2)
A. I added another column in the excel sheet that reported the profits (revenues minus
expenses) and imported it into GRETL. Using the Ordinary Least Squares Model with a dependent
variable of salary and independent variable of profits, I received the
1.
1. Absolute Latitude:
2.
3.
4.
5.
6.
7.
8.
9.
10.
Positive- The closer to the equator (the lower the absolute value of degrees from the equator), the
lower the GDP per capita. This could be due to the fact that hot weather is terrible for growing
agric
A. Augmented Dickey-Fuller test generated from GRETL of ln(M):
Augmented Dickey-Fuller test for l_P
including 15 lags of (1-L)l_P (max was 19)
sample size 617
unit-root null hypothesis: a = 1
test without constant
model: (1-L)y = (a-1)*y(-1) + . + e
1st-o
ECONOMICS 122 GAME THEORY
Professor Giacomo Bonanno
~
PROBLEM SET # 1 ANSWERS
(1) (a) The normal form is as follows:
(1) LOWEST PRICE AUCTION
Value
Player 1
36
Player 2
32
Player 3
38
25
Player 1 35
45
BIDS
25
35
45
Player 2
35
25
11
11
11
0
0
0
0
0
0
0
1