Economics 370 Microeconomic Theory Problem Set 6 Answer Key 1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p‚ which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual‚ the monopoly determines its optimal output on the basis of MR = MC. Here‚ however‚ it cannot charge a price in excess of p*. So
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standard deviation = square root of variance = sqrt(846) = 29.086 4. If we have the following data 34‚ 38‚ 22‚ 21‚ 29‚ 37‚ 40‚ 41‚ 22‚ 20‚ 49‚ 47‚ 20‚ 31‚ 34‚ 66 Draw a stem and leaf. Discuss the shape of the distribution. Solution: 2 3 4 5 6 | | | | | 219200 48714 0197 6 This distribution is right skewed (positively skewed) because the “tail” extends to the right. 5. What type of relationship is shown by this scatter plot? 45 40 35 30 25 20 15 10 5 0 0 5 10 15 20 Solution: Weak positive linear
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cost roughly from $10‚000 to $30‚000‚ that assist managers in generating effective facility designs. With the help of layout Master IV simulation software‚ developed by NRM‚ Rollerblade Management was able to implement a new distribution design. As a result of the distribution improvement‚ Rollerblade was able to increase the number of customer orders processed daily from140 to 410 and eliminate order backlog. “Now
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NORMAL DISTRIBUTION 1. Find the distribution: a. b. c. d. e. f. following probabilities‚ the random variable Z has standard normal P (0< Z < 1.43) P (0.11 < Z < 1.98) P (-0.39 < Z < 1.22) P (Z < 0.92) P (Z > -1.78) P (Z < -2.08) 2. Determine the areas under the standard normal curve between –z and +z: ♦ z = 0.5 ♦ z = 2.0 Find the two values of z in standard normal distribution so that: P(-z < Z < +z) = 0.84 3. At a university‚ the average height of 500 students of a course is 1.70 m; the standard
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Sampling distribution The sampling distribution is the distribution of the values of a sample statistic computed for each possible sample that could be drawn from the target population under a specified sampling plan. Because many different samples could be drawn from a population of elements‚ the sample statistics derived from any one sample will likely not equal the population parameters. As a result‚ the sampling distribution supplies an approximation of the true value’s population parameters
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14. If x has the probability distribution f(x) = 12x for x = 1‚2‚3‚…‚ show that E(2X) does not exist. This is famous Petersburg paradox‚ according to which a player’s expectation is infinite (does not exist) if he is to receive 2x dollars when‚ in a series of flips of a balanced coin‚ the first head appears on the xth flip. 17. The manager of a bakery knows that the number of chocolate cakes he can sell on any given day is a random variable having the probability distribution f(x) = 16 for x =
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Business Administration- MBA Semester 1 MB0040 – Statistics for Management Assignment Set - 1 Q1. Define “Statistics”. What are the functions of Statistics? Distinguish between Primary data and Secondary data. Answer: Statistics: Statistics as a discipline is considered indispensable in almost all spheres of human knowledge. There is hardly any branch of study which does not use statistics. Scientific‚ social and economic studies use statistics in one form or another. These disciplines make-use
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Please read Article 1 and then answer the questions 1 - 4 45‚000 U.S. deaths to lack of insurance By Susan Heavey Susan Heavey – Fri Sep 18‚ 8:22 am ET. WASHINGTON (Reuters) – Nearly 45‚000 people die in the United States each year -- one every 12 minutes -- in large part because they lack health insurance and cannot get good care‚ Harvard Medical School researchers found in an analysis released on Thursday. "We’re losing more Americans every day because of inaction ... than drunk driving and
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Probability Concepts 1. Fundamental Concepts of Probability 2. Mutually Exclusive and Collectively Exhaustive 3. Statistically Independent and Dependent Events 4. Bayes’Theorem Learning Objectives • Understand the basic foundations of probability analysis • Learn the probability rules for conditional probability and joint probability • Use Bayes’ theorem to establish posterior probabilities Reference: Text Chapter 2 Introduction • Life is uncertain; we are note sure what the
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Definition: Statistics is the study of the collection‚ organization‚ analysis‚ interpretation and presentation of data. It deals with all aspects of this‚ including the planning of data collection in terms of the design of surveys and experiments. A statistician is someone who is particularly well-versed in the ways of thinking necessary for the successful application of statistical analysis. Such people have often gained experience through working in any of a wide number of fields. Some
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