MindTap Economics, 1 term (6 months) Printed Access Card for Gwartney/Stroup/Sobel/Macpherson's Macroeconomics: Private and Public Choice, 16th (MindTap Course List)
16th Edition
ISBN: 9781305648104
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 4, Problem 5CQ
To determine
Tax on cigarettes.
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• Prismatic Cards: A prismatic card will be a card that counts as having every suit. We will denote,
e.g., a prismatic Queen card by Q*. With this notation, 2.3045 Q would be a double flush
since every card is a diamond and a heart.
• Wild Cards: A wild card counts as having every suit and every denomination. Denote wild cards with
a W; if there are multiple, we will denote them W₁, W2, etc. With this notation, W2 20.30054
would be both a three-of-a-kind (three 2's) and a flush (5 diamonds). If we add multiple wild cards
to the deck, they count as distinct cards, so that (e.g.) the following two hands count as "different
hands" when counting:
W15 5Q and W255◊♡♡♣♣
In addition,
1. Let's start with the unmodified double-suited deck.
(a) Call a hand a flush house if it is a flush and a full house, i.e. if all cards share a suit and there
are 3 cards of one denomination and two of another. For example, 550.
house. How many different flush house hands are there?
2. Suppose we add one wild…
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MindTap Economics, 1 term (6 months) Printed Access Card for Gwartney/Stroup/Sobel/Macpherson's Macroeconomics: Private and Public Choice, 16th (MindTap Course List)
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- not use ai pleasearrow_forwardIn a classic oil-drilling example, you are trying to decide whether to drill for oil on a field that might or might not contain any oil. Before making this decision, you have the option of hiring a geologist to perform some seismic tests and then predict whether there is any oil or not. You assess that if there is actually oil, the geologist will predict there is oil with probability 0.85 . You also assess that if there is no oil, the geologist will predict there is no oil with probability 0.90. Please answer the two questions below, as I am trying to ensure that I am correct. 1. Why will these two probabilities not appear on the decision tree? 2. Which probabilities will be on the decision tree?arrow_forwardAsap pleasearrow_forward
- not use ai pleasearrow_forwardnot use ai pleasearrow_forwardIn this question, you will test relative purchasing parity (PPP) using the data. Use yearly data from FRED website from 1971 to 2020: (i) The Canadian Dollars to U.S. Dollar Spot Exchange Rate (ER) (ii) Consumer price index for Canada (CAN_CPI), and (iii) Consumer price index for the US (US_CPI). Inflation is measured by the consumer price index (CPI). The relative PPP equation is: AE CAN$/US$ ECAN$/US$ = π CAN - πUS Submit the Excel sheet that you worked on. 1. First, compute the percentage change in the exchange rate (left-hand side of the equation). Caculate the variable for each year from 1972 to 2020 in Column E (named Change_ER) of the Excel sheet. For example, for 1972, compute E3: (B3-B2)/B2). ER1972 ER1971 ER 1971 (in Excel, the formula in cellarrow_forward
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