1f. Compare 1a and 1d, and 1b and 1e, explain why the percentage in 1a is much larger than that in 1d and why the value in 1b is much smaller than that in 1e?

1. Suppose that for Edwardsville High School, distances between students’ homes and the high school observe normal distribution with the average distance being 4.76 miles and the standard deviation being 1.74 miles. Express distances and z scores to two decimal places. Write the formula to be used before each calculation.

1a. What percentage of students in the high school live farther than 6.78 miles from the school?

1b. A survey shows that 8% of the students who live closest to the school choose to walk to school. What is the maximum walking distance of these 8% of students? In other words, what is the distance below which these 8% of students live from the school?

1c. Suppose that the school district’s policy allows students living beyond 4.50 miles from the school to take school buses to go to school. There are 3,567 students who enroll in the fall semester, 2006. How many students in the high school are not eligible to take school buses?

1d. Suppose all samples of size 12 are taken. What percentage of sample means has a value larger than 6.78 miles?

1e. Below what value are 8% of sample means of size 12?

IN MINITAB  High School Dropouts Approximately 10.3% of American high school students drop out of school before graduation. Choose 10 students entering high school at random. Find the probability that

a. No more than two drop out

b. At least 6 graduate

c. All 10 stay in school and graduate

Which of the following events would shift a household’s consumption function upwards?

Select one:

a. The rate of interest falls.

b. Household current wealth falls as the stock market declines.

c. The rate of interest rises.

d. The household gets new information that leads them to expect they will be laid off next year.

e. The household head decides to go back to school

Attempt to briefly explain the great recession according to each of the following four business cycle theories:

1. New Keynesian

2. Real Business Cycle Theory

3. Monetarist

4. Austrian School

Use each of the four model perspectives to answer the question: how did this all happen? In your view, was an appropriate Fiscal and Monetary Policy Response followed?

The residents of the town Ectenia all love econom- ics, and the mayor proposes building an economics museum. The museum has a fixed cost of $2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits:

QD = 10 − P, where P is the price of admission.

a) Graph the museum’s average-total-cost curve and its marginal-cost curve. What kind of market would describe the museum

b) Themayorproposesfinancingthemuseumwith a lump-sum tax of $24 and then opening the museum to the public for free. How many times would each person visit? Calculate the benefit each person would get from the museum,  measured as consumer surplus minus the new tax.

c) The mayor’s antitax opponent says the museum should finance itself by charging an admission fee. What is the lowest price the museum can charge without incurring losses? (Hint: Find the number of visits and museum profits for prices of $2, $3, $4, and $5.)

d)For the break-even price you found in part (c), calculate each resident’s consumer surplus. Compared with the mayor’s plan, who is better off with this admission fee, and who is worse off? Explain.

e)What might real-world considerations absent in the problem above provide reasons to favor an admission fee?

The Nanjo Van(NV) Sdn Bhd is a private limited company incorporated in Malaysia. Starting its business in the last 5 years, NV already employs 70 dispatch staffs for delivery services. The company currently owns 15 vans and 20 motorcycles, some were purchased new, and some were acquired second-hand.

Since the pandemic of Covid-19 early 2020, the company suffers from inadequate resources as many trading companies now need transport facilities to sell their products. The company then decides to lease 10 more vans from a lessor in town under a 15-year leasehold agreement. This lease comes with purchase option at huge discounted price and most likely the company will buy the vehicles at the end of the lease term.

Full details of all vehicles owned by the company are maintained in a non-current asset register. But the leasehold vehicles are only recorded in the form of their monthly rentals in expense.

Required:

1. Identify the four (4) most important assertions for the audit of the vehicles owned by Nanjo Van(NV) Sdn Bhd. For each assertion, suggest the most appropriate substantive audit evidence you would gather and evaluate in addressing each assertion.

(10 Marks)

2. List and describe two (2) audit work you should perform on the 10 vehicles which are leased from the lessor in town.

(5 Marks)                      

(Total: 15 Marks)

Litapi Fisheries has just finished registering with Patents and Company Registration Authority (PACRA) as a Supplier of Fish to Hotels, Boarding Schools, Colleges and Universities amongst other intended clients. The Supplying Company has been organized into Marketing, Procurement, Accounts, sales, Human Resource and IT Departments. The Chief Executive Officer (CEO) of the company has decided to start with rented office premises in the town center of Mongu town, his single light truck as the only start up transport. The IT department is supposed to maintain the IT infrastructure on which all the other departments store their information and also provide the electronic marketing support for the marketing department. In the last five years, the region which is their major source of fish has experienced droughts and floods. The fish storage facilities which have been gotten by loan from the local Radian Stores are new and use AC power which is often loadshaded, at times for longer periods.

a) The human Resource department has just hired you as their inaugural Business Continuity Manger and tasked you to come up with Business Continuity Management System specific to this company. Discuss the said Business Continuity Management System, clearly highlighting the Mitigation and Continuity Strategies.

b) Use PDCA process approach to show how this fishing company can improve its management operations.

Consider an industry with demand Q = a − p where 3 identical firms that compete a la
Cournot. Each firm’s cost function is given by C = F + c q. Suppose two of the firms merge and that the
merged firm’s cost function is given by C = F'+C'q, where F<F'<2F
(a) Determine each firm’s market share before and after the merger.
(b) Suppose that a = 10 and c = 3. Determine the Herfindahl index after the merger takes place when
(i) c'=2  (ii) c'=1 Compare this to the post-merger Herfindahl index calculated based on
pre-merger market shares

Do teachers find their work rewarding and satisfying? An article reports the results of a survey of 397 elementary school teachers and 261 high school teachers. Of the elementary school teachers, 223 said they were very satisfied with their jobs, whereas 121 of the high school teachers were very satisfied with their work. Estimate the difference between the proportion of all elementary school teachers who are satisfied and all high school teachers who are satisfied by calculating a 95% CI. (Use p_elementary − p_{high school}. Round your answers to four decimal places.)

Interpret your 95% confidence interval.

Question 1:

A football club is the only one in its region and is therefore able to behave like a monopolist.

It sells tickets to Adults (?) and Juniors (?), whose demand curves are given by:

?_! = 100−?_!

?_" = 80−?_"

Additionally, the club’s total costs are given by ?? = 10?

1. Initially, the club sets its price by charging all supporters the same price, according to the aggregate market demand curve. Calculate the maximising output, price and the resulting profit for the club as well as consumer surplus.

2. The club hires an economist to consider its pricing strategy and receives the advice that it should charge different prices to each type of supporter. Find the prices it sets in both markets, the sales (output) in each and its overall level of profit and illustrate profit maximising outputs and prices of each consumer type on a graph (one graph for each type of consumer). Calculate consumer surplus in this case.

3. What conditions must be satisfied for a producer to be able to implement a policy of price discrimination?

Question 2:

The following table presents the price, output and profits for identical firms at industry and firm level. Suppose there are currently four firms in the market and two are proposing to merge (firm 3 and 4). Assume that the remaining three (the one merged firm plus the two unmerged firms) continue to exhibit Cournot behavior.

a) Explain the merger paradox using data from the table below. How the merged firm (firm 3 and 4) will be worse off?

b) How would this outcome differ if all four firms merged?

c) Explain what is the motivation for two firms to merge.

Output is measured in thousands of units and profits are measured in thousands of pounds per week.

Question 3:

Consider a market with two identical firms, Firm A and Firm B. The market demand is ? = 20−^#$ ?, where ? = ?_% +?_& . The cost conditions are ??_% = ??_& = 16.

a) Assume this market has a Stackelberg leader, Firm A. Solve for the quantity, price and profit for each firm. Explain your calculations.

b) How does this compare to the Cournot-Nash equilibrium quantity, price and profit? Explain your calculations.

c) Present the Stackelberg and Cournot equilibrium output using a diagram.

4. The crude oil market can be described as a Nash-Cournot market, in which Saudi Arabia acts as Stackelberg leader. Do you agree with this statement?