1. Table 3 (below) shows annual returns for the S&P 500 for the years 2000-2016:

Table 3: Annual Returns

Calculate:

1. The cumulative return over the 17 years;
2. The average annual return;
3. The standard deviation;
4. The Sharpe Ratio (assuming a risk free rate of 2.3% on average)

The table below shows the murder rate per 100,000 residents for a large American city over a twelve-year period.

All Time Box Office Revenues Aggregated by Months

1. Calculate the mean for the gross revenues.
2. Calculate the mean for the Movies tracked.
3. Calculate the standard deviation for the movies tracked.

Please Convert yearly data to quarterly data on excel

Income Level

Canada United States

Year Annual Annual

2000 22750 59938

2001 23110 58609

2002 23580 57947

2003 25480 57875

2004 29530 57674

2005 34300 58291

2006 37890 58746

2007 41530 59534

2008 44930 57412

2009 43220 57010

2010 44480 55520

2011 47180 54673

2012 51080 54569

2013 52800 56479

2014 52190 55613

2015 47580 58476

2016 43940 60309

2017 43000

2018 44860

Three barbers work at a barbershop. Based on estimations, the barbershop is idle 1 time out of 15; 2/15 of the time there is one customer; 3 times out of 15 there are two customers; and 4/15 of the time, there are three customers. Each customer yields a net revenue of 10 dollars.

Let X be a random variable defined as the number of customers

a) Determine the probability distribution of X

b) Determine the cumulative distribution function of X

c) Calculate the probability that: i) All three barbers are working. ii) At least one of the barbers is working

8.

a. What are the three types of firms? b. Explain the advantage and disadvantage of each type of firm.

c. Which type of firm produces the most revenue?

9.

a. What are implicit costs?

b. Do implicit cost contribute to the opportunity cost of production? Explain

c. Should an implicit cost be counted as cost in determining profit? Explain

d. Give two examples of implicit costs

The national association of realtors estimates that 23% of all homes purchased in 2004 were considered investments properties. If a sample of 800 homes sold in 2004 is obtained what is the probability that between 175 and 200 homes are going to be used as a investment property?

25. Revenue recognition is a major accounting challenge. Most industrial and retail firms recognize revenue as earned at the point of sale. More generally, according to IAS 18, revenue from the sale of goods should be recognized when the significant risks and rewards of ownership have been transferred to the buyer, the seller loses control over the items, the revenue and related costs can be measured reliably, and collection is reasonably assured. Revenue from services and long-term contracts can be recognized as the work progresses.

It is often not clear just when these general criteria are met. For example, revenue recognition at point of sale may be a reasonable tradeoff between relevance and reliability in most cases. However, relevance is increased (and reliability decreased) if revenue is recognized earlier than point of sale.

Furthermore, revenue recognition policy may be used by firms to impress investors. For example, firms with no earnings history (e.g., startup firms) and firms that are incurring significant losses or declines in earnings have an incentive to record revenue as early as possible, so as to improve, at least temporarily, the appearance of their financial statements.

Consider the case of Lucent Technologies Inc. (now called Alcatel-Lucent). In December 2000, Lucent restated its revenue for its fiscal year ended September 30, 2000, reducing the amounts (in millions) originally reported as follows:

The vendor financing component of the restatement represents previously unrecorded credits granted by Lucent to customers, to help them finance purchases of Lucent products. That is, the customer sales were originally recorded gross, rather than net, of the credits. The distribution partners’ component represents product

shipped to firms with which Lucent did not deal at arm’s length, but which was not resold by these firms at year-end. These firms included certain distributors in which Lucent had an ownership interest. The practice of over shipping to distributors is called “stuffing the channels.”

In its 2000 annual report, Lucent reported net income of $1,219 million, compared to $4,789 million for 1999 and $1,065 million for 1998.

Despite these December, 2000 adjustments, on May 17, 2004, the SEC announced charges against Lucent and several of its officers for overstating revenues by $1,148 million in 2000 in order to meet sales targets. The company’s share price fell by 5.5% on that day. Tactics used, the SEC claimed, included the granting of improper credits to customers to encourage them to buy company products, and invoicing sales to customers that were subject to renegotiation in subsequent periods.

Subsequently, Lucent paid a fine of $25 million for “lack of cooperation.” In addition, the company, and some of the executives charged, settled the allegations by paying penalties, without admitting or denying guilt.

Required

a. What is the most relevant point of revenue recognition? The most reliable? Explain. In your answer, consider manufacturing firms, oil and gas exploration firms, retail firms, and firms with long-term contracts.

b. Explain whether or not you feel that Lucent’s original recognition of the $679 million of items listed above as revenue was consistent with revenue recognition criteria? While Lucent was a U.S. company, assume that U.S. revenue recognition criteria are similar to the IASB criteria given in the question. In your answer, consider the tradeoff between relevance and reliability.

c. What additional revenue recognition questions arise when the vendor has an ownership interest in the customer?

Criminal Justice - short writting- Plea bargaining

Between 2002 and 2004, Ariel Castro kidnapped three young women and held them prisoner in his Cleveland, Ohio home. Held against their will for ten years, the women were beaten, raped, and starved. In May 2013, one of the women screamed for help when she saw neighbors through a screen door. Hours later, the two other women were rescued and Castro was arrested. Over the course of two months, 977 charges were brought against Castro including kidnapping, rape, and aggravated murder for the intentional induction of five miscarriages. Castro pled guilty to 937 of the 977 charges in a plea bargain that spared him the death penalty.

As we noted in Chapter 10, prosecutors, defense attorneys, and defendants often agree to plea bargains, in which the prosecutor and the defense work out a mutually satisfactory agreement that is subject to court approval. In this case, Castro pled guilty to the kidnapping, rape, and aggravated murder charges in exchange for consecutive life sentences, plus 1,000 years with no eligibility for parole. He subsequently committed suicide while in prison. Conduct some independent research on this case. Considering what you have learned about plea bargaining in Chapter 10 (Criminal justice by siegel) , please answer the following:

How could a man in a urban area kidnap and hold 3 women against their will for 10 years? Was this case an example of the effective use of plea bargaining? Explain.

(250 word minimum response required)

The file Hotel Prices contains the prices in British pounds (about US$ 1.52 as of July 2013) of a room at two-star, three-star, and four-star hotels in cities around the world in 2013.

a. Compute the mean, median, first quartile, and third quartile.

b. Compute the range, interquartile range, variance, standard de-viation, and coefficient of variation.

c. Interpret the measures of central tendency and variation within the context of this problem.

d. Construct a boxplot. Are the data skewed? If so, how?

e. Compute the covariance between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

f. Compute the coefficient of correlation between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

g. Which do you think is more valuable in expressing the relation-ship between the average price of a room at two-star, three-star, and four-star hotels—the covariance or the coefficient of cor-relation? Explain.

h. Based on (f), what conclusions can you reach about the relationship between the average price of a room at two-star, three-star, and four-star hotels?