Even though the sample model coefficient for machine hours (see part b) appears to be considerably different from the hypothesized value of $1,100, the hypothesis test demonstrated that the population model coefficient (the true marginal cost for all months) is NOT significantly different from $1,100. Furthermore, the confidence interval supported the hypothesis test results by showing that the true marginal cost for all months may be as low as $ (Lower Bound), therefore the hypothesized value of $1,100 is certainly plausible.

Feedback systems do not always involve negative feedback. economic inflation, which is evidenced by continually rising prices, is a positive feedback system. a positive feedback control system, as shown on the right, adds the feedback signal to the input signal, and the resulting signal is used as the input to the process. a simple model of the price-wage inflationary spiral is shown on the right. add additional feedback loops, such as legislative control or control of the tax rate, to stabilize the system. it is assumed that an increase in workers’ salaries, after some time delay, results an increase in prices. under what conditions could prices be stabilized by falsifying or delaying the availability of cost-ofliving data? how would a national wage and price economic guideline program affect the feedback system?