1. Listed below are 20 lengths (in minutes) of randomly selected movies.

(a) Construct a relative frequency histogram to represent the data. Use six classes with a class width of 11, and begin with the first interval class [89, 100), and the second interval class [100, 111), and so on.

90,   92,   94,   94,   95,   96,   105,   108,   110,   116,

117, 119, 119, 120, 125, 132, 132,   136,   149,   154

(b) Calculate the sample mean and the sample standard deviation.

(c) Calculate the first, the second, and the third quartiles of the data, and then construct the box plot of the data.

Students are potential buyers of editing services for papers they write. Students A-G have Willingness-to-Pay for revisions as follows:

Student WTP($) A 15
B 13
C 11 D9 E7 F6 G4 H2

Suppose that the opportunity cost of editing is a constant $5 (MC=ATC=$5) and that there are many potential suppliers of editing services who are price-takers. What will the equilibrium price and quantity of editing services (how many papers will be edited at what price?). Why? What are consumer, producer and total economic surplus in this equilibrium.

Now suppose that you have been granted a monopoly in providing editing services. Suppose you must set a single price for everyone. .Find your marginal revenue schedule. Then use it to say what quantity of papers you will edit and what price you will charge to maximize profits. Explain. What will consumer, producer and total surplus be now? Compare to the competitive outcome.

Now suppose that you can practice perfect price discrimination. How many papers will you edit and what will your profits be? Explain. What are consumer, producer and total surplus now?

Finally, suppose that the WTP schedule above represents a single student’s WTP for successive papers edited during the semester. (He is willing to pay $14 for the first, $12 for the second, etc.) Your market consists of 100 students just like this one. Design a two-part pricing scheme that maximizes your profits. What fee will you charge and what price per paper edited? Explain.

Suppose that in the absence of insurance, the daily demand for visits to a clinic is given by Qd=200 - 0.5P, where c is the coinsurance rate and P is the price charged by the clinic.

Calculate the quantity demanded when P is $100

Calculate daily revenues when P is $100

You purchase $100 million par of an 8.5% coupon Treasury bond that matures in November 15, 2028. Quoted price is 100-12. The settlement date is September 10, 2018. Calculate the cash amount you have to pay. Coupons are paid semiannually.

You're putting together gift baskets for a silent auction. The total value of the items in each basket must be $150 or less. The values of the available items are $90, $70, $110, $50, $30, $80, $120, $20, $100, $100, $60, $40, $70, $40, $90, $120, $60, $40, $80, and $110. (a) If you pack the items in the order listed above using the first fit algorithm, how many baskets will you make? ____ baskets (b) If you pack the items in the order listed above using the next fit algorithm, how many baskets will you make? ____ baskets (c) If you rearrange the items according to their value so that the most expensive item is first and then pack the items using the first fit algorithm, how many baskets will you make? ____ baskets

    Use the following information for this question:

                   June 1                 Inventory 100 @ $1.00

                            6                 Purchased 150 @ $1.10

                          13                 Purchased   50 @ $1.20

                          20                 Purchased 100 @ $1.30

                          25                 Purchased   25 @ $1.40                                                              

                           Total Units Sold in June: 300 units

Using the last-in, first-out (LIFO) method, the COST OF GOODS SOLD is

Using the first-in, first-out (FIFO) method, the cost assigned to the ENDING INVENTORY (not Cost of Goods Sold) would be

Using the average weighted-average cost method and (if necessary) rounding to the nearest dollar, the cost assigned to the ENDING INVENTORY (not Cost of Goods Sold) would be

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

A stock price is $74, and current risk free interest rates are 2%. If the put option with a $100 strike price expires in 6 months, and the call option is trading at $26.25, how would you arb this option?

There are two stocks, A and B, which make up a particular price-weighted index. Below are the closing prices and number of shares outstanding for each stock for yesterday and today. Stock B split 3-for-1 today before the market opened. What is the value of the index after the close today if the index contains stocks A and B and closed yesterday at 115.00 (before stock B split 3-for-1)?

                                                            Yesterday                        Today

Closing price of stock A                        $150                          $162

Shares outstanding for stock A               100                            100

Closing price of stock B                         $80                            $25

Shares outstanding for stock B                 60                           180

Index value                                           115.00                            ?