This topic contains a solution. Click here to go to the answer

Author Question: An R2 close to 1 A) does not happen with real data. B) indicates that almost all of the ... (Read 36 times)

ap345

  • Hero Member
  • *****
  • Posts: 537
An R2 close to 1
 
  A) does not happen with real data.
  B) indicates that almost all of the variation in the dependent variable is explained by the regression.
  C) does not explain variation as well as an R2 that is above 2.
  D) means that the regression line does not fit the data very well.

Question 2

Joseph has the utility function U(F,H) = 10F2H, where F is the quantity of food he consumes per year and H is the quantity of housing per week. Suppose the price of food is 10 and the price of housing is 5, while Joseph has an income of 150/week.
 
  a. Calculate Joseph's MRS as a function of the quantities F and H.
  b. Write out Joseph's constrained optimization problem with the information provide
  d.
  c. Using the substitution method, solve for Joseph's optimal consumption bundle of food and housing.
  d. Show that at the optimum, Joseph consumes the bundle along the budget constraint where MRS = MRT.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

covalentbond

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

B

Answer to Question 2

a. MRS = -2  10FH/10F2 = -2H/F.
b. max 10F2H subject to 10F + 5H = 150
c. Solve the BC for F = 15 - .5H. Substitute this function of F into the utility function to get the unconstrained maximization problem:
max 10(15-.5H)2H
The derivative is
10(15 - .5H)2 + 10  2(15 - .5H)(-.5)H = 0
Solving for H = 10. Plug H = 10 into the BC to get F = 10.
d. The MRS = -2H/F. At the optimal bundle from (c), MRS = -2. The MRT = -10/5 = -2. Hence the slope of the BC equals the slope of the IC at the optimal bundle.




ap345

  • Member
  • Posts: 537
Reply 2 on: Jul 1, 2018
:D TYSM


Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

For a complete list of videos, visit our video library