For each of the following anecdotes, briefly explain (i) why the described is potentially inconsistent with standard economic theory and (ii) why it is potentially consistent with a behavioral theory we learned in this course.

(a) Some students who were about to buy a ticket to a campus theater group were randomly selected and given a discount. Those who were given the discount were much more likely to buy a ticket for a second showing.

(b) The AARP recently asked a series of prominent lawyers to provide services for retirees at a highly discounted rate of $30 an hour. Very few lawyers agreed to do so. Then, the AARP simply asked the lawyers to volunteer their time for free to help the same retirees. At that point, many lawyers agreed to help out

(c) A bank offers two types of savings accounts, called Gold and Silver. The two types of accounts give the same rate of return, but the Silver account does not allow you to withdraw any money for six months. The bank manager is surprised when many people sign up for the Silver account.

(d) Cab drivers in New York City work longer hours on warm, sunny days (when their per-hour wage is low).

Scenario 1 - Ethical Dilemma - Reclassify Employees

You are on the management team of Crystal Clear Electronics (CCE) Inc., a company that specializes in high-quality home theater systems. In addition to selling these systems, CCE provides custom installation on all purchases and is known for the professionalism of its installation staff. This reputation is due to the rigorous policies its home installation staff must follow. All employees are required to attend bi-monthly training sessions, wear CCE uniforms, observe the installation dates and times agreed on by CCE and the customer, and follow any instructions given by CCE as to how to perform the installation.

Faced with shrinking margins and cash flow problems, CCE is looking to cut costs and increase cash flows. You realize that by reclassifying the installation staff as independent contractors, CCE will be able to accomplish both objectives. Because the installation staff would be independent contractors, the company would not have to pay payroll taxes, social security, and Medicare expenses. The reduction in these costs and the corresponding increase in cash flow would certainly help the company's liquidity. Furthermore, such a change would not affect the quality of the service provided and would be virtually invisible to customers.

Question: Discuss the ethical implications of this reclassification.

Calculate the absolute hardness, η, values for Pt2+, Cr2+, SO2, and PF3. Which Lewis acid/base is harder than the other? I = ionization energy; EA = electron affinity I (Pt2+) = 35.2 eV, EA (Pt2+) = 19.2 eV I (Cr2+) = 30.96 eV, EA (Cr2+) = 16.5 eV I (SO2) = 12.3 eV, EA (SO2) = 1.1 eV I (PF3) = 12.3 eV, EA (PF3) = - 1.0 eV

EPIDEMIOLOGY QUESTION

60. Investigators explored the relationship between coffee drinking and osteoporosis using a case-control study. They calculated the overall odds ratio and odds ratios among smokers and non-smokers. The results are shown below. OR (overall) = 2.20 OR (smokers) = 5.0 OR (non-smokers) = 1.0 In this example, would smoking be best considered an effect modifier, mediator, or confounder for the relationship between coffee consumption and osteoporosis? A. Confounder B. Mediator C. Effect modifier

Use Excel to estimate a simple linear regression model for the following data (Y is a dependent variable and X is an independent variable):

Fill in Multiple Blanks:

What is the slope of the estimated line?  In your answer, show one (1) digit to the right of the decimal point, for example, 1.0, 1.2. Apply the appropriate rounding rule if necessary.

What is the Y-intercept?

You are buying a house and the mortgage company offers to let you pay a​ "point" ​(1.0 % of the total amount of the​ loan) to reduce your APR from 6.24% to 5.99% on your $409,000​, 30​-year mortgage with monthly payments. If you plan to be in the house for at least five​ years, should you do​ it? (Note: Be careful not to round any intermediate steps less than six decimal​ places.)

The monthly mortgage payment at 6.24% APR is $ ​(Round to the nearest​ cent.)

1. A survey of 40 individuals reveals that 19% plan to move within the next year. Find a 95% confidence interval for the proportion of people who plan to move next year.

2. In town A, a survey of 54 families finds a mean household size of 2.13, with a standard deviation of 1.0. In town B, a survey of 65 families finds a mean household size of 2.39, with a standard deviation of 1.2. Find an 86% confidence interval around the difference in means.