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A In a recent survey of college professors, it was found that the average amount of money spent on entertainment each week was normally distributed with a mean of $95.25 and a standard deviation of $27.32. What is the probability that the average spending of a sample of 25 randomly-selected professors will exceed $102.50?
Using derive the least square estimators. Where the lower case letters represent deviation from the variable’s mean. If you use upper case notation then the estimators become:
Find the probability that fewer than three of the selected adults watch? prime-time live.
An investor is trying to decide between 2 mutual funds. Mutual fund #1 offers a slightly higher return than mutual fund #2 so the investor decides that he will invest in mutual fund #1 unless the risk of mutual fund #1 is significantly higher than th..
What are the boundaries of a firm? What determines the extent of vertical boundaries-vertical integration? What determines the extent of horizontal integration-scope? Use the cost-benefit analysis to describe the optimal boundaries of a firm.
Labor costs have been increasing at an annual rate of 10%. A firm wishes to set aside funds to cover labor costs for the next 5 years. Determine how much must be set aside today if the money will be invested and will earn interest at a rate of 10%. T..
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 110 - 0.5P, and the marginal cost of production is $140. Determine the optimal number of units to put in..
Consider the term efficiency. Is it the only goal of economic policymakers?
John’s family is expanding in number, and so he decides to sell his current home and upgrade to a larger home. He estimates that he can sell his current home for $400,000 and can buy a larger home for $475,000. He plans to use the entire $400,000 sal..
A buyer values a house at $525,000 and a seller values the same house at $485,000. If sales tax is 8% and is levied on the seller, then what would be the lowest price that the seller would be willing to sell at?
Tamara's best friend, Janine, who had been having bad luck the past couple of years developing good relationships, finally meets the "man of her dreams." She has been dating him for several weeks. There is only one problem: this man is married. To fu..
Which of the following goals of economic policymakers is generally false? They try to keep unemployment low to avoid leaving productive resources idle. They find low inflation desirable because it helps to keep unemployment under control. They want t..
Use the above to calculate the arc price elasticity of demand between PT = $40000 and PT = $30000. The arc elasticity formula is:
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