Chapter 3 Applied Problems
2. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in it mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P

Where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR = 1,000 – 10P
How much pollution reduction should Appalachian Coal Mining undertake?

If Appalachian Coal Mining decided to install additional capital equipment, they would decrease the amount of pollution that their company produces. This installation of additional capital equipment will also lead to an increase in labor productivity. However, when assessing the benefit that this equipment will produce, one must also take into consideration the additional costs of such activity. When assessing this situation, one must make sure that the costs are not greater than or equal to the benefits, thus offsetting any benefit from installing the equipment and the pollution reduction.

In order to determine whether or not the cost of installing the capital equipment outweighs the benefits of the equipment, one must fix the level of pollution reduction and determine the optimal level of pollution reduction. According to our text, “the optimal level of the activity—the level that maximizes net benefit—is attained when no further increases in net benefit are possible for any changes in the activity, which occurs at the activity level for which marginal benefit equals marginal cost: MB = MC” (Thomas & Maurice, 2011, p. 97). In other words, the optimal value for pollution reduction is found when the marginal cost equals the marginal revenue.

To find the optimal value, one would set the marginal cost equal to the marginal revenue and solve for P.

...Statistics Problems
1) Ask 10 people (try to get 5 males and 5 females) the following questions
A) Their ages
B) How many vitamins they take daily
C) How many carbonated sodas they drink each day
D) How many alcoholic beverages they drink per month
E) Write your own question. Ask your participants if they agree with something or if they do something. For example, you may want to ask them if they eat popcorn when they go to the movies or if they support a political issue. It must be a yes/no question.
SAVE YOUR DATA - You will use the data you gathered above for the problems below and more question in future weeks.
Practice Problems:
1) Use your data from above. This week assume that historically the average person takes 3 vitamins on a daily basis. Conduct a hypothesis test analysis to determine if 3 is still the correct average number. Write your hypotheses in correct statistical notation. Finally use the important numbers from your output to explain your results. Use alpha = 0.05. Post only the relevant numbers, not all of the output; then explain your results.
2) Use your data from above. Analyze if more than 58% support an issue or partake in an activity. (Question E above). Write the hypotheses. Show the relevant numbers. Then explain your results. Use alpha = 0.05.
Sex
Age
How many vitamins do you take daily?
How many carbonated sodas do you drink daily?
How...

...Exercises and Problems –W2
E9-1
The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011.
1. Paid $5,000 of accrued taxes at time plant site was acquired.
2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.
3. Paid $850 sales taxes on new delivery truck.
4. Paid $17,500 for parking lots and driveways on new plant site.
5. Paid $250 to have company name and advertising slogan painted on new delivery truck.
6. Paid $8,000 for installation of new factory machinery.
7. Paid $900 for one-year accident insurance policy on new delivery truck.
8. Paid $75 motor vehicle license fee on the new truck.
Instructions
(a) Explain the application of the cost principle in determining the acquisition cost of plant assets.
I need to add up the total cost that it takes to make the business operational to include taxes, insurance, and other fees that may apply in order to run. Of the list above, all are necessary to add together to find the acquisition costs of the plant assets which is $32,775.
(b) List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure that should be debited.
1. Paid $5,000 of accrued taxes at time plant site was acquired.
Land
2. Paid $200 insurance to cover possible accident loss on new factory machinery while the...

...ECO 550 WEEK2 CHAPTER 3 AND CHAPTER 4 PROBLEMS
download here
Chapter 3: Problems 3, 4, and 7
3. The Olde Yogurt Factory has reduced the price of its popular Mmmm Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1,500/day to 1,800/day. Compute the arc price elasticity of demand over this price and consumption quantity range.
4. The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in rider-ship of 30 percent.
a. Compute the price elasticity of demand for subway rides.
b. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
7. In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is −1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?
Chapter 4: Problems 5, 6, and 7
5. General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shaped, sugar-coated breakfast cereal for children. The following (multiplicative exponential) demand function is being used:
6. The demand for haddock has been estimated as log + b log P + c log I + d log Pm
where of haddock sold in New...

...Chapter 8
Exercise 21
What is sampling error?
It is the difference between the sample mean and the population mean
Could the value of the sampling error be zero?
Yes it is possible to have a zero sampling error. However, it is very low probability that this could happen.
If it were zero, what would this mean?
This means that the population is uniform and the sample mean and the population mean are equal.
Exercise 22
List the reasons for sampling. Give an example of each reason for sampling.
1. Contacting whole population is time consuming. If the population is California residents, it will take a long time to send everyone a survey and then process the results.
2. Contacting whole population is costly. Same example of California residents, it will be very costly to send by mail a survey to all residents and then process millions of responses.
3. Checking all population is physically impossible. If the population is infinite like the water at California shores, its is impossible to check the bacteria levels for all the water on California shores.
4. Some tests are destructive to the population. Like testing for an epidemic of e-coli bacteria in lettuce, we can’t take every lettuce produced in a farm and damage it while testing for the bacteria. The whole crop will be damaged.
5. Sample results are adequate. Valid and reliable samples provide adequate results that are very close to the population results. For example, checking the...

...University of Phoenix Material
Week Two Practice Problems
Prepare a written response to the following questions.
Chapter 2
12. For the following scores, find the mean, median, sum of squared deviations, variance, and standard deviation:
1,112; 1,245; 1,361; 1,372; 1,472
Mean 1312.4
Median 1361
Variance 123.36
Sum of squares 76089.2
Standard diviation 76089.2/5=15217.84=SQR 123.36
16. A psychologist interested in political behavior measured the square footage of the desks in the official office for four U.S. governors and of four chief executive officers (CEOs) of major U.S. corporations. The figures for the governors were 44, 36, 52, and 40 square feet. The figures for the CEOs were 32, 60, 48, 36 square feet.
a. Figure the means and standard deviations for the governors and CEOs.
b. Explain, to a person who has never had a course in statistics, what you have done.
c. Note the ways in which the means and standard deviations differ, and speculate on the possible meaning of these differences, presuming that they are representative of U.S. governors and large corporations’ CEOs in general.
Governers mean is 43
Standard Deviation is 6.83
CEO’s mean is 44
Standard Deviation is 12.65
I have found the average for both the Governer and CEO and then determined a measure of the spread of the data in general.
The spread for CEO's is twice the amount of spread for the Govereners. If these statistics were representative of a...

...Forecasting 1
Making Decisions Based on Demand and Forecasting
Sherri Fishback
Dr. Robert Pennington
ECO550
July 20, 2013
Forecasting 2
1. Use Excel or other calculation software to input the data to calculate an estimated regression. Then, from the calculation provided, interpret the coefficient of determination, indicating how it will influence your decision to open the pizza business in your town or community. Explain any additional variables that may improve the coefficient of determination.
a. To start the regression model is posed a relationship concerning the dependent and independent variables. You input your data for the spreadsheet and in this paper we are using 30 market examples or observations.
In the Price (P) Plot all the square are close to 6.00 and 7.00 the plot to get 6.93 is to add up total Price 207.87 divided by 30 equals 6.929 or 6.93 and the Competitive Price Plot (Px) 184.62 divided by 30 = 6.154 or 6.16 for the total sum of the square.
The coefficient...