Many programming teams work independently at a large software company. The management has been putting pressure on these teams to finish a project on time. The company currently has 18 large programming projects, of which only 12 are likely to finish on time. Suppose the manager decides to randomly supervise three such projects.

a. What is the probability that all three projects finish on time?

b. What is the probability that at least two projects finish on time?

List the hormones that the anterior and posterior lobes of the pituitary gland secrete.

A permanent TFP shock: Now consider a TFP shock that is permanent. For example, suppose the discovery and application of a new technology makes firms more productive. Consider the labor market block of a standard DSGE model with no sticky prices or wages.
(a) What happens to the labor demand schedule (b) What happens to the labor supply schedule? (Hint: What happens to consumption?)
(c) Why is the net effect on employment ambiguous? What happens to the real wage?

A temporary TFP shock: Suppose the economy is hit with a temporary positive TFP shock. For example, suppose weather conditions are temporarily very favorable for agriculture.
(a) Analyze the effect of the shock in the labor market diagram of a standard DSGE model (with no sticky prices or wages). What is the effect on the real wage and employment in the short run?
(b) How would your answer change if there are sticky prices? Discuss how your answer relates to the impulse response functions shown in previous Figure.

Cynthia Knott's oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for$9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $2 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. How many pounds should she order each day?

Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level.

What is the appropriate reorder point?

Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. How many drives should be carried as safety stock?

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is$1. The holding cost is $0.10 per light per year. What is the total cost per year, including the cost of the lights?

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is$1. The holding cost is $0.10 per light per year. What is the average setup cost per year?

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is$1. The holding cost is $0.10 per light per year. What is the average holding cost per year?

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is$1. The holding cost is $0.10 per light per year. What is the optimal size of the production run?

University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $4 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is$1. How many programs should be ordered per game?

University of Florida football programs are printed 1 week prior to each home game. Attendance averages $90,000$ screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $\$ 4$ each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $\$ 1$.

What is the cost of underestimating demand for each program?

University of Florida football programs are printed 1 week prior to each home game. Attendance averages $90,000$ screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $\$ 4$ each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $\$ 1$.

How many programs should be ordered per game?