Buck Columbus is thinking of starting a pinball palace near a large Midwestern university. Buck is an expected utility maximizer with a von Neuman-Morgenstern utility function, U(W) = 1 − (6,000/W), where W is his wealth. Buck’s total wealth is $24,000. With probability .2 the palace will be a failure and he’ll lose $18,000, so that his wealth will be just $6,000. With probability .8 it will succeed and his wealth will grow to $x. What is the smallest value of x that would be sufficient to make Buck want to invest in the pinball palace rather than have a wealth of $24,000 with certainty?

Answer the following questions using the information below: southwestern college is planning to hold a fund raising banquet at one of the local country clubs. it has two options for the banquet: option one: crestview country club a. fixed rental cost of $1,000 b. $12 per person for food option two: tallgrass country club a. fixed rental cost of $3,000 b. $8.00 per person for food southwestern college has budgeted $1,800 for administrative and marketing expenses. it plans to hire a band which will cost another $800. tickets are expected to be $30 per person. local business supporters will donate any other items required for the event. which option has the lowest breakeven point?

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates

10.     lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal. student d   incorrect