--%>
Assignment Help - homework help

Utility functions to calculate scores on the midterm

Question:

1. Nancy is taking a course in Fairy Tales from Professor Grimm and another in Philosophy from Professor Par. In each course there will be two exams, a midterm exam and a final exam. In Professor Grimm's course, Nancy's grade will be determined by the minimum of her scores on the two exams.  In Professor Par's course, the scores on the two exams are weighted equally. For each of the two courses, write thee different utility functions that describe Nancy's preference for scores on the midterm and the final exam. For each of the two courses, draw a diagram with a set of indifference curves for Nancy. Make sure to note higher and lower levels of utility.

1. Fairy Tales Course:

There are two options to get utility from: Mid term grades, and Final grades.

The utility function will take the form of:

U (m, f) = min {m, f}

Where, m = mid term grades,

              f = final exam grades

Indifference curves:

2083_Indifference curves.png

Philosophy Course:

There are two options to get utility from: Mid term grades, and Final grades.

The utility function will take the form of:

U (m, f) = 0.5m + 0.5f, since both the exams are equally weighed.

Where, m = mid term grades,

              f = final exam grades

Indifference curves:

The indifference curves will be downwards sloping straight lines with slope -1. Here is the illustration:

U = 0.5m + 0.5f

  1.   0.5m = U - 0.5f
  2.   m = 2U - f

Also, as the utility level increases, the intercept will increase, and the ICs will shift to right and up.

 

292_The arrows point out towards increasing utility.png

   Related Questions in Business Economics

  • Q : Checkout problem A grocery store chain

    A grocery store chain is considering ways to improve the performance of the waiting lines at their checkout stands. A heavily trafficked checkout stand is monitored for 120 min. In that period, 60 customers have their groceries rung up, and depart from the store. The

    		•
  • Q : Factors of account since the Second

    For rapid growth of world trade what are the factors of account since the Second World War?

    		•
  • Q : Introduction of the term combined

    Give a brief introduction of the term combined leverage? And in what manner it is calculated?

    		•
  • Q : Changing rates of Appreciation and

    Elucidate the changing rates of Appreciation and Depreciation?

    		•
  • Q : Describe GDP gap and Okun’s Law

    Describe GDP gap and Okun’s Law?

    		•
  • Q : Maximizes profits in a perfectly

    Which of the given is not true for a firm within perfect competition: w) Profit equivalents total revenue minus total cost. x) Price equivalents average revenue. y) Average revenue is greater than marginal revenue. z) Marginal revenue equivalents the

    		•
  • Q : Production Possibility Curve Production

    Production Possibility Curve: Similar to the individuals, a society as entire has restricted resources. It has to decide what to manufacture with restricted resource

    		•
  • Q : Categorization of economists for buying

    Assume that you bought a ton of gold in Santiago, and Chile for $450 per ounce and immediately sold all of this in Antwerp, Belgium for $480 per ounce. Therefore economists would categorize your movement as: (i) arbitrage. (ii) scalping. (iii) screening. (iv) speculat

    		•
  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

    		•
  • Q : Utility functions to calculate scores

    Question: 1. Nancy is taking a course in Fairy Tales from Professor Grimm and another in Philosophy from Professor Par. In each course there will be two exams, a midterm exam and a final exam. In Professor Grimm's

    		•