Mathematical Influence Models
Not what you're looking for?
A simplified model of the national economy can be described as follows. The national income is the sum of consumption, investment, and government spending. Consumption is related to the total income of all individuals and the taxes they pay on income. Taxes are related to income by the tax rate. Investment is also related to the size of income.
- Draw in influence diagram recognizing that the phrase "A is related to B" implies that A influences B in the Model
- Assuming that "A is related to B" can be translated into mathematical terms as A= kB, where is k is some constant. Come up with a mathematical model for the information provided.
Purchase this Solution
Solution Summary
The expert draws an influence diagram recognizing phrase.
Solution Preview
Please refer to the attached file for the response.
Given information:
A simplified model of the national economy can be described as follows. The national income is the sum of consumption, investment and government spending. Consumption is related to the total income of all individuals and the taxes they pay on income. Taxes are related to income by the tax rate. Investment is also related to the size of income.
MODEL REPRESENTATION:
NY = C + I + G
Where:
NY = national income
C = consumption expenditure
I = Investment
G = government enxpenditure
C = b (Y - aY)
Where:
b = constant ( consumption rate)
a = tax rate
T = ...
Education
- Bachelor of Science in Business Administration, University of the Philippines
- Master in Business Administration, Saint Mary's University
- Doctor of Philosophy in Education, University of the Philippines
- Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
Recent Feedback
- "Excellent information thanks for the input"
- "Thank you"
- "Very thorough and informative. Thank you."
- "Good response. Very detailed"
- "This solution is excellent. Thank you"
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.