Posted by **Emma** on Tuesday, May 14, 2013 at 4:45pm.

I am having problems answering the question below can you please help?

With probability p, you will catch a disease that reduces your income from y, its level when you are healthy, to y-k, where k > 0. A vaccine is available, at cost c, that reduces the probability of your catching the disease from p to q<p.

a) Suppose that you know the values of p, q, y, k, and c, so that the only thing about which you are uncertain is whether you will catch the disease. Write the condition that determines whether or not you should buy the vaccine.

b) Now suppose that you know y, k, and c, but neither p nor q . Which is more relevant to your decision, the percentage amount by which the vaccine reduces the probability of catching the disease (what is usually reported in the press), or the absolute amount? Explain.

c) How do your answers to (a) and (b) change if you are a risk-averse expected-utility maximizer?

## Answer This Question

## Related Questions

- English - Ihave to develop an outline for my essay topic "Healthy eating and ...
- Algebra - Solve the equation w=Cr^-2 for r. Is this right? w/C=r^-2 r=sqrt(C/w) ...
- math - Consider yourself a genetic counselor. Megan and Eric come to you for ...
- Math - Can someone please help me with these three question? I having a very ...
- Statistics - Sickle cell anemia is a genetic blood disorder where red blood ...
- probability - Consider a medical screening excersis for a disease that in the ...
- biology - 1. Cystic Fibrosis is due to abnormal mucus-secreting tissue. Abnormal...
- Probability - Can someone please help me? certain medical diagnostic test is ...
- Probability - Can someone please help me? certain medical diagnostic test is ...
- Help ASAP Statistic - . A new medical test provides a false positive result for ...

More Related Questions