Solve the following attachments
2. Suppose that you are vacationing at a resort in the Caribbean and you are trying to determine how to spend your time and money on two activities, windsurfing and snorkelling, which both cost $6 per hour. The marginal utility of the activities are shown in table below. *Do not complete the table yet. WINDSURFING SNORKELLING No. of Marginal Total Marginal Marginal Total Marginal Hours Utility Utility Utility Utility Utility Utility per per Dollar Dollar Spent Spent 150 120 2 130 110 3 110 100 90 90 5 70 80 6 50 70 7 30 60 8 10 50 a) Complete the column for total utilities in the above table. 'DO NOT complete the other column yet. [2 marks] b) Assume that you have a budget of $48. To maximize your total utility. how would you allocate your budget between the two activities? What is the resulting total utility? [3 marks] Windsurfing: $ and hours Snorkelling: $ and hours Total utility: utilsal Exam, ECO 1001 Scenario 4: The many identical residents of some city love drinking apple juice. The cost of producing a bottle of apple juice is $4.50, and the competitive suppliers sell it at this price. Each resident has the following willingness to pay for the tasty refreshment: Quantity Willingness to Pay (Dollars) First bottle 10 Second bottle 8 Third bottle 6 Fourth bottle 4 Fifth bottle 2 Further bottles 0 29. Refer to scenario 4: If producing apple juice creates pollution and each bottle has an external cost of $2, then Each resident will consume 3 bottles and receive a consumer surplus of $10.5 a) Each resident will consume 3 bottles and receive a consumer surplus of $4.5. c) Each resident will consume 2 bottles and receive a consumer surplus of $5. d) Each resident will consume 2 bottles and receive a consumer surplus of $9.Principles of Statistics / Homework Question ( 1) The following data give the number of hours spent playing sports by 10 randomly selected college students during the past week. 7 14 5 0 9 7 10 4 10 8 1) Find the mean, median, and mode. 2) Compute the standard deviation. Question ( 2) Scores of an IQ test have a bell-shaped distribution with a mean of 100 and a standard deviation of 12. What percentage of people has an IQ score between 76 and 124? Question ( 3) A bag contains 12 balls numbered from I to 12. If a ball is taken at random, what is the probability of having a ball with a number which is a multiple of either 2 or 3. Question (4) Le P(AnB)=0.34 . P(AnB') =0.15 , and P(BA' )=0.21. Find : 1) P(A) 2) P(B) 3) P(AUB) 4) Are A and B independent? Why? Question ( 5) The probability distribution function for a discrete random variable X is .X=3 .X=5 otherwise where k is some constant. Find (a) k. (b) P(X > 2) (c) E(X) and VIX) Question ( 6) If 0.2 of memory chips made in a certain plant are defective, and X represent the number of defectives of a random sample of 10 memory chips chosen for inspection. What is the probability that 4 to 7 will be defectives? Question ( 7) A secretary makes 2 typing errors per page on the average. What is the probability on the next page she makes 4 or more errors? Question ( 8) Let X denote the time taken to run a road race. Suppose X is approximately normally distributed with a mean of u = 1 90 minutes and a standard deviation of = 21minutes. (1) If one runner is selected at random, what is the probability that this runner will complete this road race in less than 170 minutes? (2) Find the 10" and 90 percentile of X. Question (9) The marks on a statistics test are normally distributed with a mean of 62 and a variance of 225. If the instructor wishes to assign B's or higher to the top 30% of the students in the class, what mark is required to get a B or higher? Question ( 10) A normal population with unknown variance have is believed to have a mean , = 20 A random sample of size ,=9 from this population has a standard deviations =4. What is the probability that the sample mean X fall between 22.48 and 24.47.For (10) through (18). select the right answer and put it's letter in the blank on the right. (10) In this industry, firms often have "sticky" prices: (A) oligopoly (B) monopoly (C ) perfect competition (D) cartel .. (1 1) In this industry, firms do a lot of advertising: (A) oligopoly (B) monopoly (C) perfect competition (D) cartel . (12) In this industry, sellers have an open, explicit agreement to cooperate: (A) oligopoly (B) monopoly (C) perfect competition (D) cartel ..me_ (13) In this industry, firms often end up producing highly similar products, aimed at the middle of the market: (A) oligopoly (B) monopolistic competition (C) perfect competition (D) cartel .... (14) In this industry, firms end up producing with excess capacity in the long run: (A) oligopoly (B) monopoly (C) cartel (D) monopolistic competition. (15) This type of firm can produce the entire market output all by itself, more cheaply Than it it had to share the market with a competing firm: (A) oligopoly (B) monopolistic competition (C ) natural monopoly (D) cartel..... (16) In this type of industry, there and many small buyers and sellers, but the product is NOT homogeneous: (A) oligopoly (B) monopoly (C ) monopolistic competition (D) cartel .. (17) In this type of industry, the sellers agree to impose quotas on the amount of Output each one is allowed to supply to the market: (A) oligopoly (B) monopoly (C ) monopolistic competition (D) cartel .. (18) In this type of industry there are NO barriers to entry or exit: (A) oligopoly (B) monopoly (C ) monopolistic competition (D) cartel ... For Questions (19) through (25) write "T" (for TRUE) or "F" (for FALSE) in the blank On the right of each statement: 19) PRICE FIXING is NOT illegal in the United States..... 20) A cartel is NOT likely to form in an industry with many. small sellers... 21) Regulated, natural monopolies tend to be very inefficient.........assessesassessseems_ 22) It will be bad for a cartel if long run market demand is INELASTIC...x_ 23) A monopoly can control both the price and the quantity he sells... 24) Under "PRICE LEADERSHIP" firms have an explicit agreement to cooperate.. 25) The firm's demand curve is a bit less clastic under Monopolistic Competition than it is for a monopoly
