Use Excel

The United States Department of Agriculture (USDA), in conjunction with the Forest Service, publishes information to assist companies in estimating the cost of building a temporary road for such activities as a timber sale. Such roads are generally built for one or two seasons of use for limited traffic and are designed with the goal of reestablishing vegetative cover on the roadway and adjacent disturbed area within ten years after the termination of the contract, permit, or lease. The timber sale contract requires out sloping, removal of culverts and ditches, and building water bars or cross ditches after the road is no longer needed. As part of this estimation process, the company needs to estimate haul costs. The USDA publishes variable costs in dollars per cubic-yard-mile of hauling dirt according to the speed with which the vehicle can drive. Speeds are mainly determined by the road width, the sight distance, the grade, the curves and the turnouts. Thus, on a steep, narrow, winding road, the speed is slow; and on a flat, straight, wide road, the speed is faster. Shown below are data on speed, cost per cubic yard for a 12 cubic yard end-dump vehicle, and cost per cubic yard for a 20 cubic yard bottom-dump vehicle. Use these data and simple regression analysis to develop models for predicting the haul cost by speed for each of these two vehicles. Discuss the strength of the models. Based on the models, predict the haul cost for 35 mph and for 45 mph for each of these vehicles.

Use Excel

The United States Department of Agriculture (USDA), in conjunction with the Forest Service, publishes information to assist companies in estimating the cost of building a temporary road for such activities as a timber sale. Such roads are generally built for one or two seasons of use for limited traffic and are designed with the goal of reestablishing vegetative cover on the roadway and adjacent disturbed area within ten years after the termination of the contract, permit, or lease. The timber sale contract requires out sloping, removal of culverts and ditches, and building water bars or cross ditches after the road is no longer needed. As part of this estimation process, the company needs to estimate haul costs. The USDA publishes variable costs in dollars per cubic-yard-mile of hauling dirt according to the speed with which the vehicle can drive. Speeds are mainly determined by the road width, the sight distance, the grade, the curves and the turnouts. Thus, on a steep, narrow, winding road, the speed is slow; and on a flat, straight, wide road, the speed is faster. Shown below are data on speed, cost per cubic yard for a 12 cubic yard end-dump vehicle, and cost per cubic yard for a 20 cubic yard bottom-dump vehicle. Use these data and simple regression analysis to develop models for predicting the haul cost by speed for each of these two vehicles. Discuss the strength of the models. Based on the models, predict the haul cost for 35 mph and for 45 mph for each of these vehicles.

1.     Suppose the United States economy is represented by the following equations:

Z = C + I + G            C = 100 + .Y_D                     T = 200                     I = 30

Y_D = Y - T                 G = 100

Suppose that the wage and price setting relations are given by

W = P^e(1-u)

P = (1+μ) W

a.      If P = P^e and the mark-up is 20% find the real wage

b.     Calculate the natural rate of unemployment

c.      Calculate the real wage and the natural rate of unemployment if the mark-up decreases to 10%

d.     Now if P ≠ P^e and P^e =105, but markup is still 20%, what unemployment rate is compatible with the price level = 100?

e.      Derive the aggregate supply if the production function is Y = N

A professor in the Computer Science department at United States Institute of Technology has just patented a new search engine technology and would like to sell it to you, an interested venture capitalist. The patent has a 17-year life. The technology will take a year to implement (there are no cash flows in the first year) and has an upfront cost of $100 million. You believe this technology will be able to capture 1% of the Internet search market, and currently this market generates profits of $1 billion per year. Over the next five years, the probability that profits will grow at 10% per year is 20% and the probability that profits will grow at 5% per year is 80%. This growth rate will become clear one year from now (after the first year of growth). After five years, profits are expected to decline 2% annually. No profits are expected after the patent runs out. The discount rate is 10%.

Calculate the NPV of undertaking the investment today. Express your answer in millions of $.

Many countries (including the United States and European countries) are forecast to have a severe drop in production this year.

a. In this context, do you think that in the coming months there will be an increase or decrease in adverse selection problems in commercial loans? Explain what are adverse selection problems and justify your answer.

b. How can an economic crisis affect a bank balance sheet? Will your bank capital increase or decrease? Explain your answers.

c. Could a lending crash in a country collapse during an economic recession? How? Explain your answer.

c2. What could the government of that country do to avoid it?

Health Law

In the United States, all medical malpractice law is litigated and resolved in one of two ways. Each state will choose which theory (only one theory is chosen to be used by each state) used to resolve all cases within their jurisdiction. The first is the theory of contributory negligence. In this theory, the original law (and ancient law derived from the Common law of England) states that, under this doctrine, if the patient contributed at all to the harm caused by the medical professional, then the patient was not entitled to any compensatory relief. In other words, no suit for damages would be allowed against the medical provider. This theory insisted that only a completely blameless patient should have recourse against a medical professional.

The second theory is the theory of comparative negligence. This is the more modern doctrine. Under comparative negligence all injured patients could still file a malpractice suit even if the patient contributed to the harm caused. Therefore, if a doctor was 50% at fault and the patient was 50% at fault, the patient could still recover 50% of the damages from the doctor.

Set forth two strengths and two weaknesses for each of these theories and choose which one you believe to be the most just and why.

The United States Bureau of Labor Statistics (BLS) conducts the Quarterly Census of Employment and Wages (QCEW) and reports a variety of information on each county in America. In the third quarter of 2016, the QCEW reported the total taxable earnings, in millions, of all wage earners in all 3222 counties in America. Suppose that James is an economist who collects a simple random sample of the total taxable earnings of workers in 52 American counties during the third quarter of 2016. According to the QCEW, the true population mean and standard deviation of taxable earnings, in millions of dollars, by county are ?=28.29 and ?=33.493 , respectively. Let ? be the total taxable earnings, in millions, of all wage earners in a county. The mean total taxable earnings of all wage earners in a county across all the counties in James' sample is ?⎯⎯⎯ . Use the central limit theorem (CLT) to determine the probability ? that the mean taxable wages in James' sample of 52 counties will be less than $29 million. Report your answer to four decimal places. ?(?⎯⎯⎯<29) P ( x ¯ < 29 ) = Use the CLT again to determine the probability that the mean taxable wages in James' sample of 52 counties will be greater than $26 $ 26 million. Report your answer to four decimal places. ?(?⎯⎯⎯>26) P ( x ¯ > 26 )

1. Here are the annual numbers of deaths from tornadoes in the United States from 1998 through 2011:

130    94    40    35    550    54    35    38    67    91    125    21    45    544

Find these statistics(i.e., show the formula and show your work):

a) mean

b) median and quartiles

c) range and IQR

Typed answer please.

Use the AD/AS model to illustrate what happens to United States equilibrium GDP and the price level under the following scenarios. Also state what happens to national income and unemployment.

1. Canada, the number one destination of U.S. exports, goes into recession.

2. Energy prices rise throughout the economy.

3. Wages fall throughout the economy.

4. Congress passes a law lowering the income tax.

5. Businesses become more optimistic and raise their forecast ROI.

Include a caption! Beside or below each graph, explain why you shifted the curve.

global economic

Scenario 1: This case examines lobbying in the United States on the North American Free Trade Agreement (NAFTA). I argue that economies of scale and production sharing across borders create incentives for firms to seek regional trade liberalization. Statistical analysis demonstrates that sectors with these characteristics were more likely to lobby for free trade in North America; these sectors were also exposed to free trade more rapidly under the tariff-phasing schedule in the NAFTA treaty. However, corporate restructuring to rescale production for the regional market and to increase offshore assembly presented adjustment costs for U.S. workers, which created divisions between labor unions and their employers. I conclude that regional arrangements are an attractive mechanism to liberalize trade for firms in need of larger-than- national markets to take advantage of economies of scale or to develop production-sharing networks. Answer the following questions:

Q1. Identify the extent to which such agreement yield the benefits to the member states that they were originally intended.

Q2. Analyze the advantages of (NAFTA) as regional trade agreement.

Scenario 2: The Middle East and North Africa (MENA) has been slow to integrate, both intra-regionally and internationally. The Greater Arab Free Trade Area (GAFTA) saw tariffs between 17 Arab states rapidly decline from an average 15 percent in 2002 to 6 percent in 2009. But it has failed to bring down trade costs. In fact, it remains cheaper for some Arab states to trade with Europe than between themselves. Bilateral trade costs for industrial products between the Maghreb states and France, Italy and Spain is half that of trading with the GCC, Jordan, Iraq, Lebanon or Syria, according to trade policy and development expert Ben Shepherd. The cost difference also is negligible for trade between Egypt and the rest of MENA versus parts of Europe. The six member states of the Gulf Cooperation Council (GCC), which came into effect in 1981, are well ahead of the rest of MENA in terms of both intra-regional and international trade, however, despite its proximity, costs are still two-fifths higher than between France-Italy-Spain, according to Shepherd. And while intra-GCC trade has risen from $19.8bn to $65.4bn in 2010, it remains a small fraction of the GCC’s $1.3 trillion in total trade. The GCC customs union, which came into force in 2003, eliminates tariffs between the six states and enforces a common 5 percent tariff on imported goods across the region. Citizens also have freedom of movement across borders and the right to employment. Unofficially, the union also has seen the states coordinate in areas such as health, education, security and knowledge But non-tariff barriers have inhibited greater trade between the six states. A GCC railway has been mapped out but is yet to gain much traction, while other early plans for a combined value- added tax (VAT) were put on ice until recently, when the oil price crashed. Answer the following questions:

Q3. Measure the importance of regional trade agreement among GCC countries.

Q4. Explain the UAE type of economy, and how UAE facing competition.