ECO200Y1 Lecture Notes - Lecture 10: Fair Coin, Angel Investor, Standard Deviation
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ECO200Y1 Full Course Notes
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Source: bb, chapter 15, section 15. 1and 15. 4 (parts) and lecture. Give examples of where economic agents face uncertainty when making decisions. Consider a simple game in which a fair coin is tossed. What is the probability of either a head or a. Tail: a sports analyst says the probability that the maple leafs will be champions this year is 1/60. If it comes up heads, you will get nothing. If it comes up tails, i will pay you a certain amount. How much will you give me to play this game with me if: When tails comes up, i pay you . When tails comes up, i pay you . When tails comes up, i pay you . Try the game in 4 above on some friends. You will likely get a variety of responses in each case. Let"s generalize the definitions of the three types of risk assessment / three types of people, based on money values only.
