Gross domestic product. Refer to The Economy 2020 report estimating gross domestic product (GDP) in 2018 for 12 different industries in Newfoundland and Labrador, Exercise 2.30 (p. 70). Suppose the researchers changed the values of three variables of each industry (labor income, number of people employed and capital cost) by setting each of them three different levels (low, medium, and high).

a. How many different combinations of the different levels of labor income, number of employments, and capital cost are possible?

b. The researchers computed the estimated GDP for industries for each of the combinations of levels in part

a, which they called scenarios. Suppose the researchers wish to select two of these scenarios for a more detailed analysis of an industry. If the scenarios are selected at random, how many possible combinations are there? Applying the Concepts—Advanced