In the interest of detecting the few children remaining who believe in Santa Claus, you give the latest test for “Belief in Santa Claus” from Canadian Living magazine to your little brother. According to the test, if the child answers more than 10 or more of the questions with the correct “Santa answer”, then the child is declared to believe in Santa Claus. From that perspective, describe with reference to the test

(a) what would be a Type I error for the test? (1 point)
(b) what would constitute a Type II error for the test? (1 point)

(c) what would correspond to the power of the test? (1 point)

(d) what corresponds to the criterion of the test? (2 points)

Dystopia county has three bridges. In the next year, the Elder bridge has a 13% chance of collapse, the Younger bridge has a 7% chance of collapse, and the Ancient bridge has a 21% chance of collapse. What is the probability that exactly one of these bridges will collapse in the next year? (Round your final answer to four decimal places. Do not round intermediate calculations.)

A college administrator wants to survey 250 students that attend her college to see if students are satisfied with the course offerings. Match the strategies to their corresponding sampling techniques. The administrator stands by the front door of the admissions department and asks the first 250 students who walk in. The administrator researches the ethnic make-up of the college and makes sure that the proportion of each ethnic group represented in the sample is the same as the corresponding proportion of that ethnic group at the college. The administrator goes into 9 classes from many subject areas and asks all the students in each of these 9 classes. The administrator gets the complete list of students at the college and then uses a computer to randomly select 250 students. She then surveys these 250 students. The administrator gets the complete list of students at the college and surveys every 50th students on the list.

According to an article by George Will (San Jose Mercury News, Feb. 28, 2002), the average U.S. consumption per person per year of French Fries is 28 pounds. Suppose that you believe that the average in Santa Clara County is not 28 pounds. You randomly survey 50 people in this county. The sample average is 24 pounds with a sample standard deviation of 10 pounds. Conduct an appropriate hypothesis test.

1. This test is:

A. two-tailed

B. no-tailed

C. right-tailed

D. left-tailed

2. The p-value for this test is:

A. 0.0068

B. 0.0034

C. 0.0047

D. 0.0136

3. At the 5% level, the correct conclusion is:

A. The average consumption in Santa Clara County is not 28 pounds.

B. The average consumption in Santa Clara County is less than 28 pounds.

C. The average consumption in Santa Clara County is less than 24 pounds

D.  The average consumption in Santa Clara County is 24 pounds

What is the primary difference between a randomized clinical trial and a prospective cohort study?

a) In a randomized clinical trial, patients choose their exposure

b) In a randomized clinical trial, patients are randomly assigned to exposure groups

c) In a prospective cohort study, investigators can never be blinded

d) All of the above

e) None of the above

Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities

Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands):

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.

b. Determine the ratio of fixed assets to long-term liabilities for both companies. Round to one decimal place.

5. Santa Corp. has 5,000 zero-coupon bonds outstanding. The bonds have a face value of $1,000, 4 years to maturity, and are currently trading at $822.70. The firm also has 750,000 common shares outstanding. The shares are currently priced at $21.75 each and yesterday paid a dividend of $2.24. The firm’s most recent annual financial statements show net income of $2.80 mln, shareholders’ equity of $26.67 mln, and a marginal tax rate of 26%.

   1. What are the weights of debt and equity in Santa Corp.’s capital structure? [2 points]

   2. What is Santa Corp.’s required return on equity? [4 points]

   3. What is Santa Corp.’s weighted average cost of capital? [4 points]

Patricia Cruz is a Mexican economist. She analyzes the demand-supply-market of Latin Americans notebook's market. She notes some assumptions and then concludes the market. Explain why she makes the assumptions!

Complete section 1 on form 941 with the following information:

# of employees for pay period that include September 12 – 14 employees

Wages paid third quarter - $79,750.17

Federal income tax withheld in the third quarter - $9,570.17

Taxable social security and Medicare wages - $79,750.17

Total tax deposits for the quarter $21,771.83

Complete sections 2, 3, 4, and 5 with the following information:

Cruz Company is a monthly depositor with the following monthly tax liabilities for this quarter:

July                 $7,193.10

August           $7,000.95

September     $7,577.78

State unemployment taxes are only paid to California. The company does not use a third-party designee and the tax returns are signed by the president, Carlos Cruz (Phone: 916-555-9739).