Dr. Julian, as the only physician in town, has the tradition of charging patients different prices for the same procedure, based on his perception of what they may be willing to pay. As a monopolist, if his judgment is correct, what is a possible implication?
| a. | Julian’s average cost per patient will decrease. | b. | Julian’s patients will receive no consumer surplus. |
|---|---|---|---|
| c. | The deadweight loss for this custom would be significant. | d. | Julian will have few patients. |
__________ and ________ are the key conditions for successful price discrimination.
| a. | Market segmentation; prevention of resale | b. | Market segmentation; identical marginal costs |
|---|---|---|---|
| c. | Market segmentation; highly inelastic product demand | d. | Highly inelastic product demand; prevention of resale |
Which of the following does the two-part pricing strategy charge?
| a. | An access fee and an exit fee | b. | A user fee and an exit fee |
|---|---|---|---|
| c. | Two prices for the same good | d. |
An access fee and a user fee |
What is the least likely strategy of two-part pricing?
| a. | Country clubs | b. | Furniture stores |
|---|---|---|---|
| c. | Night clubs | d. | Costco |
What will a firm also do if it charges an access fee?
| a. | Reduce prices of individual goods | b. | Limit the number of customers |
|---|---|---|---|
| c. | Reduce profits to a normal level | d. | Reduce the number of items sold |
A firm that has _________ is the most likely to favor a two-part price.
| a. | been losing market share | b. | high fixed costs and low marginal costs |
|---|---|---|---|
| c. | experiencing a loss | d. | high fixed costs and high marginal costs |
A firm with ______ fixed costs and ______ marginal costs would be a good candidate for a two-part pricing strategy.
| a. | low; low | b. | high; low |
|---|---|---|---|
| c. | low; high | d. | high; high |
The two components of two-part pricing are _______ fee and _______ fee.
| a. | a limit; a use | b. | an access; a user |
|---|---|---|---|
| c. | an entrance; an exit | d. | an access; a membership |
In: Economics
Using a college cost estimator, the average of campus rental at George Town is approximately $547 per month. Suppose these rates are roughly normal with a standard deviation of $100. Say you take a random sample of 25 students living off campus.
1. What would be the mean and standard error for the distribution of the sample mean?
2. What is the probability that the sample mean would be at least $600?
3. What is the probability that the rent for a randomly selected student would be at least $600?
4. Explain the reason for discrepancy between the two probabilities you calculated in parts (B) and (C).
In: Statistics and Probability
Listed below are amounts of court income and salaries paid to the town justices. All amounts are in thousands of dollars. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the P-value using alphaequals0.05. Is there sufficient evidence to conclude that there is a linear correlation between court incomes and justice salaries? Based on the results, does it appear that justices might profit by levying larger fines?
Court Income 64.0 402.0 1567.0 1131.0 273.0 251.0 112.0 150.0 32.0 Justice Salary 31 45 92 58 48 60 26 27 19
What are the null and alternative hypotheses?
A.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρless than<0
B.
Upper H 0H0:
rhoρnot equals≠0
Upper H 1H1:
rhoρequals=0
C.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρnot equals≠0
D.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρgreater than>0
Construct a scatterplot. Choose the correct graph below.
A.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (260, 84); (420, 24); (640, 56); (760, 86); (880, 48); (900, 34); (1040, 86); (1260, 46); (1480, 18).
B.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (220, 84); (220, 80); (360, 80); (400, 70); (580, 84); (740, 58); (1080, 62); (1120, 30); (1420, 44).
C.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (40, 20); (60, 32); (120, 26); (160, 28); (260, 60); (280, 48); (400, 46); (1140, 58); (1560, 92).
D.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (140, 14); (140, 36); (340, 42); (660, 54); (740, 66); (900, 74); (1280, 90); (1320, 14); (1420, 74).The linear correlation coefficient r is
nothing.
(Round to three decimal places as needed.)
The test statistic t is
nothing.
(Round to three decimal places as needed.)
The P-value is
nothing.
(Round to three decimal places as needed.)
Because the P-value is
▼
less
greater
than the significance level
0.050.05,
there
▼
is not
is
sufficient evidence to support the claim that there is a linear correlation between court incomes and justice salaries for a significance level of
alphaαequals=0.050.05.
Based on the results, does it appear that justices might profit by levying larger fines?
A.
It appears that justices profit the same despite the amount of the fines.
B.
It does appear that justices might profit by levying larger fines.
C.
It does appear that justices might profit by issuing smaller fines.
D.
It does not appear that justices might profit by levying larger fines.
Click to select your answer(s).
In: Statistics and Probability
Ed's Tires and Brakes has two locations, one on the northwest side of town and one on the southeast side of town. At both locations are performed routine tire repairs and rotations, as well as expensive brake repairs. This past week,
60%
of the cars serviced at Ed's were serviced at the northwest location, while
40%
of the cars were serviced at the southeast location. (No car was serviced at both locations.) Brake repairs were more typical at the northwest location than at the southeast location:
65%
of the cars at the northwest location required brake repairs, while
40%
of the cars at the southeast location required brake repairs.
Let
N
denote the event that a randomly chosen car (taken to Ed's in the past week) was serviced at the northwest location and
N
denote the event that a randomly chosen car was serviced at the southeast location. Let
B
denote the event that a randomly chosen car required brake repairs and
B
denote the event that a randomly chosen car did not require brake repairs.
Fill in the probabilities to complete the tree diagram below, and then answer the question that follows. Do not round any of your responses.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Statistics and Probability
Listed below are amounts of court income and salaries paid to the town justices. All amounts are in thousands of dollars. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the P-value using
alphaαequals=0.05.
Is there sufficient evidence to conclude that there is a linear correlation between court incomes and justice salaries? Based on the results, does it appear that justices might profit by levying larger fines?
Court_Income Justice_Salary
65.0 31
403.0 46
1567.0 93
1130.0 54
270.0 44
253.0 62
112.0 25
155.0 26
30.0 17
What are the null and alternative hypotheses?
A.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρnot equals≠0
B.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρless than<0
C.
Upper H 0H0:
rhoρnot equals≠0
Upper H 1H1:
rhoρequals=0
D.
Upper H 0H0:
rhoρequals=0
Upper H 1H1:
rhoρgreater than>0
Construct a scatterplot. Choose the correct graph below.
A.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (220, 84); (220, 80); (360, 80); (400, 70); (580, 84); (740, 58); (1080, 62); (1120, 30); (1420, 44).
B.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (260, 84); (420, 24); (640, 56); (760, 86); (880, 48); (900, 34); (1040, 86); (1260, 46); (1480, 18).
C.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (140, 14); (140, 36); (340, 42); (660, 54); (740, 66); (900, 74); (1280, 90); (1320, 14); (1420, 74).
D.
08001600050100Court IncomeJustice Salary
A scatterplot has a horizontal scale labeled “Court Income” from 0 to 1600 in intervals of 200 and a vertical scale labeled “Justice Salary” from 0 to 100 in intervals of 10. Nine points are plotted with approximate coordinates as follows: (40, 18); (60, 32); (120, 26); (160, 26); (260, 62); (280, 44); (400, 46); (1140, 54); (1560, 94).
The linear correlation coefficient r is
nothing.
(Round to three decimal places as needed.)
The test statistic t is
nothing.
(Round to three decimal places as needed.)
The P-value is
nothing.
(Round to three decimal places as needed.)
Because the P-value is
▼
greater
less
than the significance level
0.050.05,
there
▼
is
is not
sufficient evidence to support the claim that there is a linear correlation between court incomes and justice salaries for a significance level of
alphaαequals=0.050.05.
Based on the results, does it appear that justices might profit by levying larger fines?
A.
It does appear that justices might profit by levying larger fines.
B.
It does not appear that justices might profit by levying larger fines.
C.
It does appear that justices might profit by issuing smaller fines.
D.
It appears that justices profit the same despite the amount of the fines.
In: Statistics and Probability
In a small town called Tatooine, the local beer brewery "Mos Eisley Cantina" is planning to send out an electronic promotion campaign with a free drink code to boost attendance for their Thursday night happy hour. The data for their past efforts is given in the file Tatooine.txt where 1 indicates a response/show and 0 indicates a no response/show. They would like to make sure that at least 100 customers will show up from the mailing list on Thursday night. What is the minimum number of emails they need to send such that the probability of at least 100 customers showing up is roughly 70%. Q19. What is the minimum number of emails they need to send such that the probability of at least 100 customers showing up is 0.75. a) 1500 b) 1200 c) 1000 d) 1050 Q20. Based on your answer, what is the expected number of customers that will show up on Thursday from the mailing list? a) 151 b) 121 c) 101 d) 106
Mean=.1013
100,000 people in the text file
In: Statistics and Probability
Trevor is interested in purchasing the local hardware/sporting goods store in the small town of Dove Creek, Montana. After examining accounting records for the past several years, he found that the store has been grossing over $850 per day about 60% of the business days it is open. Estimate the probability that the store will gross over $850 for the following. (Round your answers to three decimal places.)
(a) at least 3 out of 5 business days
(b) at least 6 out of 10 business days
(c) fewer than 5 out of 10 business days
(d) fewer than 6 out of the next 20 business days
If the outcome described in part (d) actually occurred, might it
shake your confidence in the statement p = 0.60? Might it
make you suspect that p is less than 0.60? Explain.
Yes. This is unlikely to happen if the true value of p is 0.60.Yes. This is likely to happen if the true value of p is 0.60. No. This is unlikely to happen if the true value of p is 0.60.No. This is likely to happen if the true value of p is 0.60.
(e) more than 17 out of the next 20 business days
If the outcome described in part (e) actually occurred, might you
suspect that p is greater than 0.60? Explain.
Yes. This is unlikely to happen if the true value of p is 0.60.Yes. This is likely to happen if the true value of p is 0.60. No. This is unlikely to happen if the true value of p is 0.60.No. This is likely to happen if the true value of p is 0.60.
In: Statistics and Probability
XYZ is a company based in Cape Town. XYZ Imports printers from China and sells it to local corporate clients. Delivery normally takes 2 weeks. XYZ sells 5011 printers on average per year. Annual carrying costs is 21%. XYZ negotiated the purchase price per printer to be R304. Every time that XYZ places an order the fixed ordering costs per order is R1079.
1. What is the economic order quantity of printers of XYZ?
2. Assuming certainty in delivery and usage, at what inventory level should the firm reorder?
3. Assume a 230-unit safety stock is carried. What will the additional inventory cost be?
In: Finance
Corner Tavern is a small-town bar that sells only bottled beer. The average price of a bottle of beer at the tavern is $3.60 and the average cost of a bottle of beer to the tavern is $1.05. The tavern is open every night. One bartender and two to three waitresses are on duty each night. The fixed costs (salaries, rent, tax, utilities, etc.) total $275,000 per year. (Do not round intermediate calculations. Round the final answers to the nearest whole number.)
a. The owner wishes to know how many bottles of
beer the tavern must sell during the year to start making
profit.
No. of bottles
b. What is the revenue at the break-even quantity
found in the part a?
Revenue $
c. Not available in connect.
d. If Corner Tavern sells 115,000 bottles of beer
a year, would it make a profit? (Hint: Draw the annual revenue and
total annual cost vs. the number of bottles of beer sold per year.
Make sure that the y-axis is to scale.)
Yes
No
e. The owner thinks $50,000 is a reasonable annual
profit. How many bottles of beer should the tavern sell to make
$50,000 profit?
No. of
bottles
f. An available option is to open the tavern
earlier on the weekends. The attraction would be a discount of
$0.60 off the regular price. The extra salaries of waitresses and
bartender for the whole year are estimated to be $26,000. How many
extra bottles of beer must the tavern sell in order to break-even
in this option?
No. of extra
bottles
In: Accounting
Candice operates an ice cream parlor in a small town in Tristate area. She knows that this a monopolistically competitive business because other producers in the area supply different flavors of ice cream. Candice runs her business as efficiently as possible, to maximize her profits. This year, Candice charges $5 per ice cream and experiences marginal cost of $3 and average total cost of $4 per ice cream at the optimal level of output. Does Candice have profits in short term (this year)? Can you predict how ice cream market conditions for Candice will be changing in the near future? What will be Candice's profit in the long-run?
In: Economics