The data from data47.dat contains information on 78 seventh-grade students. We want to know how well each of IQ score and self-concept score predicts GPA using least-squares regression. We also want to know which of these explanatory variables predicts GPA better. Give numerical measures that answer these questions. (Round your answers to three decimal places.)
(Regressor: IQ) R ²

(Regressor: Self-Concept) R ²

obs     gpa     iq      gender  concept
1       7.94    111     2       68
2       8.292   115     2       65
3       4.643   106     2       61
4       7.47    112     2       70
5       8.882   117     1       65
6       7.585   105     2       70
7       7.65    97      2       66
8       2.412   90      2       39
9       6       105     1       49
10      8.833   138     2       57
11      7.47    101     1       71
12      5.528   107     1       61
13      7.167   114     2       46
14      7.571   112     1       68
15      4.7     98      1       46
16      8.167   103     1       81
17      7.822   121     1       65
18      7.598   106     1       67
19      4       114     2       57
20      6.231   108     1       71
21      7.643   117     2       76
22      1.76    81      2       55
24      6.419   103     1       39
26      9.648   112     2       50
27      10.7    130     1       67
28      10.58   116     2       59
29      9.429   123     2       44
30      8       94      2       78
31      9.585   116     2       54
32      9.571   126     1       64
33      8.998   97      1       63
34      8.333   106     1       60
35      8.175   110     2       74
36      8       123     2       62
37      9.333   91      1       91
38      9.5     111     2       54
39      9.167   103     2       52
40      10.14   110     1       67
41      9.999   124     1       98
43      10.76   116     2       79
44      9.763   125     2       71
45      9.41    109     2       71
46      9.167   103     2       70
47      9.348   116     2       80
48      8.167   121     2       71
50      3.647   95      2       50
51      3.408   98      1       46
52      3.936   97      2       48
53      7.167   87      2       71
54      7.647   119     2       71
55      .53     60      2       44
56      6.173   107     2       71
57      7.295   107     2       55
58      7.295   114     1       71
59      8.938   121     1       59
60      7.882   112     1       60
61      8.353   114     2       56
62      5.062   116     2       67
63      8.175   116     2       65
64      8.235   114     2       74
65      7.588   110     2       50
68      7.647   100     2       85
69      5.237   107     1       52
71      7.825   114     2       47
72      7.333   86      1       58
74      9.167   109     2       36
76      7.996   98      2       72
77      8.714   116     1       60
78      7.833   103     1       62
79      4.885   101     2       39
80      7.998   105     1       46
83      3.82    79      2       36
84      5.936   108     1       33
85      9       99      1       78
86      9.5     106     1       47
87      6.057   107     2       60
88      6.057   94      1       64
89      6.938   115     2       44

QUESTION 1

Download the variable ‘real GDP’ for the United States from the St. Louis Fred data base and save it in Excel (the last four digits of the FRED code are DPCA). Create a second column and take the natural logarithm of the variable. What is the value of ln(RGDP) in year 2012? Next, plot both series. Which graph appears to grow steeper in latter (i.e. last 40) years?

(*hint: Due to the scale difference between the two graphs, you will likely want to right click and “Format Data Series” and select secondary axis so that one of the data series will have Y- axis values on the right side of the graph.)

QUESTION 2

1. Download the variable ‘real GDP’ for the United States from the St. Louis Fred data base and save it in Excel (the last four digits of the FRED code are DPCA). Create a second column and take the natural logarithm of the variable. Plot both series. Which graph appears to grow steeper in latter (i.e. last 40) years?

   (*hint: Due to the scale difference between the two graphs, you will likely want to right click and “Format Data Series” and select secondary axis so that one of the data series will have Y-axis values on the right side of the graph.)

   		a.RGDP
   		b.ln(RGDP)

JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 320 days per year and has annual demand of 57,000 bumpers. They can produce up to 435 bumpers each day. It costs $50 to set up the production line to produce bumpers. The cost of each bumper is $88 and annual holding costs are $35 per unit. Setup labor cost is $23 per hour.

What is the optimal size of the production run for bumpers? (Display your answer to the nearest whole number.)
   

Based on your answer to the previous question, and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? (Display your answer to the nearest whole number.)
   

Based on your answer two questions back, how many production runs will be required each year to satisfy demand? HINT: As a general rule, whenever calculating a value that is based on previous calculations in Excel, always be sure to use cell references rather than a rounded value as a calculation input. (Display your answer to the nearest whole number.)
   

Suppose the customer (an auto manufacturer) wants to purchase in lots of 260 and that Bob's Bumpers is able to reduce setup costs to the point where 260 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? (Display your answer to two decimal places.)
  

How much will they save in annual setup costs with this new lower production quantity? (Display your answer to two decimal places.)
   

HW 7 16. Madison would like to form a portfolio between Microsoft (Ticker: MSFT) and a bond index fund. The following table shows the performance of the two assets in each state of the economy.

Prob. MSFT(%) Bond(%)

Recession           0.1     -40       12

Normal               0.7     20        6

Boom                 0.2     50        -2

Suppose the standard deviation of Microsoft is 23.24% and the standard deviation of the bond fund is 3.92%. Madison will form a portfolio which invests 40% into Microsoft and 60% into the bond fund.What is the standard deviation and sharpe ratio of the portfolio if risk-free rate is 4%?

All the workstations in a company have to be renovated and there is only one week to do it. Last year the company’s 200 workstations had all been renovated within one week (40 hours). Each workstation (last year) took on average two hours, and 10 technicians had completed the process within the week. This year there will be 240 workstations to renovate but the company’s IT support unit has devised a faster renovation routine that will only take on average one hour and 15 minutes.

1. What is the work-in-progress (WIP)?
2. What is the average time to renovate a workstation (in hours)?   
3. Calculate the throughput rate.
4. How many technicians will be needed this year to complete the renovation processes within one week?

Road Rage, Inc., is in the business of designing, constructing, and inspecting highways. Road Rage has publicly held company and files consolidated financial statements. In 20X1, Road Rage, through its subsidiary, Builders, Inc. (Builders), signed a fixed price contract for the construction of an interstate highway. The project was to be completed three years hence. All of the long-term projects of Builders (greater than one year) are reported on the percentage-of-completion method of accounting

Under the terms of the contract, Builders was to provide all the necessary equipment, machinery, and materials. However, the contract gave the owner of the project the option to furnish some of the necessary items itself and to reduce the contract costs and gross margin appropriately. The contract required Builders to obtain property and personal injury liability insurance. In addition, the contract the owner of the project.

Builders recognized income in each of the first two years of the contract based on the following formula: Fixed contract price Total costs of construction Total estimated gross profit Estimated percentage of work completed Year-to-date gross profit Prior year-to-date gross profit. Actual Costs for period Income recognized in current period Total costs of construction were based on the following:

1. Direct material

2. Direct labor

3. Overhead costs

4. Equipment design allowance: anticipated routine design changes in the development process and 5. Conceptual design allowance: normal growth during the engineering design phase (15 percent of material and labor costs)

6. Construction quantity allowance material and labor associated with anticipated concrete waste and overpour, piping drop-offs and waste, insulation fabrication cut-offs, and other damages (5 percent of construction activity accounts)

7. Escalation allowance: cost increases due to anticipated inflation (12 percent of equipment costs plus 15 percent of construction activity accounts

8. Contingency allowance: unforeseeable costs due to human error in the estimation process (2.9 percent of base costs of construction)

9. Risk allowance costs of unforeseeable events such as labor disputes, unusually bad weather, runaway inflation, or changes in governmental regulations (4 percent of base cost of contract)

The base cost of the contract included items 1 through 3 above. Items 4 through 7 were identified with particular items of work

Road Rage did not bid for the contract for this project and therefore, represents that it would not inflate projected costs unnecessarily. Builders has only constructed one bridge prior to this contract. All of the allowances in the estimated contract costs are within the normal industry standards.

Questions:

1. Is Builders' method of recognizing income for the current period correct?

2. If the original estimates for costs are as follows, what was the original total estimated cost of construction?

$5,000,000 - Direct Material

10,000,000 - Direct Labor

2,000,000   - Overhead Costs

Equipment costs are included in direct materials; they represent 40 percent of the total (without regard to allowances), construction activity is the sum of direct material and direct l           abor (without regard to allowances)

3. If the original gross profit margin was to be 15 percent, what was the original contract price?

4. Using your answers to questions 3 and 4 above, what was the income recognized by Builders in both Years One and Two, using the formula in the facts? At the end of Years One and Two, the company represented that it was 50 percent and 75 percent finished with the work, respectively, and had expended $4,509,596 and $2,221,144, respectively.

5. Can all of the above costs be properly included in the total estimated gross-profit calculation? Why or why not?

7. Year Three, after the financial statements for Year Two were issued, it was discovered that the owner of the project provided a substantial amount of the required items in accordance with the owner's option in the contract. It was determined that the owner provided items amounted to 57 percent of the corrected contract cost. The owner will not be providing any more items in Year Three. (Hint Before applying the owner-provided options to the contract cost, remove the effects of Contingency and Risk Allowances.)

Using Builders' formula for calculating the income recognized, calculate the income Builders should have reported in Years One and Two, assuming the work was 50 percent complete in Year One and 75 percent complete in Year Two, and that Year One and Two expenses were $4,509,596 and $2,221,144, respectively.

8. Using your answers to questions 5 and 7 answer the following questions - What is the overstatement of income recognized at the end of Year One?

b. What is the overstatement of income recognized at the end of Year Two?

9. Assuming this is Builders' only project, and based on your answers to question 8, what is the anticipated net income Builders will recognize in Year Three (using Road Rage's method of reporting income recognition) (Hint: Adjust the gross income for the overstatement of income recognized in Years One and Two.)

10. What should management and the auditors have done to recognize that the income in Years One and Two was substantially overstated?

11. Was the management of Builders fairly accurate in estimating work completed? Why or why not?

Hi, there are 2 parts of this question

S. superis is a rare flowering plant that can produce blooms in two colours, purple (P) and teal (p), and two shapes, four petals (F) and seven petals (f). Purple is dominant to teal, and four is dominant to seven petals. S. superis is a diploid organism, 2n = 4, that can both self-fertilize and mate with other plants of the same species (out-cross). You find one of these rare plants in your garden and it has purple flowers with four petals. Assuming this lonely plant must self-fertilize what potential offspring phenotypes could you see?

Select one:

a. Purple with seven petals

b. Purple with four petals

c. Teal with seven petals

d. All of the phenotypes listed are possible depending on the genotype of the plant.

Your friend is working with S. superis plants in the lab and has set up a cross between a plant with four purple petals and a plant with seven teal petals. Of the 200 offspring from the cross all have purple petals but about 1/2 have four petals and 1/2 have seven petals.

If you were to write out the cross that your friend set up what would it look like genotypically?

Select one:

a. PPFf X ppff

b. PpFf X PpFf

c. PpFF X ppff

d. PpFf X ppff

e. PPFF X ppff

Paired Samples t-test (30pts) Suppose you are interested in deciding if a particular diet is effective in changing people’s weight. You decide to run a “within subject” experiment. You select 6 people and weight each of them. Two weeks, you weight them again. For each person you compute how much weight they lost over this period. This is what you find: Non-diet(subject 1-6): 0 7 3 2 -10 -1

You then put them on the diet and weigh them again after two weeks and compute how much they lost over this period. Diet

(subject 1-6) : 1 6 4 3 -8 2

a) State the null and alternative hypotheses (2pts)

b) Compute the mean and standard deviation of the difference distribution (4pts)

c) How many degrees of freedom do you have? (3pts)

d) Assume the Null Hypothesis is True and compute the t-statistic (2-pts)

e) Compute the P-value (2pts)

f) At an alpha = 0.05 would you accept or reject the null hypothesis? (3pts)

Please show work, thank you!

The following are the cash flows of two projects:

Year    Project A    Project B

0 -250    -250

1    130    150

2    130    150

3    130    150

4    130

If the opportunity cost is 10%, what is the profitability index for each project?

Project Profitability Index

A

B

8. Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-income workers like file clerks and telephone receptionists.