Question Two Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant assumptions. Use equations and diagrams in your analysis. Critically discuss the strengths and weaknesses and whether the EIH can be replaced by alternative theories
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- What are the warnings of using the OLS approach to hypothesis testing? Discuss.“It is hypothesized that there is a difference in job satis¬faction between those who receive regular feedback on their job performance and those who receive irregular feedback.” is an example of which type of hypothesis? a. Not a hypothesis b. Null hypothesis c. Directional hypothesis d. Non-directional hypothesisIn the hedonic model, what is the alternative hypothesis? The price impact is 0 There is a positive price impact There is a negative price impact The price impact is not equal to 0
- QUESTION 6 Which one of the following statements about the modified Stackleberg model is correct? A. None of the other statements is correct. B. Entry accomodation is always more profitable than entry deterrence. C. Whether entry deterrence is more profitable than entry accomodation can depend on the size of the fixed cost. D. Entry deterrence is always more profitable than entry accomodation.Define the lewis model theoryWhen defining the hypothesis, we present… a. None of the responses b. The null hypothesis only c. The alternative hypothesis only d. The null and alternative hypotheses
- ( TRUE OR FALSE help me find the true or false questions ) 1. In economic statistics and Econometrics, we do the same thing.( ) 2. As same in regression analysis, variables in relation analysis are all random variables.( ) 3. Known as residual, "i is an estimate of u , the random disturbance term.( ) 4. The slope coefficient of the log-log model measures the elasticity of Y with respect to X.( ) 5. In regression of standardized variables, the intercept term is always zero.( ) 6. The underlying theory may suggest a particular functional form.( ) 7. The disturbance term u is assumed to follow normal distribution.( ) 8. White test is used to check if there exists multicollinearity in the disturbance term of a regression function.( ) 9. Dummy variable can be used to test the stability of a regression model just as the function of the Chow Test.( ) 10. Where there is autocorrelation in the u , the OLS estimators are not BLUE estimators any more.( )Present the classical model of choice under uncertainty. What are the five assump- tions which characterize the Von-Neumann-Morgenstern expected utility repre- sentation?First present the equations used in the empirical test of the Heckscher-Ohlin- Vanek (HOV) model explaining all variables, vectors and matrices used. Then present both hypotheses of the HOV model and explain how they relate to the original Heckscher-Ohlin-Samuelson hypothesis.
- A teacher observes that the mitterm grades of students in the class varies depending on “the number of classes that the student takes”, “the difficulty of the assignments”, and the “stress experienced by the student”. She assigns to you the task of doing a research project on this and wants you to do the following: a. Give the project a suitable title b. What is the research question? c. Clearly label the variables (dependent and independent) d. Develop three hypothesesThe Central Bank of country AVC decides to reduce the money supply. The short run effect of this action on real variables under Lucas Rational Expectation model, would be different if the decrease is expected as compared when it is not. Explain the above statement with the help of appropriate diagrams.Indicate whether the statement is true or false, and justify your answer.Suppose an individual prefers to drink beer during college but enjoys winemore during middle age. This is a classic example of time-inconsistent preferences.