According to a study published by a university, approximately two thirds of the 20 million people who consume Valium in the US are women. Suppose a doctor who specializes in anxiety problems and muscle spasms always prescribes Valium for his patients. Suppose further that the chance that the doctor will prescribe a female patient is 2/3.

a) Find the probability that the fifth prescription for Valium given by a doctor is the first Valium prescription for a woman.

b) What is the probability that the doctor will see five patients until three women receive the Valium prescription?

In the world of Human Resources, the acronym "KSA" stands for Knowledge, Skills, and Abilities. Assessors apply it to evaluate candidates' qualifications in terms of the general requirements of a job, With this in mind, please identify the key advantage, in terms of knowledge, skills, or abilities, of each of the six candidates.

1. Atasi Das: Born in the United States, Das joined TCT nine years ago after earning her MBA from a university in New England. At 37, she has successfully moved between staff and line positions and assumed broader responsibilities in strategic planning. For two years, she was the assistant director of a midsized product group. Her performance regularly earns excellent ratings. Currently, she directs supply-chain logistics from TCT’s home office. Upon joining TCT, she stated her goal was to work internationally, pointing to her undergraduate major in international management. She has reiterated her interest in international responsibilities and her interest in continuing with TCT. She is open to looking for help opportunities elsewhere. She speaks Hindi and is unmarried. Her parents, who now live in the United States, are first-generation immigrants from India. She has relatives in India’s northern states, Kashmir and Punjab.

2. Brett Harrison: Harrison, 44, has spent 15 years with TCT, running both line activities and supervising staff centers. His superiors consider him a seasoned executive poised to move into upper-level management. For the past two years, he has worked in the Singapore-based Asian Regional Office, as director of strategic planning. He regularly tours TCT’s Asian operations. He and his wife, along with their two teenage children, have traveled to India a few times and are familiar with its geography, politics, customs, and outlooks. The Harrisons know other expats in Bengaluru. Mrs. Harrison works as the marketing director for the Singapore subsidiary of a Japanese pharmaceutical MNE. It presently has sales, but no operating unit in India.

3. Jalan Bukit Seng: Seng, 52, is the managing director of TCT’s laser printer manufacturing plant in Malaysia. A citizen of Singapore, he has worked in Singapore or Malaysia. He has regularly commuted to various TCT factories, helping to reset assembly systems and supervising equipment refits. He earned an undergraduate and MBA degrees from the National University of Singapore and speaks Singapore’s four official languages--Malay, English, Mandarin, and Tamil. His performance reviews are consistently positive, with a periodic ranking of excellent. Seng is unmarried but has family members in Singapore and Malaysia.

4. Ravi Desai: Currently an assistant managing director in TCT Japan, Desai oversees production units in Japan and South Korea. A citizen of India, he has spent his 15 years with TCT working in various operational slots throughout Asia. Now 37, he holds an MBA from the prestigious Indian Institute of Management. Some see him as a likely candidate to direct the Indian operation eventually. He is married, has two children (ages 2 and 7), and speaks English and Hindi well. His wife, also a native of India, neither works outside the home nor speaks English.

5. Saumitra Chakraborty: At 32, Chakraborty is the assistant to the departing managing director in India. He has held that position since joining TCT India upon graduating from a small private university in Switzerland eight years earlier. Unmarried, he consistently earns a job performance rating of excellent in customer relationship management. He has increased TCT India’s sales, largely owing to his social connections with prominent Indian families and government officials along with his skillfulness in the ways of the Indian business environment. Besides speaking India’s main languages of English and Hindi, Chakraborty is the only candidate who speaks Kannada (the local language of Bengaluru). Presently, he lacks line experience.

6. Tom Wallace: A 30-year veteran of TCT USA, Wallace has broad technical skills and sales experience. He worked with Gary Kent on supply-chain projects in the United States. Although he has never worked abroad, he has toured TCT’s foreign operations. He recently expressed interest in an expatriate slot. His superiors typically rate his performance as excellent. Wallace is set to retire in seven years. He and his wife speak only English. They have three adult children who live with their families in the United States. Presently, Wallace manages a U.S. unit that is a little larger than the present size of TCT India. The merger of his unit with another TCT division will eliminate his current position in nine months.

Individual retirement accounts (IRAs) were established by the U.S. government to encourage saving. An individual who deposits part of current earnings in an IRA does not have to pay income taxes on the earnings deposited, nor are any income taxes charged on the interest earned by the funds in the IRA. However, when the funds are withdrawn from the IRA, the full amount withdrawn is treated as income and is taxed at the individual’s current income tax rate.

In contrast, an individual depositing in a non-IRA account has to pay income taxes on the funds deposited and on interest earned in each year but does not have to pay taxes on withdrawals from the account. Another feature of IRAs that is different from a standard savings account is that funds deposited in an IRA cannot be withdrawn prior to retirement, except upon payment of a substantial penalty.

a. Sarah, who is five years from retirement, receives a $10,000 bonus at work. She is trying to decide whether to save this extra income in an IRA account or in a regular savings account. Both accounts earn 1 percent nominal interest, and Sarah is in the 30 percent tax bracket in every year (including her retirement year).

Compare the amounts that Sarah will have in five years under each of the two saving strategies, net of all taxes. Is the IRA a good deal for Sarah?

Instructions:  Enter your responses rounded to the nearest dollar.

If Sarah invests in the IRA, her net value (after taxes) five years from now will be: $ _______

If Sarah invests in the normal savings account, her net value (after taxes) five years from now will be: $ _______

Sarah will be better off if she invests in the  (Click to select)  IRA  regular OR savings account  .


b. Would you expect the availability of IRAs to increase the amount that households save in light of:

(1) the response of saving to changes in the real interest rate?  (Click to select)  Yes  No  .

(2) psychological theories of saving?  (Click to select)  No  Yes .

The IQ scores of MBA students follow a normal distribution with a population mean of 120 points and a population standard deviation of 12. A random sample of 36 MBA students is chosen.

1. What is the probability that a randomly chosen sample of 36 MBA students has an average IQ less than 115?

2. What is the 91st percentile of sample average IQ’s of size 36 taken from the population of MBA students?

3. Calculate the bounds that determine the middle 72% of sample average IQ’s of size 36 taken from the population of MBA students?

1. 120 + 0.5284
2. 120 + 0.72
3. 120 + 1.28
4. 120 + 2.16
5. 120 + 12.96

Assume all salaries are paid at the end of each year; evaluate the three options for peter

option 1. Stay in his current job

Annual salary $520,000 and his salary is expected to increase by 5.25% per year for 38 more years until retirement.

Peter's remuneration package includes base salary and medical and dental health care insurance plans. Assume individual income tax rate is 20%.

Option 2. Nanyang business school full-time MBA 1 yr plan

Tuition fee is $55,000, books and other supplies cost $1,200. Upon graduation, peter expects to receive offers with remuneration package that includes a base salary of $520,000 per year, signing bonus of $30,000 as well as medical and dental health care insurance. His salary will be increased by 7.25%. Individual tax rate is 20%.

Option 3. Singapore management university 1 yr plan

Tuition fee is $60,990, books and other supplies cost is $1,500. Upon graduation, peter expects to receive offers with a remuneration package that includes a base salary of $540,000 per year, signing bonus of $10,000 as well as medical and dental health care insurance plans. His salary will be increased by 7% per year. Assume individual income tax rate is 20%.

* Peter estimates that the living and miscellaneous expenses at both universities may cost $4,000 more. Assume the tuition fee as well as the additional living and miscellaneous expenses are payable at the beginning of each term and the discount rate is 8%.

A US importer who owes and Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period. What would you advise the importer to do? What would happen if the imported took your advice yet instead of the dollar weakening, the dollar actually strengthened?

A US importer who owes and Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period.  What would you advise the importer to do?  What would happen if the imported took your advice yet instead of the dollar weakening, the dollar actually strengthened??

Please give a brief justification for the correct answer you select:

1. Which of the following is NOT included in 2004’s GDP?

1. The value of a car produced in the United States and exported to England.
2. The profit earned in 2004 from selling a stock that you purchased in 2001.
3. The value of a computer chip that is used in the production of a personal computer.
4. The commission earned by an employment counsellor when she locates a job for a client.

2. Gross National Product is the total market value of

1. All final and intermediate goods and services produced by resources owned by a country in a given year.
2. All final and intermediate goods and services produced in a country in a given year, regardless of who owns the resources.
3. All final goods and services produced in a country in a given year, regardless of who owns the resources.
4. All final goods and services produced by resources owned by a country, regardless of where production takes place.

3. Which of the following is included in both the U.S. GDP and GNP?

1. The value of all cars produced by Ford in Mexico.
2. The value of all cars produced by General Motors in the US.
3. The value of all cars produced by Toyota in the US.
4. The value of cars produced by Nissan in Japan and the US.

4. The value of what Pizza Hut produces in Italy is included in the U.S. ____________ and in the Italian ____________.

1. GDP;GDP
2. GNP;GNP
3. GNP;GDP
4. GDP;GNP

5. The GDP of the U.S. in 2002 was around $10 trillion. This means

1. That the value of output in 2002 was around $10 trillion.
2. That total income in 2002 was around $10 trillion.
3. That total spending in 2002 was around $10 trillion.
4. All of the above

6. In 2004 the change in business inventories is $50 billion and GDP is $160 billion. Final sales in 2004

1. Are $110 billion.
2. Are $200 billion.
3. Are 210 billion.
4. Cannot be determined from this information.

Playland at Pacific National Exhibition is an amusement park offering 31 different rides (including 4 rollercoasters and 1 water ride). The guests who are 48” or taller can go on any ride they want and so they get more value from visiting the park; let us say their individual demand is given by P = 5 – 0.25qO, where P is the price per ride ($ per ride) and qO is the number of the rides (per day) (the subscript O stands for “One Day;” that’s how the park calls its passes for the guests who are 48” or taller). The guests who are under 48” are not allowed on certain rides so they get less value from visiting the park; let us say their individual demand is given by P = 4 – 0.25qJ, where P is the price per ride ($ per ride) and qJ is the number of the rides (per day) (the subscript J stands for “Jr. One Day;” that’s how the park calls its passes for the guests under 48”). Assume it costs the park flat ¢25 per guest to operate a single ride, and it costs the park flat ¢75 to issue a single ticket to a ride. Assume there are 500 guests 48” or taller and 500 guests under 48” on an average day. We can consider Playland a monopolist in Vancouver

If Playland employed a second-degree price discrimination scheme (single ride tickets are issued, each rider receives a book of tickets [qO or qJ]),

what is Playland’s profit on an average day ($ per day)? Assume zero fixed cost