In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and that the fine for receiving the ticket is f. Suppose that all individuals are risk averse (i. e., U00(W) < 0, where W is the individual’s wealth). Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? Hint: Use the Taylor series approximation U(W % f ) ¼ U(W) % f U0(W) þ ( f 2/2)U00(W).

See attachmrnt for comolete solving.

Step-by-step explanation:

Given that;

In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and that the fine for receiving the ticket is f. Suppose that all individuals are risk averse (i.e., U00(W) < 0, where W is the individual’s wealth). Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? Hint: Use the Taylor series approximation U(W % f ) ¼ U(W) % f U0(W) þ ( f 2/2)U00(W).

See attachment

1) 2/5

2) zero=0/1

3) zero=0/2

4) -4/5

5) undefined=3/0

hello from mrbilldoesmath!

answer:   (7x + 6y) ( 49x^2 - 42xy + 36y^2)

discussion:

in general, the factorization of a^3 + b^3 is

a^3 + b^ 3 = (a + b) ( a^2 - ab + b^2)

in our case note that 343 = 7^3 and 216 = 6^3 so the equation becomes:

343x^3 + 216y^3 = (7x)^3 + (6y)^3

if you think of a (above) as 7x and b as 6y the factorization becomes

343x^3 + 216y^3 =

((7x + 6y) (   (7x)^2 - 7x*6y + (6y)^2)   =

(7x + 6y) ( 49x^2 - 42xy + 36y^2)

you,

mrb

(a + b) (a^2 - a b + b^2)