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The management of the Delphi Corp. is considering a new method of assembling a carburetor assembly for racing cars. The present method requires an average of 24.0 minutes to assemble a carburetor. The average assembly time for a random sample of 25 carburetors, using the new method, was 20.0 minutes, and the standard deviation of the sample was 5 minutes. Using the .05 level of significance, can we conclude that the assembly time using the new method is faster? Using the hypothesis testing procedure:
State the alternate hypothesis. H1:
You would reject Ho if t is:
What is the calculated t value?
What is your statistical decision on H0?
In the long run the interest rate adjusts to adjust to balance the supply and demand for loan able funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.
Suppose that only data on in action were published but not on claims for unemployment. What would be a reaction of the USD/EUR in that case.
Suppose that you sold a basketball ticket for the SEC tournament for $750. Assuming that you deposit the entire $750 in your bank and that the RR = 10%, What is the total change in checking account deposits?
North Western Manufacturing has the production function Q = min{0.25K, 0.5L}, where K is units of capital and L is hours of labour. Without any warning, the price of capital doubles. What should North Western Manufacturing do in response? Explain. If..
Why does Apple tightly hold on to the development of iOS but outsources some of the design and all the manufacturing of iPhone handsets?
Who gains and who loses from the trade barriers that create the price differences? What arguments are used to support trade restrictions in these commodities? What might be the short-term and long-term effects of removing such trade restrictions?
Suppose demand for a good is QD = 50 - P and supply is QS = -10 + P. How much is the producer surplus? How much is consumer surplus?
A perfectly competitive firm sells 50,000 units of knives at a price of $3. The firm's average cost at 50,000 units is $2.75. Calculate the firm's profit.
Consider a project that will bring in upfront cash inflows for the first two years but require paying some money to close the project in the third year.
The Green Company produces chemicals in a perfectly competitive market. The current market price is $24; the firm’s total cost is given by the equation C=100+4Q+Q2. Determine the firm’s profit-maximizing output. Determine its level of profits. Does t..
The Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1.000 boxes per week. Dominick's uses an interest rate of 25 percent per year for holding cost and incurs a fixed ..
Suppose the government increases purchases in an economy with a recessionary gap. How would this policy affect bond prices, interest rates, investment, net exports, real GDP, and the price level? Show your results graphically.
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