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- What are the assumptions of Fama-French three factor modelExplain how the percentage of undernourished people can have decreased slightly between 2000–2002 and 2005–2007, while the absolute number of undernourished people increased slightly during the same periodGNP: PLUSES AND MINUSES The gross national product in recent years has basked in the warm glow of nearly universal praise. Econo mists, quite naturally, have been freest with the encomiums. Where else but the GNP could they get in one tidy number a measure of the growth in the mammoth U.S. economy. Businessmen, though not entirely persuaded of the value of statistics, especially esoteric statistics, nevertheless have been known to quote the GNP—possibly because of its powers to impress audiences with the speaker's grasp of the "big picture." Politicians, too, have been extravagant in their admiration of GNP, most especially when it was rising at a brisk pace. Even the ubiquitous cocktail party has paid homage to the GNP as assorted junior executives, research assistants, housewives, and dancing instructors have pronounced on the latest GNP numbers with a solemn and knowing air. Now all that seems to be changing. GNP increasingly is coming under attack. Dr. Arthur F.…
- Suppose that the government tends to maximize the tax revenue. How would the cannabis price drop affect the government tax revenue if cannabis was taxed by price? Did the government anticipate the cannabis price drop when designing the tax scheme? You may come up with an artificial numerical example to support your findings. are alcohol and cigarettes substitutes or complements of cannabis?(The answer to this question depends on the actual consumption data. If you do not know the data, you may make an assumption. Then, you should stick with this assumption for the rest of your analysis. For example, if you assume that alcohol and cigarettes are substitutes of cannabis, then your entire analysis is based upon this assumption.) How would the change in the price of cannabis possibly affect the market demand curve for alcohol/cigarettes?If we model after-tax household income with a normal distribution, then the figures of a study imply the information in the following table. Assume that the distribution of incomes in each country is normal. \table[[Country,Country A,Country B,Country C,Country D,Country E],[Mean Household Income,$11,000,$40,000,$13,000,$12,000,$34,000Please circle the answer so that I can understand and specify which answer is related to which section.
- Assume that driving skill, S, varies throughout the population. Automobile insurers classify drivers into two categories: “Good” and “Bad”. Good drivers are those people who have driving skills above a threshold level of driving skill, S*. Bad drivers, on the other hand, have driving skills that fall below the threshold level, S*. Good drivers pay lower rates than Bad drivers. Additionally, assume that it’s common knowledge that Welsh are more skillful drivers than Scots, such that a higher proportion of the Welsh population has driving skills above S* than the Scottish population. Also assume that there is a law that prohibits insurers from learning a person’s driving skill. Suppose that drivers can decide to use a new device that will send credible real time driving data to their insurance company (e.g., speed, stopping distance, driving times, etc.) that allows insurers to correctly classify a driver as having skill greater than or less than S*. Which group would be most likely to…Assume that driving skill, S, varies throughout the population. Automobile insurers classify drivers into two categories: “Good” and “Bad”. Good drivers are those people who have driving skills above a threshold level of driving skill, S*. Bad drivers, on the other hand, have driving skills that fall below the threshold level, S*. Good drivers pay lower rates than Bad drivers. Additionally, assume that it’s common knowledge that Welsh are more skillful drivers than Scots, such that a higher proportion of the Welsh population has driving skills above S* than the Scottish population. Also assume that there is a law that prohibits insurers from learning a person’s driving skill. Suppose that drivers can decide to use a new device that will send credible real time driving data to their insurance company (e.g., speed, stopping distance, driving times, etc.) that allows insurers to correctly classify a driver as having skill greater than or less than S*. Who is most likely to employ these…does c1' mean it has been squared?