Cappuccinos, C, cost $3 each, and music downloads of your favorite artist, M, cost $1 each from your iTunes store. Income is $24.
(a) Draw the budget line, with cappuccinos on the vertical axis, and music on the horizontal axis, and compute the values of the intercepts.
(b) What is the slope of the budget constraint, and what is the opportunity cost of 1 cappuccino?
(c) Are the following combinations of goods in the affordable set: (4C and 9M), (6C and 2M), (3C and 15M)?
(d) Which combination(s) above lie inside the affordable set, and which lie on the boundary?n

Barron's has collected data on the top 1000 financial advisors. Merrill Lynch and Morgan Stanley have many of their advisors on this list. A sample of 16 of the Merrill Lynch advisers and 10 of the Morgan Stanley advisers showed that the advisers managed many very large accounts with a large variance in the total amount of funds managed. The standard deviation of the amount managed by the Merrill Lynch advisers was $1 = $582 million. The standard deviation of the amount managed by the Morgan Stanley advisers was $2 = $460 million. Conduct a hypothesis test at a = 0.10 to determine whether there is a significant difference in the population variances for the amounts managed by the two companies. State the null and alternative hypotheses.. Hoo-Select your answer - 22 Ho-Select your answer - Calculate the value of the test statistic (to 2 decimals). The p-value is - Select your answer What is your conclusion about the variability in the amount of funds managed by advisers from the two firms? - Select your answer there is a statistically significant difference between the variances for the two companies.