# Question

You have $1000, and a certain commodity presently sells for $2 per ounce. Suppose that after one week the commodity will sell for either $1 or $4 an ounce, with these two possibilities being equally likely.

(a) If your objective is to maximize the expected amount of money that you possess at the end of the week, what strategy should you employ?

(b) If your objective is to maximize the expected amount of the commodity that you possess at the end of the week, what strategy should you employ?

(a) If your objective is to maximize the expected amount of money that you possess at the end of the week, what strategy should you employ?

(b) If your objective is to maximize the expected amount of the commodity that you possess at the end of the week, what strategy should you employ?

## Answer to relevant Questions

A and B play the following game: A writes down either number 1 or number 2, and B must guess which one. If the number that A has written down is i and B has guessed correctly, B receives i units from A. If B makes a wrong ...To determine whether they have a certain disease, 100 people are to have their blood tested. However, rather than testing each individual separately, it has been decided first to place the people into groups of 10. The blood ...A student is getting ready to take an important oral examination and is concerned about the possibility of having an “on” day or an “off” day. He figures that if he has an on day, then each of his examiners will pass ...Approximately 80,000 marriages took place in the state of New York last year. Estimate the probability that, for at least one of these couples, (a) Both partners were born on April 30; (b) Both partners celebrated their ...Each of 500 soldiers in an army company independently has a certain disease with probability 1/103. This disease will show up in a blood test, and to facilitate matters, blood samples from all 500 soldiers are pooled and ...Post your question

0