Economics( Managerial).
1. (Inception Exam, Aj. Pongsa' section, June 2003) You get estimates from Yo = a + BX; + u; as a = 2, 3 = 0.8, 0? = 4. You know that the correlation between x and y, Try = 0.6. Test the hypothesis that 8 = 0.2. (Compre June 2004) A student turns in an assignment showing the following estimate bi- variate linear regressionY =5+ 2X F-stat = 25 n = 102 ELI (Y - Y) = 10, but neglects to write anything else. Using the reported information, answer the following questions What is the R?? (b ) What is the standard error of the slope coefficient? G What is the standard error of the regression?WR1 Sam-I-Am is a local restaurant chain located in Vancouver. It is considering different pricing strategies for their redesigned menu. They offer two different food items: green eggs, and ham. Sam-I-Am has four different consumer groups by age, and they each have their respective reservation prices in the table below. Marginal costs of cooking green eggs are one dollar, and marginal cost of cooking ham is two dollars. Sam-I-Am can choose standalone pricing, or bundling. Green Eggs Ham Bundle Age 20-30 4.50 2.00 6.50 Age 30-40 3.50 4.50 8.00 Age 40-50 3.00 5.00 8.00 Age 50-60 1.00 5.50 6.50 a) Find the prices that maximize profits under standalone pricingd) What strategy yields the highest profit, and what is the profit?b) What proportion of lemons in the market need to be from California for there to be adverse selection?c) If 80% of lemons are from California, will supplier sell Florida lemons? What if 25% of lemons are from California?WR2 Sourface, a beverage company, is ordering a shipment of lemons. Suppliers gather boxes of lemons from California and from Florida. A recent wildfire has burned the lemons from California, and although it cannot be seen from the outside, those lemons have no value. Sourface values California lemons at $15/box and Florida lemons at $45/box. Supplier reservation prices are $10/box for California lemons and $30/box of Florida lemons. a) If Sourface can see which lemons are from where, what price would they pay for a box of lemons from Florida?WR3 Mowtivation is a lawn-care company. Their employees are mostly self-monitored, and they can choose to work when they want. The company's revenues are dependent on two variables: how long employees work and the state of the economy, and shown in the table below. 40% 60% Boom Bust Cost of Effort Skip Work 12 6 Good Effort 18 10 5 Overtime 25 13 10 Management can offer three compensation packages: a fixed wage of 10, a 70% share of revenue, or a performance bonus where employees only get paid if the company gets 15 in revenues. In that case, they will receive all revenues in excess of 15. a) What will the employees choose under each compensation structure
