In an article in the Journal of Advertising, Weinberger and Spotts compare the use of humor in television ads in the United States and in the United Kingdom. Suppose that independent random samples of television ads are taken in the two countries. A random sample of 450 television ads in the United Kingdom reveals that 137 of them use humor, while a random sample of 520 television ads in the United States reveals that 175 of them use humor.

(a) Calculate the point estimate of the difference between the proportion of U.K. ads using humor and the proportion of U.S. ads using humor.

(b) What kind of confidence interval is appropriate for this problem?

(c) Calculate a 96 percent confidence interval for the difference between the proportion of U.K. ads using humor and the proportion of U.S. ads using humor.

(d) Interpret the interval.

(e) Can we be 96 percent confident that there is a difference between the proportion of U.K. ads using humor and the proportion of U.S. ads using humor? Explain

Innocent until proven guilty? In Japanese criminal trials, about 95% of the defendants are found guilty. In the United States, about 60% of the defendants are found guilty in criminal trials†. Suppose you are a news reporter following six criminal trials.

(a) If the trials were in Japan, what is the probability that all the defendants would be found guilty? (Round your answer to three decimal places.)


What is this probability if the trials were in the United States? (Round your answer to three decimal places.)



(b) Of the six trials, what is the expected number of guilty verdicts in Japan? (Round your answer to two decimal places.)
verdicts

What is the expected number in the United Sates? (Round your answer to two decimal places.)
verdicts

What is the standard deviation in Japan? (Round your answer to two decimal places.)
verdicts

What is the standard deviation in the United States? (Round your answer to two decimal places.)
verdicts


(c) As a U.S. news reporter, how many trials n would you need to cover to be at least 99% sure of two or more convictions?
trials

How many trials n would you need if you covered trials in Japan?
trials

On January 1, 2000 Apple Company acquired all of the stock of Pear Company at book value. Apple accounts for its investment in Pear using the initial value method and Pear doesn't pay any dividends.

On January 1st 2015 Pear Company issued $1,000,000 face value bonds for $930,000 These 7% bonds pay interest each July 1 and January 1. Pear uses straight line amortization on these 20 year bonds.

On January 1, 2020, Apple Company acquired all of the Pear bonds for $955,000.

1. Make the necessary worksheet entries for 2020

2. In 2020, Apple reported unconsolidated income of $900,000 and Pear reported income of $100,000 what is consolidated income

3. make the necessary worksheet entries for 2021

4. in 2021, Apple reported unconsolidated inocme of $800,000 and Pear reported income $125,000 what is consolidated income

Preparing a Quantity Schedule – FIFO Method Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tonnes of pulp processed during June are provided below: Percentage Completed Tonnes of Pulp Materials Labour and Overhead Work in process, June 1 20,000 90% 80% Work in process, June 30 30,000 60% 40% Started into processing during June 190,000 REQUIRED: Prepare a quantity schedule for June assuming that Hielta Oy uses the FIFO method.

The most obese countries in the world have obesity rates that range from 11.4% to 74.6%. This data is summarized in the following table. Percent of Population Obese Number of Countries 11.4–20.45 28 20.45–29.45 14 29.45–38.45 4 38.45–47.45 0 47.45–56.45 4 56.45–65.45 2 65.45–74.45 0 74.45–83.45 1 (a) What is the best estimate of the average obesity percentage for these countries? (Round your answer to two decimal places.) (b) The United States has an average obesity rate of 33.9%. Is this rate above average or below? (Round your answers to two decimal places.) Since the average for the United Sates is 33.9%, compared to the average obesity rate of %, the United States has an obesity rate % higher than average.

a) Assume that yesterday (April 22, 2020) the interest rate on dollar deposits in the U.S. was 0.02 (2%) per year and the interest rate on euro deposits was 0.02 (2%) per year. Investors yesterday expected that the exchange rate in one year (April 22, 2021) will be 2.02 dollars for one euro.

What was the current exchange rate in terms of dollars per euro yesterday (April 22, 2020)?

Illustrate your answer, using a graph with the rates of return (in dollars terms) on the horizontal axis, and the exchange rate on the vertical axis.

b) Now, assume that today (April 23, 2020) the Federal Reserve lowers the interest rate on dollar deposits to 0.01 (1%), and the European Central Bank lowers the interest rate on euro deposits to zero (0%). There is no change in the expected exchange rate a year from now - that is, on April 23, 2020 investors expect that the exchange rate on April 23, 2021 will be 2.02 dollars for a euro.

What is the current exchange rate today (April 23, 2020), right after the reductions in the interest rates? Has the dollar depreciated or appreciated between April 22 and April 23? Why? Is your answer consistent with the textbook’s claim that a reduction in the interest rate on dollar deposits should cause a depreciation of the dollar?

Illustrate your answer, using a new graph with the rates of return (in dollars terms) on the horizontal axis, and the exchange rate on the vertical axis.

c) What is the effect of the change in the exchange rate above (from April 22 to April 23, 2020) on exports of American goods to Europe? And on exports of European goods to the United States? Explain. (You don’t need to provide numbers, only the general direction of the changes: going up or going down). Who will benefit and who will lose from these changes in the United States?

d) Now, assume American exporters successfully lobby the Federal Reserve, and convince it to adopt a new monetary policy that will boost American exports. Thus, on April 24 the Federal Reserve decides to change the interest rate on dollar deposit once again, with the objective to cause a 1% depreciation of the dollar with respect to the euro (that is, a 1% increase in the amount of dollars required to buy a euro). Assume that the European Central Bank does not react to the new actions by the Federal Reserve, and that investors’ expectations about the future value of the euro remain unchanged (that is, they expect that the exchange rate on April 24, 2021 will be 2.02 dollars for a euro). What interest rate should the Federal Reserve select in order to achieve its objective? Explain.

Illustrate your answer, using a new graph with the rates of return (in dollars terms as usual) on the horizontal axis, and the exchange rate on the vertical axis.

e) Now assume that, unlike in part d), investors, when they hear that the Federal Reserve intends to devaluate the dollar today, also adjust their expectations about the future: now, they expect that the exchange rate on April 24, 2021 will be 2.0402 rather than 2.02. What interest rate should the Federal Reserve select now, on April 24, 2020, in order to achieve its goal of depreciating the dollar by 1% from April 23 to April 24? Explain (no need to illustrate this answer graphically, just give the answer in words).

If the Mexican peso's forward rate premium is 4 percent with IRP, what will happen to the forward premium if the United States lowers rates? Explain.

What standard practices exist in the United States style meeting that may intimidate, confuse, or create anxiety for participants from other cultures?

As a general rule, a company's (corporation) debentures have higher required interest rates than United States government bonds.

True

False