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Suppose a random variable Y has a mean E(Y ) = 12 and standard deviation SD(Y ) = 4. Suppose we define a new random variable Z = 3Y + 10. a. Determine the expected value (mean) of Z. b. Determine the standard deviation of Z.
More people in high-income countries than in low-income countries tend to believe that rapid rates of economic growth are not desirable. Which of the following best explains what is actually happening to real per capita GDPs of countries?
Why would the gov't want to limit gas price increases? Isn't that exactly what we want to happen (price increases), to allocate scarce resources? Is the gov't in the 'price control' business, and if they are, how does this work, in free-market capita..
What is the fiduciary duty of loyalty? Did Gaffney act ethically in this case? Did Gaffney and his partners breach their fiduciary duty of loyalty?
A. Compute the quality spread differential B. If Bank A agrees to pay LIBOR flat to the swap bank, what interest rate should Bank A receive from the swap bank?
The money supply is $800 billion, the required reserve ratio is one-sixth, and the simple money multiplier applies to any increases in reserves. The government runs a deficit of $150 billion. What will the percentage increase in the money supply be i..
Explan how AT&T determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
You want to expand your garage. A contractor, who was highly recommended, says that he will do the whole job (new roof, automatic garage door, insulation and more) for $55,000. He offers you two choices: At what monthly bank interest rate would the t..
If demand for medical care is perfectly inelastic, hospitals and physicians are able to charge any price (up to some maximum) without losing any patients. Explain your answer using the model in Dranove & Satterthwaite (1992, 2000).
The von Neumann-Morgenstern utility function is ln (): Find the amount of wealth that the investor puts into the risky asset.
The manager of a competitive firm will:
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
There are limits to the number of jobs that can move from developed countries to the Philippines, India and China. What determines those limits? Offshoring can reduce production costs and increase economic efficiency. What impacts might offshoring ha..
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