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Exam2_Revu_KEY - PGE 310 FALL 2005 Exam 2 Review Problems 1...

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PGE 310 FALL 2005 Exam 2 Review Problems 1) Estimate within a 90% confidence interval the number of oil and gas platforms in the Gulf of Mexico. There are 4000 platforms, more or less, including the ones still not found after the recent hurricanes. 2) ExxonMobil predicts that demand for oil will increase steadily over the next 10 years, even if cars with higher fuel efficiency become widespread in the USA and Europe. This because car ownership in Asia is expected to increase rapidly as the average household income in several countries in that region rises past the $5000/ yr threshold. Is the predicted increase in oil demand data driven or model driven ? Model driven. The explanation for the increased oil demand is not just an extrapolation of trends. Rather, there is a specific cause-and-effect postulated, namely that people start to buy cars when their income rises to a certain level, and that this is going to cause an overall increase in demand for personal transportation (automobiles).
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  • Spring '06
  • Klaus
  • Household income in the United States, average household income, higher fuel efficiency, won-lost record, oil demand data, ) End Sub

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