Here is the question of today:

Reliability vs. Validity

How would you explain the difference between reliability and validity? Which examples would you use to illustrate the concept?

NCSU: Fan Aptitude Test

Suppose this clip demonstrated a serious aptitude test. What would the results of a fan aptitude test reveal to us?

Is this a valid test of intelligence? Why or why not?

NFL and the Wonderlic Test

Why do employers give job candidates tests like the Wonderlic?

How do results on the Wonderlic apply to a bodily-kinesthetic career in the National Football League?

In another way from you answer to #2 above, how important are Wonderlic results to NFL owners and coaches?

What happened to Pat McAnally, the player who earned the only perfect Wonderlic score in NFL history? What does this say about aptitude tests like Wonderlic?

How does Costa Rica trade agreement impact doing business in this country? How does it impact business in the US? Who profits the most from the trade agreement? Who profits the least? Why?

1. Memory span has been linked to intelligence, with a higher span contributing to higher intelligence test scores. Suppose two individuals who speak different languages are given the same memory span test in their respective languages. One individual scores higher on the test than the other person does. Using what you have learned from this demonstration, why is it unfair to say that the individual who scored higher has greater memory span and possibly higher intelligence?

Assume that you are a Loan Officer at the local bank. Company A wants to get a long-term loan from your bank.    Company B wants to get a long-term loan from your bank. Company C also wants to get a long-term loan from your bank.

The TOTAL DEBT RATIO for Company A is .70 and the TIMES INTEREST EARNED RATIO for Company A is .70 for the year.

The TOTAL DEBT RATIO for Company B is .75 and the TIMES INTEREST EARNED RATIO for Company B is 30 for the year.

The TOTAL DEBT RATIO for Company C is .65 and the TIMES INTEREST EARNED RATIO for Company C is 1 for the year.

The Current Ratio for Company A is 1 for the year. The Current Ratio for Company B is 1 for the year. The Current Ratio for Company C is 1 for the year.

Assume that you only have enough money to lend to one company. Which company would you lend to?

A)        Company A

B)        Company B

C)        Company C

D)        You are indifferent amongst Company A and Company B and Company C.

Hello my dear students in less than one paragraph discuss if the stock market and individual stocks are more volatile today than in the past. Further discuss using the information from a study by campbell, lettau,malkiel and xu,2001. this study looked at 9000 firms from 1962-97.they decomposed the stock into market wide, industry-wide and firm specific volatility. they found that while there were periods of increase volatility, for exampleduring the oil crisis in the 1970s, average market volatility as mearsured by standard deviation has remained relatively stable over time-14% in the 1970s 16% in the 1980s and 11% in the 1990s. industry volatility has also remaind stable over time. Firm specific volatility, on the other hand , more doubled from 1962 to 1997 the period of the study. The most volatile stocks moved 25% in a single day. Firm specific volatility was 65% of total volatility in 1962 and 76% in 1997. Honorable students why is it that individual stocks can be more volatile , yet not the market as a whole.A university of Nevada study at the sam time found that 100 stocks were needed to achieve complete diversification. The university of Nevada study found that the mean culprits advocating too few stocks for diversification were textbooks,professional journals and the wall street journal(which has since printed a story about this study). some individuals choose to hold portfolios with a smaller number of stocks because it is difficult to research a large number of stocks. Why are individual stocks more volatile? Why do investors think the market as a whole is more volatile?

Hello my dear students in less than one paragraph discuss if the stock market and individual stocks are more volatile today than in the past. Further discuss using the information from a study by campbell, lettau, malkiel and xu, 2001. this study looked at 9000 firms from 1962-97.they decomposed the stock into market wide, industry-wide and firm specific volatility. they found that while there were periods of increase volatility, for example during the oil crisis in the 1970s, average market volatility as measured by standard deviation has remained relatively stable over time-14% in the 1970s 16% in the 1980s and 11% in the 1990s. industry volatility has also remain stable over time. Firm specific volatility, on the other hand, more doubled from 1962 to 1997 the period of the study. The most volatile stocks moved 25% in a single day. Firm specific volatility was 65% of total volatility in 1962 and 76% in 1997. Honorable students why is it that individual stocks can be more volatile , yet not the market as a whole.A university of Nevada study at the sam time found that 100 stocks were needed to achieve complete diversification. The university of Nevada study found that the mean culprits advocating too few stocks for diversification were textbooks, professional journals and the wall street journal(which has since printed a story about this study), some individuals choose to hold portfolios with a smaller number of stocks because it is difficult to research a large number of stocks. Why are individual stocks more volatile? Why do investors think the market as a whole is more volatile?

I will be glad to get response as soon as possible. Thanks.

What differentiates someone that is intrinsically motivated from someone that is extrinsically motivated? Give an example of how you would go about motivating an individual who is intrinsically motivated and one who is extrinsically motivated. What are the characteristics of a performance-driven team?

Question 2Part (a)Consider a firm called Health-R-Us that is a monopoly. How does Health-R-Usdecide the price to charge and quantity to sell off the good it has a monopoly on? Illustrate your answer using a fully labelled and explained market diagram. Assume Health-R-Us is making monopoly profits and illustrate these on the same diagram. In addition, indicate the area on your diagram that illustrates the efficiency cost (the deadweight loss) of the monopoly, and explain why this deadweight loss arises.

Part (b)Assume Health-R-Usis a legal monopoly: it is monopoly due to legal protection from the government in the form of a patent issued to the company. Imagine that the government withdraws the legal protection for Health-R-Ussuch that the market becomes competitive. Will a typical individual firm in this competitive market make an economic profit in the long run? Why or why not? Use an appropriate firm-level diagram to illustrate and explain your answer

.Part (c)Your answers to parts 2a and 2b illustrated different levels of profit made by an individual firm in both a monopoly market structure and a competitive market structure respectively. In part 2a you also indicated the deadweight loss of a monopoly.

Assume now thatHealth-R-Ushas discovered a vaccine for coronavirus. Why might the government be willing to grant (and allow to remain in place) a patent to Health-R-Us, despite the deadweight loss and the ensuring monopoly profits caused by such a patent? Explain your answer. For simplicity assume the vaccine is only relevant for the domestic market (i.e., there is no global market for vaccines).