1. (34 points) The University of Michigan and Harvard business schools use forced curves for grading. Professors must give a specific fraction of each class the highest grade, a different fraction the next grade, etc.: 20%-30% A or A- 40%-50% B-, B or B+ 25%-30% 0+ or lower At the University of Southern California business school professors must give grades so that the grade point average for the class is a specific amount: 3.3 out of 5. The University of Chicago business school has no restrictions on grading. Assume the average grade is the same at Michigan, Harvard, and USC and courses, students and professors are essentially identical across all schools. a. (10 points) Under which grading system do you predict stronger incentives for students to: i. Work hard on the class? Why? Briefly explain. ii. Work collaboratively in groups? Why? Briefly explain. iii. Compete with each other? Why? Briefly explain. iv. Lobby the professor to improve their grades? Why? Briefly explain. b. (7 points) Do you predict that the Chicago system will lead to higher or lower overall grade point averages than the other systems? Why? Briefly explain. c. (7 points) Courses differ in topics (e.g., personnel economics, finance, organizational behavior, etc.). Which grading scheme is best for what kind of course? Why? Briefly explain. (1. (10 points) Which grading scheme will be preferred by the following groups: i. Students? Why? Briefly explain. ii. Professors? Why? Briefly explain. iii. School administrators? Why? Briefly explain