You are considering taking an econometricsoftware course: R or STATA. The tuition is$1000, and knowing one of these softwarewill generate lifetime earnings of $100,000.(Assume that those earnings are all realizedone year after getting the softwarecertificate.) Firms are going to use eitherSTATA or R. There is a 50% chance that allcompanies use STATA and a 50% chancethat they use R; a hearing is scheduled forthe coming year, and if they decide to useonly R (STATA), learning STATA (R) leads tozero income. Should you enroll in aneconometric software course today, orshould you wait until companies reach theirdecision? Assume a nominal interest rate of12% and an inflation rate of 2%. Explain allassumptions you use for your answer.

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You are considering taking an econometric software course: R or STATA. The tuition is $1000, and knowing one of these software will generate lifetime earnings of $100,000. (Assume that those earnings are all realized one year after getting the software

You are considering taking an econometric software course: R or STATA. The tuition is $1000, and knowing one of these software will generate lifetime earnings of $100,000. (Assume that those earnings are all realized one year after getting the software

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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