Sat. Oct 1st, 2022

Chemistry homework help. Suppose the principal cares about output y= e1 – de2, but observes signal x=e1 + ae. What ? would the principal choose in the compensation scheme w= ? + ?x if d= 1/2? What ? would the principal choose if d= 1 ( you should answer this without doing calculation)? Provide a brief explanation.

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