no match for an industry that benets from her impatience. 6) It is September (at = 1), and UWO has some great football games ahead of them. Unfortunately, Chris is busy with classes and will have to miss one of the big games. He will either miss UWStevens Point in October (t = 2), which gives him an instantaneous utility of 15L = 5, or he will miss UWRiver Falls in November (t = 3), which gives him an instantaneous utility of aw = 8. Suppose that Chris's preferences can be described as follows: U = 1191 + [511.1, +52uw]. I If Chris discounts future utilities exponentially, with ,8 = 1 and 5 = 0.99, what game does Chris prefer to watch when he is asked in September? II What games does exponential Chris actually watch? III Now, suppose that Chris is a hyperbolic discounter, so that [3? = % and 5 = 0.99. Interpret how these preferences are different from the ones described in part I. IV What games does Chris prefer to watch when he is asked in September? V What games does Chris watch if he is naive? VI What games does Chris watch if he is sophisticated? VII What would happen if there were optional advanced ticket sales for the football games? How would this affect naives and sophisticates? VIII What would happen if there were mandatory advanced ticket sales for the football games? How would this affect naives and sophisticates? 7) Students were recruited to proofread three essays within a 21-day period. There were three groups of participants. Students in the rst, \"enddeadline,\