(Use the data below in answering questions 2-5. In these data, D = the date of the month you were born on, e.g. if you were born on March 18, for you D= 18.)

The island nation of Erehwon has three industries: manufacturing, agriculture and services.Each national industry has 50 million workers.Centralia is a small (one county) metropolitan area in Erehwon. Centralia has total employment of 150,000 workers.Centralia's employment is divided (75,000 + D*100) in manufacturing, zero in agriculture and (75,000-D*100) in services. The Centralia County government wants to do an impact study of a proposed expansion of the XYZ Manufacturing Company in Centralia.Currently the plant has 200 workers and the expansion would increase its employment by 150 workers to 350 workers.All of the new output will be shipped to new markets outside Centralia.The Centralia County government contracts with Regional Consulting Inc. (RCI) to do an impact study.

2.The Lead Consulting Group of RCI begins by estimating location quotients (LQs) for Centralia's three industries.What LQ do they get for each industry?

3.If the Lead Group uses the location quotient technique to estimate a multiplier for Centralia:

a.What will the Lead Group estimate for Centralia's basic employment in each of its three industries? (Be quantitative.Again use the equation:B_ir = [1-(1/LQ_ir)] E_ir)

b.What will be the Lead Group's estimate of the size of the entire basic sector (B) in Centralia?

c.What is the Lead Group's estimate of Centralia's non-basic sector, (N)? How many non-basic workers are in Centralia's manufacturing sector? Agricultural sector? Services sector? (Be quantitative.)

d.What value do they get for Centralia's employment multiplier (T/B)?(Be quantitative.)

e.What impact does the Lead Group estimate for the expansion of XYZ Manufacturing, i.e. once the metro-area has fully adjusted what does the Lead Group expect to happen to Centralia's total employment (T), basic employment (B) and non-basic employment (N)?

4.At the same time the Lead Group is working out these estimates, the New Group at Regional Consulting, Inc. suggests that a better impact estimate can be obtained by using the minimum requirements technique. The New Group estimates that for metropolitan areas in Centralia's size group the minimum shares of the three industries are manufacturing at 0.15, agriculture at 0.0 and services at 0.25.

a.What minimum requirement location quotients (MRLQ's) will the New Group estimate? (Be quantitative.)

b.What will be the New Group's estimate for Centralia's basic employment in each of its three industries? Here use the equation: B_ir = [1-(1/MRLQ_ir)] E_ir ).

c.What will be the New Group's estimate of the size of the entire basic sector (B) in Centralia?

d.What is the New Group's estimate of Centralia's non-basic sector, (N)? How many non-basic workers are in Centralia's manufacturing sector? Agricultural sector? Services sector?(Be quantitative.)

e.What value does the New Group get for Centralia's employment multiplier (T/B)?(Be quantitative.)

f.What change in total (T), basic (B) and non-basic (N) employment does the New Group estimate?

5.You are brought in by RCI's President to consider the two impact studies and help decide which one to present to the Centralia County government.Briefly discuss which set of calculations, those by the Lead Group or those by the New Group, you find more convincing and why.