5.  Classical Economics

What is a “bank run”? ______________________________________________________

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2. What role does consumer psychology play in bank runs? _______________________

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3. What happened to the quantity of money in the aftermath of the Great Depression?

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4. Why do runs on banks reduce the quantity of money?  _________________________

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5. According to John Maynard Keynes, what should the government do if private spending is insufficient to maintain full employment? __________________________

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6. What does Friedman believe to be a fundamental weakness in the leadership system of the Federal Reserve (during the discussion with Von Hoffman about Keynes and Strong)? __________________________________________________________________

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7. Why does Friedman believe that the US government has taken such an active role in the economy in the post-World War II era? ____________________________________ ____________________________________________________________________________________________________________________________________________________

Sally and Mike are playing frisbee at the beach. When Sally throws the frisbee the probability is 0.14 that it comes back to Sally, the probability is 0.7 that it goes to Mike, and the probability is 0.16 that the dog runs away with the frisbee. When Mike throws the frisbee there is a 0.66 probability that Sally gets it, a 0.28 probability that it comes back to Mike, and a 0.06 probability that the dog runs away with the frisbee. Treat this as a 3--state Markov Chain with the dog being an absorbing state. If Mike has the frisbee, what is the expected value for the number of times Mike will throw the frisbee before the dog gets it? (Give your answer correct to 2 decimal places.)

A farmer has just cleared a new field for corn. It is a unique plot of land in that a river runs along one side. The corn looks good in some areas of the field but not others. The farmer is not sure that harvesting the field is worth the expense. He has decided to harvest 10 plots and use this information to estimate the total yield. Based on this estimate, he will decide whether to harvest the remaining plots.

A student runs the reaction: LiOH + CO2 → LiHCO3. The reaction consumes 45.0 g LiOH and produces 72.8 g of LiHCO3. Which of the statements concerning this reaction is true?

Select one: a. The theoretical yield of the product is 117.8 g LiHCO3. b. The theoretical yield of the product is 72.8 g LiHCO3. c. The percent yield of the reaction is 61.8%. d. The actual yield of the product is 72.8 g LiHCO3.

If we change the randomized QUICKSORT algorithm so that it repeatedly randomly selects a pivot and runs PARTITION until it finds a good pivot, and suppose we keep track of the pivots used so far so we never use one twice for the same array, what is the worst case cost of the algorithm? Give a recurrence for this and its asymptotic solution (you can use the master method.)

1.4.26 Researchers wanted to test the hypothesis that living in the country is better for your lungs than living in a city. To eliminate the possible variation due to genetic differences, they located seven pairs of identical twins with one member of each twin living in the country, the other in a city. For each person, they measured the percentage of inhaled tracer particles remaining in the lungs after one hour: the higher the percentage, the less healthy the lungs. They found that for six of the seven twin pairs the one living in the country had healthier lungs.

1. Is the alternative hypothesis one-sided or two-sided? why?

2. Based on the sample size and distance between the null value and the observed proportion, estimate the strength of evidence: inconclusive, weak but suggestive, moderately strong, strong, or overwhelming.

3. Here are probabilities for the number of heads in seven tosses of a fair coin:

Compute the p-value and state your conclusion.

Suppose your expectations regarding the stock market are in the chart below. What is the standard deviation of the HPRs on stocks? convert to percentages and round your answer to two decimal places State of the Economy Probability HPR Boom 10% 35% Normal Growth 40% 8% Recession 50% -20

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center.

In addition, management estimated 2,000 direct labor-hours for year 5.

Assume that the following cost driver volumes occurred in February, year 5.

Direct labor costs were $18 per hour.

Required:

a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base.
b. Compute the production costs for each product for February using direct labor-hours as the allocation base and the predetermined rate computed in requirement a.
c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.)

python program

You are going to write a program that takes two inputs: A string representing a list of names of the following form: first name 1, last name 1, (nick name 1); first name 2, last name 2, (nick name 2); ... A string representing part of or the complete family name. You are going to output all nick names for those names where there is a partial or complete match of the family name. If no match was found you should output: Not found! Here a few examples.

Names: Chun Kit, Chui (Kit gor); Dirk, Schnieders (Dirk); Jun-fan, Lee (Bruce); Rowan Sebastian, Atkinson (Bean)

Family name: Schni

Dirk