ECON 402 Summer 2006 Assignment 2 - KEY 1. Suppose B = 100, py = 1 and px falls from 1 to 0.25. If 1 u = 2x x2 + y 2 Compute CV and EV. What do you notice? Why does this happen? Answer: First nd x and y M Ux M Uy M RS x y = = = = 2x 1 M Ux /M Uy = 2 x = p
Consider a population consisting of n objects. If we take a sample of size m
from this population (without replacement), then there are nCm (read
"n Choose m") possible samples we can take. Now, suppose k of the people in
the population have a sickness.