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Questions: Read the Gasoline Demand Case and answer the following questions. Your answers should provide clear and unambiguous recommendations. Please provide explanations for your answers and any outputs that you feel are needed to support your argument.
1. Calculate a 95% confidence interval for the average gasoline consumption of a household.
2. Calculate a 95% confidence interval for the average gasoline consumption of a household: (a) in an urban area; (b) consisting of a young and single person.
3. Do you agree with the client executives' claim regarding the average household consumption for the two targeted segments (urban households and the young, single households)? Why or why not?
4. Assume both proposed advertising campaigns cost the same. If only one campaign is to be launched, which of the two campaigns would you recommend launching? Why?
5. You will not learn anything more about campaign costs before the recommendation deadline, but still have to provide an unambiguous and unconditional recommendation. What would be your recommendation to the client regarding whether or not to launch both campaigns simultaneously? Why?
Why is the fact that stock prices follow a random walk a signal of stock market efficiency? What would have to be true if stock prices did not follow a random walk?
mary will deposit $30 a month beginning march 1 and continuing through november 1. she will withdraw the money on december 1. if the bank pays 1/2% interest each month, how much money will she have on december 1
For example, for variable x, type by id: egen avex mean(x) followed by summarize x and then generate mdx = x - avex + r (mean). Verify that you get the same estimated coefficients as you would with xtivreg, f e.
Labor is supplied by competitive suppliers, and everywhere along the supply curve the elasticity of supply is 3. The firm is a monopsonist in the labor market. What wage rate will it pay its workers?
What is meant by the expression "getting prices right"? Under what conditions will eliminating factor price distortions generate substantial new employment opportunities? (Be sure to define factor price distortions.)
Use your supply and demand diagrams to illustrate what happens to the wage gap between the two types of workers.
The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology trans..
What is the excess supply or demand when price is $24
How much public television would a competitive private market provide?
Suppose the average puppy weighs 10 pounds. A sample of 10 puppies yields a sample mean of 13.2 pounds and a sample standard deviation of 2.78 pounds. Assume the population standard deviation is known to be 5.25.
Assume ZCorp has the following short run production function: Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produ..
A collateral bond with a face value of $5,000 was purchased by an investor for $4,100. The bond was due in 11 years, and it had a bond interest rate of 4% per year, payable semi-annually. If the investor kept the bond to maturity.
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