Balance of Payments Accounting
1. How do the current account, capital account, and financial account fit together?
Current account = net unilateral transfers+net invest income+ exports-imports of goods
and services
o financial Account = National Saving I
Data, Models and Decisions (2013 IMBA FDMS)
Homework Assignment VIII
2013-12-03
E1. Mathew is faced with a decision: which monthly cell phone plan to
subscribe to. Mathew has selected two plans, one from Cellular World
and one from Freedom Cell, but each
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment VIII
2013-12
E1.
Let T be the time usage of Mathews cell for a given month and L be fraction of
long distance call. Let X C be the fee of using Cellular Worlds plan and X F be the
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment V
2013-11
4.18
(c) Now x 15.5 , s = 6.7 (we use the sample standard deviation from (b) as a
surrogate) and l = 1. = 99% results in c = 2.576. Thus,
c 2 s 2 2.576 6.7
n 2
297.88
Data, Models and Decisions (2013 IMBA FDMS)
Homework Assignment VI
2013-11-05
Solve the problems in the POSIDON, INC case module on page
184 of the textbook.
[Remark]: You only need to answer the questions, rather than prepare a case write-up.
The Excel f
Data, Models and Decisions (2013 IMBA FDMS)
Reference Solution to Croq'Pain case
2013.12.
The Current Difficulties and Issues on Location Choice
CroqPain wants to grow fast, i.e., quickly expands its number of stores. However, the
current practice for cho
Data, Models and Decisions (2013.9. IMBA FDMS)
Reference Solution to AOG case
2013.9.
Some Explanations
A critical component of the cost analysis is the internal AOG cost itself, that is, the
cost of keeping the aircraft CML 19 out of service for its regu
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment IV
2013-10
4.1
(a) Since the sample size n = 100 is quite large, X s distribution can be approximated
by a normal distribution. The mean equals to 37,907 and the standard deviatio
Data, Models and Decisions (2013 IMBA FDMS)
Homework Assignment II
2013-10-08
Finish the following two exercises.
E1. Customers at a fast-food restaurant buy both sandwiches and drinks.
The following joint distribution summarizes the number of sandwiches
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment II
2013-10
E1.
(a) Based on the joint probability distribution of (X, Y), we obtain that
P( X 1) P( X 1, Y 1) P( X 1, Y 2) P( X 1, Y 3) 0.4 0.1 0 0.5
P( X 2) P( X 2, Y 1) P( X 2,
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment VI
2013-11
POSIDON, INC. Case Module
(a) The histogram (for frequency ) of the family income sample data is given by
We can find that the shape is roughly bell-shaped.
(b) The sam
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment III
2013-10
3.7
(a) Let X 1 , X 2 and X 3 denote the weight of the three tomatoes in package,
respectively. Then each X i ~ N (4.2,1.0) and are independent of each other. The
tota
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment I
2013-10
2.3
(a) Define the event A = cfw_this student has at least 4 years of work experience,
Ai =cfw_this student has i years of work experience, i = 2, 3, 4 and 5.
P( A) P( A
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment VII
2013-11
6.1
(a) We first introduce some notation. Let Y be the price ($1,000), x1 be the area
(square feet), x 2 be the neighborhood rating and x3 be the general condition.
Th
b2349 The Making of an Economic Superpower
Chapter 1
Introduction
Chinas sudden emergence as an economic superpower has astonished the world. Even as recently as 15 years ago (say, around the
1997 Asian financial crisis), few would have predicted Chinas
d
Mini Case discussion-VW invasion of north America
When Volkswagon entered the US market with their basic no-frills automobile, the Beetle, VW was
experiencing little success in Europe. Excess inventory had stockpiled at ports and road terminals
awaiting e
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment IX
2013-12
7.1
(a) The graph of the linear optimization model is given as follows.
The optimal solution is given by M = 6 and C = 3, which is identical to the answer
given by the
Managerial Economics
Homework for Market Power
Sungjun Hong
1. Suppose that a competitive firms marginal cost of producing output q is
given by MC(q) = 3 + 2q. Assume that the market price of the firms product
is $9.
a. What level of output will the firm
Data, Models and Decisions (2013 IMBA FDMS)
Homework Assignment V
203-10-29
Finish the following exercise in the textbook:
4.18 (c), (e).
Finish the following exercise:
E1. A production line operates with a mean filling weight of 16 ounces
per container.
EC 441
International Finance
February 17, 2014
Class 11
Exam Information
2
Exam Location
3
Seating in Exam Room
4
What to Know
5
Extended Office Hours
6
Sample Exam Q1
7
Sample Exam Q1
8
Sample Exam Q2
The Belassa-Samuelson hypothesis is a possible explan
EC 441 notes
Class 1
Spending, income, assets, liablilities
o Et = spending (expenditure) during period t
o Yt = income during period t
o At = assets at the end of period t
o Lt = Liabilities at the end of period
Spending, income, net liabilities
o
o V
Sample Questions for Logarithms
1.
2.
3.
4.
5.
6.
7.
8.
Suppose that = ( ). Sketch this function.
What is the value of (1)?
What is the slope of this function when = 1?
Without using a calculator, what is the approximate value of (1.032)? Is this approxim
International Finance
Spring 2014
EC 441
Section 1
116 Natural Sciences
M, W 8:30 AM 9:50 AM
DESCRIPTION
The content of this course deals with the issues and problems that emerge due to international flows of currencies,
stocks, bonds, and other financial
Balance of Payments Accounting
1. How do the current account, capital account, and financial account fit together?
Current account = net unilateral transfers+net invest income+ exports-imports of goods
and services
o financial Account = National Saving I
Sample Questions for Balance of Payments Accounting
Note: Since abandoning the text book, we will use the correct terminology with respect to balance of
payments accounting. In particular, we will refer to changes in American holdings of foreign assets an
Sample Questions for FX Market
1.
For each of the following currency pairs, what is the base currency and what is the counter
currency? (The counter currency also being known as the quote currency or the target
currency.): USD/GBP; USD/MXN; CAD/USD; CHF/U
EC 441
International Finance
February 10, 2014
Class 09
Important Exam Info
Practice Exam
The Short Run
Contrast the effect of increased money supply
in short run and long run:
Increased money supply causes proportional
increase in price level in long run
1.
What does it mean for a currency to be overvalued or undervalued relative to PPP?
2.
Suppose that there are two currencies (Korean won and Thai baht). Assume that the nominal
exchange rate is 70 won per baht, that the price of a basket of Korean goods
EC 441
International Finance
January 06 08, 2014
Class 01
Introductions
Professor Steven Matusz
Office hours: 1:00 2:00 PM (M, W) and 8:30
9:30 AM (Tu), 220B Marshall-Adams Hall
(northwest corner of 2nd floor)
Mr. Jaemin Baik
Office hours: TBD, 5I Berkey
EC 441
International Finance
January 27, 2014
Class 06
Roadmap
Foundation of short run model of exchange rate
behavior (Today and some of Monday)
Combine short run, PPP, and money market to
form a complete long-run model of exchange
rate (next week)
Provi
Data, Models and Decisions (2013 IMBA FDMS)
Solution to homework assignment X
2013-12
7.11
(a) We will first calculate the total costs involved of production and transportation.
The total cost is the sum of unit cost of production at plant and the unit co