Table: Cell Service Refer to the Table

question 30

Essay

Table: Cell Service $$\begin{array}{l}\begin{array} { | l | c | r | r } \hline & \text { Mr. Brooks } & { } \\\hline & & \text { Cell Service A } & \text { Cell Service B } \\\hline \text { Ms. Gertrude } & \text { Cell Service A } & 50,50 & 5,10 \\\hline & \text { Cell Service B } & 10,5 & 75,75 \\\hline\end{array}\\\begin{array} { | l | l } \hline \text { a. } & \begin{array} { l } \text { What is(are) the Nash equilibrium(s) in this } \\\text { coordination game? }\end{array} \\\hline \text { b. } & \begin{array} { l } \text { Which equilibrium will Mr. Brooks and Ms. } \\\text { Gertrude end up at? Explain your answer. }\end{array} \\\hline \text { c. } & \begin{array} { l } \text { Does the coordination game get easier or } \\\text { harder if there are } 100 \text { friends instead of just } \\\text { 2? Explain. }\end{array} \\\hline\end{array}\end{array}$$
Refer to the table. Mr. Brooks and Ms. Gertrude are good friends who like to talk on the phone. Each is deciding on a cell phone service to sign on with, where each service offers free unlimited calls to other customers who subscribe to the same service. The payoff table shows the rewards to Mr. Brooks and Ms. Gertrude from choosing either cell service A or B.

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Definitions:

Regression Model

A statistical approach to modelling the relationship between a dependent variable and one or more independent variables.

Residual Value

The estimated salvage value of an asset at the end of its useful life.

Observation

An individual data point or measurement recorded during a study or experiment.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables by fitting a linear equation to the data.