CASE STUDY 27.10 CHILL OUT-MOVE TO HONOLULU

question 41

Essay

CASE STUDY 27.10
CHILL OUT-MOVE TO HONOLULU
For Questions , use the following narrative
Narrative: Case study 27.10 summary
This study was based on a poll that measured citizens' hostility levels and compared them with their cities' death rates.The research findings were reporting as the following: 1) people with higher hostility levels have higher rates of heart disease deaths and overall deaths; 2) cities with higher hostility scores consistently had higher death rates; 3) cities with lower hostility scores had lower death rates.The results were summarized by saying "Hostile cities may want to chill out." The study was based on 10 cities, one from each of the states with the five highest and five lowest heart disease death rates.Philadelphia had the highest levels of both (hostility and death rate), and Honolulu had the lowest levels of both (hostility and death rate).It was reported that statistically, the probability of the observed correlation between hostility and death rate occurring by chance is less than 1 in 10,000.

-{Case study 27.10 narrative} The main implication by the researchers (and the media) about the results of this study is that if cities like Philadelphia would lower their hostility index, they would also lower their death rates.Is that a valid conclusion? Explain why or why not.

---

Definitions:

Consumer Surplus

The discrepancy between the price consumers are ready to offer for a good or service and the price they end up paying.

Marginal Benefit

The enhanced enjoyment or utility gained from the consumption of one extra unit of a good or service.

Total Revenue

The collective revenue a business accumulates from sales of products or provision of services within a set period.

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, where the marginal costs of production are equal to the marginal benefits for all goods and services.