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Collusive bidding in road construction. Refer to the Florida Attorney General (FLAG) Of?ce's investigation of bid-rigging in the road construction industry, Exercise 6.8 (p. 341). Recall that FLAG wants to model the price (y) of the contract bid by lowest bidder in hopes of preventing price-?xing in the future. Consider the independent variables selected by the stepwise regression run in Exercise 6.8. Do you detect any multicollinearity in these variables? If so, do you recommend that all of these variables be used to predict low-bid price, y?
The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.
The maintenance costs associated with an investment are $0 for the first 8 years and $ 700 per year thereafter. The investment has an infinite life. With interest at 9 % per annum, determine the present worth of the annual disbursements.
Discuss informally how the analysis and the results would be modified if new products were produced using a combination of labor and capital.
An imaginary Missouri town is thinking about giving tax subsides for a casino project. What is the optimal number of Casino visits from the Casino's perspective
Consider the group of x workers who are unemployed this month. After a month, what percentage of this group will still be unemployed? (Hint: If 47% of unemployed workers find jobs every month, what percentage of the original x unemployed workers d..
If your nominal income rose by 5.30 percent and the price level rose by 4.30 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.80 percent and your real income rose by 1.00 perc..
determine the sample size for the estimate of the population
Farma Inc. is working on the development of a new drug to combat Fingulesa. It has identified two strategies to pursue. Strategy one has a probability of success of 40% and strategy 2 has a probability of success of 60%.
What is the level of national savings According to the savings-investment spending identity for an open economy, what is the amount of investment spending in this economy
Assume that a country's production function is Y = AK0.2 L0.8.The ratio of capital to output is 2, the growth rate of output is4% and the depreciation rate of capital is 8%. Capital is paid itsmarginal product.
Let F : R -> R be a strictly increasing function. If the utility function u* is de ned by u*(x) = F(u(x)) what are the Hicksian demand functions generated by u*(answer in terms of h(p; u) and e(p; u)). How are the expenditure functions related
Two countries, Richland and Poorland are described by the Solow growth model. They have the same Cobb-Douglas production function F(K,L) = Kf(EL)1-f. Poorland saves 10% of its income. Richland and Poorland have the same levels of popualtion growth..
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