Welcome to pmba0608 economics statistics foundation
This presentation is the property of its rightful owner.
Sponsored Links
1 / 25

Welcome to PMBA0608: Economics/Statistics Foundation PowerPoint PPT Presentation


  • 50 Views
  • Uploaded on
  • Presentation posted in: General

Welcome to PMBA0608: Economics/Statistics Foundation. Fall 2006 Session12: November 29 Southern Campus 19:30-21:00. Discuss Assignment 6: # 1, Page 526 of Econ. A family buys a new refrigerator durable consumption added to C

Download Presentation

Welcome to PMBA0608: Economics/Statistics Foundation

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Welcome to pmba0608 economics statistics foundation

Welcome toPMBA0608: Economics/Statistics Foundation

Fall 2006

Session12: November 29

Southern Campus

19:30-21:00


Discuss assignment 6 1 page 526 of econ

Discuss Assignment 6: # 1, Page 526 of Econ.

  • A family buys a new refrigerator durable consumption added to C

  • Aunt Jane buys a new house fixed investment (If)  added to I

  • Selling car from inventory has two effects

    1. negative change in inventories = negative inventory investment (Ii) subtracted from I

    2. Added to C or I or X or G

    • 1 and 2 Cancel each other

    • Net effect zero. Is that ok ?

    • Note the value of car was accounted for when it was added to inventories


1 page 526 of econ

# 1, Page 526 of Econ.

d. You buy Pizza  none durable consumption added to C

e. California repaves highway government purchases added to G

f. Your parents buying French wine has two effects

1. Addition to C

2. Addition to Imports M goes up  net exports go down

  • 1 and 2 Cancel each other.

  • Is that ok?

    g. Honda expands its factory in Ohio  If  added to I


4 page 526 of econ

#4, Page 526 of Econ.

Part (a)

NGDP2005= ΣPi, 05 Qi, 05= $200

NGDP2006= ΣPi, 06 Qi, 06= $400

NGDP2007= ΣPi, 07 Qi, 07= $800


4 page 526 of econ1

#4, Page 526 of Econ.

Part (a)

RGDP2005= ΣPi, 05 Qi, 05 =$200

RGDP2006= ΣPi, 05 Qi, 06 =$400

RGDP2007= ΣPi, 05 Qi, 07 =$400


4 page 526 of econ2

#4, Page 526 of Econ.

Part (a)

GDP deflator05 = (NGDP05/ RGDP05) X 100= (200/200) X 100 = 100

GDP deflator06 = (NGDP06/ RGDP06) X 100= (400/400) X 100 = 100

GDP deflator07 = (NGDP07/ RGDP07) X 100= (800/400) X 100 = 200


4 page 526 of econ3

#4, Page 526 of Econ.

Part (b)

Note:

Percentage change =

[(This year’s figure – last year’s figure)/last year’s figure] *100


4 page 526 of econ4

#4, Page 526 of Econ.


4 page 526 of econ5

#4, Page 526 of Econ.

  • When prices don’t change (2006), RGDP goes up by as much as NGDP does

  • When prices go up as much as NGDP does (2007) , RGDP does not change

  • Part (c)

    • Economic well being is more closely associated with RGDP than NGDP

    • In 2007, economic well being did not rise


5 page 526 of econ

#5, Page 526 of Econ.


5 page 526 of econ1

#5, Page 526 of Econ.

f. NGDP grew more than RGDP because prices went up.


Welcome to pmba0608 economics statistics foundation

Note

  • What increases RGDP?

    • Increase in Q

    • %ΔRGDP = %ΔQ

  • What increases NGDP?

    • Increase in P and increase in Q

    • %ΔNGDP = %ΔQ + %ΔP

  • Or

    • %ΔNGDP = %ΔRGDP + %ΔP


10 page 527 of econ

#10, Page 527 of Econ.

  • Relatively speaking, India probably has more household production than USA. So the gap between the true per capita RGDPs (the one that includes household production) of US and India may not be as high as indicated in this table


To prepare yourself for exam 2

To prepare yourself for Exam 2

  • Study Chapters 5, 6 and 23 of your Econ book and answer the end of the chapter questions.

  • Study Section 3.4 though Section 4.2 of your Stat book (pages 102-143) and answer the end of the section questions.

    • The formulas will not be given to you

    • The binomial table will be given to you

  • Review your notes and the Power Point Slides covering Sections 7 through 12.

  • Review Assignments 3 though 6.


Exam 2 consists of

Exam 2 consists of

  • Econ multiple choice questions

  • Econ problems

  • Econ essays

  • Stat short problems/questions

  • Stat longer (more involved) problems


Let s do some sample stat questions

Let’s do some sample Stat questions

  • Question 3.21, Page 111 of Stat

  • P (U) = P (use internet)=0.4

  • P (NU) = P (not use internet) =0.36

  • P (DN) = P (don’t know)=.24

  • P(U) = 0.4

  • Let’s modify it to: What is the lowest probability that only …


Let s do a picture for part b you are selecting two individuals

Let’s do a picture for part bYou are selecting two individuals

P (U) = 0.4

P(U)= 0.4

P (NU) = 0.36

P (DN) = 0.24

P (NU) = 0.36

P (U) = 0.4

P (NU) = 0.36

P (DN) = 0.24

P (DN) = 0.24


Part b

Part (b)

  • There are two ways to select one person who uses internet and one that doesn't

  • What is the probability of the first person using the internet and the second person not using internet?

    • O.4 X 0.36 = 0.144

  • What is the probability of the first person not using the internet and the first person does?

    • 0.36 X 0.4 = 0.144

  • The lowest probability that only one will use internet = 0.144+0.144=0.288


3 23 page 111 of stat

3.23, page 111 of stat

  • Two devices to activate the sprinkler

  • The sprinkler will be activated by device A or device B or both

  • Reliability of A is 0.91

  • Reliability of B is 0.95

  • P (sprinkler being activated)=?

  • P (sprinkler being activated)= P (A or B or both work)


Note you don t want to double count the case that both devices will work

Note: You don’t want to double count the case that both devices will work

P (AUB) = union = Probability of A or B or both

P (AUB) = P (A) + P (B) – P (AB)

P (AUB) = 0.91 + 0.95 – (0.91 X 0.95) = 0.9955


Let s do 3 35 page 123

Let’s do 3.35, Page 123

  • 61% like term limit

  • We select three individuals


Part a

Part a

  • What is P( none likes term limit)?

    • 0.39 X 0.39 X 0.39 =0.0593

  • What is P (one likes term limit)?

    • (0.39 X 0.39 X 0.61) + (0.39 X 0.61 X 0.39) + (0.61 X 0.39 X 0.39) =0.2783

  • What is P (two likes term limit)?

    • (0.39 X 0.61 X 0.61) + (0.61 X 0.39 X 0.61) + (0.61 X 0.61 X 0.39) = 0.4354

  • What is P (all like term limit)?

    • 0.61 X 0.61 X 0.61 = 0.2270


Note sum of probabilities 1 why

Note: Sum of probabilities = 1, why?

P (x)

0.5

0.4

0.3

0.2

0.1

0

1

2

3

x


Part c

Part c

  • P (x≥ 2) = P (2) + P (3)= 0.4354 +0.2270= 0.6624

  • Part d

    • E(x) = μ = Σx * P (x)

    • E(x) = 0.2783 + (2 * 0.4354) + (3 * 0.2270)= 1.83

    • Variance

    • σ2= Σ (x – μ)2 P (x)

    • σ2= (– 1.83)2 * 0.0593 +(1- 1.83)2 * 0.2783 + (2- 1.83)2 * 0.4354 + (3- 1.83)2 * 0.2270 = 0.714

    • Standard deviation = square root of variance= 0.845


As you review for exam

As you review for exam

  • Send me your problems/questions

  • See you Saturday at 9:00 a.m.

  • Good Luck


  • Login