3. A small town has only one doctor. He charges a rich person twice as much as a poor person for a similar consultation.

a) How does this pricing policy relate to the price elasticity of demand? Are resources being used efficiently? Explain.

b) Suppose now that the doctor charges everyone the maximum price they would be willing to pay. What happens to consumer surplus? Will resources the allocated efficiently in this case? Explain and illustrate your answer with a graph

The City of Allentown is issuing a 30-year bond with a face value of $80,000,000 and a stated annual interest rate of 5 percent. The town will make interest payments twice a year.

1. Calculate the semiannual interest payment.

2. Calculate how much Allentown will receive from the bond offering under the following conditions:

a. Market interest rates remain unchanged at the time of the offering.

b. Market interest rates increase to 6 percent at the time of the offering

Svartalfheim manufactures forges. Brokkr&Sindri, maker of fine hammers, had decided to purchase new forges. Eitri, a representative of Svartalfheim, met with Thor, the president of Brokkr&Sindri, to describe the advantages of Svartalfheim’s new forges. Eitri also drew rough plans of the alterations that would be required in the Brokkr&Sindri manufacturing hall, Asgard, to accommodate the new forges, including additional floor space and new electrical installations, and left the plans with Thor.

On January 21, Thor received a letter signed by Loki, a member of Svartalfheim’s sales staff, offering to sell the required number of forges at a cost of $2.4 million. The offer contained provisions relating to the delivery schedule, warranties, and payment terms, but did not specify a particular mode of acceptance of the offer. Thor immediately decided to accept the offer, and telephoned Svartalfheim’s office. Loki was out of town, and Thor left the following message: “Looks good. I’m sold. Call me when you get back so we can discuss details.”

Thor next telephoned Nidavellir and rejected an outstanding offer by Nidavellir to sell forges to Brokkr&Sindri similar to those offered by Svartalfheim. Using the rough plans drawn by Eitri, Boss also directed that work begin on the necessary manufacturing hall renovations. By January 24, a wall had been demolished in the manufacturing hall and a contract had been signed for the new electrical installations.

On January 25, the President of the United States announced a ban on imports of foreign computerized heavy equipment. This removed from the American market a foreign manufacturer that had been the only competitor of Svartalfheim and Nidavellir. That afternoon, Thor received a telegram from Svartalfheim stating, “All outstanding offers are withdrawn.” In a subsequent telephone conversation, Loki told Thor that Svartalfheim would not deliver the forges for less than $2.9 million. A telephone call by Thor to Nidavellir revealed that Nidavellir’s entire output had been sold to another buyer.

Was Svartalfheim obligated to sell the forges to Brokkr&Sindri for $2.4 million? Discuss.

Assume Svartalfheim was so obligated. What are Brokkr&Sindri’s rights and remedies against Svartalfheim? Discuss

​A.  Is the reaction to the new phone associated with the sex of the​ customer? How strong is the​ association?

Since V = ? (What does V equal?) fill in blank, there is blank association between the two variables?

​(Round to two decimal places as​ needed.)

​B. How should the company use the information from this study when marketing its new​ product? answer choices below A-D

A.

Assuming that the reactions of the women sampled are representative of all​ women, the company should market toward women first since they had few unfavorable reactions.

B.

The company should market toward men first because more men participated in the survey.

C.

The company should market toward men first since they had a higher percentage of favorable reactions.

D.

Assuming that the reactions of the women sampled are representative of all​ women, the company should market toward women first since they had a higher percentage of favorable reactions.

​C. Can you think of an underlying lurking variable that might complicate the relationship shown​ here? Justify your answer.? Answer choices below A-D

A.

There are no lurking variables because the sex of the customer is the only variable that is associated with the reactions to the new phone.

B.

Variables such as the average age of the participants or the median income of the town where the mall is located are possible lurking variable because​ people's opinions may be related to the age or wealth.

C.

Variables such as the proportion that carry a​ phone, the time of​ day, or the day of the week are possible lurking variables because these may be associated with the sex of the customer and also with the reactions to the new phone.

D.

The mall where the data was gathered is the only significant lurking variable because it may have different types of customers than other malls.

You are Susan Dean, a 35 year old woman who has always been interested in owning your own business. You graduated from Gorham HS, attended SMCC, eventually transferring to USM where you earned a bachelor’s degree in Business with a major in Marketing. Eventually you went to graduate school and earned a Master’s of Business Administration (MBA). For the last 10 years you have worked as a marketing specialist/management specialist with Yum! Brands, Inc. where you helped management open several Taco Bells and Pizza Huts in southern Maine. In addition, you evaluated several underperforming stores that had to be closed. After contacting several major corporations you find that McDonalds is the only major brand looking to open another store in the town of Gorham near the USM campus. There is a Burger King in the area. You in fact actually worked at McDonalds when you were a youngster. You have decided that you would like to open a McDonald’s franchise in this area near USM. Your grandparents have left you with a significant amount of money for which you are grateful. You would like to use this towards your new business adventure. But you will need to finance the remaining balance. You apply for a business loan to a local bank. The bank requires you to submit a detailed business plan. This business plan will include projections for operating costs, revenue stream, profits, human resource needs, your business strategy, etc. There are multiple topics that have to be analyzed and for which projections have to be made. Because of this you will have to conduct a survey(s) in the Gorham region to assess multiple demographic, supply/demand issues, and other topics.

Discussion Question/Directions:

You are Susan Dean. You need to discuss issues for which you think a statistical study would be helpful (in obtaining the information needed for your business plan). his could be demographic information, assessing the desire for a McDonald’s in the region, traffic studies, household make up, what the projected demand would be, etc. There are hundreds of topics to zero in on. What topics do you think are important to know before you invest your money into such an important undertaking? What type of statistical study should be done? What types of data will you need to collect? How will you collect your data? How much do you think it will cost to gather your information?

The table below shows a random sample of musicians and how they learned to play their instruments. Complete the empty cells of the table to answer the following questions.

1. What is the probability of randomly selecting a musician who is female?

2.What is the probability of randomly selecting a musician who is a male AND had private instruction?

3. What is the probability of randomly selecting a musician who is a female OR one that is self-taught? (Hint: be careful not to double-count individuals who meet both criteria)

4. True or False: The events of "being a female musician" and "learning music in school" are mutually exclusive.

5. The events "being a female musician" and "learning music in school" are independent events.

Teen obesity: The 2013 National Youth Risk Behavior Survey (YRBS) reported that 13.7% of U.S. students in grades 9 through 12 who attend public and private school were obese. Suppose that 15% of a random sample of 300 U.S. public high school students wereobese.

Source: Kann, L., Kinchen, S., Shanklin, S.L., Flint, K.H., Hawkins, J., Harris, W.A., et. al.(2013) YRBS 2013

Using the estimate from the 2013 YRBS, we calculate a standard error of 0.020. Since the data allows the use of the normal model, we can determine an approximate 95% confidence interval for the percentage of all U.S. public high school students who are obese.

Which interval is the approximate 95% confidence interval?

Group of answer choices

0.117 to 0.157

0.110 to 0.190

0.013 to 0.170

0.097 to 0.177

2. Abby is about to graduate from OSU, and she cannot decide if she should go to Medical School or Law School. To cover her bases, she decides to take both the Medical College Admission Test (MCAT) and the Law School Admission Test (LSAT). Her scores on each of these standardized exams are presented in the following table, along with the means and standard deviations of those exams. Both exams have distributions that are Normal. Please use this information to answer the following questions. To get as much credit as possible here, be sure to show all of your work!

Abby’s score

Mean

Standard Deviation

MCAT. 485, 501.8, 9.5

LSAT 140,150.7,10.2

a. Abby’s roommate, Shonda, took the MCAT and received a score of 512. What percentage of individuals who take the MCAT would have scores higher than Shonda’s score?  

Kumar Sports wants to determine the number of Adult and school footballs to produce in order to maximize profit over the next planning horizon. Constraints affecting the production are the production capacities in three departments: Cutting and Dyeing; sewing; and inspection and packaging. For the planning period 340 hours of cutting and dyeing time, 420 hours of sewing time, and 200 hours of inspection and packaging time are available. The amount of resources each football type requires is given below
Departments   Adult   School
Cutting and Dyeing   12 minutes   6 minutes
Sewing   9 minutes   15 minutes
Inspection and Packaging   6 minutes   6 minutes

Adult footballs provide a profit of $5 per unit and School footballs provide a profit of $4 per unit. Clearly specify the decision variables, and then formulate this problem as an LPP but do not solve!