QUESTION 16 Assume you are offered $10 in 10 one dollar coins. You are free to k
ID: 1139453 • Letter: Q
Question
QUESTION 16 Assume you are offered $10 in 10 one dollar coins. You are free to keep the money under the following condition; You have to propose a division of the $10 with a stranger. You may offer as much, or as little, as you like to the stranger. The stranger will then accept or regect your offer. If they reject your offer you will both get so. What amount will you offer the stranger (don't include the s in your answer)? QUESTION 17 You are participating in a contest were all contestants wil be simultaneously requested to selest a number between 0 and 100. The winner of the competition is determined by picking a number closest to x, where & is defined as g of the average () of all numbers proposed. For example. if u -60 then x 6040 What number willyou submit? 2Explanation / Answer
Q-16
It is beneficial for both to obtain something rather than receiving nothing. But the theory of the game here is such that the offer should be accepted by the stranger, hence to be provided to both me and the stranger. Out of 10, with maximum utility, the stranger may be offered 5, if accepted both will receive 5.
Q-17
As the winner will be determined based on the selection of x as 2/3 of the average of all proposed number, the game implicitly calls for a number towards both the ends i.e. 30 or 75 resulting in x value as 20 or 50. Hence the number I will submit would be the average of both that may be near 35.
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