Chapter Questions
When the Titanic sank in 1912 , both male and female crew members had a higher survival rate than the third-class passengers. However, overall the third-class passengers had a higher survival rate than the crew. What do we call this phenomenon?
Suppose that you want to test the hypothesis that a coin has a probability of $1 / 2$ of coming up heads when you flip it. You flip it 5 times and it comes up heads every time. How likely is it that you would see a pattern of 5 heads in a row if true probability of coming up heads is $1 / 2 ?$
Suppose we estimate a demand function of the form $x=e^{c+b p}$, where $p$ is price, $x$ is the quantity consumed, and $b$ is a parameter. What is this functional form called?