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1. A realtor is interested in comparing the asking prices of homes in Philadelphia and Baltimore. A random sample of 21 listings in Philadelphia resulted in a sample mean price of $185,900 with a sample standard deviation of $2,300. A random sample of 26 listings in Baltimore resulted in a sample mean price of $184,500 with a sample standard deviation of $1,750. At a 5% level of significance, test to see if there is any difference in the mean asking prices in the two cities.
2. Two processes in a manufacturing line are performed manually: Operation "A" and Operation "B". A random sample of 50 different assemblies using "A" shows a sample mean time of 8.05 minutes with a sample standard deviation of 1.36 minutes. A random sample of 38 different assemblies using "B" shows a sample mean time of 7.26 minutes and a sample standard deviation of 1.06 minutes. At a 5% level of significance, can you conclude that there is no difference in the average assembly times?
Most restaurant customers tip according to a percentage rule - between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.
Jenny is an engineer for a municipal power plant. The plant uses natural gas, which is currently provided from an existing pipeline at an annual cost of $10000 per year. Jenny is considering a project to construct a new pipeline.
Show what the consumer's indifference curves look like and determine both graphically and algebraically what consumption bundle (C,L) the consumer chooses. Show that optimal consumption bundle depends on the relationship between a/b and w, and expl..
A stock was priced at $150 per share at the end of 1999. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following four years year divedends paid during year stock price ..
Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion: i. What is the new level of gross national debt ii. If 100 percent of this deficit is financed by the sale o..
The "graying of America" will substantially increase the fraction of the population that is retired in the decades to come. To illustrate the implications for U.S. living standards, suppose that over the 49 years following 2009 the share of the p..
Suppose that there are two types of players, good and medium. the team demand curve for top-quality players is Q = 27 - 5 w , and the market supply of top players is Q = 4w, where w is the wage in millions of dollars.
The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit maximizing level of output. Explain whether these claims are correct.
Suppose that the market for cigarettes in a particular town has the following supply and demand curves: Qs = P; Qd = 50 - P with quantities measured in thousands of units. Suppose the town council needs to raise $300,000 in revenue
You are considering buying a new car with a part of your student loan dollars as you really do not need the extra cash now. You have two alternatives with the following cost structures. Speedy Initial cost = $20,000Annual operating cost = $8,000 Us..
You are choosing between two goods, X and Y, and your marginal utility from each is as shown below. Units of X MUx Units of Y MUy 1 10 1 8 2 8 2 7 3 6 3 6 4 4 4 5 5 3 5 4 6 2 6 3 If your income is $9 and the prices of X and Y are $2 and $1
If beta of portfolio is .326, the present yield to maturity on United States government bonds maturing in one year and an assessment that market risk premium.
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