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Show that the ridge regression estimate is the mean (and mode) of the posterior distribution, under a Gaussian prior β ∼ N(0, τI), and Gaussian sampling model y ∼ N(Xβ, σ2I). Find the relationship between the regularization parameter λ in the ridge formula, and the variances τ and σ2
Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12. How much total profit is the firm earning ..
suppose the supply of a good is given by the equation qs240p-240 and the demand for the good is given by the equation
Analyze the arguments for government intervention as opposed to arguments for market-based solutions.
a) Use exponential smoothing with a smoothing constant of .6 to produce forecasts from the data. Use 2500 as your forecast of demand for week 2. b) Use exponential smoothing with a smoothing constant of .3 to produce forecasts from the data. Use ..
an automobile -manufacturing company is considering purchasing an industrial robot to do spot welding , which is currently done by skilled labor . the initial cost of the robot is $210,000, and the annual labor savings are projected to be $150,000
Assuming that David is rational and possesses convex indifference curves, draw a diagram to show his optimum point if he consumes exactly 50 donuts a month. Show that if this is his optimum point, then marginal rate of substitution is not necessar..
concepts interpret the regression equation that you calculated in the prior section. what is the meaning of y
at a price of $1 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es = 1). In the long run, a price increase from $1 to..
"The growth of consumer information organizations, legal requirements, and warranty requirements has caused significant increases in the cost of customer satisfaction. " Comment on this quote.
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 - 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. a. What is the follower's reaction function QF = - Q..
the solar energy company is producing electricity from a solar source by using a large array of solar cells and selling
Provide statistical results by using STATA and interpretations - Topic is Demand for Automobiles: Foreign vs Domestic.
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