A researcher is investigating whether two weeks of caring fo…
A researcher is investigating whether two weeks of caring for a foster dog can alleviate symptoms of depression. He uses a coin flip to randomly assign 20 of the 40 subjects with depression to the treatment group who will care for a foster dog. The other 20 subjects are instructed to rest for 30 minutes each day throughout the treatment period. After two weeks, he administers a survey to assess their depression symptoms. Which of the following key principle or method of experimental design is missing?
Read DetailsA drug company is considering investing $100 million today t…
A drug company is considering investing $100 million today to bring a weight loss pill to the market. At the end of one year, the firm will know the payoff: there is a 0.50 probability that the pill will sell at a high price and generate $30 million per year of profit forever and a 0.50 probability that the pill will sell at a low price and generate $1 million per year of profit forever. The interest rate is 10%. What is the expected net present value of this investment?
Read DetailsIn a Cournot market with two firms, the inverse market deman…
In a Cournot market with two firms, the inverse market demand curve is P = 50 – 2Q, where Q = q1 + q2 (Firm 1’s output = q1; Firm 2’s output = q2). If Firm 2 produces 15 units of output, what is Firm 1’s residual demand curve?
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