AGEC 317
Test 2
Fall 2011
Capps
Name: _Key_
UIN: _
Class time (Please Circle): 11:10am-12:25pm.
or
12:45pm-2:00pm
Instructions:
1. Please provide your name and UIN.
2. Circle the correct class time.
3. To get full credit on answers to this exam, be clear,
Fall 2010
AGEC 317
Final Exam
Capps
Instructions:
1. Please provide your name and UIN.
2. Circle the correct date and class time.
3. To get full credit on answers on this exam, be clear, rigorous, and thorough in your
responses.
4. You cannot get credit (
AGEC 317
Fall 2010
Capps
Test 1
Instructions:
1. Please provide your name and UIN.
2. Circle the correct class time.
3. To get full credit on answers for this exam, be clear, rigorous, and thorough in
your responses.
4. You cannot get credit (full or part
Sample Questions Agricultural Management
1. Most farmers are more likely to accept a risk if:
a. Only a small possible loss is involved
b. They have a high debt to asset ratio
c. They have high fixed cash flow obligations
d. They are primarily concerned w
Review Questions #5
1. Consider the following sample of observations for the ages of customers in a local hair
salon: cfw_32, 8, 40, 36, 36, 28. Calculate these measures.
(a) number of observations; (b) mean; (c) median;(d) mode; (e) range.
(a) 6; (b) 30;
AGEC 317
Economic Analysis for
Agribusiness and
Management
About Your Instructor
Dr. Yu Yvette Zhang
Office:
340 AGLS
Phone:
979-845-2136
E-mail:
[email protected]
Office hours: TR 2:30 to 4:30 p.m.
or by appointment
About Your Instructor, (cont)
Ph.D., Eco
Elasticity
1
Elasticity
Concept: a measure of responsiveness or
sensitivity
Elasticity analysis helps answer questions such
as:
Can Microsoft increase revenue if it increases the
price of any of its software products?
How do oil prices change if OPEC
Demand Analysis
and Market
Equilibrium
Key Concepts
Demand
Supply
Market equilibrium
Demand
Quantity demanded - the amount of a
good that consumers are willing and able
to to buy at a given price, holding constant
the other factors that influence purch
Compounding and Discounting Value
1. Put the concepts of future value and present value into your own words. How would you
explain these concepts to someone hearing about them for the first time?
The purpose of this question is to get students to think ab
éoumms
HOMEWORK 1
This assignment is due at the beginning of lecture on Thursday, February 4. Write your name and UIN on at
least the first page. You may use any materials, including the textbook, lecture notes, and the Internet, to help
you complete this
AGEC 317
Introductory Calculus:
Marginal Analysis
Readings
Review of fundamental algebra concepts
(Consult any math textbook)
Chapter 2, pp. 23-44, Managerial
Economics
Topics
Derivatives
Linear functions
Nonlinear functions
Graphical analysis
Slope
Inter
Risk
Analysis
1
Readings
Hirschey, Chapter 16
Lecture notes
2
3
Importance of Risk
Management
Risk management by public officials and
business leaders helped bring quick
economic recovery.
To make effective investment decisions,
managers must understand t
AGEC317
1.
Homework 2 (100pts)
Mimis is a chain of gourmet restaurants. The company has a limited amount of capital for
expansion and must carefully weigh available alternatives. Currently, the company is
considering opening restaurants in Las Vegas or Da
Homework 2 Solution
1.
(a)
EV ( D ) 0.3 100, 000 0.7(300, 000) 240, 000
EV ( LV ) 0.6(60, 000) 0.4(1, 000, 000) 436, 000
Choose Las Vegas on the basis of the expected value of profit
(b)
Var ( D ) 2 D 0.3 100,000 240,000 0.7(300,000 240,000)2
2
= square
AGEC317
Homework 1 (100pts)
1.
Management of McPablos Food Shops has completed a study of weekly demand for its oldfashioned tacos in 53 regional markets. The study revealed that
Q = 400 -1,200P + 0.8A+ 55Pop + 800P0 ,
where Q is the number of tacos sold
Review Questions #2 (0.5pt)
The demand for the Coca-Cola product Dasani (bottled water) is given as:
0.4
0.5
0.6 0.3
QD .75 PD 0.7 PAQF
PPL
PTEA
I A 0.1
where Q denotes the quantity of Coca-Cola Dasani sold, PD denotes the price of
Dasani, PAQF denotes t
Review Questions #1 (0.5pt)
1. By Law of Demand, an increase in own price leads to a
in quantity demanded.
decrease
2. Suppose that the demand curve for rice is given by Qd=200-8p.
(a) Derive the inverse demand function. p = 25 Qd/8
(b) Now suppose the su
Multiple
Regression
Analysis:
Inference
Assumptions of the Classical
Linear Model (CLM)
Given the Gauss-Markov assumptions, OLS is BLUE.
Beyond the Gauss-Markov assumptions, we need
another assumption to conduct tests of hypotheses
(inference).
Assume tha
Forecasting
Predictions or Forecasting with:
-Multiple Regression
-Confidence Interval for Prediction
-Trend Analysis and Projections
-Seasonal Models
-Smoothing Techniques
Forecasting with Multiple
Confidence intervals for prediction.
Regression
y = b +
Multiple Regression Analysis:
Estimation
Multiple Regression Model
y = 0 + 1x1 + 2x2 + + kxk + u
- is still the intercept
0
- to all called slope parameters
1
k
-u is still the error term (or disturbance term)
-Zero mean assumption
E(u) = 0
-Still minimiz
Risks of Management
Production and Technical Risk
1. Technical Risk
i. Examples of technical risk;
1. Will the technology perform as expected
2. Has it been thoroughly tested
3. Does it cost more
4. If not adapted what will you be missing out
ii. Things t
Risks and Uncertainties in Farm Management
1.
List a least five sources of risk and uncertainty for farmers in your area. Classify them as
production, price, financial, legal, or personal risk. Which are the most important? Why?
Typical answers could incl
Measurements and Liquidity
Things used to compare Measures of Size:
1. Quantity of sales
1.i. Number of units of output sold over a period of time
2. Total or gross revenue
2.i. Total of all revenue received by a business over a period of time.
(same as g
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