In a survey of MBA students, the following data were obtained on “students’ first reason for application to the school in which they matriculated.” Reason for Application School School cost or Quality Convenience Other Totals Enrollment Status Full Time 421 393 76 890 Part Time 400 593 46 1039 Totals 821 986 122 1929 (a) Develop a joint probability table for these data. (b) Use the marginal probabilities of school quality, school cost or convenience, and other to comment on the most important reason for choosing a school. (c) If a student goes full time, what is the probability that school quality is the first reason for choosing a school? (d) If a student goes part time, what is the probability that school quality is the first reason for choosing a school? (e) Are the enrollment status and the reason for application independent? Explain using probabilities.

In economics it is necessary to see the costs or benefits of any unintended
consequences surfacing from policy decisions.
Plata is a little town north of the Concove Caves in Korea. It has a shop; a supermarket,
which supports the large and remote area around the town. Curiously, more than half the products
in the supermarket are sweets, chocolates, sweet drinks (SSB) and pallets of large packs of sugar

Plata is about 1 hour and 35 mins drive from Halcua in China. Why might this fact influence
the quantity of sugary products in Plata's supermarket? Is this an example of an unintended
consequence? Discuss.

A car insurance company has determined that the mean annual car insurance cost for a family in the town of Watlington is $1716. A researcher wants to perform a hypothesis test to determine whether the mean insurance cost for a family in the town of Putford is higher than this. The mean insurance cost for a random sample of 32 families in Putford was $1761. At the 10% significance level, do the data provide sufficient evidence to conclude that the mean insurance cost for a family in Putford is higher than $1716, the mean cost for a family in Watlington? Assume that the population standard deviation is $ 35.50. What is your conclusion?

A car insurance company has determined that the mean annual car insurance cost for a family in the town of Watlington is $1716. A researcher wants to perform a hypothesis test to determine whether the mean insurance cost for a family in the town of Putford is higher than this. The mean insurance cost for a random sample of 32 families in Putford was $1761. At the 10% significance level, do the data provide sufficient evidence to conclude that the mean insurance cost for a family in Putford is higher than $1716, the mean cost for a family in Watlington? Assume that the population standard deviation is $ 35.50. What is your conclusion?

James owns both ski lodges, and therefore all of the skiing, in town. There are no other ways

to ski or ski lodges within 100 miles. Devise a way to segment the skiers in the town

into two markets, high willingness to pay and low willingness to pay, and find a way to

successfully charge them different prices. You need to describe how you will get the high

willingness to pay consumers to reveal their increased willingness to pay. You will also need to

describe how you will prevent consumer arbitrage between the high and low willingness to pay

consumers.

After the Chernobyl nuclear accident, the Pripyat River in Ukraine received 5.0 ×10¹¹ Bq yr^?1 of ⁹⁰Sr from around the Chernobyl nuclear plant through runoff water and groundwater seepage, totaling 1.0 × 10⁷ m³ yr^?1 of the effluent discharge. The Pripyat River width under a normal (mean annual) flow condition is 200 m. The nearest resident is living at the town of Chernobyl, which is 10 km downstream on the same (south) side of the river as the nuclear plant. Determine the ⁹⁰Sr concentration in the river at the town of Chernobyl.

7) In many European cities, tourists are charged one price to enter parks, exhibits, museums, etc. and locals are charged a lower price. Might this tie into price discrimination in some way? Write a paragraphexplaining your answer.

8) Carolina Shores rents vacation homes in NC’s Outer Banks and rents out vacation homes for homeowners. They have 2 different fees that they charge to homeowners.

If the house is on a paved road in town, the commission to the homeowner is 12%.

If the house is in the “four-wheel-drive section” (further away and only accessible by driving on the beach with a 4 wheel drive vehicle) the commission to the homeowner is 16%.

Is this price discrimination? Write a paragraph explaining fully.

9) Sheetz has two gas stations in a large town in South Carolina. The station next to the highway charges about 5% more per gallon than the station that is about half of a mile into town from the highway. How might this tie into price discrimination? Write a paragraph explaining your logic.

South Africa is proposing a project that will increase sugar cane production in the country. South Africa is a net exporter of sugar cane and exports to the UK. Assume the following: • The CIF at Liverpool, UK is £360 per ton • Freight, insurance and unloading from Cape Town, a South African port to Liverpool is £15 per ton • Local port charges at South Africa is 150 Rand per ton • Transport and marketing costs from warehouse to the port in Cape Town is 120 Rand per ton • Storage, transport and marketing cost from point of production to warehouse is 50 rand per ton • No export taxes • The Exchange rate is £1= 12 rands Where the rand is the South African currency and £ is the British Pound Sterling Answer the following questions

a) Estimate the FOB price at the Cape Town port in South Africa in £

b) Estimate the FOB price in Rands

c) Estimate export parity price at a warehouse in South Africa

d) Estimate the export parity price at farm gate in South Africa.

As a result of technology, more and more of us are interacting with and operating within networks than ever before. Facebook is an obvious example of how network externalities are generated by the addition of new users. How has your own life (social, work and school related) been affected by the growing importance of networks? Can you think of any downsides to the trend?

Change in Demand or Supply from Market Equilibrium and Policy

The following table displays the demand for kale in a small suburban town in East Kansas. Due to a recent article describing the health benefits to kale gaining popularity, the quantity of kale demanded increased by 10lbs at every price point.

1. Complete the table with the new quantity demanded at each price point (10 points).

2. An increase to the number of consumers to the kale market will cause the demand curve to shift in which direction? (5 Points)

3. Draw the old demand curve and supply graph. (10 points)

4. Draw the new demand curve and supply graph. (10 points)

Refer to graphs to answer remaining questions:

5. Identify the initial equilibrium price and quantity. (5 points)

6. Identify the new equilibrium price and quantity. (5 Points)

7. Now suppose demand decreased by 10lbs at every price. Identify the new equilibrium price and quantity in the market? (5 points)