# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

4 Pages

### Note_04M.44-47

Course: ECON 445, Fall 2011
School: Texas A&M
Rating:

Word Count: 361

#### Document Preview

Distribution: , Moment 44 Appendix Normal Generating Function (MGF): Constant Absolute Risk Aversion utility function Maximization of is equivalent to the minimization of equivalent to the maximization of , which is 45 Log-Normal distribution: Y is distributed as a lognormal with parameters : and F if is distributed as a . , Remark: Let (i) (ii) Constant Relative Risk Aversion utility function Both...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Texas >> Texas A&M >> ECON 445

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
Distribution: , Moment 44 Appendix Normal Generating Function (MGF): Constant Absolute Risk Aversion utility function Maximization of is equivalent to the minimization of equivalent to the maximization of , which is 45 Log-Normal distribution: Y is distributed as a lognormal with parameters : and F if is distributed as a . , Remark: Let (i) (ii) Constant Relative Risk Aversion utility function Both expressions are used, but the first one is more common. (>1 is the Arrow-Pratt relative risk aversion coefficient. Most evidence suggests that ( is low, between 1 and 3, and at most 10. 46 Notice that this expected utility is written as a function of the mean and variance of , not in terms of the mean and variance of Y. That is the reason why the expected utility appears to be an increasing function the variance. As shown above, the variance of Y depends on both : and the expected utility in portfolio analysis, one has to first transform Y to of , and use them as the estimates of : and of . To use this expression of , estimate the mean and variance . It is useful find to the expected utility in terms of the mean and variance of Y. This will show the tradeoff between the mean and variance more clearly. To do this, we need to find equations for : and and . From the equations of and in terms of , we have From the second equation, we have Substitute this into the equation for : to get Therefore, Therefore, we can write the expected utility as The second expression shows the tradeoff between the mean and the variance of Y. This equation can be used once we estimate the mean and variance of Y (not lnY). Some authors use the mixture of these moments. One example is to use and 47 But this requires estimation of the moments of Y and also lnY. Indifference Curves Since the expected utility depends only on the mean and variance of W, we can find the equation for the indifference curves in the space of Rewriting the and . equation, we derive Rearranging the terms gives and we have Maximization of Maximization of the expected utility is equivalent to or Certainty Equivalent The certainty equivalent C is determined by . Let .
Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson1WhatIsaComputer?ObjectivesDefineacomputer. Identifyhowcomputersareusedinourdailylives. Comparethetypesofcomputers. Listthepartsofacomputersystem. ExplainhowtheInternet,t
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson2HowDoesaComputerProcessData?ObjectivesIdentifycomputersystemcomponents. ExplainhowtheCPUworks. DifferentiatebetweenRAMandROM. Describehowdataisrepresented.How Does a Com
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson3HowDoIInputDataandOutputandStoreInformation?ObjectivesIdentifyanddescribethemostcommoninputdevices.Identifyanddescribethemostcommonoutputdevices.Identifyanddescribehowin
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson4WhatIsSoftware?ObjectivesDistinguishbetweensoftwareandhardware.Describethedifferencebetweenapplicationssoftwareandsystemssoftware.Describethethreecategoriesofsystemprogra
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson6HowCanIUseTechnologytoSolveaProblem?ObjectivesDefineproblemsolving. Identifytechnologytoolsforsolvingproblems. Identifyproblemsolvingsteps. Explainhowotherformsoftechnol
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson7HowIsTechnologyChangingtheWorkplaceandSociety?ObjectivesDescribetheimpactoftechnologyoneducation. Describetheimpactoftechnologyonscienceandmedicine. Describetheimpactoft
Moraine Valley Community College - IMS - 101
Rail Trail MileageFive-State AreaKeyStateTrailsOhioMichiganKentuckyIndianaWest VirginiaMiles389321351Trails3081122455376Miles5341153423608531213478446
Moraine Valley Community College - IMS - 101
Press Release For Immediate Release Date: Headline: Body: The final planned section of the Little Miami Scenic Trail, from Yellow Springs to Springfield, is open for riding, skating, horseback riding, and walking. The Little Miami rail trail is a paved tr
Moraine Valley Community College - IMS - 101
SR 53I-75I-71I-275
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson1WhatIsaComputer?ObjectivesDefineacomputer. Identifyhowcomputersareusedinourdailylives. Comparethetypesofcomputers. Listthepartsofacomputersystem. ExplainhowtheInternet,t
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson2HowDoesaComputerProcessData?ObjectivesIdentifycomputersystemcomponents. ExplainhowtheCPUworks. DifferentiatebetweenRAMandROM. Describehowdataisrepresented.How Does a Com
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson3HowDoIInputDataandOutputandStoreInformation?ObjectivesIdentifyanddescribethemostcommoninputdevices.Identifyanddescribethemostcommonoutputdevices.Identifyanddescribehowin
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson4WhatIsSoftware?ObjectivesDistinguishbetweensoftwareandhardware.Describethedifferencebetweenapplicationssoftwareandsystemssoftware.Describethethreecategoriesofsystemprogra
Moraine Valley Community College - IMS - 101
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson6HowCanIUseTechnologytoSolveaProblem?ObjectivesDefineproblemsolving. Identifytechnologytoolsforsolvingproblems. Identifyproblemsolvingsteps. Explainhowotherformsoftechnol
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson7HowIsTechnologyChangingtheWorkplaceandSociety?ObjectivesDescribetheimpactoftechnologyoneducation. Describetheimpactoftechnologyonscienceandmedicine. Describetheimpactoft
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson8IntroductiontoWindowsXPProfessionalObjectivesDescribethegeneralfeaturesofWindowsXP. StartWindows. ExaminetheelementsoftheWindowsopeningscreen. Useamousetomovearoundthe
Moraine Valley Community College - IMS - 101
Moraine Valley Community College - IMS - 101
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson11CustomizingtheDesktopObjectivesApplyapredefinedthemetothedesktop. ChangetheWindowsdesktopbackground. Useagraphicfileasadesktopbackground. Customizetheiconsonthedesktop.
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson12IntroducingMyComputerObjectivesStartandexitMyComputer. SetMyComputeroptions. CustomizetheStandardtoolbar. Accessdiskdrivesandviewtheircontents. Identifyobjecticons.Int
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson13WorkingwithDisks,Folders,andFilesObjectivesFormatafloppydisk.Magneticallylabelafloppydisk.UseDiskCleanuptoclearyourdiskofunnecessaryfiles.RuntheDiskDefragmenter.Createf
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationComputingFundamentalsLesson14UsingShortcutsandWindowsExplorerObjectivesExplainwhatashortcutisandhowitisused. CreateashortcutusingdraganddropandusingtheFilemenu. Assignashortcutkeytoashortcut. Dele
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationKeyApplicationsLesson15WorkingwithAccessDatabasesObjectivesIdentifythepartsoftheAccessscreen.Understandthepurposeofthedatabaseobjects.Createatableusingawizard.Enterrecordsindatasheetview.Changethe
Moraine Valley Community College - IMS - 101
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationKeyApplicationsLesson17OrderingandFindingDataandCreatingReportsandMailingLabelsObjectives SortdatainDatasheetview. FindandreplacedatainDatasheetview. Createaquery. Createareport. Createmailinglab
Moraine Valley Community College - IMS - 101
IC3BASICS,InternetandComputingCoreCertificationKeyApplicationsLesson18WorkingwithOutlookObjectives IdentifythepartsoftheOutlookscreen. Scheduleandmanageappointments. Createandmanagecontacts. Organizeandmanagetasks. Sendandreceiveemail.Working w
Moraine Valley Community College - IMS - 101
National Wildlife RefugeMassassoit, MarylandMassassoit National Wildlife Refuge is administered by the U.S. Fish and Wildlife Service and isone of 500 such refuges in the National Wildlife Refuge System. This system is a network oflands and waters man
Moraine Valley Community College - IMS - 101
The Top of the WorldGetting to the summit is optional;getting down is mandatoryEd ViestursStatistics Everest is 29,035 feet high. Everest is moving northeast at a rate of 2.4inches a year. Temperatures can fall below -60F. Wind speeds can approac
Moraine Valley Community College - IMS - 101
QBASICOverview of theProgramming Language1QBASICQBASIC is a programminglanguage written for computersback in 1975, by Bill Gates andPaul Allen, and has been theaccepted standard ever since.Why? Because of its ease of use,its English-like comman
Moraine Valley Community College - MIS - 108
Unit A -Understanding Internet BasicsA-01Unit A -Understanding Internet BasicsA-02Unit A -Understanding Internet BasicsA-03Unit A -Understanding Internet BasicsA-04Unit A -Understanding Internet BasicsA-05Unit A -Understanding Internet BasicsTa
Moraine Valley Community College - MIS - 108
Unit D - Understanding Browser BasicsD-01Unit D - Understanding Browser BasicsD-02aUnit D - Understanding Browser BasicsD-02bUnit D - Understanding Browser BasicsD-03Unit D - Understanding Browser BasicsD-04Unit D - Understanding Browser Basics
Moraine Valley Community College - MIS - 108
Unit E - Searching the WebE-01Unit E - Searching the WebE-02Unit E - Searching the WebE-03Unit E - Searching the WebE-04Unit E - Searching the WebE-05Unit E - Searching the WebTable E-01Unit E - Searching the WebE-06Unit E - Searching the We
Moraine Valley Community College - MIS - 108
Unit F - Getting Information from the WebF-01Unit F - Getting Information from the WebF-02Unit F - Getting Information from the WebF-03Unit F - Getting Information from the WebF-04Unit F - Getting Information from the WebF-05Unit F - Getting Inf
Moraine Valley Community College - MIS - 108
Unit H - Using Advanced E-Mail and Communication ToolsH-01Unit H - Using Advanced E-Mail and Communication ToolsH-02Unit H - Using Advanced E-Mail and Communication ToolsH-03Unit H - Using Advanced E-Mail and Communication ToolsH-04Unit H - Using
Moraine Valley Community College - MIS - 108
Moraine Valley Community College - MIS - 108
Unit J - Increasing Web Browser Capabilities and SecurityJ-01Unit J - Increasing Web Browser Capabilities and SecurityJ-02Unit J - Increasing Web Browser Capabilities and SecurityJ-03Unit J - Increasing Web Browser Capabilities and SecurityJ-04Uni
Oregon - DSC - 335
DSC 335 Operations ManagementSolution to Homework Assignment #1Problem 11) The estimate of capacity requirement (# lathes required to meet demand for both A and B)Where DA=4000, pA=2.5, QA=80 and sA=18; DB=12000, pB=2, QB=150 and sB=24; C=25.M=12.27.
Oregon - DSC - 335
Homework Assignment #1DSC 335, Fall 2011Due date: Oct. 25th, Tuesday.Policy: You may work in group of up to four students. Your homework group need not be thesame as your course activity group. Each homework group hands in one copy.1. (Estimating cap
Oregon - DSC - 335
Homework Assignment #2DSC 335Due date: November 17th, Thursday.Policy: You may work in a group of up to five students. Your homework group need not be thesame as your course activity group. Each homework group hands in one copy.Problems from the text
Oregon - DSC - 335
DSC 335 Operations ManagementInstructor: Zhibin YangAssistant ProfessorDecision Sciences DepartmentDSC 3351DSC 335 RoadmapOperations StrategyDecision Making ToolsProcess strategy/analysisCapacity analysis/planningProcess ManagementLittlefield
Oregon - DSC - 335
DSC 335 Operations ManagementInstructor: Zhibin YangAssistant ProfessorDecision Sciences DepartmentDSC 3351DSC 335 RoadmapOperations StrategyDecision Making ToolsProcess strategy/analysisCapacity analysis/planningProcess ManagementLittlefield
Oregon - DSC - 335
DSC 335 Operations ManagementInstructor: Zhibin YangAssistant ProfessorDecision Sciences DepartmentDSC 3351ReviewqWhats Operations Management?Process viewq Supply chain viewq Manufacturing vs. service processesqqOperation strategyqDSC 335
Oregon - DSC - 335
DSC 335 Operations ManagementInstructor: Zhibin YangAssistant ProfessorDecision Sciences DepartmentDSC 3351Southwest AirlinesqqqOne of the most profitable AirlinesLowest customer complaints (delay, lost luggage, etc.)Turnaround time = 25 minut
Oregon - DSC - 335
DSC 335 Operations ManagementInstructor: Zhibin YangAssistant ProfessorDecision Sciences DepartmentDSC 3351DSC 335 RoadmapOperations StrategyDecision Making ToolsProcess strategy/analysisCapacity analysis/planningProcess ManagementLittlefield
Oregon - DSC - 335
Inventory Management 2DSC 335Zhibin YangAssistant Professor, DecisionSciencesDSC 3351DSC 335 RoadmapOperations StrategyDecision Making ToolsProcess strategy/analysisCapacity analysis/planningProcess ManagementLittlefield Game 1Waiting line m
Oregon - DSC - 335
Lean SystemJust-in-Time and Toyota Production SystemDSC 335Zhibin YangAssistant Professor, DecisionSciencesDSC 3351OutlineqIntroduction to Toyota Production SystemqJust-in-Time (JIT), pull system, and Kanban systemqAnalysis of Kanban (and pu
Oregon - DSC - 335
Quiz 1, DSC 335Name _A manufacturer is planning for introducing a new laptop computer. The manufacturer has twooptions: (1) MAKE: Upgrade an existing capacity and produce in-house; it costs \$120,000 toupgrade the capacity, and \$400 to produce one unit
Oregon - DSC - 335
Quiz 2, DSC 335Name _Solve the following decision tree:(0.5)(0.5)\$15\$30(0.4)(0.3)\$20\$22.50Alternative 1 \$22.502 \$20.60(0.3)\$18\$243(0.6)\$25\$20\$25.00 \$24(0.4)\$30(0.5)(0.3)\$261Alternative 2 \$24.00(0.2)\$20The optimal payoff is \$2
Oregon - DSC - 335
Quiz 3, DSC 335Name: _MULTIPLE CHOICES. (Circle the best ONE choice only.)On a typical day at clinic station A of the University Health Center, there are 3 doctorsexamining patients. On average, a doctor spends 30 minutes on a patient. Whats the total
Oregon - DSC - 335
Quiz 4. DSC 335.Name _Consider the tuning station of your factory in the Littlefield Technologies game. There is onewaiting line and two (2) tuning machines in the station. On average 12 orders arrive at thestation per day (=12/day). Each tuning machi
Oregon - DSC - 335
Quiz 5, DSC 335, Name _SOLVE THIS PROBLEM. A grocery store replenishes its inventory of CooQ cookies usingEOQ model. Demand for the cookie is constant, at 100 packs per week. Each pack of cookiescosts \$20. The annual holding cost is 20% of the cost of
Oregon - DSC - 335
Quiz 6, DSC 335, Name _SOLVE THIS PROBLEM. Wood County Hospital consumes on average 500 boxes ofbandages per week. The weekly consumption follows a normal distribution, with standarddeviation of the weekly consumption being 100 boxes. The resupply (del
Oregon - DSC - 335
Quiz 7, DSC 335Name _(Periodic review inventory model) Weisss paint store keeps an inventory of white latex paintproduct in the gallon size. The manager reviews the stock level every 4 months. Monthlydemand is normally distributed, with the mean value
Oregon - DSC - 335
DSC 335, Quiz 8 Bullwhip Effect. Name _ At the beginning of each week a retailer orders from a wholesaler before demand realizes, and then meets customer demand from the retailers inventory. The retailer has
Oregon - BE - 325
Chapter 1Introduction to Law andLegal ReasoningTRUE/FALSE QUESTIONSA1.The stability and predictability of the law is essential to businessactivities.ANSWER: TPAGE:NAT: AACSB AnalyticB1.TYPE:AICPANCritical2AICPA LegalTYPE:=How judges app
Oregon - BE - 325
Chapter 2Courts and AlternativeDispute ResolutionTRUE/FALSE QUESTIONSA1.Federal courts are superior to state courts.ANSWER: FPAGE:NAT: AACSB AnalyticB1.30AICPA LegalTYPE:=30AICPA LegalTYPE:NTYPE:=State courts are independent of federal
Oregon - BE - 325
Chapter 3Court ProceduresTRUE/FALSE QUESTIONSA1.U.S. courts utilize the conciliatory system of justice.ANSWER: FPAGE:NAT: AACSB AnalyticB1.N53TYPE:AICPA Critical ThinkingNThe three major stages of litigation are filing, answering, andappeal
Oregon - BE - 325
Chapter 4Constitutional Authority toRegulate BusinessTRUE/FALSE QUESTIONSA1.A federal form of government is a confederation of independentstates with a central government of very limited powers.ANSWER: FPAGE:NAT: AACSB AnalyticB1.TYPE:N77AIC
Oregon - BE - 325
Chapter 5Ethics and BusinessDecision MakingTRUE/FALSE QUESTIONSA1.Ethics is the branch of philosophy that focuses on what constitutesright and wrong behavior.ANSWER: TNAT: AACSB EthicsB1.PAGE:99TYPE:AICPA Critical Thinking=PAGE:99TYPE:AI
Oregon - BE - 325
Chapter 6Intentional TortsTRUE/FALSE QUESTIONSA1.Tort is a French word for court.ANSWER: FPAGE:NAT: AACSB AnalyticB1.N122AICPA LegalTYPE:N122AICPA LegalTYPE:NTo commit an intentional tort, one person must intend to harm acertain other p