EXPECTED RETURN

A stock's returns have the following distribution:

1. Calculate the stock's expected return. Round your answer to two decimal places.
   %

2. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
   %

3. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

EXPECTED RETURNS

Stocks A and B have the following probability distributions of expected future returns:

1. Calculate the expected rate of return, r_B, for Stock B (r_A = 9.90%.) Do not round intermediate calculations. Round your answer to two decimal places.
   %

2. Calculate the standard deviation of expected returns, σ_A, for Stock A (σ_B = 27.01%.) Do not round intermediate calculations. Round your answer to two decimal places.
   %

3. Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.

7. The following data is the weight of diamond x with the US dollar price y.

x : 0.3 0.4 0.5 0.5 1.0 0.7

y : 510 1151 1343 1410 5669 2277

(a) Find the regression equation for the data points given.

(b) Determine the percentage of variation in price of diamond y that is explained by the weight x.

(c) Is it reasonable to predict the price of a 0.8-carat diamond using this model? If yes, predict it. If no, state why.

(d) Is it reasonable to predict the price of a 1.5-carat diamond using this model? If yes, predict it. If no, state why.

This is strictly to check answers.

A really important chemical (D) is produced from available feedstock (A) in liquid phase reaction. At reaction conditions, A also degrades into undesirable impurity (U). The reactions are given as: A D rD = k1C 2 A A U rU = k2CA The reaction is carried out in two CSTRs with residence times of 2.5 min and 10 min respectively connected in series. The feed to the first reactor contains A and U with concentrations of CA0= 1.0, and CU0 = 0.3 (units are not important). At the end of first reactor, following composition is obtained: CA1 = 0.4 CD1 = 0.2 CU1 = 0.7 Find the composition leaving the second reactor.

CREATE TABLE Hotel

(

roomNumber     INTEGER         PRIMARY KEY,

type                  CHAR(10)         NOT NULL,

rate                   INTEGER         NOT NULL,

--

CONSTRAINT IC1 CHECK (type IN ('suite', 'king', 'queen')),

CONSTRAINT IC2 CHECK (type <> 'suite' OR rate > 200),

CONSTRAINT IC3 CHECK (NOT (type = 'king' AND (rate < 80 OR rate > 220))),

CONSTRAINT IC4 CHECK (NOT (type = 'queen' AND rate >= 100))

);

which 8 of these inserts will be rejected only 8 are rejected

A theater has 500 seats, divided into orchestra, main, and balcony seating. Orchestra seats sell for $50, main seats for $35, and balcony seats for $25. If all the seats are sold, the gross revenue to the theater is $17,100. If all the main and balcony seats are sold, but only half the orchestra seats are sold, the gross revenue is $14,600. How many balcony seats are there?

Case:

Rent Relief Caravans4Hire Ltd1 provides short-term rental of caravans to tourists for camping holidays throughout Australia. Caravans4Hire Ltd leases several large properties in Adelaide, Perth and Sydney, which it needs to park its caravans when not in use. Due to border restrictions, travel restrictions, localised lockdowns and Government advice to stay home, Caravans4Hire Ltd has suffered a significant loss of revenue and cash flow. On 1 May 2020 the National Hotel and Tourism Industry Association which is a non-government, not-for-profit industry association. It supports its members, who are businesses operating in the hospitality and tourism industry awarded Caravans4Hire Ltd a grant of $360 000 in total for rent relief for the three months ended 31 July 2020. The grant was received in cash on 1 May 2020. Caravans4Hire Ltd is under no obligation to repay the money received. REQUIRED All questions should be answered from the perspective of Caravans4Hire Ltd. The word lengths are a suggestion only, i.e., they are NOT strict word limits for each part.

a) What is the main accounting policy issue(s) that need to be resolved to account for the grant from the National Hotel and Tourism Industry Association? (20%) (part a) 15 – 50 words)

b) i) Identify one principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle (e.g., Conceptual Framework, Chapter X, para. x.xx) AND explain why you chose that principle. (20%)

ii) identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle.(10%) (part b) 50 – 100 words).

c) Describe an accounting policy to account for the grant from the National Hotel and Tourism Industry Association. Do not justify your policy. Just describe it. (50%) (part c) 20 - 80 words)

1. In a series of projects I determined linear correlation coefficients between various explanatory and response variables. Rank projects thru 5 in order of the increasing strength of correlation.

2. What does r measure?

3. Given the following values of x and y, and using y as the response variable, find the regression line that best fits the data.

4. Estimate the y values associated with an x value of 13

Even within a particular chain of hotels, lodging during the summer months can vary substantially depending on the type of room and the amenities offered. Suppose that we randomly select 50 billing statements from each of the computer databases of the Hotel A, the Hotel B, and the Hotel C chains, and record the nightly room rates. The means and standard deviations for 50 billing statements from each of the computer databases of each of the three hotel chains are given in the table.

Hotel A Hotel B Hotel C

Sample average ($) 145 160. 125

Sample standard deviation 17.6 22.6. 12.5

(a) Find a 95% confidence interval for the difference in the average room rates for the Hotel A and the Hotel C chains. (Round your answers to two decimal places.)