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Q. 1. Suppose at Columbia University, grade point average (GPA) and SAT scores are related by the conditional expectation E(GPA|SAT) = .90 + .001 SAT.a. Find the expected GPA when SAT = 1600. b. Find E(GPA|SAT=2200)c. If the average SAT in the university is 2000, what is the average GPA?
2. Let u and X be two random variables that satisfy E [u|X] = 0 and E[u^2 |X]= o-^2. a. Find the unconditional mean and variance of u.b. What is the covariance between u and X?
Illustrate what are the levels of income every worker also consumption every worker at the initial period. Remembering that the change in the capital stock is investment less depreciation.
A firm will have constant profits of $100,000 per year for the next four years and the interest rate is six percent. Assuming these profits are realized at the end of each year, what is the present value these future profits?
How does the real wage rate at point c compare with the real wage rate at point a. How do nominal wage rates compare at those two points.
Does the existence of poverty imply that our socioeconomic system is unjust. Does the concentration of poverty in certain groups make it more unjust than it would be otherwise.
Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run
Explain how a bandwagon effect might speed up the rate at which DVD players are adopted by consumers. Do likewise for the case of cable television subscriptions.
Illustrate what is the impact of this sale on GDP for 2002. Assume no realtor is involved in the sale.
Plot residual by time and explain residual plot where you find any problem. Do we violate any 7 assumptions of OLS. If so, what are consequences.
Government wants to change its spending in order to avoid a recession. If crowding-out effect is always half as strong as multiplier effect and if MPC equals 0.9, by Explain how much does government purchases have to change.
How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.
Suppose that the government of Tonga decided to impose or place a price floor on all imported chicken products. Elucidate what is the advantage and disadvantage of this policy.
Tomatoes grow well in Kansas. Why do the people of Kansas buy most of their tomatoes from Florida, Mexico, and California?
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