ECON 2000 : Exam 1 Answers 1
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The Thomas Supply Company Inc. is a distributor of gas-powered generators. As with any business, the length of time customers take to pay their invoices is important. Listed below, arranged from smallest to largest, is the time, in days, for a sample of The Thomas Supply Company Inc. invoices.
13 |
13 |
13 |
20 |
26 |
29 |
30 |
33 |
34 |
34 |
35 |
35 |
36 |
37 |
38 |
41 |
41 |
41 |
45 |
45 |
47 |
47 |
49 |
52 |
54 |
55 |
56 |
62 |
67 |
82 |
a. Determine the first and third quartiles (Q1 and Q3).
b. Determine the second decile and the eighth decile (D2 and D8).
c. Determine the 67th percentile.
Below is data on the weekly quantity demanded of pizza in a small town in South Georgia, prices, and average household incomes. Use the data to perform a linear regression analysis of price and income on quantity demanded. (20 points) a) How well does the regression fit the data?
b) What is the income elasticity of demand for pizza when the income (M) is $40 (thousand) and the price (P) is $30?
Quantity (Q) |
Price (P) |
Income (Y) in thousands |
|||
1 |
183 |
29.25 |
30.72 |
||
2 |
207 |
30.1 |
37.57 |
||
3 |
183 |
30.54 |
29.43 |
||
4 |
192 |
28.67 |
37.2 |
||
5 |
182 |
30.23 |
35.87 |
||
6 |
217 |
29.76 |
35.16 |
||
7 |
180 |
31.77 |
27.7 |
||
8 |
195 |
31.01 |
32.96 |
||
9 |
200 |
29.21 |
32.3 |
||
10 |
198 |
30.79 |
36.1 |
||
11 |
195 |
29.75 |
32.68 |
||
12 |
205 |
29.98 |
37.49 |
||
13 |
182 |
30.06 |
31.32 |
||
14 |
218 |
28.94 |
38.67 |
||
15 |
231 |
29.76 |
34.82 |
||
16 |
212 |
27.94 |
42.27 |
||
17 |
222 |
30.75 |
40.03 |
||
18 |
150 |
28.96 |
30.02 |
||
19 |
183 |
30.96 |
34.3 |
||
20 |
158 |
29.03 |
29.89 |
||
21 |
199 |
30.83 |
35.27 |
||
22 |
196 |
30.6 |
33.55 |
||
23 |
234 |
29.98 |
40.03 |
||
24 |
171 |
29.27 |
29.91 |
||
25 |
171 |
31.42 |
33.69 |
||
26 |
170 |
29.24 |
31.51 |
||
27 |
210 |
27.61 |
30.6 |
||
28 |
184 |
30.64 |
34.36 |
||
29 |
223 |
29.97 |
37.59 |
||
30 |
177 |
31.87 |
31.78 |
||
31 |
168 |
30.06 |
27.47 |
||
32 |
192 |
28.83 |
40.64 |
||
33 |
201 |
30.91 |
36.2 |
||
34 |
207 |
29.84 |
38.05 |
||
35 |
241 |
29.94 |
39.55 |
||
36 |
216 |
30.67 |
35.38 |
||
37 |
193 |
31.03 |
40.42 |
||
38 |
187 |
28.45 |
37.29 |
||
39 |
194 |
30.02 |
29.68 |
||
40 |
212 |
30.85 |
40.61 |
||
41 |
141 |
30.46 |
28.23 |
||
42 |
217 |
28.85 |
36.87 |
||
43 |
194 |
29.34 |
36.59 |
||
44 |
182 |
30.1 |
29.56 |
||
45 |
225 |
28.88 |
36.26 |
||
46 |
214 |
30.2 |
34.29 |
||
47 |
198 |
28.56 |
41.7 |
||
48 |
183 |
29.51 |
30.92 |
||
49 |
206 |
29.86 |
31.22 |
||
50 |
198 |
30.83 |
32.39 |
3. Columns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C.
Unit of product | (1) Marginal utility, A | (2) Marginal utility, B | (3) Marginal utility, C |
First | 18 | 39 | 12 |
Second | 16 | 36 | 10 |
Third | 14 | 33 | 9 |
Fourth | 12 | 30 | 8 |
Fifth | 10 | 27 | 7 |
Sixth | 8 | 24 | 5 |
Seventh | 6 | 21 | 3 |
If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?