Use the following information to answer the Questions:
Tom and Huck need to paint a fence and agree to use a modification of the divide-and-choose procedure to make a fair division of the chore. The boys' views of the fence are shown below. (Remember, each boy wants to end up with the smallest possible amount to paint.)
-Andi and Terry need to make a fair division of a sofa they bought when sharing an apartment. They agree that Andi is entitled to two thirds of the sofa and Terry is entitled to one third of the sofa. They agree to use a modification of the Knaster inheritance procedure to divide the sofa. Andi believes the sofa is worth $360 and Terry believes the sofa is worth $315. Using the Knaster inheritance procedure, how much will Andi pay Terry for the sofa?
A) $105
B) $110
C) $120
D) $315

Question

Use the following information to answer the Questions:
Tom and Huck need to paint a fence and agree to use a modification of the divide-and-choose procedure to make a fair division of the chore. The boys' views of the fence are shown below. (Remember, each boy wants to end up with the smallest possible amount to paint.) 
-Andi and Terry need to make a fair division of a sofa they bought when sharing an apartment. They agree that Andi is entitled to two thirds of the sofa and Terry is entitled to one third of the sofa. They agree to use a modification of the Knaster inheritance procedure to divide the sofa. Andi believes the sofa is worth $360 and Terry believes the sofa is worth $315. Using the Knaster inheritance procedure, how much will Andi pay Terry for the sofa?
A) $105 
B) $110 
C) $120 
D) $315

Quizplus · Accepted Answer

The modified Knaster inheritance procedure involves finding the largest item that can be given to the person with the lower value estimate, and then repeating the procedure with the remaining items until everything has been allocated. In this case, the largest item (two thirds of the sofa) will be given to Andi, which she values at $240 (two thirds of $360). This leaves one third of the sofa, valued at $105 (one third of $315) for Terry. Therefore, Andi will pay Terry $110 ($240 - $105) to make the division fair.

Use the Following Information to Answer the Questions