I messed up last Wed. Felt terrible. After sending the apology email, finally find peace…
I apologize for impatience on Wednesday. The confusion is caused by poorly written English (I should have doubled checked before posting the problem), not the logic itself. I have reworded the problem (attached). In particular,
“Suppose that the number of new firms created in each year is the same as the number of firms that default in the last year.”
I hope this makes more sense now. If you still have questions, please let me know.
Thank you for the detailed suggestions. In particular, the idea that asking students to present solution ideas before the class is a very good point. I will try it in the future classes.
You may also notice that not all students are as willing or smart as you are. Some just want a passing grade. In fact, the current content is only about 2/3 of what I covered before (using MATLAB, not Excel). That year the enrollment dropped from 50 to 8 within 3 weeks, and the school was not happy, threatening to cancel the class. They insisted that this is a MBA course, as such, I must cut the theoretical content, and focus on applications and Excel. Even with all the above compromises, this class still struggles, year after year, to attract enough students: they still complain it’s too hard.
In the past, those who were unsatisfied with MBA level education went on with PHD studies. That is the level you may consider.
Again, I am really sorry for losing patience. It won’t happen again. I hope you enjoy the rest of the class, and you are always welcome to my office hours.