Unformatted text preview: (5) Problem 2.4, SLP p. 15 2 Quadratic Utility and Linear Technology Assume that F ( k ) = Ak and u ( c ) = a + bc + dc 2 where b > 0 and d < 0. Solve for the closed form solutions for V ( k ) and decision rule. Explain why c is constant. 3 Metric Space Problem 3.3 and 3.4 from SLP p. 45 4 Completeness of ( C ,d ) Show that C the set of bounded continuous real-valued functions with the sup norm d is a complete metric space. 1...
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- Fall '07
- Metric space, Linear Technology, Jay H. Hong, max ∞, Value Function Iteration, SLP p.