EBK ECON MICRO
6th Edition
ISBN: 9781337671828
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 1, Problem 7P
To determine
a)
The mistake in the statement that, Government revenues will always increase with an increase in the taxes.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and
To determine
b)
The mistake in the statement that, we should increase the imports in case of recession.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
c)
The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
d)
The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
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QUESTION 2
[20]
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X (Weekly exercise hours) Y (Body-Mass index)
QUESTION 3
2
4
6
8
10
12
41
38
33
27
23
19
Derek investigates the relationship between the days (per year) absent from work (ABSENT) and the
number of years taken for the worker to be promoted (PROMOTION). He interviewed a sample of 22
employees in Cape Town to obtain information on ABSENT (X) and PROMOTION (Y), and derived
the following:
ΣΧ
ΣΥ
341
ΣΧΥ
176 ΣΧ
1187
1012
3.1 By using the OLS method, prove that the constant and slope parameters of the…
QUESTION 2
2.1
[30]
Mariana, a researcher at the World Health Organisation (WHO), collects information
on weekly study hours (HOURS) and blood pressure level when writing a test
(BLOOD) from a sample of university students across the country, before running the
regression BLOOD = f(STUDY). She collects data from 5 students as listed below:
X (STUDY)
2
Y (BLOOD)
4
6
8
10
141
138
133
127
123
2.1.1 By using the OLS method and the information above derive the values for parameters
B1 and B2.
2.1.2 Derive the RSS (sum of squares for the residuals).
2.1.3 Hence, calculate ô
2.2
2.3
(6)
(3)
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university. She derives the residuals followed by computing skewness (S) equals -1.25
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(5)
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