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(a) For an infinite population, the standard error of the mean is always equal to the population standard deviation divided by the square root of the sample size.
(b) For a finite population of size N, the standard error of the mean is always equal to 1 N n n N â â Ï
a) The travel agencies try to coordinate their actions and set the price and quantity like a single monopolist. Once they set this profit maximizing price and quantity, they plan to split the resulting profil equally. What is the profit for each travel agency if they both adhere to the plan)
b)One of the travel agency, travel agency A, deviates from the plan and sets its price equal to BAM 4.000. What is the profit of travel agency B? (HINT: No one wants to buy overpriced goods!)
c)Both travel agencies set price equal to BAM 4.000, and then split profit equally. What is the profit for each travel agency?.