Q2. (25 points) Consider an economy in the United States, starting from the long-run equilibrium denoted as the point A. Use an aggregate demand and aggregate supply (AD-AS) diagram to show that the economy is in the long-run equilibrium. (Please label variables clearly) a. If the U.S. currency becomes stronger (the value of a dollar increases), there is a change in international variables. How does this situation affect the AD-AS diagram? What will happen to the equilibrium price level and real GDP in the short run? Is the economy experiencing an inflationary gap or a recessionary gap? Explain your answer. (Please write the new equilibrium point denoted as the point B) e. From part (a), how does government use the supply-side effects of fiscal policy to maintain the level of full employment? Please show related concepts graphically.
In: Economics
Consider the problems arising from asymmetric information:
Consider government-provided health insurance, such as OHIP in Ontario, and government-mandated insurance, such as Obamacare in the United States. Are such programs intended to combat adverse selection or moral hazard? Briefly characterize the tradeoff between adverse selection and moral hazard in respect of health insurance public policy.
Auto insurance policies often require deductibles and health insurance policies often require copayments. Briefly explain whether and how deductibles and copayments are intended to combat adverse selection or moral hazard.
In: Economics
Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force whose job it is to call on existing customers as well as look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:
|
Commissions |
Calls |
Driven |
|
22 |
143 |
2374 |
|
13 |
136 |
2227 |
|
34 |
146 |
2733 |
|
39 |
142 |
3351 |
|
23 |
142 |
2293 |
|
47 |
146 |
3450 |
|
30 |
141 |
3117 |
|
38 |
139 |
3344 |
|
42 |
148 |
2843 |
|
33 |
138 |
2629 |
|
20 |
138 |
2124 |
|
14 |
138 |
2223 |
|
47 |
150 |
3465 |
|
39 |
149 |
3291 |
|
45 |
145 |
3106 |
|
30 |
149 |
2125 |
|
39 |
145 |
2792 |
|
37 |
153 |
3213 |
|
15 |
135 |
2287 |
|
34 |
146 |
2851 |
|
25 |
133 |
2690 |
|
28 |
132 |
2936 |
|
26 |
130 |
2671 |
|
43 |
155 |
2992 |
|
35 |
148 |
2830 |
A) Develop a regression equation including a interaction term.
In: Statistics and Probability
According to the Energy Information Administration, the United States consumes about 21 million barrels (882 million gallons) of petroleum each day. About half of this consumption is in the form of gasoline. Table 18.2 shows a portion of weekly U.S. finished motor gasoline production, measured in thousands of barrels per day.
1. Construct a 3-period moving average series for the data.
2.) Plot production and its corresponding 3-period moving average, and comment on any differences.
3.) Using the 3-period moving average series, forecast gasoline production on May 29, 2009 (week 22).
4.) Calculate the mean square error, MSE, and the mean absolute deviation,
| Date | Week | Production |
| January 2, 2009 | 1 | 9115 |
| January 9, 2009 | 2 | 8813 |
| January 16, 2009 | 3 | 8729 |
| January 23, 2009 | 4 | 8660 |
| January 30, 2009 | 5 | 8679 |
| February 6, 2009 | 6 | 8492 |
| February 13, 2009 | 7 | 8765 |
| February 20, 2009 | 8 | 8937 |
| February 27, 2009 | 9 | 9003 |
| March 6, 2009 | 10 | 8539 |
| March 13, 2009 | 11 | 8868 |
| March 20, 2009 | 12 | 8723 |
| March 27, 2009 | 13 | 8733 |
| April 3, 2009 | 14 | 8966 |
| April 10, 2009 | 15 | 8913 |
| April 17, 2009 | 16 | 9088 |
| April 24, 2009 | 17 | 8790 |
| May 1, 2009 | 18 | 8918 |
| May 8, 2009 | 19 | 8710 |
| May 15, 2009 | 20 | 8735 |
| May 22, 2009 | 21 | 9378 |
In: Statistics and Probability
Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:
The information is reported below.
| Commissions ($000) | Calls | Driven | Commissions ($000) | Calls | Driven |
| 23 | 68 | 2,372 | 39 | 188 | 3,291 |
| 14 | 30 | 2,229 | 44 | 218 | 3,103 |
| 34 | 136 | 2,733 | 29 | 105 | 2,123 |
| 39 | 180 | 3,353 | 38 | 162 | 2,794 |
| 24 | 77 | 2,291 | 37 | 154 | 3,209 |
| 47 | 186 | 3,451 | 15 | 25 | 2,289 |
| 30 | 103 | 3,117 | 34 | 132 | 2,850 |
| 39 | 143 | 3,343 | 26 | 94 | 2,692 |
| 42 | 200 | 2,843 | 28 | 96 | 2,934 |
| 32 | 156 | 2,626 | 25 | 81 | 2,673 |
| 21 | 50 | 2,122 | 44 | 205 | 2,988 |
| 13 | 46 | 2,222 | 35 | 155 | 2,830 |
| 47 | 225 | 3,466 | |||
Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)
Commissions= ___________ + __________________ calls + _______________________miles + ___________________x1x2
Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
|
Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)
Value of the test statistic ___________________
At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?
This is STATISTICALLY SIGNIFICANT or NOT SIGNIFICANT (choose), so we conclude that there IS INTERACTION or IS NO INTERACTION (choose).
In: Statistics and Probability
Suppose that the United States initially has a lower capital rental rate (r) than Mexico.
In: Economics
Henry Brown is a 67 year-old American living in the mid Central United States. He's prescribed multiple medications for hypertension, depression, diabetes mellitus type 2, and a recent bacterial infection. Henry is not alone. In fact, estimates suggest that at least 70% of the US aging population is prescribed multiple medications due to the rapid increase in the prevalence of chronic diseases. This presents a major challenge for our health care system. Most medications require consistent adherence to the prescribed regimen for them to achieve therapeutic effect. Yet it is known that adherence rates remain suboptimal across population and disease States.
Because Henry uses a smartphone, his primary health care provider might recommend a mobile app called the Medication Tracker to help him manage his complicated medication regimen. Henry's primary health care provider recognizes apps have the potential to address the specific needs of patients in a manner that is timely, cost-effective, informative, and engaging. This app can be configured to deliver automated, personalized messaging to remind Henry to take his medication; can help Henry reinforce good self-management behaviors; can provide education on his chronic diseases; and can provide information about his medications, such as black box warnings, side effects, and contraindications for use.
In: Nursing
Red Canyon T-shirt Company operates a chain of T-shirt shops in
the southwestern United States. The sales manager has provided a
sales forecast for the coming year, along with the following
information:
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | ||||
| Budgeted Unit Sales | 42,000 | 64,000 | 32,000 | 64,000 | |||
Each T-shirt is expected to sell for $17.
The purchasing manager buys the T-shirts for $7 each.
The company needs to have enough T-shirts on hand at the end of each quarter to fill 27 percent of the next quarter’s sales demand.
Selling and administrative expenses are budgeted at $84,000 per quarter plus 14 percent of total sales revenue.
Required:
1. Determine budgeted sales revenue for each
quarter.
2. Determine budgeted cost of merchandise
purchased for each quarter.
3. Determine budgeted cost of good sold for each
quarter.
4. Determine selling and administrative expenses
for each quarter.
5. Complete the budgeted income statement for each
quarter.
In: Accounting
In: Statistics and Probability
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Budgeted Unit Sales Quarter 1 47,000 Quarter 2 74,000 Quarter 3 37,000 Quarter 4 74,000 Each T-shirt is expected to sell for $22. The purchasing manager buys the T-shirts for $9 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 32 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $94,000 per quarter plus 10 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2.Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4.Determine selling and administrative expenses for each quarter. 5.Complete the budgeted income statement for each quarter.
In: Accounting