Consider the following model between net international reserves (NIR) and foreign liabilities (fl) and foreign assets (f A₁): NTR₂ = Bo - B₁² fL₁² + Â₂ƒ Aiª + Ûi 2 i. Is ₁ BLUE?
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- show that if A occurs in a larger proportion of the cases where B is than wgere B is not, then B will occur in a larger proportion of cases where A is than where A is not.Consider an individual who is risk-loving instead of risk-averse. a. Is U(I) concave or convex?b. Suppose this person is offered an actuarially fair insurance product that guarantees her a certain income, E[I]. Graph the consumer surplus this person receives from buying this insurance as p, the probability of being sick, varies from 0 to 1. You should plot p on the horizontal axis and consumer surplus on the vertical axis.c. Suppose, finally, that this person is offered a subsidy (perhaps from her parents) for buying insurance so that, if she buys insurance, she will be guaranteed an income γ E[I], where γ >1. With the subsidy, insurance is now actuarially unfair in her favor. Graph how her consumer surplus (M) changes as p, the probability of being sick, varies from 0 to 1. [Hint: draw a coordinate plane with p on the x-axis and M on the y-axis.] Based on this graph, under what conditions is she least likely to buy the subsidized insurance?A stationery store owner claims that the average price of greeting cards that it has in inventory is less than R25. The null and alternative hypotheses is: A. H0: µ = 25 H1: µ ≠ 25 B. H0: µ > 25 H1: µ < 25 C. H0: µ = 25 H1: µ < 25 D. H0: x ̅ = 25 H1: x ̅ < 25
- A researcher hypothesizes that nurses have higher average salaries than teachers. In conducting an analysis to test this hypothesis, how might the alternative hypothesis be stated? a. Ha: μD = 0 b. Ha: μD ≠ 0 c. Ha: μNurses’ salaries ≠ μTeacher’s salaries d. H0: μNurses ≠ μTeachersShow that: if A occurs in a larger proportion of cases where B is than where it is not, then B will occur in a larger proportion of cases where A is than where A is not.A person who is exercising should exceed his or her maximum heart rate, which is determined on the basis of that person’s sex, age, and resting heart rate. The following table relates resting heart rate and maximum heart rate for a 20 year old man. Resting heart rate (in beats per minute) Maximum heart rate (in beats per minute) 50 166 60 167 70 171 80 172 Using a 5% level of significance, test the claim that B>0
- In terms of the model parameters, state the null hypothesis that, after controlling for sales and roe, ros has no effect on CEO salary. State the alternative that better stock market performance increases a CEO’s salary.Independent studies show that 26 out of 40 r/s full-time students favor a shorter semester system, while 38 out of 50 r/s part-time students favor the same. Construct a 98% c.i. for the difference between the overall percentage of full-time students favoring a shorter semester system and that of part-time students.Classify the following PDE as (i) Linear or Nonlinear, (ii) Homogeneous orNonhomogeneous
- When random samples are drawn so that the selection of a case for one sample has no effect on the selection of cases for another sample, the samples are A. Dependent B. Independent C. Simple D. SystemoWhich of the following is the correct null hypothesis for a non-directional independent-measures ttest?A. M – μ = 0B. M1 – M2 = 0C. μ1 – μ2 = 0D. M1 – M2 ≠ 0E. μ1 – μ2 ≠ 0