1. 1. (a)

   Transport for London is the local government body responsible for most aspects of the transport system in London. Its role is to implement the transport strategy and to manage transport services across London.

   TfL launched the Night Tube service on the London Underground in August 2016. Currently, the Night Tube operates on Friday and Saturday nights across five lines (the Central, Jubilee, Northern, Piccadilly and Victoria lines). TfL management would consider expansion of the service to more lines and/or other nights of the week, subject to consumer demand.

   Some 1.34 billion passenger journeys are made each year on London Underground (albeit with many individuals making multiple journeys), however there is no sampling frame with full coverage of all distinct passengers available. Despite this limitation, TfL management wants to conduct market research to assess consumer appetite for an extension to the Night Tube service, which may have fare implications. At present Night Tube fares are classified as off-peak, although a special night-off-peak fare could be introduced, depending on passengers’ price elasticities.

   TfL has invited you to devise an appropriate sampling scheme to research attitudes towards developing the Night Tube. Explain in detail how each of the following sampling methods could be applied to the overall sampling strategy. Make sure you describe the merits and limitations of each as well as how each would be applied in practice.

   i. Convenience sampling.
   ii. Simple random sampling.

   iii. Systematic sampling. iv. Stratified sampling.

   (b) Suppose we are interested in estimating the mean of a population with a finite variance using a simple random sample of size n.

2. State a suitable estimator of the population mean as well as its sampling distribution. Mention any assumptions which you make.

3. Explain how the sampling distribution derived in i. should be interpreted.

4. Explain how to determine the minimum sample size necessary to estimate a population mean to within e units assuming the population standard deviation is known. If the population standard deviation was unknown, how would you deal with this?

5. Explain the purpose of the finite population correction factor (including a formula) and when it should be used.

When twenty-seven-year-old Natasha Frechette learned that she had multiple sclerosis, she wondered whether she would not only need someone to take care of her but whether she would be able to keep her data manager job at the small research firm where she worked. After all, the disease with which Frechette was diagnosed could lead to numbness, blindness, and eventual paralysis. Not to mention she would need to take time off for physical and occupational therapy. In a related story, Joel Boswell could no longer work as a mechanic at United Airlines after he was treated for a brain tumor. The U.S. Equal Employment Opportunity Commission (EEOC) alleged in its class-action lawsuit against the airline that rather than hiring Boswell for other jobs for which he was qualified, United Airlines placed him on involuntary leave until he retired. According to the EEOC attorney, “They [disabled workers] shouldn’t have to compete with everybody else. If they can do these jobs, they should try to work out an accommodation with the disabled worker.”

Frechette and Boswell are not alone. Millions of U.S. workers grapple with similar issues. In fact, over 7.4 million workers received Social Security Administration (SSA) disability benefits in 2008. Many of these workers suffer from serious or chronic illnesses that interfere with their ability to perform the work that brings so much meaning to their lives. Yet, many disabled employees do not let their employers know for fear of being perceived as cop-outs or of being discriminated against. Failure to disclose one’s illness, regardless of the reason, is risky. First, employers could mistake disability-related behaviors as dysfunctional behavior. For example, career coach Rosalind Joffe speaks of a client who, by not disclosing his illness to his employer, was accused of being a drug abuser. Most importantly, employers won’t know if and in what ways to adjust the disabled employee’s work if they don’t know that an adjustment is required.

1. 1. As a manager, how would you balance a disabled employee’s needs for a work adjustment to your need to design jobs that meet organizational performance goals?

1. 2. Do you believe United Airlines was justified in placing Boswell on involuntary leave? Explain.

Mrs. Paula Johnson is a 65-year-old white woman with a previous history of a sedentary lifestyle, hypertension, hypercholesterolemia, and diabetes mellitus type II. She is a heavy smoker since she was 20 years old. She was brought to the emergency room because her family found her unresponsive on the floor. She was diaphoretic. Her family thought she had her diabetes decompensated. Mrs. Johnson’s daughter indicated her mother was complaining of nausea and epigastric pain the day before. Also, her blood pressure was high.

On the physical we found:

Remarkable Signs on Physical by Regions

• Chest: Palpitation

Remarkable Signs on Physical by Systems

• Integumentary system: Profuse diaphoresis, coldness, and pallor
• Respiratory system: Tachypnea
• Cardiovascular system: Weak pulse, tachycardia, and hypotension
• Nervous system: Unconsciousness. No other neurologic signs.

Lab Tests

• Complete blood count (CBC)
• Cardiac enzymes
• Glucose level
• Lipid panel
• EKG
• Cardiac catheterization

Diagnosis

• Silent myocardial infarction

Other Diagnoses

• Essential hypertension
• Dyslipidemia
• Diabetes mellitus

In at least 375 words, or 1.5 double-spaced pages, prepare a case report that addresses the following:

1. Based on the case study provided, respond to the following questions:
   • Mention the symptoms and signs you found in this patient.
   • Did you find any remarkable detail in the personal and social history of our patient that can help to make the diagnosis?
   • What is a silent myocardial infarction, and why did it happen to this patient?
   • What results do you expect to find in the tests ordered?
   • What are some differential diagnoses?
   • What are some complications of myocardial infarction?
2. The patient suffers from silent myocardial infarction, but there are other types of heart diseases. Consider these questions:
   • Describe the heart valvular disorders and how they can produce cardiac failure.
   • What is endocarditis, and what are the most common causes?
   • How many types of shocks are there? Explain them.
3. As a lifetime smoker, the patient is at risk of several respiratory disorders. Consider these questions:
   • What is COPD? What are the three most common diseases that produce a COPD? What are their causes?
   • What is asthma? Explain the origin of its symptoms.
   • What is a pneumothorax? What are its symptoms and signs, and what are its causes?

Traffic congestion seems to worsen each year. This raises the question, How much does roadway congestion cost the United States annually? The Federal Highway Administration's Highway Performance Monitoring System conducts an analysis to produce an estimate of the total cost. Drivers in the 73 most congested areas in the United States were sampled, and each driver's congestion cost in time and gasoline was recorded. The total number of drivers in these 73 areas was 128,000,000.

a. Estimate with 95% confidence the total cost of congestion in the 73 areas. (Adapted from the Statistical Abstract of the United States, 2006, Table 1082.)

b. If an organization claims that the total cost of congestion in the 73 areas is greater than $420, do you agree with it based on this sample result?

c. If an organization claims that the total cost of congestion in the 73 areas is less than $450, do you accept it based on this sample result?

Cost ($) 749 381 461 247 252 501 653 507 293 534 308 669 257 375 327 377 301 604 372 237 558 242 382 392 562 557 356 250 314 575 509 456 261 455 328 527 483 508 483 331 402 253 371 587 526 297 455 260 470 749 443 746 314 186 418 280 648 411 509 434 326 420 439 489 465 556 224 336 364 485 409 314 384 262 321 474 393 354 430 615 331 384 510 491 545 527 490 473 447 229 280 538 577 351 266 511 495 532 756 394 364 332 444 302 614 354 314 327 517 252 204 556 410 517 541 439 246 79 575 444 269 451 331 531 227 379 382 411 439 676 330 504 332 493 498 349 415 343 489 331 459 436 482 443 462 480 485 284 380 412 355 441 473 599 374 537 356 585 414 293 760 362 372 497 356 454 422 443 445 310 230 586 401 354 381 322

Question 1:

You earn 15% in year 1, 25% in year 2 and 20% in year 3, what is your 3-year net return?

Question 2:

how to rank the following investments

Investment 1: return--10%   variance--5%

Investment 2: return--20%   variance--15%

Investment 3: return--12%   variance—20%

Risk-free rate: 5% (by assumption)

Reminder: convert variance to standard deviation first

Use the following information to answer the next three questions:

Some new equipment under consideration will cost $2,600,000 and will be used for 4 years. Net working capital will experience a one time increase of $559,000 if the equipment is purchased. The equipment is expected to generate annual revenues of $1,800,000 and annual costs of $576,000. The project falls under the seven-year MACRs class for tax purposes, the tax rate is 32 percent, and the cost of capital is 12 percent. The project's fixed assets can be sold for $624,000 at the end of the project's life.

Show ALL your work.

a) What is the book value of the equipment at the end of the project's life? Round your answer to the nearest whole dollar.

b) What are the taxes on the sale of the equipment at the end of the project's life? Be sure to indicate clearly if taxes are owed or if there is a tax benefit. Round your answer to the nearest whole dollar.

c) What is the net cash flow for the last year of the project? Round your answer to the nearest whole dollar.

Use the following information to answer the next three questions:

Some new equipment under consideration will cost $2,600,000 and will be used for 4 years. Net working capital will experience a one time increase of $559,000 if the equipment is purchased. The equipment is expected to generate annual revenues of $1,800,000 and annual costs of $576,000. The project falls under the seven-year MACRs class for tax purposes, the tax rate is 32 percent, and the cost of capital is 12 percent. The project's fixed assets can be sold for $624,000 at the end of the project's life.

Show ALL your work.

a) What is the book value of the equipment at the end of the project's life? Round your answer to the nearest whole dollar.

b) What are the taxes on the sale of the equipment at the end of the project's life? Be sure to indicate clearly if taxes are owed or if there is a tax benefit. Round your answer to the nearest whole dollar.

c) What is the net cash flow for the last year of the project? Round your answer to the nearest whole dollar.

Year                          A                            B
                                0                              -8,000                    -8,000
                                 1                              4,500                     1,900
                                2                              4,200                     3,000
                               3                              1,800                     4,000
                                4                              1,600                     5,000
Which project would you select if you used the payback, NPV and IRR methods using a 15% discount rate and why?

Year                          A                          B

                0                              -75,000                  -75,000

                1                              40,000                 10,000

                2                              27,000                 15,200

                3                              20,000                 67,967

By how much should the cost of capital (discount rate) for the losing project (based on NPV) be increased or decreased in order for it to be selected over the winning project (based on NPV)?