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1. An automatic saw at a local lumber mill cuts 2-by-4s to an average length of 121 inches. Because the saw is a mechanical device, not all the boards are 121 inches long. In fact, the distribution of lengths has a variance of 0.16. a) The 2x4s are sold as being 10 feet in length (120 inches). What is the proportion of boards cut by this process that are less than the advertised length?b) The saw operator took a sample of 36 boards. If the saw is set correctly, what is the probability the average length of the sample boards is more than 120.9 inches?c) What should the saw operator conclude if she finds the sample to have an average length greater than 121.2 inches?
2. A sample of 500 business professionals found that 30% chose an airline based on price.a) If the population proportion of all business professionals who select an airline based on price is 0.27, then what is the probability that we would find a sample proportion of 0.30 or more in a sample of 500?b) If the population proportion of all business professionals who select an airline based on price is 0.29, then what is the probability that we would find a sample proportion of 0.30 or more in a sample of 500?
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
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Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
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Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
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