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x 3 4 5 7 8
y 4 6 8 13 14
(a) Find the estimates of β0 and β1.
(b) Compute the standard error, the point estimate for σ.
(c) Assuming the residuals are normally distributed, determine sb1.
(d) Assuming the residuals are normally distributed, test H0: β1=0 versus H1: β1≠0 at the α=0.05 level of significance. Use the P-value approach. What is the P-Value? Do I reject or not reject?
If an increase in the price of accordions does not change total revenue from accordion sales, what can we infer about the price elasticity of demand for accordions?
CAFTA (Central American Free Trade Agreement) will lead to free-trade between U.S. and Central America. Suppose there are two factors: skilled and unskilled labor and U.S. is skilled-labor abundant. There are two goods: apparel and computers, and app..
Households and firms makes decisions about how much to consume and invest based on expectations about the future. How does government tax policy affect the decisions of households and firms from a general perspective? From your personal perspective? ..
The president of the Fed announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Using the supply-demand framework in bonds market, predict what will happen to interest rates?
Why would a decline in the value of the dollar prompt foreign manufacturers such as BMW to build production plants in the United States?
It has been said that “prices are like giant neon billboards that flash important information.” Describe the type of information that market prices provide.
a. What is the price of alcohol before the tax? b. What is the price of alcohol after the tax?
Bill’s demand for hamburgers (a private good) is Q = 21 − 6P and Ted’s demand is Q = 6 − 3P. Write down an equation for market demand for hamburgers. Now suppose that hamburgers are a public good. Write down an equation for the social marginal benefi..
The team must have two women and two men. How many different teams of 4 can be selected?
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
Draw two yield curves in a graph - one before and one after the policy change, and explain why
What is the standard deviation of the sampling distribution?
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