Suppose we draw 4 cards from a pack of 52 cards. What is the probability of getting exactly 3 aces?
The Random Experiment follows hypergeometric distribution with, N = 52 since there are 52 cards in a deck. k = 4 since there are 4 aces in a deck. n = 4 since we randomly select 4 cards from the deck. x = 3 since we want 3 aces. h(x; N, n, k) = [k Cx ] [N-k Cn-x ] / [N Cn ] h(3; 52, 4, 4) = [4 C3 ] [48 C1 ] / [52 C4 ] h(3; 52, 4, 4) = 0.0007.
For Cobb-Douglas production function the elasticity of substitution is
If the total revenue from sales of X is given by the equation R=100Q-2Q^2. What is the point elasticity of demand when MR=20
The Phillips curve shows the trade-off between ----- and -----?
Consider an economy described by the following equations:
C = 100 + 0.6 ∗ (Y − T) (consumption function)
I = 200 − 1000 ∗ r (investment function)
G = T = 100 (government purchase and tax)
where Y is the national income and r is the interest rate. Derive the IS curve.
For the following MA (3) process y t = μ + Ε t + θ 1 Ε t -1 + θ 2 Ε t -2 + θ 3 Ε t -3 , where σ t is a zero mean white noise process with variance σ 2