Identify whether the following statements are True, False or Uncertain. Explain your answers

(a) From consumption surveys, there is clear evidence that the poor (those living on less than $1.25 a day) spend almost all (around 90%) of their income on food consumption.

(b) Banerjee, Deaton and Duflo (2004) found that villagers could not utilize government health services regularly because the clinics were only open on Thursdays.

(c) If the S-shaped relationship between health tomorrow and health today holds in reality, then interventions providing moderate short-run improvements in health may be even more effective over the long run.

Hanson Inn is a 96-room hotel located near the airport and convention center in Louisville, Kentucky. When a convention or a special event is in town, Hanson increases its normal room rates and takes reservations based on a revenue management system. The Classic Corvette Owners Association scheduled its annual convention in Louisville for the first weekend in June. Hanson Inn agreed to make at least 50% of its rooms available for convention attendees at a special convention rate in order to be listed as a recommended hotel for the convention. Although the majority of attendees at the annual meeting typically request a Friday and Saturday two-night package, some attendees may select a Friday night only or a Saturday night only reservation. Customers not attending the convention may also request a Friday and Saturday two-night package, or make a Friday night only or Saturday night only reservation. Thus, six types of reservations are possible: convention customers/two-night package; convention customers/Friday night only; convention customers/Saturday night only; regular customers/two-night package; regular customers/Friday night only; and regular customers/Saturday night only.

The cost for each type of reservation is shown here:

The anticipated demand for each type of reservation is as follows:

Hanson Inn would like to determine how many rooms to make available for each type of reservation in order to maximize total revenue.

1. Define the decision variables and state the objective function. Round your answers to the nearest whole number.
   

   Let	CT = number of convention two-night rooms
   	CF = number of convention Friday only rooms
   	CS = number of convention Saturday only rooms
   	RT = number of regular two-night rooms
   	RF = number of regular Friday only rooms
   	RS = number of regular Saturday only room

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

2. Formulate a linear programming model for this revenue management application. Round your answers to the nearest whole number. If the constant is "1" it must be entered in the box.
   

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

   S.T.

   1)	CT
   2)	CF
   3)	CS
   4)	RT
   5)	RF
   6)	RS
   7)	CT	+	CF
   8)	CT	+	CS
   9)	CT	+	CF	+	RT	+	RF
   10)	CT	+	CS	+	RT	+	RS
   11)	CT,	CF,	CS,	RT,	RF,	RS			0

3. What are the optimal allocation and the anticipated total revenue? Round your answers to the nearest whole number.
   

   Variable	Value
   CT
   CF
   CS
   RT
   RF
   RS

   
   Total Revenue = $  
   
4. Suppose that one week before the convention the number of regular customers/Saturday night only rooms that were made available sell out. If another nonconvention customer calls and requests a Saturday night only room, what is the value of accepting this additional reservation? Round your answer to the nearest dollar.
   
   The dual value for constraint 10 shows an added profit of $   if this additional reservation is accepted.

Hanson Inn is a 96-room hotel located near the airport and convention center in Louisville, Kentucky. When a convention or a special event is in town, Hanson increases its normal room rates and takes reservations based on a revenue management system. The Classic Corvette Owners Association scheduled its annual convention in Louisville for the first weekend in June. Hanson Inn agreed to make at least 50% of its rooms available for convention attendees at a special convention rate in order to be listed as a recommended hotel for the convention. Although the majority of attendees at the annual meeting typically request a Friday and Saturday two-night package, some attendees may select a Friday night only or a Saturday night only reservation. Customers not attending the convention may also request a Friday and Saturday two-night package, or make a Friday night only or Saturday night only reservation. Thus, six types of reservations are possible: convention customers/two-night package; convention customers/Friday night only; convention customers/Saturday night only; regular customers/two-night package; regular customers/Friday night only; and regular customers/Saturday night only.

The cost for each type of reservation is shown here:

The anticipated demand for each type of reservation is as follows:

Hanson Inn would like to determine how many rooms to make available for each type of reservation in order to maximize total revenue.

1. Define the decision variables and state the objective function. Round your answers to the nearest whole number.
   

   Let	CT = number of convention two-night rooms
   	CF = number of convention Friday only rooms
   	CS = number of convention Saturday only rooms
   	RT = number of regular two-night rooms
   	RF = number of regular Friday only rooms
   	RS = number of regular Saturday only room

   Max

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

2. Formulate a linear programming model for this revenue management application. Round your answers to the nearest whole number. If the constant is "1" it must be entered in the box.
   

   Max

   CT

   +

   CF

   +

   CS

   +

   RT

   +

   RF

   +

   RS

   S.T.

   1)	CT	<
   2)	CF	<
   3)	CS	<
   4)	RT	<
   5)	RF	<
   6)	RS	<
   7)	CT	+	CF	≥
   8)	CT	+	CS	≥
   9)	CT	+	CF	+	RT	+	RF	≤
   10)	CT	+	CS	+	RT	+	RS	≤
   11)	CT,	CF,	CS,	RT,	RF,	RS		≥	0

3. What are the optimal allocation and the anticipated total revenue? Round your answers to the nearest whole number.
   

   Variable	Value
   CT
   CF
   CS
   RT
   RF
   RS

   
   Total Revenue = $  
   
4. Suppose that one week before the convention the number of regular customers/Saturday night only rooms that were made available sell out. If another nonconvention customer calls and requests a Saturday night only room, what is the value of accepting this additional reservation? Round your answer to the nearest dollar.
   
   The dual value for constraint 10 shows an added profit of $   if this additional reservation is accepted.

Data are drawn from a relatively symmetric and bell shaped distribution with a mean of 30 and a standard deviation of 3.

a.) what percentage of the observations fall between 27 and 33?

b.) what percentage of the observations fall between 24 and 36?

c.) what percentage of the observations are less than 24?

18. A global sportswear company is contemplating contributing money to political candidate in the next election. The managers of the company do not want to contribute unless they are sure the candidate will get the majority of the population vote and win the election. Otherwise,the company will not contribute to the candidates' campaign.

?? : p≤0.5(The company will not contribute the political candidates campaign.)

??0: p>0.5(The company will contribute to the political candidates a campaign.)

??

a) Write a description of a type1 error and possible consequences of that error in the context of the problem.

b) Write a description of a type 2 error and possible consequences of that error in the context of the problem.

1.       A mechanic is restoring an antique car. She checked the compression of each cylinder twice. She checked all six cylinders in sequence and then replicated the effort. The standard pressure for a cylinder is 100 PSI. The attached table has shows the results of her measurements. She has asked you to help analyze the data.

While she performed three tests she asked you to first analyze the data as one pooled set (that is, without regard to the fact that she ran two tests). Use what you think would be the appropriate test and explain your results.

She then asked you to consider the two different tests and to explain if there is any difference

You are the manager of Coca-Cola and are facing the effect of a research (published in 2004) that reports that consuming high fructose corn syrup (HFCS) is associated with promoting obesity. Consider the number of news reports and the number of other research papers on this topic that have been published since 2004. This issue is relevant to you because HFCS is the sweetener used in soft drink manufacturing. Then, you are to:

1.1  Define the own price elasticity of demand.

1.2  Write out a nonlinear demand equation for Coca-Cola that includes the appropriate demand shifters. Based on economic theory, attach the appropriate sign to the coefficient on each right hand side variable.

1.3  Given the number of news reports and other research papers that focus on the positive relation between HFCS and obesity, explain how this is represented by the demand equation for Coca-Cola.

1.4  Use economic theory to explain the meaning of the coefficient on each explanatory variable.

1.5  What would you do to offset the effect of the HFCS-obesity research on the demand for Coca-Cola? Based on economic theory explain your decision. Explain if your decision is working.

1.6  Would you increase or decrease price to boost Coke sales? Based on economic theory, explain your choice.

1.7  Based on economic theory, explain how Coke’s advertising would affect the demand for Pepsi.  

1.8  Based on economic theory, explain why you would spend a lot of money on.

1.9  What is the effect of population on consumption of Coca-Cola?  

1.10 Assume that consumers are worried about the positive relation between consumption of HFCS and obesity, so consumers may increase bottled water consumption. Explain the effect of this on the demand for Coca-Cola. Is the cross price elasticity of demand between Coca-Cola and bottled water negative of positive, explain?

You are the manager of Coca-Cola and are facing the effect of a research (published in 2004) that reports that consuming high fructose corn syrup (HFCS) is associated with promoting obesity. Consider the number of news reports and the number of other research papers on this topic that have been published since 2004. This issue is relevant to you because HFCS is the sweetener used in soft drink manufacturing. Then, you are to:

1. Define the own price elasticity of demand.

2. Write out a log-linear demand equation for Coca-Cola that includes the appropriate demand shifters. Based on economic theory, attach the appropriate sign to the coefficient on each right hand side variable.

3. What is the effect of population on consumption of Coca-Cola?  

4. Given the number of news reports and other research papers that focus on the positive relation between HFCS and obesity, explain how this is represented by the demand equation for Coca-Cola.

5. Use economic theory to explain the meaning of the coefficient on each explanatory variable.

6. What would you do to offset the effect of the HFCS-obesity research on the demand for Coca-Cola? Based on economic theory explain your decision. Explain if your decision is working.

7. Would you increase or decrease price to boost Coke sales? Based on economic theory, explain your choice.

8. Based on economic theory, explain how Coke’s advertising would affect the demand for Pepsi.

9. Assume that consumers are worried about the positive relation between consumption of HFCS and obesity, so consumers may increase bottled water consumption. Explain the effect of this on the demand for Coca-Cola. Is the cross price elasticity of demand between Coca-Cola and bottled water negative of positive, explain?

10. Based on economic theory, explain why you would spend a lot of money on advertising Coca-Cola at the super bowl 2019.

1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides
comprehensive financial statements. Go to finance.yahoo.com. In the box next to
“Get Quotes,” type in its ticker symbol PEP and click.

2. Scroll all the way down to “Financials” and click on “Income Statement.” Compute
the annual percentage change between the three years for the following: (INCOME STATEMENT IS BELOW FOR 3 YEARS IS BELOW)
a. Total revenue.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
b. Net income applicable to common shares.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)

3. Now click on “Balance Sheet” and compute the annual percentage change ( BALANCE SHEET FOR 3 YEARS IS BELOW)
between the three years for the following:
a. Total assets.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)
b. Total liabilities.(PLEASE SHOW ALL WORK AS TO HOW YOU ARRIVED AT THE ANSWER)

4. Write a one-paragraph summary of how the company is doing.

Income Statement

All numbers in thousands

Balance Sheet

All numbers in thousands

Three firms have identical revenue and profit functions. Firm 1 is a private sector firm operated by an​ owner-manager who wishes to maximize profit. Firm 2 is managed by an​ revenue-maximizing manager whose pay is proportional to the​ firm's revenue. Firm 3 is a​ government-owned firm that has been instructed to maximize the amount of​ employment, L, subject to the constraint that revenue must not be negative.

Each of the three firms has a revenue function

​R(q)equals=120120qminus−22q squaredq2

and a cost function of

​C(q)equals=2020plus+4040q.

Determine how much output each firm chooses.

Firm 1 will produce such that

qequals=nothing

units