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can you explain each part (a, b, c, d) briefly please? URGENT!!! Question 2) Make a simulation to get the value of education and potential
can you explain each part (a, b, c, d) briefly please? URGENT!!!
Question 2) Make a simulation to get the value of education and potential factors that affect it for an average person. Assume number of years your average agent will work after age 18. Assume collage years will take 4 years. Set an average wage your agent gets as a high school graduate and as a collage graduate. Make sure collage wage is at least twice higher and at most 20 times higher. Set an interest rate for your average agent, which is the rate at which he or she discounts future income. a) State your assumptions clearly. Find value of the life time income with collage education and value of the life time income without collage education for your agent. Find also the value of education for your agent. b) Run a scenario A, where number of years your individual spends at work changes at least by 10%. Show how three variables you have calculated in part a changes. c) Run a scenario B, where interest rate your individual spends at work changes at least by 50%. Show how three variables you have calculated in part a changes. d) Run a scenario C, where number of years your collage wage at work changes at least by 50%. Show how three variables you have calculated in part a changes. Question 2) Make a simulation to get the value of education and potential factors that affect it for an average person. Assume number of years your average agent will work after age 18. Assume collage years will take 4 years. Set an average wage your agent gets as a high school graduate and as a collage graduate. Make sure collage wage is at least twice higher and at most 20 times higher. Set an interest rate for your average agent, which is the rate at which he or she discounts future income. a) State your assumptions clearly. Find value of the life time income with collage education and value of the life time income without collage education for your agent. Find also the value of education for your agent. b) Run a scenario A, where number of years your individual spends at work changes at least by 10%. Show how three variables you have calculated in part a changes. c) Run a scenario B, where interest rate your individual spends at work changes at least by 50%. Show how three variables you have calculated in part a changes. d) Run a scenario C, where number of years your collage wage at work changes at least by 50%. Show how three variables you have calculated in part a changesStep by Step Solution
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