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Alvin database of friends contains n entries, but due to a software glitch, the addresses correspond to the names in a totally random fashion. Alvin writes a holiday card to each of his friends and sends it to the (software-corrupted) address. What is the probability that at least one of his friends will get the correct card? Hint: Use the inclusion-exclusion formula.
Keynes rejected the classical notion of Say's law. He argued that under-spending was very likely. Keynes focused on aggregate demand (total spending) as being the key determinant to the level of macroeconomic activity not aggregate supply which wa..
Each subsequent year, this cost is expected to increase by $100. How much would you need to set aside when you bought a new car to pay all future maintenance cost if you planned to keep the vehicle for 7 years? Assume interest is 5% pear.
Suppose your market research leads you to conclude that there are two distinct groups of consumers interested in the PCC, restaurants and homes. You determine that each has a different demand curve.
If reputations are important, which restaurant will have a greater incentive to offer good service-one that is part of a national chain (such as McDonald's or Burger King) or one that is locally owned?
Show that when the condition in Proposition 13.3 is satisfied, the optimal growth path satisfies the transversality condition and yields a finite level of utility for the representative household.
Why does the Fed not stick more closely to its target paths for money?
Xon, a small oil company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate the drilling rig using MACRS depreciation. The drilling rig has been leased to a drilling company, which will pay Xon $450,000 per year for 8 year..
At what amount of labor input are the firm's average and marginal product of labor equal? Confirm that the average and marginal product curves satisfy the relationship discussed in the text.
cool-aire corporation manufacturers a line of room air conditioners. Its break even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units
Suppose that following an oil embargo gas prices rise dramatically so that now business firms must take account of gas prices in their car rental decisions. Their demand for rental cars is now given by: K=1 700-12v-300g
Please compute the standard error of estimate and the standard error of the coefficient for the following data set: X = 95, 85, 80, 70, 60 and Y = 85, 95, 70, 65, 70. Lastly, set up and perform the hypothesis test to determine if a student's aptit..
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following Compute the price elasticity of demand fo..
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