Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics Entrance > Microeconomics > Flashcards

Microeconomics Flashcards

1
Q

Expected Value=?

A

E.V=p1x+p2y (where x and y are the outcomes and p1,p2 are the probability of the occurrence of the outcomes respectively)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Simple Lottery?

A

The outcomes that may result are certain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Compound Lottery?

A

Outcomes of a lottery can be lottery themselves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

VNM Expected Utility Assumptions

A
  1. Pref Complete and Transitive
  2. Continuity (a small change in probability, do not change the ordering nature)
  3. Independence (Addition of a new outcome will not change the order of preference )
  4. Unequal Probability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly

Economics Entrance (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions