You are applying for a data job, and your assignment is to analyze the following data set for monthly average temperatures at St Catherines in the programming language R.

(a) Prepare some plots that visualize the data.

(b) Find the appropriate time series model and fit the data. Explain your choice of parameters.

(c) Make predictions for the next 3 years, plot these predictions.

(d) Summarize your findings.

The Data is provided below. Please show the R codes as well. Thank you!

"Month","Average monthly temperatures St Cathrines"

“1980-01", 3.3

“1980-02", 5.5

“1980-03", 0.5

“1980-04", 7.4

“1980-05", 14.4

“1980-06", 16.6

“1980-07", 21.8

“1980-08", 22.8

“1980-09", 16.9

“1980-10", 8.4

“1980-11", 3.4

“1980-12", 4.3

“1981-01", 7.6

“1981-02", 0.6

“1981-03”, 1.6

“1981-04", 8.5

“1981-05", 12.4

“1981-06", 19.2

“1981-07", 22.1

“1981-08", 20.7

“1981-09", 16.0

“1981-10", 7.7

“1981-11", 4.5

“1981-12", 1.3

“1982-01", 7.7

“1982-02", 5.3

“1982-03", 0.3

“1982-04", 5.7

“1982-05", 14.0

“1982-06", 15.9

“1982-07", 21.9

“1982-08", 18.4

“1982-09", 15.9

“1982-10", 11.2

“1982-11", 5.8

“1982-12", 3.0

“1983-01", 2.3

“1983-02", 1.6

“1983-03", 1.9

“1983-04", 6.5

“1983-05", 11.6

“1983-06", 19.6

“1983-07", 23.3

“1983-08”, 21.5

“1983-09", 17.5

“1983-10", 10.8

“1983-11", 4.9

“1983-12", 4.2

“1984-01", 6.1

“1984-02", 0.4

“1984-03", 3.0

“1984-04", 7.5

“1984-05", 11.0

“1984-06", 19.6

“1984-07", 21.0

“1984-08", 22.0

“1984-09", 15.4

“1984-10", 11.3

“1984-11", 4.6

“1984-12", 0.9

“1985-01", 6.0

“1985-02", 4.0

“1985-03", 2.3

“1985-04", 8.7

“1985-05", 14.3

“1985-06", 17.0

“1985-07", 21.1

“1985-08", 20.7

“1985-09", 18.3

“1985-10”, 10.9

“1985-11", 4.9

“1985-12", 3.2

“1986-01", 3.6

“1986-02", 4.8

“1986-03", 1.9

“1986-04", 8.1

“1986-05", 15.0

“1986-06", 17.7

“1986-07", 21.9

“1986-08", 19.7

“1986-09", 16.1

“1986-10", 10.4

“1986-11", 2.9

“1986-12", 0.4

“1987-01”, 3.1

“1987-02", 3.7

“1987-03", 2.7

“1987-04", 9.0

“1987-05", 15.0

“1987-06", 20.2

“1987-07", 23.5

“1987-08", 20.3

“1987-09", 16.8

“1987-10", 8.3

“1987-11", 5.3

“1987-12", 1.1

“1988-01", 3.3

“1988-02", 4.5

“1988-03”, 1.1

“1988-04", 6.7

“1988-05", 14.6

“1988-06", 18.4

“1988-07", 23.7

“1988-08", 22.2

“1988-09", 16.4

“1988-10", 8.4

“1988-11", 6.0

“1988-12", 1.1

“1989-01", 0.7

“1989-02", 4.7

“1989-03", 0.3

“1989-04", 5.6

“1989-05", 13.2

“1989-06", 19.2

“1989-07", 22.2

“1989-08", 20.7

“1989-09", 16.8

“1989-10", 11.1

“1989-11", 3.7

“1989-12", 7.5

“1990-01", 0.7

“1990-02", 1.8

“1990-03", 2.1

“1990-04”, 8.9

“1990-05", 12.1

“1990-06", 19.4

“1990-07", 21.5

“1990-08", 21.0

“1990-09", 16.2

“1990-10", 10.7

“1990-11", 5.8

“1990-12", 0.6

“1991-01", 3.9

“1991-02", 0.6

“1991-03", 2.9

“1991-04", 9.1

“1991-05", 16.8

“1991-06", 20.6

“1991-07", 22.1

“1991-08", 21.8

“1991-09", 16.4

“1991-10", 11.4

“1991-11", 4.2

“1991-12”, 0.1

“1992-01", 2.5

“1992-02", 2.1

“1992-03", 0.1

“1992-04", 6.1

“1992-05", 12.8

“1992-06", 16.9

“1992-07", 18.8

“1992-08", 18.9

“1992-09", 15.9

“1992-10", 8.5

“1992-11", 4.2

“1992-12", 0.3

“1993-01", 1.8

“1993-02", 6.8

“1993-03”, 1.7

“1993-04", 7.4

“1993-05", 12.7

“1993-06", 17.8

“1993-07", 22.4

“1993-08", 21.7

“1993-09", 15.1

“1993-10", 9.0

“1993-11", 3.9

“1993-12", 1.7

“1994-01”, 9.1

“1994-02", 6.2

“1994-03", 0.2

“1994-04", 8.2

“1994-05", 11.6

“1994-06", 19.3

“1994-07", 22.2

“1994-08", 19.6

“1994-09", 16.4

“1994-10", 10.6

“1994-11", 6.8

“1994-12", 1.0

“1995-01", 1.2

“1995-02", 5.7

“1995-03", 3.0

“1995-04", 5.2

“1995-05", 13.6

“1995-06", 20.0

“1995-07", 22.1

“1995-08", 21.9

“1995-09", 15.4

“1995-10”, 12.0

“1995-11", 2.4

“1995-12", 3.4

“1996-01", 5.2

“1996-02", 4.4

“1996-03", 2.0

“1996-04", 6.0

“1996-05", 12.2

“1996-06", 19.4

“1996-07", 20.5

“1996-08”, 21.7

“1996-09", 17.3

“1996-10", 10.7

“1996-11", 2.4

“1996-12", 0.8

“1997-01", 4.1

“1997-02", 0.9

“1997-03", 0.4

“1997-04", 6.2

“1997-06", 20.0

“1997-07", 20.7

“1997-08", 19.6

“1997-09", 16.3

“1997-10", 10.1

“1997-11", 3.3

“1997-12", 0.5

“1998-01", 0.6

“1998-02", 0.7

“1998-03", 3.3

“1998-04", 9.0

“1998-05", 16.9

“1998-06", 19.5

“1998-07", 21.8

“1998-08”, 22.1

“1998-09", 19.0

“1998-10", 11.6

“1998-11", 6.1

“1998-12", 2.5

“1999-01", 4.7

“1999-02", 0.5

“1999-03", 0.7

“1999-04", 8.1

“1999-05”, 15.4

“1999-06", 21.2

“1999-07", 24.6

“1999-08", 20.3

“1999-09", 18.5

“1999-10”, 10.6

“1999-11", 6.8

“1999-12", 0.5

Open Air_Traffic data. SETUP: It is believed that in July, as years go by we see higher and higher traffic. Given the data your job is to confirm or disprove this assertion.

4. What test/procedure did you perform? (4 points)

• a. Regression
• b. Two sided t-test
• c. One sided t-test
• d. Confidence Interval

5. What is the statistical interpretation? (4 points)

• a. Average of data is inconsistent with the claim
• b. P-value is too large to have a conclusive answer
• c. P-value is smaller than 5% thus we are confident to say that the slope is not zero.
• d. P-value is smaller than 5% thus we are confident that the averages are different.
• e. None of these

6. What is the conclusion? (4 points)

• a. We cannot claim that in July, as years go by we see higher and higher traffic.
• b. We can claim that in July, as years go by we see higher and higher traffic.
• c. None of these

month	year	Air Traffic
Sep	2001	527,483
Feb	1998	545,512
Feb	1997	560,142
Nov	2001	562,761
Feb	1999	568,516
Nov	1997	571,222
Feb	2002	571,898
Jan	1998	573,195
Sep	1998	574,779
Apr	1998	577,213
Feb	1996	578,736
Dec	2001	580,757
Nov	1996	584,295
Oct	2001	588,116
Sep	1997	588,745
Dec	1997	591,915
Jan	1996	593,346
Jan	1999	595,134
Sep	1996	595,394
Nov	1998	601,849
Jun	1998	602,622
Jan	1997	604,399
Jun	1996	605,753
Apr	1997	605,797
Feb	2000	605,799
Dec	1996	606,229
Apr	1996	606,312
Oct	1997	606,522
Feb	2013	607,481
Mar	1998	608,740
May	1998	610,593
Jul	1997	611,722
Jan	2002	614,110
Feb	2001	614,242
Jun	1997	614,943
Aug	1997	619,541
May	1996	619,734
Dec	1998	619,871
Oct	1996	620,810
Sep	1999	621,236
Apr	1999	622,759
Feb	2010	623,022
May	1997	623,488
Jul	1996	623,594
Jan	2000	623,646
Mar	1997	624,222
Feb	2011	625,559
Apr	2002	626,683
Mar	1996	626,722
Sep	2002	626,950
Nov	1999	627,298
Aug	1996	628,524
Oct	1998	629,926
Aug	1998	632,272
Jun	1999	633,058
May	1999	634,994
Apr	2000	635,683
Jul	1998	636,816
Mar	2002	639,968
May	2002	640,659
Mar	1999	641,159
Jun	2002	642,274
Dec	1999	646,562
Dec	2000	646,562
Feb	2012	647,034
Nov	2013	652,027
Apr	2001	652,922
Jul	1999	654,104
Oct	1999	655,244
Jun	2001	655,886
Nov	2000	657,575
Sep	2000	658,274
Feb	2009	659,905
Jun	2000	660,467
Jan	2013	661,969
Aug	1999	663,927
Mar	2000	666,940
Nov	2012	669,426
Dec	2012	670,923
May	2000	672,620
Jul	2002	673,615
May	2001	674,360
Jan	2012	677,716
Jan	2001	677,941
Sep	2012	678,037
Aug	2002	679,840
Sep	2013	680,200
Jan	2011	681,174
Jul	2000	682,558
Nov	2011	682,682
Mar	2001	683,033
Feb	2003	690,351
Apr	2013	692,634
Oct	2000	692,862
Aug	2000	692,874
Jul	2001	693,672
Oct	2012	694,760
Nov	2009	694,780
Jan	2010	694,866
Dec	2011	701,368
Dec	2010	702,620
Oct	2013	702,901
Nov	2010	704,414
Dec	2009	704,870
Sep	2011	706,423
Apr	2012	707,046
Aug	2001	707,077
Nov	2008	707,252
Sep	2009	709,839
Jan	2009	709,936
Mar	2013	710,186
Feb	2006	715,843
Sep	2010	718,697
Jun	2013	719,059
Dec	2008	720,064
Apr	2011	720,117
May	2013	721,141
Apr	2010	722,593
Oct	2011	723,246
Feb	2007	724,657
May	2012	725,746
Oct	2009	726,611
Sep	2008	728,389
Mar	2012	728,653
Apr	2009	728,892
Jun	2012	735,119
Oct	2010	737,265
Mar	2010	739,935
May	2010	741,616
May	2011	743,824
Feb	2008	746,679
Aug	2013	747,008
Mar	2009	747,367
May	2009	749,038
Jul	2013	750,776
Jun	2010	751,359
Aug	2012	753,513
Mar	2011	754,694
Jun	2011	756,735
Jul	2012	757,513
Oct	2008	758,540
Jun	2009	760,198
Feb	2005	760,955
Feb	2004	761,618
Nov	2003	765,842
Apr	2003	766,260
Nov	2002	766,327
Aug	2011	767,983
Aug	2009	781,361
Aug	2010	781,460
Dec	2002	781,653
Sep	2003	781,804
Jul	2010	782,506
Jul	2011	783,853
Jan	2003	785,160
Jan	2006	785,364
Jan	2004	787,237
May	2003	789,397
Nov	2006	792,523
Jan	2008	793,275
Jul	2009	794,077
Apr	2006	794,390
Mar	2003	797,194
Nov	2005	797,460
Jun	2003	798,351
Dec	2003	798,392
Apr	2008	799,666
Sep	2006	799,777
Dec	2005	802,067
Jan	2007	803,924
Dec	2007	803,981
Nov	2007	804,635
Dec	2006	805,058
Sep	2007	805,076
Jan	2005	807,338
Apr	2007	809,663
Sep	2005	814,935
Oct	2002	815,032
Jun	2008	815,936
Mar	2008	817,511
Apr	2004	817,899
Oct	2003	818,308
Sep	2004	819,294
Nov	2004	820,048
May	2008	820,130
Jun	2006	820,310
Aug	2008	823,531
Mar	2006	823,793
May	2006	824,051
Oct	2006	828,218
Mar	2007	830,373
Aug	2003	830,737
Oct	2005	831,265
Jul	2003	831,619
Jun	2007	832,163
May	2004	833,350
Mar	2004	834,476
Dec	2004	836,232
Jun	2004	836,916
Apr	2005	838,122
Oct	2007	841,179
May	2007	844,074
Jul	2008	844,755
Jul	2006	852,114
Oct	2004	861,291
Jun	2005	863,422
Jul	2007	863,659
Aug	2006	866,551
Mar	2005	866,593
Jul	2004	871,049
Aug	2007	872,349
May	2005	872,961
Aug	2004	882,979
Jul	2005	887,084
Aug	2005	890,938

The segment footnote in The Walt Disney Company 2014 annual report follows (in millions):

SEGMENT INFORMATION
The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance.

	2014		2013		2012
Revenues
Media Networks	$21,152		$20,356		$19,436
Parks and Resorts	15,099		14,087		12,920
Studio Entertainment
Third parties	6,988		5,721		5,566
Intersegment	290		258		259
	7,278		5,979		5,825
Consumer Products
Third parties	4,274		3,811		3,499
Intersegment	(289)		(256)		(247)
	3,985		3,555		3,252
Interactive
Third parties	1,300		1,066		857
Intersegment	(1)		(2)		(12)
	1,299		1,064		845
Total consolidated revenues	$48,813		$45,041		$42,278
Segment operating income (loss)
Media Networks	$7,321		$6,818		$6,619
Parks and Resorts	2,663		2,220		1,902
Studio Entertainment	1,549		661		722
Consumer Products	1,356		1,112		937
Interactive	116		(87)		(216)
Total segment operating income	$13,005		$10,724		$9,964
Reconciliation of segment operating income
to income before income taxes
Segment operating income	$13,005		$10,724		$9,964
Corporate and unallocated shared expenses	(611)		(531)		(474)
Restructuring and impairment charges	(140)		(214)		(100)
Other income/(expense), net	(31)		(69)		239
Interest income/(expense), net	23		(235)		(369)
Hulu equity redemption charge	-		(55)		-
Income before income taxes	$12,246		$9,620		$9,260
Capital expenditures
Media Networks
Cable Networks	$172		$176		$170
Broadcasting	88		87		85
Parks and Resorts
Domestic	1,184		1,140		2,242
International	1,504		970		641
Studio Entertainment	63		78		79
Consumer Products	43		45		69
Interactive	5		13		27
Corporate	252		287		471
Total capital expenditures	$3,311		$2,796		$3,784
Depreciation expense
Media Networks	$238		$238		$241
Parks and Resorts
Domestic	1,117		1,041		927
International	353		327		314
Studio Entertainment	48		54		48
Consumer Products	59		57		55
Interactive	10		20		17
Corporate	239		220		182
Total depreciation expense	$2,064		$1,957		$1,784
Amortization of intangible assets
Media Networks	$12		$13		$17
Parks and Resorts	2		2		-
Studio Entertainment	88		107		94
Consumer Products	109		89		60
Interactive	13		24		32
Corporate	-		-		-
Total amortization of intangible assets	$224		$235		$203
Identifiable assets
Media Networks	$29,887		$28,627
Parks and Resorts	23,335		22,056
Studio Entertainment	15,155		14,750
Consumer Products	7,526		7,506
Interactive	2,259		2,311
Corporate	6,024		5,991
Total consolidated assets	$84,186		$81,241

a. Confirm that each of Disney’s segments exceeds one or more of the quantitative thresholds.

Calculate the quantitative threshold tests for 2014 and 2013.

Round answers to one decimal place (ex: 0.2345 = 23.5%). Use negative signs with answers, when appropriate.

% revenues			2014		2013
Media Networks			Answer %		Answer %
Parks and Resorts			Answer %		Answer %
Studio Entertainment			Answer %		Answer %
Consumer Products			Answer %		Answer %
Interactive Media			Answer %		Answer %

% operating profit			2014		2013
Media Networks			Answer %		Answer %
Parks and Resorts			Answer %		Answer %
Studio Entertainment			Answer %		Answer %
Consumer Products			Answer %		Answer %
Interactive Media			Answer %		Answer %

% assets			2014		2013
Media Networks			Answer %		Answer %
Parks and Resorts			Answer %		Answer %
Studio Entertainment			Answer %		Answer %
Consumer Products			Answer %		Answer %
Interactive Media			Answer %		Answer %

Using 2014 calculations only, indicate whether the segment exceeds each quantitative threshold test or not. Select Yes or No using the drop-down answer menu.

	Operating Profit	Revenues	Assets
Media Networks	AnswerYesNo	AnswerYesNo	AnswerYesNo
Parks and Resorts	AnswerYesNo	AnswerYesNo	AnswerYesNo
Studio Entertainment	AnswerYesNo	AnswerYesNo	AnswerYesNo
Consumer Products	AnswerYesNo	AnswerYesNo	AnswerYesNo
Interactive Media	AnswerYesNo	AnswerYesNo	AnswerYesNo

c. Compute a rough DuPont analysis over the past three years of the operating segments (i.e., profit/ revenues, revenues/total assets, and return on assets as the product of the profit and turnover ratios).

Round profit margin answers to one decimal place (ex: 0.2345 = 23.5%). Use negative signs with answers, when appropriate.

Profit margin			2014		2013
Media Networks			Answer %		Answer %
Parks and Resorts			Answer %		Answer %
Studio Entertainment			Answer %		Answer %
Consumer Products			Answer %		Answer %
Interactive Media			Answer %		Answer %

Round asset turnover answers to two decimal places.

Asset turnover			2014		2013
Media Networks			Answer		Answer
Parks and Resorts			Answer		Answer
Studio Entertainment			Answer		Answer
Consumer Products			Answer		Answer
Interactive Media			Answer		Answer

Use rounded figures from above to calculate.
Round answers to one decimal place (ex: 0.2345 = 23.5%).
Use negative signs with answers, when appropriate.

Return on Assets			2014		2013
Media Networks			Answer %		Answer %
Parks and Resorts			Answer %		Answer %
Studio Entertainment			Answer %		Answer %
Consumer Products			Answer %		Answer %
Interactive Media			Answer %		Answer %

d. Compute the free cash flow for each operating segment over the three-year period using the following definition: free cash flow = operating profit + depreciation and amortization - capital expenditures.

Use negative signs with answers, when appropriate.

Free cash flow				2014		2013		2012
Media Networks				$Answer		$Answer		$Answer
Parks and Resorts				Answer		Answer		Answer
Studio Entertainment				Answer		Answer		Answer
Consumer Products				Answer		Answer		Answer
Interactive Media				Answer		Answer		Answer
Total				$Answer		$Answer		$Answer

Examine three examples of travel and entertainment expenses that are deductible for a business. What are some unreimbursed expenses that can be deducted personally? Are there limitations to these types of deductions?

Supposed that Jones and Smith have each decided to allocate$1000 per year to an entertainment budget in the form of hockey game or Rock concerts.They. both like hockey games or rock concert and will choose to consume positive quantities of both goods However they differ substantially in their preferences for these two entertainment. Jones prefer hockey games to rock concert, while Smith prefer rock concerts to hockey games.
A, Draw a set of indifferent curves for Jones and a second set for Smith.
B. Using the concept of marginal rate of substitution, explain why the two of curves are different from each other.

Baseball, like other types of entertainment, often provides massive compensation packages to star employees. The justification cited is that, even though an employee who is “almost as good” can be hired for a fraction of the amount paid for a star, the value of having the best can make the expenditure worthwhile. Please explain briefly ( this question is related to chapter 5 production function)

a) Does this seem fair?

b) Would it make sense to cap the compensation that can be paid to star employees at some multiple of the lowest paid employee?

c) What effect do you think this would have on entertainment revenues?

Jim Coleman, Jr. was appointed the manager of Maris Properties, a recently formed company that manages residential rental properties. Linda Grider is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. Two of the largest expense categories are Travel and Entertainment. Mr. Coleman believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Jim Coleman, Sr. The elder Mr. Coleman has set up Maris Properties in order to test his son's management skills before allowing him to manage the more lucrative commercial property business. Mr. Coleman, Sr. provided the capital for Maris, and maintains close contact with the company. He allowed his son, however, to hire his own employees.

Mr. Coleman has asked Ms. Grider to change the names of the Travel and Entertainment Expense accounts to Property Development. He hopes to deflect his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Ms. Grider resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired.

Required:

1. Who are the stakeholders in this situation?
2. Should Ms. Grider agree to the change in the Travel Expense and Entertainment Expense accounts to Property Development? Explain.

Jim Coleman, Jr. was appointed the manager of Maris Properties, a recently formed company that manages residential rental properties. Linda Grider is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. Two of the largest expense categories are Travel and Entertainment. Mr. Coleman believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Jim Coleman, Sr. The elder Mr. Coleman has set up Maris Properties in order to test his son's management skills before allowing him to manage the more lucrative commercial property business. Mr. Coleman, Sr. provided the capital for Maris, and maintains close contact with the company. He allowed his son, however, to hire his own employees.

Mr. Coleman has asked Ms. Grider to change the names of the Travel and Entertainment Expense accounts to Property Development. He hopes to deflect his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Ms. Grider resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired.

Required:

1. Who are the stakeholders in this situation?
2. Should Ms. Grider agree to the change in the Travel Expense and Entertainment Expense accounts to Property Development? Explain.

Jim Coleman, was appointed the manager of Maris Properties, a recently formed company that manages residential rental properties. Linda Grider is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. One of the largest expense categories is Travel and Entertainment. Mr. Coleman believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Randall Coleman. Randall has set up Maris Properties in order to test his son's management skills before allowing him to manage the more lucrative commercial property business. Randall provided the capital for Maris, and maintains close contact with the company. He allowed his son, however, to hire his own employees.

Mr. Coleman has asked Linda, the accountant, to change the name of the Travel and Entertainment account to Property Development. He hopes to distract his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Linda resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired

Required

a. Should Ms. Grider agree to the change in the Travel and Entertainment account to Property Development? Explain.

b. What controls can be recommended by Linda to ensure that such frauds do not occur?

Please i need more info, i already asked the question twice.