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Old econ practice exam

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Please answer each question with detailed solutions and prefferably send back solutions in a text based format. also please attend to this problem set as soon as possible

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Please refer to the attachment.
<br>1. D. Aggregate demand tells the quantity of goods and services demanded in an economy at a given price level. In effect, the aggregate demand curve is a just like any other demand curve, but for the sum total of all goods and services in an economy. It tells the total amount that all consumers, businesses, and the government are willing to spend on goods and services at different price levels.
<br>2. A. Canadian price lower, people in foreign country are more willing to buy Canadian products, then exports increases; Canadian people are not willing to buy foreign products, then imports decreases
<br>3. C. because aggregate demand = Aggregate Expenditure and AE = C + I + G + EX - IM, more Import, less AE, both curves shifts backwards.
<br>4. B. just like any ordinary supply curve, which is upward sloping: the lower price, the less amount of output produced
<br>5. D. Aggregate supply represents the total supply of goods and services in an economy.
<br>6. B. higher productivity means more output at the initial price/cost level. So the aggregate supply shift ...

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Hypothesis Testing: Statistical Techniques in Business and Economics

Please solve these four problems:

1) The manufacturer of the X-15 steel-belted radial truck tire claims that the mean mileage the tire can be driven before the tread wears out is 60,000 miles. The standard deviation of the mileage is 5,000 miles. The Crosset Truck Company bought 48 tires and found that the mean mileage for their trucks is 59,500 miles. Is Crosset's experience different from that claimed by the manufacturer at the .05 significance level?

2) The management of White Industries is considering a new method of assembling its golf cart. The present method requires 42.3 minutes, on the average, to assemble a cart. The mean using the new method, was 40.6 minutes, and the standard deviation of the sample was 2.7 minutes. Using the .10 level of significance, can we conclude that the assembly time using the new method is faster?

3) Experience raising New Jersey Red chickens revealed the mean weight of the chickens at five months is 4.35 pounds. The weights follow the normal distribution. In an effort to increase their weight, a special additive is added to the chicken feed. The subsequent weights of a sample of five-month-old chickens were (in pounds):


At the .01 level, has the special additive increased the mean weight of the chickens? Estimate the p-value.

4) A recent article in the Wall Street Journal reported that the 30-year mortgage rate is now less than 6 percent. A sample of eight small banks in the Midwest revealed the following 30-year rates (in percent):

At the .01 significance level, can we conclude that the 30-year mortgage rate for small banks is less than 6 percent? Estimate the p-value.

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