EBK MICROECONOMIC THEORY: BASIC PRINCIP
EBK MICROECONOMIC THEORY: BASIC PRINCIP
12th Edition
ISBN: 8220103612135
Author: Snyder
Publisher: YUZU
Question
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Chapter 2, Problem 2.14P

(a)

To determine

The proof of E[g(x)]g[E(x)] (Jensen’s Inequality)

(b)

To determine

The proof of E[g(x)]g[E(x)]

(c)

To determine

The proof of E(x)=0[1F(x)]dx

(d)

To determine

The proof of P(xt)E(x)t (Markov’s Inequality)

(e)

To determine

  1. The proof that f(x)=2x3 for x1 is a proper PDF
  2. F(x) for this PDF
  3. E(x) for this PDF using the result of part (c)
  4. The proof that Markov’s inequality holds for this function

(f)

To determine

  1. The proof that f(x)=x23 for 1x2 is a proper PDF
  2. The value of E(x)
  3. The probability that 1x0
  4. The value of f(x|A) , where A is the event 0x2
  5. The value of E(x|A)
  6. Intuitive explanation of the results

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An increase of 20 million bicycles demand as a result of a lower p
??!!
. What the heck is this GDP thingy? It is Thursday afternoon, just a few days before the holiday season starts in your region, and you decided to visit your uncle Chao who owns a local delivery company. While sitting in the living room watching the evening news with your uncle, you heard the news reporter stating the following with an optimistic tone: "According to recent studies, gross domestic product (GDP) is rising due to an increase in consumer spending. The increase in spending was due to an increase in consumer confidence because the job market has shown a positive increase in both employment and income." Immediately, your uncle Chao looked at you with some confusion on his face and asked: What the heck is GDP, and why does the news dude seem excited about its increase? Does this “good” change in this GDP thingy have any effect on my delivery business? How? Do I need to do something different to prepare for the rise in GDP? How?
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