Question

In: Statistics and Probability

The population of a small town was 20,000 on January 1st, 2010 and has grown at...

The population of a small town was 20,000 on January 1st, 2010 and has grown at a rate of about 2% per year since then. Next year, the local high school is closing and this is likely to affect the population of the town as people move away to towns with more schools.

(a) Write down a model of the population of the town for the years 2010 to 2019. Carefully define any variables you use and state any assumptions you make.

(b) Calculate the expected size of the population on January 1st 2020.

(c) The town council wants to work out what will happen to the population once the school closes. They are considering three possible effects:

• Half the families with children of high school age will move out of town immediately. There are 1200 people in families with children of high school age in 2019.

• 10% of the population will move away each year, starting in 2020, because of decreasing opportunities for work in the town resulting from the school closure.

• 100 people who do not like children will move to the town each year once the school has closed and families start to leave. Explain how you would modify the model you wrote down in part (a) to model the population from 2020 onwards. Take account of each of the three effects. Carefully state any assumptions you make.

(d) Use dfield and your model from part (c) to estimate the size the population of the town on January 1st 2025. Include an appropriate printout from dfield to support your answer.

(e) What do you think will happen to the population of the town in the long term? Include an appropriate printout from dfield to support your answer.

Solutions

Expert Solution

population on January 1st, 2010 = 20,000

Let current year be y

Current population be f(y)

Answer for part (a):

Population model :

f(y) = 20,000 * (1.02) ^ (y - 2010)

where y is the year. This model is valid for 2010 <= y <= 2019

Answer for part (b):

expected size of the population on January 1st 2020 = 20000 * 1.02 ^ 10 = 24380

Answer for part (c):

New model:

Population on January 1st 2020= 24380

Now as per first effect 600 people will move out. So revised population = 24380 - 600 = 23780

f(y) =23780 * {(0.9) ^ (y - 2020)} + 100 * (y - 2020)

for 2020 <= y

The factor {(0.9) ^ (y - 2020)} is for: 10% of the population will move away each year, starting in 2020

The factor 100 * (y - 2020) is for : 100 people who do not like children will move to the town each year

Answer for part (d):

Population on January 1st 2025 = 23780 * {(0.9) ^ (2025 - 2020)} + 100 * (2015 - 2020) = 14542

Answer for part (e):  

In long run the population will keep on reducing unless a new high school opens in the town.


Related Solutions

*all info is provided Consider a small town that has a population of dedicated pizza eaters...
*all info is provided Consider a small town that has a population of dedicated pizza eaters but is able to accommodate only two pizza shops, Donna’s Deep Dish and Pierce’s Pizza Pies. Each seller has to choose a price for its pizza, but for simplicity, assume that only two prices are available: high and low. If a high price is set, the sellers can achieve a profit margin of $12 per pie; the low price yields a profit margin of...
Eric Toure , a sole trader , commenced business on 1st January 2005 with $ 20,000...
Eric Toure , a sole trader , commenced business on 1st January 2005 with $ 20,000 banked into the business bank account . During the year , he made the following transactions ; Withdrew $ 1,500 cash from the bank for personal use . Further capital introduced was $ 5,000 banked into the business bank account . Purchases of goods for resale and paid by cheque : $ 8,000 . Eric sold goods to BM Ltd for $ 28,050 on...
Doug purchases a 25% interest in the Hay Partnership for $20,000 on January 1, 2010, and...
Doug purchases a 25% interest in the Hay Partnership for $20,000 on January 1, 2010, and begins to materially participate in the partnership's business. The Hay Partnership uses the calendar year as its tax year. At the time of the purchase, the Hay Partnership has $2,000 in liabilities, and Doug's share is 25%. During the year, the Hay Partnership incurs $100,000 in losses and its liabilities increase by $4000. What is Doug's basis in his partnership interest on December 31,...
A population of animals oscillates annually from a low of 1300 on January 1st to a high of 2200 on July 1st. and back to a low of 1300 on the following January 1st.
A population of animals oscillates annually from a low of 1300 on January 1st to a high of 2200 on July 1st. and back to a low of 1300 on the following January 1st. Assume that the population is well approximated by a sine or a cosine function. a. (3 points) State clearly what the period is in terms of months, and then state what the distance between input values for the key points will be. b. (4 points) Explain...
(DSR Chp 10, U6) Consider a small town that has a population of dedicated pizza eaters...
(DSR Chp 10, U6) Consider a small town that has a population of dedicated pizza eaters but is able to accommodate only two pizza shops, Donna’s Deep Dish and Pierce’s Pizza Pies. Each seller has to choose a price for its pizza to maximize profits. Suppose further that it costs $3 to make each pizza (for each store) and that experience or market surveys have shown that the relation between sales (Q) and price (P ) for each firm is...
You will receive $2,000 on January 1st 2004, on January 1st in 2005 and January 1st...
You will receive $2,000 on January 1st 2004, on January 1st in 2005 and January 1st 2006. Which of the following expressions will calculate your value at time of January 1st 2004? a PV = $2,000​[1.06]^-1 + $2,000​[1.06]^-2 + $2,000​[1.06]^-3 b PV = $2,000​[1.06]^1 + $2,000​[1.06]^2 + $2,000​[1.06]^3 c PV = $2,000​[1.06]^0 + $2,000​[1.06]^1 + $2,000​[1.06]^2 d PV = $2,000 + $2,000​[1.06]^-1 + $2,000​[1.06]^-2
KLM Ltd purchased new equipment on 1st January 2010, at a cost of $420 000 net...
KLM Ltd purchased new equipment on 1st January 2010, at a cost of $420 000 net of GST. The company estimated that the equipment had a useful life of 5 years and a residual value of $45 000. Required Assuming a financial year ending 30th June, calculate the amount of depreciation expense for each year ending 30th June 2010 through to 30th June 2015, with each of the following methods: (a) straight line 2 marks (b) sum-of-years-digits 4 marks (c)...
The population of a town A is less than the population of town B. However, the...
The population of a town A is less than the population of town B. However, the population of town A is growing faster than the population of town B. Write a program that prompts the user to enter the population and growth rate of each town. The program outputs after how many years the population of town A will be greater than or equal to the population of town B and the populations of both the towns at that time....
. A small town has 5600 residents. The residents in the town were asked whether or...
. A small town has 5600 residents. The residents in the town were asked whether or not they favored building a new bridge across the river. You are given the following information on the residents' responses, broken down by gender: Men Women Total In Favor 1400 280 1680 Opposed 840 3080 3920 Total 2240 3360 5600 A) What is the probability of a randomly selected resident being In a Woman? B) What is the probability that a randomly selected resident...
By January 2014 the US population had grown to 317.3 million and the US Federal Debt...
By January 2014 the US population had grown to 317.3 million and the US Federal Debt was a reported $17.3 trillion. Calculate the January 2014 Federal Debt per capita and use the calculation in a meaningful sentence. From class we learned that in 2010 the federal debt (in millions) was $13,561,623 and the population of the U.S. was 309 million. Use these values to compute the federal debt per capita in 2010. In 1980, a Domino’s large pizza cost $4.99....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT