Ok, I received an updated enrollment list--you will have the e-mail list no later than this evening. Sorry about the delay. Again, if any of you have not contacted anyone else in your class with whom you can study, do not hesitate to email me and I can put you in touch with others.

_K

Oct 6, 2002

These are the groups as they have been told to me. Be prepared to work in groups for a few minutes on Friday. If you are not in a group, you can find one then . . . So try to talk to people before or after class tomorrow. If not, I'll send out a spreadsheet with everyone's email tomorrow after I get an updated class enrollment list.

Sonny Gonaden
Stephanie Desa

Alyssa Scullion
Dana Mendez
Jennifer
Aja Walter
Gareth Lacy
Donnie Knips
Owen Paun
John Williams

Lily Langlois
Kevin Saman

Oct 6, 2002

Answer key to Problem set #4 - Expected Value:

1. 1200/4 = $300

2. -1200/4 = -$300

3. 20,000/10=2,000 2,200 > 2,000, therefore a risk-neutral person would prefer $2,200 with certainty.

4. Expected value is the product of probability times value. (This is often summed.)

5. Risk-Neutrality characterizes decision-making that is based on expected values.

Oct 6, 2002

The discussion will remain at 1pm because too many students have class conflicts at 12pm. If you have a class conflict at 12pm, please send me an email. I will begin taking attendance beginning this week, as this will be the first session after the registration deadline. Just a reminder, I will have office hours, probably in the classroom, between class and the discussion. Also, tapes of the lectures and discussions will be available soon, but we are having some technical difficulties.

_k