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The manager of a paint supply store wants to estimate the actual amount of paint contained in 1?-gallon cans purchased from a nationally known manufacturer. The? manufacturer's specifications state that the standard deviation of the amount of paint is equal to 0.02 gallon. A random sample of 50 cans is?selected, and the sample mean amount of paint per 1?-gallon can is 0.965 gallon. Contruct a 90% confidence interval estimate. Round to five decimal places.
Consider that content with the steady pace of economic recovery, the Federal Reserve Bank decides to undertake a large-scale asset sale resulting in a decrease in money supply. What would be the effect of such a policy on equilibrium interest rate in..
As the United States economy moves out of a recession, U.S. financial investors increase their purchases of stocks that are expected to earn a higher rate of return than they are currently earning on their savings account deposits. Explain how the ch..
Consumer and investor optimism and pessimism matter a great deal in the economy. Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate deman..
Carefully explain the resulting movements in an economy if the current situation in the economy (interest rate, level of output) can be characterized as on IS curve but not on the LM curve. On the LM curve but not on the IS curve. Off of both the IS ..
Which method is more likely to be technically efficient. Illustrate what is the probability that she wins.
Calculate the gini coefficient and the coefficient of variation for each of the following distributions. [Hint: It will save significant time if you make use of the inequality principles (population, relative income, etc.) to simplify where possible...
Explain the four tenets of the classical position. Consequences of Peace: explain Keynes concerns regarding the Armistice. What did Keynes really mean by "In the long run we are all dead." Explain how the multiplier can achieve full employment. What ..
Using the principles of covered interest parity, Explicates how a local industry can utilize a LC loan to synthetically create a 1-yr USD loan.
Suppose your friend is considering quitting school to take a well-paying job. One day she says to you, "Friend, I'm not sure what to do. I've put so many months into the bachelor's program. It doesn't make sense to give up now, does it?" Considering ..
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owe..
The marginal revenue received by a firm in a perfectly competitive marketplace is illustrating what
Annual demand for rock climbing shoes is Qd = 50,000,000 P-2 a. (1) Prove that the formula above implies a constant elasticity of demand of εp = -2. b. (5) Suppose the industry is competitive, and each firm's total cost of production is TCi = 100 qi...
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