EC410-10.01

EC410-10.01



EC410-10.01

Part 1

Model

The general model for the given situation is

CCH = f ( MCH, a, ß) a > ß

Where,

CCH = Cost of Hybrid Car

MCH = Mileage of Hybrid Car

a = Gain obtained from mileage of vehicle

ß = Gain obtained from price of vehicle

The above model defines the condition that the car with better mileage and high price (hybrid car) will have a lower overall cost as compared to the cars with low mileage and low price (non hybrid car).

Empirics

There is clear selection bias in the Rick's statement due to which the conclusion is baseless. The main factors of pregnancy are marriage and love. The sample taken and analyzed by Rick is biased in such a way that the populations of people who wear skirts are married or have boyfriends due to which they became pregnant and gave birth. However, the population who do not wear skirts are neither married nor have a boyfriend due to which they did not become pregnant and gave birth. If the researcher had included the marriage and love factors in his argument, the reasoning would be flawless and conclusion accurate.

Part 2

Paper 1

The paper's topic An Analysis of the Impact of Team Payroll on Regular Season and Postseason Success in Major League Baseball by Noah L. Schwartz and Jason M. Zarrow

The paper's question

What is the impact of money in baseball, specifically whether the payroll structure and lack of salary cap fosters a degree of competitive balance that is healthy for the game?

The paper's strong points

The results are consistent with the expection of the authors, about the era of baseball.

Good use of beta comparison.

The paper's drawbacks

Very low adjusted R Square in all the eras covered by the authors..

Paper 2

The paper's topic

Wrinkles in Fiscal Policy: An Examination of the Effects of ...