Explain the attached quotation below

You may need to use the appropriate appendix table or technology to answer the question. Last year, 43:4 of business owners gave a holiday gift to their employees. A survey of business owners conducted thes plan to provide a holiday gift to their employees. Suppose the survey results are based on a sample of do business owners. (2) How many business owners in the survey plan to provide a holiday gift to their employees this year? * business owners (6) Suppose the business owners in the sample did as they plan. Compute the p-value for a hypothesis test that can be used to determine if the proportion of providing holiday gifts has decreased from last year. Find the value of the test statistic. (Round your answer to two decimal places,) Find the p-value. (Round your answer to four decimal places.) X (c)Using a 0.05 level of significance, would you conclude that the proportion of business owners providing gifts decreased? O Reject:. There is Insufficient evidence to conclude that the proportion of business owners providing holiday gifts has decreased from last year O Reject Me There is sufficient evidence to conclude that the proportion of business owners providing holiday gifts has decreased from last year, Q Do not reject N.. There is insufficient evidence to conclude that the proportion of business owners providing holiday gifts has decreased from last Year. O Do not reject H. There is sufficient evidence to conclude that the proportion of business owners providing holiday gifts has decreased from last roar What is the smallest level of significance for which you could draw such a conclusion? (Round your answer to four dodmal places.) Need Help? CanEconomics 302: Intermediate Microeconomics II Assignment 3 (Due in my office 3:00, Thursday March 10) 1. Consider two firms, 1 and 2, each producing an identical good simultaneously. This good has market demand given by the (inverse) demand function p = 10 - Y, where p is price, and Y = yi + 2 is market quantity. y, represents the amount produced by firm i. These firms have cost functions as follows: C, = cy, where c = c2 = 1. (60 pts) a) Solve algebraically for these firm's reaction functions, expressing each firm's optimal output level given some level of its competitor's output. b) Graph these reaction functions and show the equilibrium point. Include isoprofit contours through the equilibrium point for both firms. c) Solve algebraically for the equilibrium: Determine the equilibrium market price, as well as each firm's equilibrium quantity and profit. d) Is your answer to part c) the only equilibrium possible? Explain. 2. Take the same industry outlined in question 1 and imagine that firms choose prices rather than quantities. Consumers split themselves evenly across the firms if the firms set the same prices, otherwise all consumers shop at the lower-priced firm. Define a Nash equilibrium in prices pi and p2. Solve for the equilibrium and explain your work. (20 pts)CASE 2 - COST STRCTURE and PRICING: Sting Ray PoolVac, Inc. manufactures and sells a single product called the "Sting Ray," which is a patent-protected automatic cleaning device for swimming pools. PoolVac's Sting Ray faces its closest competitor, Howard Industries, also selling a competing pool cleaner. Using the last 26 quarters of production and cost data, PoolVac wishes to estimate its average variable costs using the following quadratic specification: AVC =a+bQ+cq'. The quarterly data on average variable cost (AVC), and the quantity of Sting Rays produced and sold each quarter (Q) are presented in the data file. PoolVac also wishes to use its sales data for the last 26 quarters to estimate demand for its Sting Ray. Demand for Sting Rays is specified to be a linear function as the following: 0) = d + eP + fM + gPw. in which its price (P), average income for households in the U.S. that have swimming pools (M), and the price of the competing pool cleaner sold by Howard Industries (P,). QUESTIONS 1. Run the appropriate regression to estimate the average variable cost function (AVC) for Sting Rays. Evaluate the statistical significance of the three estimated parameters using a significance level of 5 percent. Be sure to comment on the algebraic signs of the three parameter estimates. (30%) 2. Given your answer in 1, show the estimated total variable cost, average variable cost, and marginal cost functions (7VC, AVC, and MC) for PoolVac. (15%) 3. Apply dummy variables to construct the time-series quarterly sales estimation of Sting Ray (Hint: Q = A+8+Dy...). Please predict the quantity sold in the first quarter 2014. (10%) 4. Run the log-linear regression to estimate the demand function for Sting Rays. Evaluate the statistical significance of the three estimated coefficients of parameters by using a significance level of 5 percent. Discuss the elasticities (price elasticity of demand, income elasticity and cross-price elasticity) to define the characters of Sting Ray. (20%) 5. The manager at PoolVac, Inc. believes Howard Industries is going to price its automatic pool cleaner at $250, and average household income in the U.S. is expected to be $65,000. Please run a multiple linear regression then explore the inverse demand function (i.e. Price is dependent variable) and marginal revenue (MR) function (Hint: Half-way rule). (15%) 6. Given your MC function in question 2 and MR function in question 5, what is the profit-maximizing unit price PoolVac should charge for Sting Ray? (Hint: Solve the quadratic equation by quadratic formula (10%) -btob - 4ac1. Derive the AD and AS relations. Consider the following economy: c=C+C1(Y_T) I=b+b1Y_b2i Government spending is given by G. The real money supply is MVP, and real money demand is given by doY/i. Suppose the wage is set according to W=P'(1au+z). The production function in this economy is given by Y = N, where N is employment, and labor force is given by L. The price of goods is set according to P = (1 + m)W Note that ha, b1, 132, cu, c1, do, a, m,z are positive constants. (a) Derive the IS relation. (b) Derive the LM relation. (c) Combining your results in (a) and (b), derive the AD relation. Explain Why it is called the AD (aggregate demand) relation. (d) Derive the AS relation. Explain why it is called the AS (aggregate supply) relation. (e) Solve the output in the medium run1 i.e., potential output Yn. (f) How does a monetary expansion affect Yn? How does a scal consolidation a'ect 1'\"? Do your results t the predictions from the examples in our lecture