EBK PRINCIPLES OF MICROECONOMICS
12th Edition
ISBN: 9780134069180
Author: Oster
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 22, Problem 1.1P
(a)
To determine
Identify the selection bias in the study of heart disease and fast food.
(a)
Expert Solution
Explanation of Solution
In the study of 5,000 office workers in Chicago, they considered only two variables such as heart diseases and fast food. But, in reality there were many reasons behind the heart diseases of a person. For example, lack of exercise, or a poor healthy life style and so on. With these reasons, there is also a possibility of regularly dine on fast food. Therefore, eating fast food thrice or many times per week is not only the reason for heart disease. Therefore, selection bias occurs in this study.
Economics Concept Introduction
Selection bias: A selection bias occurs in a study, if the sample used in that study is not random.
(b)
To determine
Identify the selection bias in the study of senior assisted living facilities.
(b)
Expert Solution
Explanation of Solution
A survey of senior-assisted living facilities states that majority of residents are females. Because, on an average, female tend to outlive men. But, this is not in the case of old men citizens. They do not need much assistance as older women. But, the notable fact that there are several older women in the population than older men. Therefore, selection bias occurs in this study.
Economics Concept Introduction
Selection bias: A selection bias occurs in a study, if the sample used in that study is not random.
(c)
To determine
Identify the selection bias in the study of graduation from private and public universities.
(c)
Expert Solution
Explanation of Solution
This study of college students' graduation from private and public universities states that an education from private university will enhance students' earnings. Those who have selected private university have more earning potential than those who have selected public universities. Therefore, private university is more selective. In other words, those students who have greater earning potential would likely select private universities.
Economics Concept Introduction
Selection bias: A selection bias occurs in a study, if the sample used in that study is not random.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Prove that if the Walrasian demand function is generated by a rational preference relation, then it must satisfy the weak axiom. Is the converse true? If yes, prove it, or else give a counterexample?
Some economists maintain that the returns to additional years of education is actually quite small but that there is a substantial “sheepskin” effect whereby one receives a higher salary with the successful completion of degrees or the earning of diplomas (i.e., sheepskins).Explain how the sheepskin effect is analogous to a signaling model.
Lactose intolerance causes difficulty digesting dairy products that contain lactose (milk sugar). It is particularly common among people of African and Asian ancestry. In the United States, 82 % of the population is white, 14 % is black, and 4 % is Asian. Moreover, 15 % of whites, 70 % of blacks, and 90 % of Asians are lactose intolerant.. What percent of the entire population is lactose intolerant?
Chapter 22 Solutions
EBK PRINCIPLES OF MICROECONOMICS
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What Is Quantity Discount Analysis?arrow_forwardDiscuss the concept of stationarity. What is the difference between strong and weak stationarity? Give an example of a stationary process.arrow_forwardThere are 81 white seniors graduating from high school and 27 black seniors. a. All of the students with high school degrees apply to UW – Milwaukee. The admissions office looks at their records, and finds that 30% of black students drop out after the first year, compared to 15% of white students. If they have 85 openings, how many of each type of student should the admissions office hire to maximize their graduation rate? b. Suppose there is no difference in graduation rates between black and white students. However, the admissions office wants students who will get good grades. They don’t have access to grade histories of different students, but they can see that all 26 of the 27 black applicants went to high school in Milwaukee, whereas 70 of the 81 white applicants went to schools in the suburbs. The schools in the suburbs have very good academic ratings, whereas the schools in Milwaukee do not. If they have 85 openings, how many of each type of student should the admissions…arrow_forward
- Explain the relationship between selection bias and volunteers and explain its impacts on statistical analysisarrow_forwardFive friends attend a matinee movie and spend $8 per ticket. They also purchase a small bag of popcorn each. The friends spend a total of $62.50. Let x be the price of a sm popcornarrow_forwardIn an article on how exercise improves health, the New York Times reported on an observational study that found that each hour spent running added two hours to a person's life expectancy [Brody. 20061 A week later, a letter to the editor questioned whether the results really proved anything about the impact of exercise on health, and suggested that the study could just as well be showing that "those with a strong heart and good health are otherwise more likely to enjoy running and do it more regularly." How does this challenge to the exercise study relate to the problems faced by economists trying to &slims the causal effects of economic policy? How could you design an experimental study to estimate the impact of running on life expectancy?arrow_forward
- When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand. As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…arrow_forwardWhat is ability bias, example?arrow_forwardSuppose X = R k + for some k ≥ 2, and we define x = (x1 , …, xk ) ≥ = (y1 , …, yk ) if x ≥ y; that is, if for each i = 1, …, k, xi ≥ yi . (This is known as the Pareto ordering on R k + ; it plays an important role in the context of social choice theory in Chapter 8.) (a) Show that ≥ is transitive but not complete. (b) Characterize ≥ Is asymmetric? Is≥ Negatively transitive? Prove your assertions. (c) Characterize ~ defined from ≥ in the usual fashion; that is, x ~ y if x ≥ y and y x. Is ~ reflexive? Symmetric? Transitive? Prove your assertions.arrow_forward
- Omar's Fruit Shop sells only apples and bananas. Each week, Omar puts either apples or bananas on sale. He is trying to figure out which fruit he should put on sale this week. Omar gets all of his business from people who walk by his fruit shop and stop in. He performs some market research and asks 800 different people if they would purchase apples, bananas, or no fruit if they walked by and apples were on sale. He does the same for bananas being on sale. This week a total of 400 people will walk by Omar's Fruit Shop. The following table shows the profit for each type of fruit depending on which fruit Omar puts on sale: Apples on sale Bananas on sale Profit from apples $0.25 $0.40 Profit from bananas $0.45 $0.30 The following table shows the results from his market research. Customer choice Apples on sale Bananas on sale Apples 604 92 Bananas 90 620 No fruit 106 88 Total 800 800 What is Omar's expected profit if he puts apples on sale? What is Omar's…arrow_forwardSuppose there are two different neighborhoods in a city. One neighborhood has 400 Black residents and 600 white residents. The other neighborhood has 800 Black residents and 400 white residents. What is the Dissimilarity Index (DI) equal to?arrow_forwardcenario 2: Individual Preference and Allocating Public Goods The residents of a gated community in Beverly Hills are trying to come to a decision on the number of security officers they should hire to guard their small neighborhood every night. Due to the size of their neighborhood, all families would benefit from having security officers even if they preferred to not pay for them. The security firm the families reached out to quoted prices for each number of security officers, with a discounted applied for additional officers. Hiring 1 officer would cost $1,000 per night, 2 officers would cost $1,700 per night, and 3 officers would cost $2,100 per night. The residents of the community have agreed to split the cost of hiring the officer evenly among all the families. Each family’s willingness-to-pay for each number officers is provided below: Family 1 officer 2 Officers 3 Officers Stark $0 $200 $300 Wayne $500 $1,000 $1,500 Parker $400 $575…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co