Suppose w(x) is uniform and is given by 0 if x < 40 if 40 ...

 

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Suppose w(x) is uniform and is given by 0 if x < 40 if 40 ≤ x ≤60 if x > 60 w(x)=1/20 a. (0.25 pts) What percentage is willing-to-pay more than 55? (solve either by geometrically or algebraically) b. (0.25 pts) What percentage is willing-to-pay more than 30? (solve either by geometrically or algebraically) Suppose w(x) is uniform and is given by 0 if x < 40 if 40 ≤x≤60 if x > 60 w(x)=1/20 a. (0.25 pts) What percentage is willing-to-pay more than 55? (solve either by geometrically or algebraically) b. (0.25 pts) What percentage is willing-to-pay more than 30? (solve either by geometrically or algebraically) Suppose w(x) is uniform and is given by 0 if x < 40 if 40 ≤ x ≤60 if x > 60 w(x)=1/20 a. (0.25 pts) What percentage is willing-to-pay more than 55? (solve either by geometrically or algebraically) b. (0.25 pts) What percentage is willing-to-pay more than 30? (solve either by geometrically or algebraically) Suppose w(x) is uniform and is given by 0 if x < 40 if 40 ≤x≤60 if x > 60 w(x)=1/20 a. (0.25 pts) What percentage is willing-to-pay more than 55? (solve either by geometrically or algebraically) b. (0.25 pts) What percentage is willing-to-pay more than 30? (solve either by geometrically or algebraically)

Answer rating: 100% (QA)

SOLUTIONS To find the percentage of people willing to pay more than a certain price we need to calculate the area under the probability density function PDF curve beyond that price In this case since ... View the full answer