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Is caffeine addictive? Does the caffeine in coffee, tea. and cola induce an addiction similar to that induced by alcohol, tobacco, heroin, and cocaine? In an attempt to answer this question, researchers at Johns Hopkins University examined 27 caffeine drinkers and found 25 who displayed some type of withdrawal symptoms when abstaining from caffeine. [Note: The 27 caffeine drinkers volunteered for the study.] Furthermore, of 11 caffeine drinkers who were diagnosed as caffeine dependent, 8 displayed dramatic withdrawal symptoms (including impairment in normal
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Statistics for Business and Economics (13th Edition)
- Exercise 3.2 A three-man board, composed of A, B, and C, has held hearings on a personnel case involving an officer of the company. This officer was scheduled for promotion but, prior to final action on his promotion, he made a decision that cost the company a good deal of money. The question is whether he should be (1) promoted anyway, (2) denied the promotion, or (3) fired. The board has discussed the matter at length and is unable to reach unanimous agreement. In the course of the discussion it has become clear to all three of them that their separate opinions are as follows: • A considers the officer to have been a victim of bad luck, not bad judgment, and wants to go ahead and promote him but, failing that, would keep him rather than fire him. ⚫ B considers the mistake serious enough to bar promotion altogether; he'd prefer to keep the officer, denying promotion, but would rather fire than promote him. ⚫ C thinks the man ought to be fired but, in terms of personnel policy and…arrow_forwardLdocplcoeodlxmxsarrow_forwardYou are an analyst. Your friend started a new business of selling masks. She knows that you have adequate knowledge of economics and business, and hence, asked for your help in making some important business decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found PED in February was 1.8 (absolute value), and PED of Masks in April was 0.7 (absolute value). (a) What type of good mask is in the month of April in terms of elasticity? (b) The market price of the mask in June was 10 taka per unit and revenue earned in June was 150 taka. How many masks were sold in June? (c) In 2(b), you found the quantity demanded masks in June. You received the data for August and observed that the price in August was 25 per unit and the quantity demanded of masks in August is 7. Calculate the Price Elasticity of Demand (PED) for masks from June to August.arrow_forward
- Owkskdmdarrow_forward2arrow_forwardDo waiters or waitresses earn larger tips To answer this Do waiters or waitresses earn larger tips? To answer this question, a restaurant consultant undertook a preliminary study. The study involved measuring the percentage of the total bill left as a tip for one randomly selected waiter and one randomly selected waitress in each of 50 restaurants during a 1-week period. What conclusions can be drawn from these data? Do waiters or waitresses earn larger tips To answer thisarrow_forward
- Exercise Annika spends all of her income on golf and pancakes. Greens fees at a local golf course are $10 per round. Pancake mix is $2 per box. When Annika's income is $100 per week, she buys 5 boxes of pancake mix and 9 rounds of golf. When Annika's income rises to $120 per week, she buys 10 boxes of pancake mix and 10 rounds of golf. Based on these figures, determine whether each of the following statements is true or false, and briefly explain your reasoning 1. Golf is a normal good, and pancake mix is an inferior good 2. Golf is a luxury good 3. Pancakes are a luxury goodarrow_forwardxt:Bong-Cha is deciding what to do during the 30-minute break between her college classes. One rule she could follow is, "Choose the activity with the highest value" (A). Another rule she could follow is, "Choose the activity with the lowest opportunity cost" (B). Do you think Bong-Cha's choice if she follows rule (A) will be the same as the choice she would make if she followed rule (B)? [another way to think about it, "Is rule (A) identical to rule (B) in a sense that they would both induce the same choice?"].arrow_forwardSuppose a consumer faced with prices p_1 = 9, p_2 = 12 consumes at some point x^0 where x_1 = 4, x_2 = 7, U(x^0) = 10. When p_1 is lowered to p_1 = 8, the consumer would move to point x^1, where x_1 = 6, x_2 = 6, U(x^1) = 15. From these data, estimate the following values: a) How much would the consumer be willing to pay to face the lower price of x_1? b) How much would a consumer initially at x^1 have to be paid to accept the higher price of x1 voluntarily? c) Are your answers to (a) and (b) exact calculations of these values, or are they approximations? If the latter, is the direction of bias predictable? d) How much better off is the consumer at x^1 than at x^0? %3D %3D %3Darrow_forward
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