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Suppose that the profit a Honda dealership makes on selling an Accord is random and is given by the following probability distribution: 36% of the time the profit is 800, 26% of the time the profit is 1100; 18% of the time the profit is 1500; and otherwise, the profit is 1900. What is the expected value of the profit the dealership makes on selling an Accord? (please express your answer using 2 decimal places)
Two countries, X and Y, satisfy the Solow model with α = 1/3 and productivity A=1. In Country X, investment is 54% of GDP and the population grows at 1% per year. In Country Y, investment is 8% of GDP, and the population grows at 3% per year. In both..
A country which does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply and demand curves for cigarettes as: QD = 140,000 25,000P QS = 20,000 + 75,000P, where Q = daily..
Which of the following does NOT directly cause a shift in the demand curve? (the introduction of a substitute product/ frequency with which consumers purchase the product/ changes in tax)
What is the different between interpretation of coefficient in SLRM and MLRM? How does it relate to omitted variable bias? How about a linear versus nonlinear multiple regression model coefficients? (quadratic). What is the role of controls?
If ethics is connected to our nature, as the last weeks have explored, some wonder whether or not that might mean distinct ethical virtues for distinct genders. Reacting to the suggestion of her colleague that women tend not to reach the detachment f..
A life insurance salesperson claims the average worker in the city of Cincinnati has no more than $25,000 of personal life insurance. To test this claim, you randomly sample 100 workers in Cincinnati. You find that this sample of workers averages $26..
Frisbees are produced according to the production function: q= 2K + L where q=output K=capital input per hour L=labor input per hour a) If K=10, how much L is needed to produce 100 Frisbees per hour? What is the RTS along this isoquant? Explain why t..
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average.
Which of the following might explain why the government would create a price ceiling for a certain good?
Lynn borrows $5,000 at 15 percent per year compounded monthly. She wishes to repay the loan with 12 end-of-month payments. She wishes to make her first payment 1 month after receiving the $5,000. She also wishes that, after the first payment, the siz..
Define and explain the relationship between total revenue, average revenue, and marginal revenue for a monopolist. What is monopoly profit? Should a monopolist produce quantities of product greater than that which would maximize profits?
q. suppose that market demand for golf balls is described by q 90 - 3p where q is measured in kilos of balls. there
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