After studying Barriers to Reasoning Rationally (chapter 9) regarding mental sets in your textbook….

Write a reflective paper in which you identify how you handled or adjusted to mental sets in your personal life.  

As one example, (which should not be used) students could consider the problem of making the adjustment from high school to college.  How might a mental set (i.e., the tendency to approach or respond to a problem in a particular way) learned in high school interfere with the successful solution of problems later on in college.

1. Which of following is incorrect about the history of human population growth?

1. In the Modern growth era, both population and income per capita grow very fast.
2. In the Malthusian era, growth rates of both population and income per capita are close to zero.
3. In the Modern growth era, population growth slows down and income per capita grows fast.
4. In the post-Malthusian era, both population and income per capita grow at a higher rate compared with the Malthusian era.

2. According to the theory of Galor and Weil (2000), which of the following is the key driving force of demographic transition?

1. Structural transformation that increases the share of land in output
2. Government policy that encourages family planning
3. The positive feedback between population growth and technology growth
4. A one-time positive productivity shock.

3. Which of the following statements is incorrect about the nonrenewable natural resources?

1. The price of natural resources has an upward trend over time.
2. Technological progress is responsible for the declines in pollution and leveling off of energy use over time.
3. Depletion of natural resources have a negative impact on economic growth.
4. Pollution levels and income per capita have an inverse U-shaped relationship.

4. While the relative supply of college graduates has increased substantially in developed countries in the past few decades, the college premium (i.e., the college/high-school wage ratio) has also increased. Which of the following best explains the increases in both supply and price of skills?

1. An increase in the supply of skills raises the demand for skills directly
2. College students learn more from school today than in the past, and hence new generations of college graduates are more productive at work than the old ones.
3. Directed technical change: more skill-complementary technology is invented when the supply of skills is larger, increasing demand for skills subsequently.
4. New technology substitutes skills.

Diane has just turned 19 and also completed high school. She is wondering about the value of a college education. She is pretty good with numbers, and driven by financial considerations only, so she sits down to calculate whether it is worth the large sum of money involved. She knows that her first year tuition will be $14,000, due at the beginning of the year (that is, right away). Based on historical trends she estimates that tuition will rise at 7% per year for the 4 years she is in school. She also estimates that her living expense above and beyond tuition will be $8,500 per year (assume this extra expense occurs at the end of each year only when she is in college) for the first year and will increase $500 each year thereafter to keep up with inflation. She does not plan to work at all while attending school. Were she to forgo college she would be able to make $22,000 per year out of high school and expects that to grow 3% annually. With the college degree, she estimates that she will earn $40,000 per year out of college, again with annual 3% increases in salary. Either way, she plans to work until 64 (she begins college right away). The interest/discount rate is 5%. What is the NPV of her college education? (Note: All cash flows except tuition payments occur at the end of the year.)

Drew wondered if the average age of students in AP Statistics classes in his high school is under 18. He randomly selected 10 AP Statistics students in his school and the data set is given below. Using the information from a previous survey, he has concluded that the population standard deviation for the age of AP Statistics students in his school is 1.23. Assume that the ages of students in AP Statistics classes in this high school are normally distributed.

A calculator was used to determine the p-value for this hypothesis test. The p-value was 0.005. If the level of significance was 0.01, interpret the results.

The p-value, 0.005, is less than the level of significance, 0.01. Reject the null hypothesis that the mean age is 18. There is sufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Reject the null hypothesis that the mean age is 18. There is insufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Do not reject the null hypothesis that the mean age is 18. There is insufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Do not reject the null hypothesis that the mean age is 18. There is sufficient evidence to conclude that the mean age is under 18.

1. In an effort to compare student grades in 4 different high schools, random samples of students from 4 local high schools were selected. Their first year average college grades were computed and recorded. Can we conclude that there are differences in the mean grades of these students from those 4 high schools? (20 points)

1. Apply either the Fischer-LSD or Tukey-Omega method to determine specifically whether schools A and C have a significant difference in population means.

2. Perform the appropriate F-max test, to determine if the ANOVA assumption of equal population variances is satisfied in this problem.

Suppose you are interested in how neighborhood income around a school attendance zone would affect student test scores.
A) First, consider a regression where the independent variable is the neighborhood income around a school attendance zone and the dependent variable is student test scores (Note that, this is based on our research question). Create the variable names on your own and write down the regression model. What is the likely sign of the coefficient on the neighborhood income? (2 points)
B) Now, consider a regression where the independent variable is a measure of violent crime incidents around the school and the dependent variable is student test scores. Create the variable names on your own and write down the regression model. Make sure the variable names are consistent in each part of this question. What is the likely sign of the coefficient on violent crime? (2 points)
C) Finally, consider a regression where the independent variable is neighborhood income levels and the dependent variable is the violent crime incidents. Use the variable names you discussed in previous questions, and write down the regression model. What is the likely sign of the coefficient on area income levels? (2 points)
D) Now consider the sign of omitted variable bias in the regression in part a. What is the sign of omitted variable bias if we omit a measure of violent crime around a school? Is the estimated coefficient in the first regression larger or smaller than the true parameter? (4 points)

Q. 6

Each of the questions below is INDEPENDENT of the other.

(Timelines are not required.)

(a) Your sister has a $5,000 debt balance on her credit card that charges 18.5% interest compounded semi-annually. The monthly payment is 3% of the starting debt balance.

Required:

If your sister stops using the credit card for purchases, how many months (round up) will it take her to pay off the credit card balance? (Timeline not required.)

(b) Your high school guidance counsellor encouraged you to follow your dream and learn a trade following high school. You became a licensed mechanic, opened your own shop which later franchised and you became independently wealthy. You decided to create a bursary at the high school to be given to a student planning to pursue a trade following high school. You want to give a lump sum amount that would generate a $3,000 bursary per year into perpetuity.

Required:

Assuming an investment rate of 5%, how large must the lump sum amount be?

(c) Your Aunt asks for your help in deciding on a Bank Loan.

Bank Loan # 1 charges 4.95% compounded continuously.

Bank Loan # 2 charges 5.0% compounded monthly.

Required:

Which Bank Loan would you recommend to your Aunt, and why?

(Show all calculations to support your answer.)

A school has a principal, many students, and many teachers. Each of these persons has a name, birthdate, and may borrow and return books. Teachers and the principal are both paid a salary; the principal evaluates the teachers. A school board supervises multiple schools and can hire and fire the principal for each school. A school has many playgrounds and rooms. A playground has many swings. Each room has many chairs and doors. Rooms include restrooms, classrooms, and the cafeteria. Each classroom has many computers and desks. Each desk has many rulers. Given this specification, you must enhance your class diagram as flowing specification (Course Registration System). The principal can add courses. Student can select some of the courses. To add courses, student will see all the courses as illustrated in Table 1 Table 1. Example of Courses Major Name ID CRN Teacher Max Classroom Time Computer CSII CS101 12345 MM 20 B10R101 TR2,3:20 R U Mathematics Calculus2 MATH201 12346 XX 10 B10R102 MW2,3:20 R U Physics Physics II PY301 12347 DD 15 B10R101 F10:11:20 R U Note: R and U is buttons. Student can select R (Register). If a student is registered for a course, this student can select U (unregister) for this course.