BUSI 620 Module 3 Problems……………….7. The next desk presents knowledge on three main indicators for a three-month interval. Assemble the composite index (with every indicator assigned equal weight) and the diffusion index.Month Main Main LeadingIndicator A Indicator B Indicator C1 100 200 302 110 230 273 120 240 33Notice:1. Revised P7: Simply assemble the diffusion index. On this drawback, now we have three main indicators. The diffusion index from month 1 to 2 is 66.7 (=2/three) as a result of 2 indicators transfer up and 1 strikes down.1. The next desk experiences the Shopper Value Index for the Los Angeles space on a month-to-month foundation from January 1998 to December 2000 (base 12 months = 1982â1984). Eliminating the information for 2000, use Excel to forecast the index for all of 2000 utilizing a three- and six-month common. Which offers a greater forecast for 2000 utilizing the information supplied?three. Forecast the information for 2000 once more in Drawback 1 with exponential smoothing with w = zero.three and w = zero.7. Is that this a greater forecast than the shifting common? Notice: For appendix drawback three, please examine RMSEs for shifting common and exponential smoothing forecasts to reply âIs that this a greater forecast than the shifting common?âFour. Ms. Smith, the proprietor and supervisor of the Clear Duplicating Service positioned close to a significant college, is considering holding her store open after Four p.m. and till midnight. So as to take action, she must rent extra employees. She estimates that the extra employees would generate the next complete output (the place every unit of output refers to 100 pages duplicated). If the value of every unit of output is $10 and every employee employed should be paid $40 per day, what number of employees ought to Ms. Smith rent?Staff employed zero 1 2 three Four 5 6Total product zero 12 22 30 36 40 42Notice:1. P4: Ms. Smith ought to rent employees so long as their Marginal Income Product (MRP) exceeds their Marginal Useful resource Price (MRC), and till MRP=MRC.MRP=MR x MP = P x MP = $10 x MP (Use info in the issue to calculate MP)MRC=wages=$40.12. Suppose that the manufacturing perform for a commodity is given byQ = 10?LKwhere Q is the amount of output, L is the amount of labor, and Ok is the amount of capital. (a) Point out whether or not this manufacturing perform reveals fixed, growing, or lowering returns to scale. (b) Does the manufacturing perform exhibit diminishing returns? If that's the case, when does the regulation of diminishing returns start to function? Might we ever get unfavorable returns?Notes:2. P12(a): Calculate Q when L=1and Ok=1, and L=2 and Ok=2, then examine and reply the query concerning the returns to scale.three. P12(b), Given Ok=1, present the change in Q if L modifications from 1 to 2, and a couple of to three, and reply the query about diminishing returns.three. Airway Specific has a night flight from Los Angeles to New York with a mean of 80 passengers and a return flight the following afternoon with a mean of 50 passengers. The airplane makes no different journey. The cost for the airplane remaining in New York in a single day is $1,200 and can be zero in Los Angeles. The airline is considering eliminating the evening flight out of Los Angeles and changing it with a morning flight. The estimated variety of passengers is 70 within the morning flight and 50 within the return afternoon flight. The one-way ticket for any flight is $200. The working price of the airplane for every flight is $11,000. The fastened prices for the airplane are $three,000 per day whether or not it flies or not. (a) Ought to the airline change its evening flight from Los Angeles with a morning flight? (b) Ought to the airline stay in enterprise?Notice:1. P3(a): Please calculate and examine the revenue below every flight.2. P3(b) is asking ought to Airway Specific proceed offering the flight between Los Angeles and New York? Even Airway Specific decides to not fly, it nonetheless has to pay the fastened prices of $three,000 per day. The night flight with the return flight the following afternoon is counted as sooner or later, not two days.11. The Goldberg-Scheinman Publishing Firm is publishing a brand new managerial economics textual content for which it has estimated the next complete fastened and common variable prices:Whole fastened prices:Copy modifying $ 10,000Typesetting 70,000Promoting and promotion 20,000Whole fastened prices $100,000Common variable prices:Printing and binding $ 6Administrative prices 2Sales commissions 1Bookstore reductions 7Authorâs royalties 4Average variable prices $20Mission promoting value $30(a) Decide the breakeven output and complete gross sales revenues and draw the costâvolumeârevenue chart, and (b) decide the output that might generate a complete revenue of $60,000 and the overall gross sales revenues at that output stage; draw the costâvolumeârevenue chart.7. From Determine 9-Four, decide the impact of a 33 p.c import tariff on commodity X.Notice:P7: The tariff-inclusive value can be $three(1+.33) = $Four. What are the impacts of tariff on home consumption, home manufacturing, imports, and governmentâs tariff income? Please present the numbers, for instance, the home consumption will lower from 600X to 500X.