Question

A 12 Aa v ew Roman A ABd U ABE 1 Styles Text Box 1 I 2 I 3 4 5 6 I Show work for the following short answer questions. Use the following information to answer questions 10-13: Consider two students, Donovan and Henry. Both students are taking an exam in their math class this week and they are both, independently, trying to decide whether they will conceal their answers or reveal their answers while working on the exam. It takes time and effort to conceal answers so both students realize that revealing their answers will allow them to concentrate more fully on the exam. In addition, they both realize that if the other student reveals their answers they may potentially improve their scores. Donovan knows that he is conceals his answers he will get a 60 on the exam and if he does not conceal his answers he will get a 65 provided that Henry conceals his answers. Donovan knows that he will make a 75 on the exam if he conceals his answers while Henry reveals his answers; Donovan will make an 80 on the exam if both Donovan and Henry do not conceal their answers. Henry believes he will make an 80 on the exam if both students conceal their answers, an 85 on the exam if he conceals his answers while Donovan reveals his answers, an 85 on the exam if he reveals his answers while Donovan does not reveal his answers, and an 87 on the exam if both students do not conceal their answers 10) Construct a payoff matrix for Donovan and Henry. In the payoff matrix identify the two strategies that both students face and then enter their payoffs with Donovan's payoff the first number and Henry's payoff the second number. Label this payoff matrix fully and completely. 11) Does Donovan have a dominant strategy with regard to concealing or revealing his answers? Explain your answer. 12) Does Henry have a dominant strategy with regard to concealing or revealing his answers? Explain your answer 13) What do you predict will be Donovan's and Henry's scores on the exam? Explain your answer. WPXO

Answer 1

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