Bonus Question (5 points) An economist wants to analyze the impact of self-driving taxi services on the demand for Uber and Lyft. To do so, the economist applies (1) __________ (a. linear regression, b. discrete choice model, c. supervised learning) to measure the marginal effect of self-driving taxi demand on Uber and Lyft. Here, Uber and Lyft’s demand is treated as a continuous dependent variable. Next, the economist seeks to estimate potential consumers’ willingness to pay for self-driving taxi services with personalized music options (e.g., allowing consumers to listen to their preferred songs while riding an AI-powered taxi). To measure willingness to pay, the economist surveys respondents, asking whether they would be willing to pay $2 per mile for a self-driving taxi. Each respondent can answer “Yes (=1)” or “No (=0)”, making this a discrete dependent variable in the willingness-to-pay estimation. Based on the survey results, the economist applies (2) ___________ (a. linear regression, b. logistic regression, c. supervised learning) to estimate consumers’ willingness to pay. This approach, known as the contingent valuation method (CVM), is commonly used to estimate willingness to pay for non-market goods (e.g., clean air) and newly introduced products. The methods used in (1) and (2) rely on (3) _________________ (a. in-sample prediction for interpretation, b. out-of-sample prediction for prediction). Now, the economist aims to forecast the demand for self-driving taxis, Uber, and Lyft in 2026. To predict continuous demand variables for 2026, the economist can use (4) ___________________ (a. linear regression, b. logistic regression, c. supervised learning) for (5) _______________________ (a. in-sample prediction for interpretation, b. out-of-sample prediction for prediction). In sum, (1) is for market and firm-level analysis. (2) is for pricing strategies and consumer welfare analysis. (3) is for forecasting market trends. By applying these methods, the economist can gain insights into consumer behavior, firm strategies, and market dynamics, leading to more informed, data-driven decisions regarding price, product, placement, and promotion (i.e., the 4Ps in marketing).

Note: Please clearly label your answers submission sheet by section (Parts 1-4) and question number so it is straightforward to grade.  Part 4:   True/False/Uncertain with explanation (30 points, 5 each) In this section, answer whether the statement is True, False or Uncertain and explain why. Note: assume that any statements written in italics are true, these are just setting up relevant scenarios. You must explain your answer. Explanation determines the grade!!   Imagine the economy is at potential Y*. With contractionary monetary policy (decreasing M), the Fed can permanently reduce the price level, by accepting a temporary recession (Y

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A researcher wants to know if the number of practice quizzes that a student completes has any impact on their exam grade and sets up an experiment to learn more. Write a null hypothesis for the researcher.

____________ is when children play with similar toys but have no interaction.                

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What is the term for ear wax?

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