dse 2012 doubt.

[Aish]

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/2012-option-a.pdf

Series 01.
Q.22. Why division 2 is pareto optimal?

Q.34. Using these terms how do we find formula for covariance.?

Q.50. Not getting it.
Please help :/ :(

[ViV]

COV(X,Y) = E(XY) - E(X)E(Y)
SumXY/n = E(XY) do like this for others..

[Aish]

But N is not given..I'm not getting  it still  

[ViV]

I dnt hv d question with me.. but u hv given sum of X and Sum of Y along with that u hv given mean of X or Mean of Y (not sure which one is given) Find out.. So after substituting in average formula u cn get n.

[The Villain]

@Aish
q22...Pareto efficient means you cannot make someone better off without making someone else worse off.
Consider the division antony gets 7,3 and cleopatra gets 3,7
antony's utility will be root 21 and cleopatra's 7
now lets take another division where antony gets 3,7 and cleopatra gets 7,3. So antony's utlity is now root 21 and cleopatra's 3.So we can see that utility decreases from 7 to 3...holding other const(root 21)
So ans is division 2.:)

[Akshay Jain]

In the solution below....statement 1...the total is 14 nd -14....sry for that silly mistake....

[Aish]

Okay Viv.I got the answer now.Thanks. :')
Vaibhav and Akshay,Thanks alot. ^_^

[akanksha]

please help with q 46
i am getting only 1 extremum as 0
how can x=-2 be local min/max for f(x)=(2+x)^3
isnt it  an inflection point  as the double derivative of f is changing sign at x=-2.
please help..thanx :)

[The Villain]

@akansha
The first function does not have a global maxima or a minima. However in the interval (-3,-1] it has a local maximum value at x=-1.

Moreover the question asks us abt local maxima/minima so we have to check at extreme points too.

So x=0 and x=-1 are the two values.

[mrittik]

u are requested to draw the curve...at x=-1 it gives y=1 & x=0 , y=0...so it has 1 local extrema at -1 & local minima at x=0