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This is because they are both very talented but Shirley decided to take 20 hours training unlike Laverne who decided to invest only 10 hours. This gives Shirley an added advantage over Laverne.
(c) Yes, her payoff…
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Download file to see previous pages... This is because the amount of time invested is less than the prize awarded. Unlike in the first case, the result after multiplying the probability with the prize and less the cost is a positive figure.
(e) This time allocation is not equilibrium. This is for the reason that they both are equally talented but Shirley gets an added advantage by training longer than Laverne. They should have trained for equal time for the allocation to be equilibrium.
(f) The allocation of 5 hours of training per week is not Nash equilibrium. This is because the payoff increases to 6 when the training time reduces to 4 and reduces 4 when the training time increases to 6.
(e) The t-statistic is sort of a departure ratio of an approximated parameter from its speculative value as well as its usual error. It is normally used in theory testing, for instance in the t-test of Students, in bootstrapping, in addition to in the amplified Dickey–Fuller ...Download file to see next pagesRead More
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