5)- In the framework of Contingent Value Method (CVM), answer following questions: (Total 17 points) a)- explain following biases: Hypothetical; Strategic; Information; Interviewer; Compliance; Starting point; and Vehicle biases. (Total 7 points, 1 point each) b)- In a city with a population of 500,000, located close to a lake, the proposal is to apply an annual tax based on the weight of the boats. A boat weight is a proxy for the amount of pollutants discharged into the water. Generally heavier boats produce more pollution than lighter boats. The objectives of this tax are to induce people to purchase smaller, lighter, and more fuel-efficient boats and to make those boats which contribute the most to water pollution pay their fair share. Suppose researchers want to estimate the demand curves for improving water quality, using CVM. They have created a questionnaire asking following question from a random sample of 200 individuals, who are a good representation of the population. "Which amount is closer to the maximum amount you are willing to pay each year for each 100 kg of the boat weight (put an X beside the number you feel best represents your preferences)." $0 $80 $30 $100 $60 $125 Suppose the researchers find the number of respondents for each option like this: MWTP $0 $30 $60 $80 $100 $125 Number of respondents voted 48 48 32 32 40 0 - Estimate the demand for improving water quality for the whole city. [Hint: price of water quality (that is the tax level people are willingness to pay) vs. number of people who are willing to pay]. (10) Show your result in a graph.