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An Article in American Demographics investigated consumer habits at the mall. We tend to spend the most money when shopping on weekends, particularly on Sundays between 4:00 and 6:00 P.M. Wednesday-morning shoppers spend the least.15 Independent random samples of weekend and weekday shoppers were selected and the amount spent per trip to the mall was recorded as shown in the following table:
a Is there sufficient evidence to claim that there is a difference in the average amount spent per trip on weekends and weekdays? Use α = .05.
b What is the attained significance level?
Suppose that you have two straights lines, Line A and Line B. The points (x, y) = (2, 6) and (4, 2) lie on Line A. The points (x, y) = (1, 9) and (3, 3) lie on Line B. What is the point of intersection between Line A and Line B
What determines the size of the employment effect of a minimum wage increase in the model of perfect competition and what is meant by monopsony power and why might firms have it?
Instead of enacting a carbon tax, assume that Congress decides to provide tax incentives to non-carbon-based energy sources, such as solar and wind power. Would this instrument be cost-effective in reducing CO2 emissions?
How do stocks and bonds differ in terms of the future payments that they are expected to make? Which type of investment (stocks or bonds) is considered to be more risky?
Suppose this industry is in long run equilibrium. In long run equilibrium what quantity will the representative firm produce? In long run equilibrium what is the market price
During an inflationary process, velocity is 1. higher because people hold fewer real money balances 2. lower because people hold fewer real money balances
A firm has monthly production function Q (L, K) = L +( ?1+K), where L is worker hours per month and K is square feet of manufacturing space. The marginal rate of technical substitution is |MRTS|= 2 (?1+K)
Use the clues we have given about the British economy to explain the rise and fall of the pound's real effective exchange rate between 1978 and 1984. Pay particular attention to the role of nontradables.
Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs.
If so, how would the differences affect the interest differential between, say, dollar and Mexican peso deposits? Do you have any guesses about how the liquidity of euro deposits may be changing over time?
Analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders.
A coin is biased so that a bead is three times as likely to occur as a tail. Find the expected number of tails when this coin is tossed twice.
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