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For the earnings data regression underlying Table 4.1.
(a) Replicate the regression results given in Table 4.1.
(b) Verify that the joint significance of all slope coefficients can be obtained from (4.20).
(c) How would you test the joint restriction that expected earnings are the same for Males and Females whether Black or Non-Black holding everything else constant?
(d) How would you test the joint restriction that expected earnings are the same whether the individual is married or not and whether this individual belongs to a Union or not?
(e) From Table 4.1 what is your estimate of the % change in earnings due to Union membership? If the disturbances are assumed to be log-normal, what would be the estimate suggested by Kennedy (1981) for this % change in earnings?
(f) What is your estimate of the % change in earnings due to the individual being married?
During a particular year, a consulting firm has the following costs: 575,000 in wages and salaries to employees; 70,000 in rental payments; and 27,000 for office supplies, utilities and advertising. In Addition Janis the owner of the firm is full ..
Consider a city that has a number of hot dog stands operating throughout the downtown area. Suppose that each vendor has a marginal cost of $1.50 per hot dog sold and no fixed cost. Suppose the maximum number of hot dogs that any one vendor can se..
Use of the equipment will require an increase in your company's net working capital of $4,000, but this $4,000 will be recovered at the end of year three. The use of the equipment will have no effect on revenues, but it is expected to save the fir..
Charlie cares only about the amount of chocolate he eats this year (C0) and next year (C1). His preferences correspond to the utility function \(U(C_{0},C_{1})=4(\sqrt{C_{0}}+\sqrt{C_{1}})\) Suppose he earns $1,000 this year and nothing..
Plot the residuals versus the order in which the observations were made. Is there a trend in the residuals over time? Does the linear model seem appropriate? Explain.
Using the numbers related in the Application, draw a supply and demand graph showing the effects of the Allies wolfram-buying program. Your supply curve should be a long-run curve, which incorporates the entry and exit of firms.
If you were Stefaan, how would you synthesize your accomplishments and the path forward in light of your upcoming meeting with Beth?
Find the sum-rate capacity for a two-user broadcast fading channel where each user experiences Rayleigh fading. Assume an average received power of P = 10 mW for each user, bandwidth B = 100 kHz, and N0 = 10-9 W/Hz.
Estimate the optimal (profit-maximizing) pricing strategy assuming a linear demand curve.
Would the combined measures be likely to have any effect on the person's consumption of cigarettes?Why or why not?
By how much would the market price of abortions and the number of abortions change if a lump-sum tax is assessed on abortion clinics that raises their minimum average cost by 10%? Use a figure to illustrate your answer.
How would you compare the issues in this simulation to the domestic legal issues discussed in your Week One readings? How should companies resolve domestic and international issues differently?
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