A 0.01 significance level is used for a hypothesis test of the claim that when parents use a particular method of gender? selection, the proportion of baby girls is less than 0.5. Assume that sample data consists of 66 girls in 144 ?births, so the sample statistic of StartFraction 11 Over 24 EndFraction results in a z score that is 1 standard deviation below 0. Complete parts? (a) through? (h) below. Click here to view page 1 of the Normal table. LOADING... Click here to view page 2 of the Normal table. LOADING... a. Identify the null hypothesis and the alternative hypothesis. Choose the correct answer below. A. Upper H 0?: pequals0.5 Upper H 1?: pgreater than0.5 B. Upper H 0?: pequals0.5 Upper H 1?: pnot equals0.5 C. Upper H 0?: pnot equals0.5 Upper H 1?: pless than0.5 D. Upper H 0?: pequals0.5

The paper “Outcomes at School Age After Postnatal Dexamethasone Therapy for Lung Disease of Prematurity”, New England Journal of Medicine, Volume 350, reports the outcomes at school age in children participating in a trial of an early postnatal therapy for preventing chronic lung disease of prematurity. All of the infants in the study had severe respiratory distress syndrome requiring mechanical ventilation shortly after birth. The attached dataset ‘Child_IQ’ contains the IQs of 74 randomly selected children from the study. Use the technology of your choice to answer the following question:

Give a 95% confidence interval for the standard deviation of IQ scores for children in the study group. ANS:  (10.8, 15.0)

Antonio buys five new college textbooks during his first year at school at a cost of

​$8080

each. Used books cost only

​$5050

each. When the bookstore announces that there will be a

5050

percent increase in the price of new books and a

100100

percent increase in the price of used​ books, Antonio's father offers him​ $200 extra.

What happens to​ Antonio's budget​ line?

​1.) Using the line drawing​ tool, graph​ Antonio's original budget line. Label this line

Upper L 1L1.

​2.) Using the line drawing​ tool,

then

graph​ Antonio's new budget line. Label this line

Upper L 2L2.

Carefully follow the instructions​ above, and only draw the required objects.

Is Antonio worse or better off after the price​ change? Explain.

Antonio will be

equally well off

if he continues to spend all of his income on new books. At the same​ time, he would be

worse off

if he were to spend a portion of his money on used books.01234567891011120123456789101112                                                  Used Books                                                           New Books

Upper L 2L2

Upper L 1L1

interactive graph

Question is complete. Tap on the red indicators to see incorrect answers.

A survey of 192 medical school interns, whose results were published in the New England Journal of Medicine in January 2005, found them to average 57 hours of work a week, with standard deviation of 16 hours.

(a) Explain why the distribution of sample mean, x, will have an approximate normal shape even if the distribution of hours worked is not normal.

The standard deviation is large.

The sample size is small.     

The standard deviation is small.

The sample size is large.

(b) Explain why standardized sample mean will follow an approximate z distribution, even if we standardize with sample standard deviation s instead of population standard deviation σ.

For a small sample s is close to μ.

For a small sample s is close to σ.     

For a large sample s is close to μ.

For a large sample s is close to σ.

(c) Report an approximate 95% confidence interval for mean hours worked per week by the population of interns, rounding to the nearest tenth (one decimal place).
(  ,  )

(d) Which procedure would we use if the interval were to be constructed with software?

a t procedure

a z procedure     

(e) Explain why 40 is not a plausible value for population mean hours worked per week, based on your confidence interval.

40 falls above the interval.

40 falls below the interval.     

40 falls within the interval.

(f) If population mean equaled 40, find the value of the standardized sample mean. (Round your answer to two decimal places.)


(g) Explain why 40 is not a plausible value for the population mean hours worked per week if sample mean is 57, based on the standardized value of 57.

The sample size is too large.The standard deviation is too large.     

The standardized sample mean would be too small to be believable.

The standardized sample mean would be too large to be believable.

(h) If we were to carry out a formal test to see if the population mean could be 40, based on a sample mean of 57, how should the alternative hypothesis be written?

H_a: x ≠ 40

H_a: μ ≠ 40     

H_a: x > 40

H_a: μ > 57

H_a: μ ≠ 57

(i) Based on your confidence interval in part (c), would you reject the null hypothesis in favor of the alternative?

Yes

No    

A Business School far-far away would like to build a new building. They need to get

enough funding for it, and the Dean argues that part of the money should come from

increased tuitions. The Board of the university disagrees, as you are a public school, and

you should keep the cost of education at an affordable level for every strata of society. The Dean argues that getting your Business degree is still a far superior investment than any financial asset. For this, he asks you to estimate the return on getting the degree, and present your findings to the Board of the University to support his argument with data.

1. What is your LHS variable and variable of interest on the RHS? (2 pts)

2. Think about the economic model. What are the determinants of (your future) wage?(Give me 5 factors at least for 5 pts)

3.You are expecting data on randomly selected individuals that includes their wage,

education level, gender and some more socio-economic characteristics. However, you are provided only with a limited number of variables for now. First, they give you wage (monthly, $), education level (years) and age (years) of the person, but they are nice enough to only give information about the group of people who work in business. Write down a standard linear model WITH ALL ITS ASSUMPTIONS for his particular application, using the variables given above. What factors are included in the unobservables according to your economic intuition (in b))? (10 pts)

4.Do you believe the exogeneity assumption of the linear model? Write down why (you do or do not believe it) in this particular example. (5 pts)

Please answer all questions fully

Suppose that school teachers in New Haven, CT who ride bicycles for recreation or exercise face a greater risk of having their bike stolen than professional bicycle messengers. Specifically, there is an 80% chance that a teacher will lose a $2,000

bicycle during a given year but only a 20% chance that a messenger will lose a bicycle. Assume that an equal number teacher and messengers own bicycles in New Haven.

a.If an insurance company cannot tell a teacher from a messenger, it must
therefore charge the same premium to everyone. What will the actuarially fair insurance premium be if both teachers and messengers buy insurance policies?

b.Let us say that teachers and messengers both have the logarithmic utility functions u(C) = log C, and they both earn $20,000 a year, and they care about their total wealth (earnings and the $2,000 value of the bicycle). Will the teachers and messengers purchase bicycle insurance at the premium found in part a.? Explain.

c.Given the answer to part b., does the insurance company make any profits or incur any losses? If the insurance company does not break even, what should the premium be for a fair policy? Would the new premium cause teachers and messengers to change their decision about purchasing insurance?

d.Suppose now that the insurance company can observe the “type” of the customer. Would the answers to parts a. and b. change?

CASE STUDY – INTERNAL CONTROL

Honkydory Musical School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey, John Henry will play funky hip-hop and not so funky hip-hop dance tunes. Mr Bishop, the music and theater instructor, has been given the responsibility for coordinating the fund-raising efforts. This is Bishop’s first experience with fund-raising.

Bishop had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $10 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets. When the students received payment for the tickets, they were to bring the cash back to Mr. Bishop, and he would put it in a locked box in his desk drawer.

Some of the students were responsible for decorating the gymnasium for the dance. Mr. Bishop gave each of them a key to the money box and told them that if they took the money out to purchase materials, they should put a note in the box saying how much they took and what it was used for.

After 2 weeks the money box appeared to be getting full, so Mr. Bishop asked Luke Wilson to count the money, prepare a deposit slip, and deposit the money in a bank account that he had opened for this fundraising event. On the day of the dance, Bishop wrote a check from the account to pay the DJ, however the DJ said that he accepted only cash and did not give receipts. So Bishop took $ 500 out of the cash box and gave it to him. At the dance Bishop saw Sally working at the entrance to the gymnasium, collecting ticket from the students and selling tickets to those who had not pre-purchased them. Bishop estimated that 400 students attended the dance.

The following day Bishop closed out the bank account, which had $450 in it, and gave that amount plus the $ 300 in the cash box to the Principal of the school. He seemed surprised that after generating roughly $ 4000 in sales, the dance netted only $ 750 in cash. Bishop did not know how to respond.

Required:

1. List the internal controls that were ignored by Mr. Bishop during this fundraiser. (There are at least six)

2. Create an internal control policy that will provide all needed guidelines for the School to follow for every subsequent fundraiser.

3. Do you believe that the Principal should investigate whether fraud has occurred by Mr. Bishop?

4. Do you believe the students have committed fraud?

5. Who could help this principal develop the proper policy and controls?

Blue Bayou Middle School wants to raise money for a new sound system for its auditorium. The primary fund-raising event is a dance at which the famous disc jockey Kray Zee will play classic and not-so-classic dance tunes. Grant Hill, the music and theater instructor, has been given the responsibility for coordinating the fund-raising efforts. This is Grant’s first experience with fund-raising. He decides to put the eighth-grade choir in charge of the event; he will be a relatively passive observer.

Grant had 500 unnumbered tickets printed for the dance. He left the tickets in a box on his desk and told the choir students to take as many tickets as they thought they could sell for $5 each. In order to ensure that no extra tickets would be floating around, he told them to dispose of any unsold tickets. When the students received payment for the tickets, they were to bring the cash back to Grant, and he would put it in a locked box in his desk drawer.

Some of the students were responsible for decorating the gymnasium for the dance. Grant gave each of them a key to the money box and told them that if they took money out to purchase materials, they should put a note in the box saying how much they took and what it was used for. After 2 weeks, the money box appeared to be getting full, so Grant asked Lynn Dandi to count the money, prepare a deposit slip, and deposit the money in a bank account that Grant had opened.

The day of the dance, Grant wrote a check from the account to pay Kray Zee. The DJ said, however, that he accepted only cash and did not give receipts. So Grant took $200 out of the cash box and gave it to Kray. At the dance, Grant had Dana Uhler working at the entrance to the gymnasium, collecting tickets from students and selling tickets to those who had not pre-purchased them. Grant estimated that 400 students attended the dance.

The following day, Grant closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Sanchez. Principal Sanchez seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Grant did not know how to respond.

Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.

An analyst has created estimates for a new Putt Putt course near the local elementary school. The course will require an investment (building and equipment) at year 0 of $166,994.00. This amount can be depreciated over 5 years using the straight-line approach. The building can be sold for an NSV of $42,903.00 in year 5. The entrepreneur needs help estimating the cash flows for the business.

The investor wants an 9.00% return on the investment and the firm faces a 35.00% tax rate.

What is the NPV of this project?

An analyst has created estimates for a new Putt Putt course near the local elementary school. The course will require an investment (building and equipment) at year 0 of $166,994.00. This amount can be depreciated over 5 years using the straight-line approach. The building can be sold for an NSV of $42,903.00 in year 5. The entrepreneur needs help estimating the cash flows for the business.

The investor wants an 9.00% return on the investment and the firm faces a 35.00% tax rate.

a) What is the project cash flow for year 1?

b) What is the project cash flow for year 2?

c) What is the NPV of this project?