Moving to a small town, you get a job as a business analyst for ABC Coffee, which happens to operate the only caf6 in town. The demand for ABC's coffee is given as: Q : 100 - P, where P is the price (in cents) charged by ABC for a cup of coffee and Q is the quantity sold per day (i.e., cups per day). Furthermore, suppose total fixed cost encountered by ABC is zero, and marginal cost (MC) equals average variable cost (AVC), with both constant at 20 cents (i.e., MC : AVC :20 at all output levels). Lastly, given the demand for ABC's coffee, its marginal revenue is given by the following equation: MR : 100 - 2Q.

t1l Interested in maximizing ABC's profit, you should recommend that ABC sell _ cups of coffee per day.

A. 200

B. 80

C. 60

D. 40

Moving to a small town, you get a job as a business analyst for ABC Coffee, which happens to operate the only caffe in town. The demand for ABC's coffee is given as: Q : 100 - P, where P is the price (in cents) charged by ABC for a cup of coffee and Q is the quantity sold per day (i.e., cups per day). Furthermore, suppose total fixed cost encountered by ABC is zero, and marginal cost (MC) equals average variable cost (AVC), with both constant at 20 cents (i.e., MC : AVC :20 at all output levels). Lastly, given the demand for ABC's coffee, its marginal revenue is given by the following equation: MR : 100 - 2Q

l2l Interested in maximizing ABC's profit, you should recommend thatABC price its coffee at_cents per cup.

A. 20

B. 40

c. 60

D. 100

A small town has 7000 adult males and 5000 adult females. A sociologist conducted a survey and found that 60% of the males and 50% of the females drink heavily. An adult is selected at random from the town. (Enter your probabilities as fractions.)

(a) What is the probability the person is a male?


(b) What is the probability the person drinks heavily?


(c) What is the probability the person is a male or drinks heavily?


(d) What is the probability the person is a male, if it is known that the person drinks heavily?

Two balls are drawn from a bag containing 4 white balls and 3 red balls. If the first ball is replaced before the second is drawn, what is the probability that the following will occur? (Enter your probabilities as fractions.)

(a) both balls are red


(b) both balls are white


(c) the first ball is red and the second is white


(d) one of the balls is black

QUESTION 11

1. A restaurant owner wants to estimate the mean wait time during lunchtime. She knows that the standard deviation of wait times is 14 minutes. Based on this information, how many customers should she sample to get a 90% confidence interval with a margin of error of 2.5 minutes?

   		121
   		120
   		84
   		85

2 points   

QUESTION 12

1. The machinist closely monitors the machine that produces a major part for an airplane engine. In the past, 10% of the parts produced were defective. How many parts should be sampled to obtain a 95% confidence interval with a 0.04 margin of error.

   		217
   		19
   		216
   		20

2 points   

QUESTION 13

1. A two-bedroom rental in a small town was $700 five years ago. As the population in the town has grown, the City Commissioner believes that rents have increased. What is the appropriate set of hypotheses to test this claim?

The Town Council of Flic-en-Flac in Mauritius wonders if the town’s public beach should be kept cleaner. The Council estimates that the benefit of a cleaner beach would be a 6% increase in annual tourist spending from the current level of $2 million per year. The main cost is paying staff for picking up debris on the beach, most of which is plastic trash left by beach users. The Council estimates that 6 staff will be needed for 4 hours per day, every day of the year, and the local wage is $11 per hour. There is an initial expense of $40,000 to build a small shelter and buy equipment for the staff. If the Council uses a discount rate of 8%, is it beneficial to run this program as a 3-year pilot? (The program may or may not be continued after 3 years.) In your report for the Town Council, provide an answer to their question along with the actual B/C ratio.

The City Council wants to gather input from residents about the recreational opportunities in the city. Categorize each technique as simple random sample, stratified sample, systematic sample, cluster sample, or convenience sample.

a) Get an alphabetical list of all residents and question every 250th resident on the list.

b) Have 10 volunteers go downtown on Saturday afternoon and question people that they see. The volunteers may quit when they have questioned 25 people.

c) Get an alphabetical list of all residents and use a random number to get a sample of 3000 residents to question.

d) Divide the town into 25 distinct geographical neighborhoods then randomly choose 50 residents in each neighborhood to question.

e) Divide the town into 25 distinct geographical neighborhoods then randomly choose 10 of the neighborhoods. Question all the residents in the chosen neighborhoods

Q6. Essay: Medical School Admission---

Revisit Answer the following question in an argumentative essay. A medical school has received 300 applications from students who want to enrol. The school has the capacity to accept only 120 new students. All the 300 applicants have at least the minimum academic requirements. All have sent cheques for the $6,000.00 tuition fee. Since the number of applicants exceeded the number of slots, there is scarcity and a need to determine which applicants will be admitted and which will not. It is important to recognize that each of these allocation mechanisms, institutions, or governance alternatives will likely result in a different class composition, i.e., a different 120 students granted admission. Which allocation mechanism do you think is the best? Present your answer in the framework of economics (maximum of 200 words). Note: Unlike the last essay question (Assignment 1 Problem 5), your logic affects the grade for this essay question. This question asks you if you understand the economic concept we learned in this course. Make sure to proofread for typos and the like; obvious grammatical/spelling errors could lower your grade. To get a full credit, the following hint will help. Hint: Allocating school admission seats is different from allocating goods and services. The interesting issue is: which class is best from society’s perspective? That is actually a deeper or broader question that asks how we should allocate the talents of the 300 students, between using their time as doctors or in a next best alternative. Would it not be great if the allocation mechanism resulted in their first best choice for their time also being the first best choice for society? Is it possible that each student’s best choice might also be the best choice from society’s perspective? Could private interest and social interest be the same?

Briefly describe what you believe are the key aspects of the Business School brand. Given this brand description, discuss one action that the school takes that helps build/maintain the brand. Discuss one action that the school takes that hurts the brand. Discuss a potential marketing activity that would help build the brand. Actions related to increasing awareness only cannot be discussed.

State legislators recognize that a change in the price of school supplies has both a substitution effect and an income effect. How are the substitution effect and income effect different from each other? If school supplies are an inferior good and the price of school supplies increases, how does this impact the substitution effect and the income effect? What are the potential implications for the total effect of the price increase?

State legislators recognize that a change in the price of school supplies has both a substitution effect and an income effect. How are the substitution effect and income effect different from each other? If school supplies are an inferior good and the price of school supplies increases, how does this impact the substitution effect and the income effect? What are the potential implications for the total effect of the price increase?