An Ardent Fan of Television Game Shows Has Observed That

question 10

Essay

An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. $$\begin{array} { | c | c | c | } \hline \text { Contestant } & \begin{array} { c } \text { Years of } \\\text { education }\end{array} & \text { Winnings } \\\hline 1 & 11 & 750 \\\hline 2 & 15 & 400 \\\hline 3 & 12 & 600 \\\hline 4 & 16 & 350 \\\hline 5 & 11 & 800 \\\hline 6 & 16 & 300 \\\hline 7 & 13 & 650 \\\hline 8 & 14 & 400 \\\hline\end{array}$$ Predict with 95% confidence the winnings of all contestants who have 10 years of education.

Differentiate between binding and non-binding price ceilings and floors.

Examine the dynamic between supply, demand, and the elasticity in regulated markets.

Understand the concept of price floors and their impact on market equilibrium.

Analyze the effects of minimum wage laws on employment and standard of living.

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Definitions:

Proactive Interference

Proactive interference occurs when older information interferes with the recall of newer information.

Automatic Processing

Cognitive operations that occur without conscious awareness or effort, often quickly and efficiently.

Retroactive Interference

A memory phenomenon where newer information interferes with the recall of older information.

Memory Decay

The gradual fading of memory over time due to the natural aging process or lack of use.