Problem 3: KP 4.2Two smart students form a study group in some math class where homework is handed in jointlyby each group. In the last homework of the semester, each of the two students can choose to eitherwork or party. If at least one of them solves the homework that week, then they will both receive 10points. But solving the homework incurs a substantial effort, worth-7 points for a student doingit alone, and an effort worth-2 points for each student, if both students work together. Partyinginvolves no effort, and if both students party, they both receive 0 points. Assume that the studentsdo not communicate prior to deciding whether they will work or party. Write this situation as amatrix game and detremine all Nash equilibria.
3/8/2017
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STAT 155, Spring 2017
Homework 5