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Consider the following hypothesis test:
H 0 : μ ≤ 13
H a : μ > 13
A sample of 26 provided a sample mean x̄ = 15 and a sample standard deviation s = 5.32.
a) Compute the value of the test statistic.
b) Use the t distribution table to compute a range for the p-value.
c) At α = 0.01, what is your conclusion?
d) What is the rejection rule using the critical value? What is your conclusion?
Consider the following hypothesis test:
H 0 : μ = 16
H a : μ ≠ 16
A sample of 50 provided a sample mean of 15.15. The population standard deviation is 3.
a) Compute the value of the test statistic.
b) What is the p-value?
c) Write the rejection rule using the p-value. Using α = 0.05, what is your conclusion?
d) Write the rejection rule using the critical value. What is your conclusion?
Consider the following hypothesis test:
H 0 : μ ≥ 21
H a : μ < 21
A sample of 50 provided a sample mean of 20.4. The population standard deviation is 2.
a) Compute the value of the test statistic.
b) What is the p-value?
c) Using α = 0.05, what is your conclusion?
d) Write the rejection rule using the critical value. What is your conclusion?
If a duopolist has a linear demand curve of the form Q=400-P, assuming each firm has total cost of TC= 3000+100Q. Calculate the profit maximizing price-quantity combinations using the following four oligopoly pricing models listed below demonstrating that:
a) Under the Cournot model, both firms will earn the same level of profit and determine industry profit and explain why this would be the case.
b) Under the cartel model, each firm earns a higher profit than Cournot
c) under the Quasi-competitive model,the firm will make a loss equivalent to fixed costs.
d) Under the Stackelberg's model,the leader will earn more than twice the profit of the follower and that total industry profits will be lower than both Cournot and Cartel models. Explain why this would be the case.
a. Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.
b. A Monopolist producing and supplying cooking gas to Mombasa city faces the demand function.
Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2.
i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit.
ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm.
iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.
Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.
If a duopolist has a linear demand curve of the form Q=400-P, assuming each firm has total cost of TC= 3000+100Q. Calculate the profit maximizing price-quantity combinations using the following four oligopoly pricing models listed below demonstrating that:
a) Under the Cournot model, both firms will earn the same level of profit and determine industry profit and explain why this would be the case.
b) Under the cartel model, each firm earns a higher profit than Cournot
c) under the Quasi-competitive model,the firm will make a loss equivalent to fixed costs.
d) Under the Stackelberg's model,the leader will earn more than twice the profit of the follower and that total industry profits will be lower than both Cournot and Cartel models. Explain why this would be the case.
Suppose a sample society has a economy with one resource labour. Labour can be used to produce only 2 commodities X a necessity good (food) and Y a luxury good (music & merriment). Suppose the labour force consists of 100 workers.. 1 labourer can produce either 5 units of necessity per month by (hunting and gathering)
A price change causes the quantity demanded of a good to decrease by 25 percent, while the total revenue of that g 10 percent. Is the demand curve elastic or inelastic?
Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.
