1. During a recessionary gap, is the goal to increase or decrease the equilibrium

      GDP?  Will the change in spending be greater than, less than or equal to the

      change in the equilibrium GDP?

2. In a given economy, with an equilibrium GDP of $750,000 both governmen

    purchases and taxes increase by $50,000.  Solve for the new equilibrium GDP that

    will result from these two changes.

3. In a given economy with an MPC of 0.8, the equilibrium GDP equals $600,000.  

      If M increases by $20000, solve for the new equilibrium GDP that will result.

1) If the boys and girls have the same probabilities of being born. What is the probability that a family of 5 children selected randomly has atleast one boy?

2) Of the pieces produced by a machine in particular, 0.8% are defective. If an aleatory sample of 8 pieces produced by this machine contains two or more defective pieces, the machine will be turned off to make reparations. Find the probability that the machine would turn off for reparations based on the sampling plan.

Lee Company has the following information for the pay period of December 15–31:

Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for

a.$11,822.83

b.$10,881.11

c.$12,020.28

d.$15,189.00

345 kV, 50 Hz, 3-phase transmission line is 100 km long. The resistance is 0.048 Ω/km and the inductance is 1,24 mH/km. The shunt capacitance is 0.0174 μF/km. The receiving end load is 216 MW with 0.8 power factor lagging at 325 kV.

(a) Compute ABCD parameters using π equivalent circuit

(b) Sending end voltage VS,

(c) Sending end current IS,

(d) Efficiency

A CI engine operating on the air standard diesel cycle has cylinder condtioons at the start of compression of 65 degrees C and 130 kPa. light diesel fuel is used at an equivalence ratio of 0.8 with a combustion efficiency of 0.98. compression ratio = 18 Calculate:

1. temperature and pressure in each state of the cycle (0c)
2. pressure at each state of the cycle (kpa)
3. cutoff ratio
4. indicated thermal efficiency (%)
5. heat lost in exhaust (KJ/Kg)

A mutual fund manager expects his portfolio to earn a rate of return of 11 percent this year. The beta of the portfolio is 0.8. If the market risk premium is 10 percent and the risk-free rate is 4 percent, is it a good idea to invest? How could you use a stock index fund (S&P 500 index) and risk-free fund (invested in T-bills) to create a portfolio with the same risk as the manager, but a higher return?

Stock A has an expected return of 12%, a standard deviation of 24% on its returns, and a beta of 1.2. Stock B has an expected return of 15%, a standard deviation of 30% on its returns, and a beta of 1.5. The correlation between the two stocks is 0.8. If we invested $30,000 in Stock A and $20,000 in Stock B, what is the beta of our portfolio?

Select one:

a. 1.03

b. 1.25

c. 1.32

d. 1.40

e. 1.56

The following data are available relating to the performance of Rock Fund and the Market portfolio:

The risk-free return during the sample period was 6%.

Calculate the M² measure for the Rock Fund?

Select one:

a. 0.8%

b. 40%

c. 20%

d. 4%

e. 2.86%

For 45 cities in the U.S, we found a correlation of 0.86 between internet use and

online shopping. The regression equation predicting online shopping is ŷ =15+ 0.8 *Internet use

a. Based on the correlation value, is the slope positive or negative? Why?

b. Honolulu had an internet use of 91% and online shopping of 85%. Find its predicted online

shopping based on the regression equation.

c. Find the residual for Honolulu. Interpret the result

An engineer designed a valve that will regulate water pressure on an automobile engine. The engineer designed the valve such that it would produce a mean pressure of 4.7 pounds/square inch. It is believed that the valve performs above the specifications. The valve was tested on 160 engines and the mean pressure was 4.8 pounds/square inch. Assume the standard deviation is known to be 0.8. A level of significance of 0.1 will be used. Determine the decision rule. Enter the decision rule.

Reject Ho if z =