A goal of financial literacy for children is to learn how to manage money wisely. One question is: How much money do children have to manage? A recent study by Schnur Educational Research Associates randomly sampled 15 children between 8 and 10 years old and 18 children between 11 and 14 years old and recorded their monthly allowance. Is it reasonable to conclude that the mean allowance received by children between 11 and 14 years is more than the allowance received by children between 8 and 10 years? Use the 0.01 significance level. What is the p-value?

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1. State the decision rule: H₀: μ_{8-10 Year olds} ≥ μ_{11-14 Year olds}H₁: μ_{8-10 Year olds <}μ_{11-14 Year olds}. (Negative value should be indicated by a minus sign. Round your answer to 3 decimal places.)

2. Compute the value of the test statistic. (Negative value should be indicated by a minus sign. Round your answer to 3 decimal places.)

The marketing manager of a firm that produces laundry products decides to test market a new laundry product in each of the firm's two sales regions. He wants to determine whether there will be a difference in mean sales per market per month between the two regions. A random sample of 14 supermarkets from Region 1 had mean sales of 88.7 with a standard deviation of 5.9. A random sample of 7 supermarkets from Region 2 had a mean sales of 74 with a standard deviation of 8.3. Does the test marketing reveal a difference in potential mean sales per market in Region 2? Let μ1 be the mean sales per market in Region 1 and μ2 be the mean sales per market in Region 2. Use a significance level of α=0.1 for the test. Assume that the population variances are not equal and that the two populations are normally distributed.

Step 3 of 4 : Determine the decision rule for rejecting the null hypothesis H0. Round your answer to three decimal places.

Parent Corporation paid $400,000 cash for 90% of Subsidiary Corporation's common stock on January 1, 2006,

when Subsidiary had $300,000 capital stock and $100,000 retained earnings. Th book value of Subsidiary's
assets and liabilities were equal to fair values. During 2006, Subsidiary reported net income of $20,000 and
declared $10,000 in dividends on December 31. Balance sheets for Parent and Subsidiary at December 31, 2006,
are as follows (in thousands):
Parent Subsidiary
Assets
Cash $                              42 $                            20
Receivable - net 50 130

Inventories 400 50
Land 150 200
Equipment - net 600 100
Investment in Subsidiary 409
$                          1,651 $                          500
Liabilities and Equity
Accounts payable 410 80
Dividends payable 60 10
Capital stock 1000 300
Retained earnings 181 110
$                          1,651 $                          500
Required:
1. Prepare consolidated balance sheet working papers for Parent Corporation and Subsidiary for December 31,2006.

Suppose that a software development team released an update to one of their mobile applications after receiving complaints about the previous version from 9.4% of their customers. A few weeks after the update was released, the development team wanted to know if fewer customers had complaints. The team selected a random sample of 325 customers and found that 21 of them submitted complaints about the application after the update was released.

The team wants to use a one‑sample  z ‑test for a population proportion to see if the proportion of customers with complaints,  p, has decreased since they released the update. For this test, they plan to use a significance level of  α=0.05 .

Determine the value of the z ‑test statistic. Give your answer precise to at least three decimal places

z =

Determine the critical value, Zα , for this test. Give your answer precise to at least three decimal places

Za =

You own Home Renewal, a local furniture store specializing in unique, high quality, well-designed home furnishings. Business has been steadily growing over the past two years, but you notice that the majority of sales are from new customers with no previous experience with the store. You have not been collecting information from your customers after they make purchases from your store, so you are not aware if previous customers have positive or negative feelings about the process of shopping in Home Renewal and the products they purchased. In one or more fully formed paragraphs, identify and explain the three potential customer reactions you should evaluate after a purchase. Then, develop at least three specific responses that Home Renewal can implement to address these reactions and create repeat business from customers.

Give an example of an adjusting journal entry for each of the following transactions. Provide three correct responses:

Equal growth of an expense and a liability:

Earning of revenue that was previously recorded as unearned revenue:

Equal growth of an asset and revenue:

Increase in an expense and decrease in an asset:

Consider three servers. An average of 12 customers per hour arrive from outside at server 1, an average of 36 customers per hour arrive from outside at server 2 and an average of 24 customers per hour arrive from outside at server 3. Interarrival times are exponential. Servers 1, 2 and 3 can serve at exponential rates of 100, 120 and 80 customers per hour respectively. After completing service at server 1, 25% of the customers leave the system and 75% of the customers go to server 2. After completing service at server 2, 50% of the customers go to server 3 and 50% of the customers go to server 1. After completing service at server 3, 25% of the customers go to server 2 and 75% of the customers leave the system.

(a) Find the arrival rates: λ1, λ2 and λ3 of the customers at the servers 1,2 and 3 respectively.

(b) Find the expected number of customers at each server. (c) Find the average time a customer spends in the system.

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.

a. What will be the amount of EJH Cinemas’ total revenue if the price is $7 per ticket?

b. What is the amount of consumer surplus if the price is $7 per ticket?

c. What will be the amount of EJH Cinemas’ total revenue if the price is $9 per ticket?

d. What is the amount of consumer surplus if the price is $9 per ticket?

e. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the movie theater’s total revenue?

f. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the amount of consumer surplus?

g. If you were in charge of EJH Cinemas, what pricing scheme should you use?

please show the solution.

2. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
   
   1. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
   2. Develop the estimated regression equation.
   3. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
   4. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
   5. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
   6. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.