Give your assessment of the relative costs of Type I and Type II errors in the following situations where a decision is pending: a. A new synthetic feed additive is….
In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets.
In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets. One superstar argued, “It just isn’t worth $75 to see me play. No one should have to pay that much to go to a concert.” Assume this star sold out arenas around the country at an average ticket price of $75
- How would you evaluate the arguments that ticket prices are too high?
- Suppose that due to this star’s protests, ticket prices were lowered to $50. In what sense is this price toolow? Draw a diagram using supply and demand curves to support your argument.
- Suppose Pearl Jam really wanted to bring down ticket prices. Since the band controls the supply of its services,what do you recommend they do? Explain using a supply and demand diagram.