tag:blogger.com,1999:blog-4246809867283341355.post9112511517634906948..comments2023-05-12T04:37:03.051-05:00Comments on The Economics of Organizations - Fall 2016: Excel Homework Due Wednesday October 19 at 11 PMProfessor Arvanhttp://www.blogger.com/profile/15256000730474030475noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4246809867283341355.post-27292731672915647182016-10-20T10:19:36.406-05:002016-10-20T10:19:36.406-05:00Catch me after class if I don't cover it durin...Catch me after class if I don't cover it during the session. You need to be functional on this because the next homework depends on it. Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-81389562976022076012016-10-20T10:14:25.597-05:002016-10-20T10:14:25.597-05:00I cant figure out how to solve u(x1) or u(x2), I w...I cant figure out how to solve u(x1) or u(x2), I watched the videos for help but I am still quite confused on how to solve them. I tried E(x)=Px1+(1-P)x2, but that didn't work. Am I using the wrong formula here? Alan Kruegerhttps://www.blogger.com/profile/10178779859662076381noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-91574362339043773952016-10-19T22:20:32.612-05:002016-10-19T22:20:32.612-05:00the utility function is constant relative risk ave...the utility function is constant relative risk aversion u(x)= x^alpha. Did you try that?<br />Lanny Arvanhttps://www.blogger.com/profile/05597426421997599777noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-59390587458397947822016-10-19T19:22:45.797-05:002016-10-19T19:22:45.797-05:00I cant figure out how to solve u(x1) or u(x2), I w...I cant figure out how to solve u(x1) or u(x2), I watched the videos for help but I am still quite confused on how to solve them. I tried E(x)=Px1+(1-P)x2, but that didn't work. Am I using the wrong formula here? Alan Kruegerhttps://www.blogger.com/profile/10178779859662076381noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-36975654537511845932016-10-14T18:26:17.436-05:002016-10-14T18:26:17.436-05:00I am seeing this a day late, and I see you have su...I am seeing this a day late, and I see you have submitted the homework, so you must have gotten it. I will say that to understand the inverse of u given the particular utility function that we are using in this example, you need to understand the law of exponents. If you do understand that, then figuring out the inverse of u is straightforward.<br />Professor Arvanhttps://www.blogger.com/profile/15256000730474030475noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-78625543987254776412016-10-13T14:14:05.067-05:002016-10-13T14:14:05.067-05:00Nevermind that previous comment I got it. I am now...Nevermind that previous comment I got it. I am now having trouble getting the certainty equivalent... I cannot follow the formula explanation given leading up to answer box b67 very well I am not sure how to go from u -> v or make the inverse equations Ben Bernankehttps://www.blogger.com/profile/07834807848404976831noreply@blogger.comtag:blogger.com,1999:blog-4246809867283341355.post-87564428688766367272016-10-13T12:59:53.394-05:002016-10-13T12:59:53.394-05:00I have watched both videos and am getting confused...I have watched both videos and am getting confused how to find u(E(x)), I did not see its formula explicitly given. E(u(x)) formula was given in the video but I cannot figure out to how calculate u(E(x)), I am using cell references as well so it is just my algebra that is off. I know that u(E(x)) > E(u(x)) by a tiny margin because of concavity but I am not sure how to find it. Please let me know any hint/help when you can. Thanks.Ben Bernankehttps://www.blogger.com/profile/07834807848404976831noreply@blogger.com