Re: Daily question

Posted by deepti on Mar 27, 2009; 3:49pm
URL: http://discussion-forum.276.s1.nabble.com/Daily-question-tp2328964p2544972.html

1)  problem 1

in the first situation restaurant A  vl either attract both consumers or vl not be  able to attract both consumers.

p(of attracting both customers)=1/2
p(of not attracting both)=1/2

therefore xpcted profit=1/2 . 2-1/2.2=0

situation 2:

customer1  chooses A and 2 choosesA

CUSTOMER 1 CHOOSES A AND 2 CHOOSES B

BOTH CHOOSES B

CUSTOMER I CHOOSES B AND 2 CHOOSES A


XPCTD PROFIT:1/2.1/2.2+1/2.1/2.(-2)+1/2.1/2(1-1)+1/2.1/2.(1-1)=0

problem2:


in situation 1 expected profit is 0

in situation 2:

1/2.1/2.3+1/2.1/2.(-3)+1/2.1/2.(1-2)+1/2.1/2.(-1+1)=-1/4