BUSI 620 MENTOR It's Your Life/busi620mentor.com BUSI 620 MENTOR It's Your Life/busi620mentor.com | Page 15

Appendix Problem 3: Forecast the data for 2000 again in Problem 1 with exponential smoothing with w = 0.3 and w = 0.7. Is this a better forecast than the moving average?

Salvatore’ s Chapter 7: Discussion Questions: 3, 11, and 12. Problems: 4, 12, and 13. Discussion Question 3:

a) How is the law of diminishing returns reflected in the shape of the total product curve?

b) What is the relationship between diminishing returns and the stages of production?

Discussion Question 11: Minimum wage legislation requires most firms to pay workers no less than the legistiated minimum wage per hour. Using marginal productivity theory, explain how a change in the minimum wage affects the employment of unskilled labor

Discussion Question 12: It is always better to hire a more qualified and productive worker than a less qualified and productive one regardless of cost. True or false? Explain

Problem 4: Ms. Smith, the owner and manager of the Clear Duplicating Service located near a university, is contemplating keeping her shop open after 4pm and until midnight. In order to do so, she would have to hire