Let's say two agents with the same abilities compete for promotion. The production function for agent1 is Q1 = 4E1-0.2ε, and the production function for agent2 is Q2 = 4E2+0.2ε. where E1 is the effort level of agent1 and E2 is the effort level of agent2. The distribution follows the uniform distribution function and ranges from [-10, 10]. And each delegate's effort ineffective function is Ei2. Answer the questions below. (a) If the level of effort for agent1 is 1 and the level of effort for agent2 is 0, calculate the probability that agent1 will win the prize; Be sure to show the process of deriving the odds of winning the prize.

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a If the level of effort for agent1 is 1 and the level of effor... View the full answer