ECON 207 Fall 2014
Assigned homework is due at 17:30pm on 5 December 2014. Scripts submitted
after the deadline will receive a zero mark. This homeworks contribution to
the nal grade is 5 percent.
1. (10pts) Prove that the CES utility function
ECON 207-2 Fall 2014
30 September 2014
A consumer has rational, strongly monotonic, and continuous preferences dened over tea
and cake. The following utility function represents the consumer preferences for tea (t)
and cake (c):
u(t; c) = 2t + 3c
CLASS EXAMPLES IV
Goodness of Fit
Suppose that we wish to test the hypothesis that a die is perfectly balanced (fair). For this
purpose the die is tossed 150 times, and the results of the tosses are recorded.
Mag? 5 umﬁﬁﬂ A?
.4; :a dc Ab ¢d questions. To get full credit, you must show your work. Solutions must also «
is 90 minutes. GOOD LUCK!
intermediate results. The total points are 100. Duration of the exam
1. (30pts) Consider a. co