Matt’s utility is given by u(x1,x2)=min{x1,x2}+min{x3,x4}. Which of the following four bundles (A, B, C, and D) will he most prefer? Bundles are written (x1,x2,x3,x4).
a. A = (2, 2, 2, 2)
b. B = (6, 0, 0, 2)
c. C = (4, 2, 1, 1)
d .D = (6, 1, 3, 1)
Matt’s utility is given by u(x1,x2)=min{x1,x2}+min{x3,x4}. Which of the following four bundles (A, B, C, and...
18. (20 points) Matt's utility is given by u(x,,x2) - minfx,, x2) + minfx3, x4 Which of the following four bundles (A, B, C, and D) will he most prefer? Bundles are written (x.x2,x3,x4) a. A b. B (2, 2, 2, 2) (6, 0, 0, 2) d. D (6,1,3, 1 af(x,y,z) 19. If f(x, y.z) 3x2 + 2xyz +8y*z + Vž, find o 692when x - 1. y 2, z 3 20. If u(x1, x2) -8x1 + 4x2, find the...
Problem 2. This is adapted from our textbook. Let X -[x1,x2, x3,x4 be a set of four monetary prizes, where 0 < x1 < x2 < 13 < x4. Stowell claims he is an expected utility maximizer. He is observed to choose the lottery π-(1, 1, 1, ) over the lottery π,-(0Ί, , Ỉ ). Based 1 11 7 4 24 24) Based on that observation, can you conclude that he is truly an expected utility maximizer, as he [10...
(10 points) Wendy's utility over consumption bundles (x1, x2) is given by u(x1,x2) = VX1 + 21X2. If the price of good 1 is $2/unit, the price of good 2 is $1/unit and income is $120, what is Wendy's optimal consumption of Good 2? (You can use the 5 step method to solve this problem). (10 points) When u(x1, x2) = min ), at prices and income P1, P2, and I, demand for good 1 is given by xi (P1,...
Additional Problem A researcher collected data on Y and four X-variables: X1, X2, X3, X4, and he wants to obtain a regression model. However, he is not sure if all the four X-variables should be included in the model. He provides you with the information shown below, namely, the SSR obtained when Y was regressed on each subset of X-variables. Also given: SST-100, and that the sample size is n 12. Your task Apply the Forward-Stepwise selection method, with a-to-enter-...
Let X1,X2,X3,X4 be four Normal(μ=1,σ=1) variables. Calculate Pr(X1−X2>X3+X4)
My utility is given by u(x1, x2) = 2x194x2-2 + In(x1) + [min{x1, x2)] + 2x2 + x1!! True, False, or Cannot Be Determined: When P1 = $2,P2 = $4, and I = $100, my optimal consumption bundle is (x1,x2) = (25,15).
; Let at be a linear transformation as follows : T{x1,x2,x3,x4,x5} = {{x1-x3+2x2x5},{x2-x3+2x5},{x1+x2-2x3+x4+2x5},{2x2-2x3+x4+2x5}] a.) find the standard matrix representation A of T b.) find the basis of Col(A) c.) find a basis of Null(A) d.) is T 1-1? Is T onto?
Suppose that X1, X2, X3 and X4 are independent Poisson where E[X1] = lab E[X2] = 11 – a)b E[X3] = da(1 – b) E[X2] = X(1 — a)(1 – b) for some a and b between 0 and 1. Let S = X1 + X2+X3+X4, R= X1 + X2 and C = X1 + X3. (a) Find P(R = 10) (b) Find P(X1 = 6 S = 16 and R= 12). (c) Suppose we want to condition on the...
Determine whether the system is consistent 1) x1 + x2 + x3 = 7 X1 - X2 + 2x3 = 7 5x1 + x2 + x3 = 11 A) No B) Yes Determine whether the matrix is in echelon form, reduced echelon form, or neither. [ 1 2 5 -7] 2) 0 1 -4 9 100 1 2 A) Reduced echelon form B) Echelon form C) Neither [1 0 -3 -51 300 1-3 4 0 0 0 0 LOO 0...
An individual has the utility function: U(x1,x2,x3) = ln x1 + ln x2 + 0.5ln x3. The price of good x1 is p1, the price of good x2 is p2 = 1 and the price of good x3 is p3. The individual’s income is I. Derive the Marshallian demand functions (x1* , x2*, x3* ).