Calculate openness as a percentage for Paraguay and Poland. Explain how you calculated openness, i.e., write down the formula. Using a graph of Openness (as a percentage) versus time, explain in up to 200 words how openness has changed for these countries from 2001 to 2014. Put Paraguay and Poland in the same graph and make sure your graph is properly labelled.

Explain in up to 200 words the relationship between Openness and economic development by calculating the correlation coefficient between GDP per capita (proxy for economic development) and Openness for Paraguay and Poland, respectively. [Here you have to use the CORREL command in Excel].

Asylum Applications and GDP

Economic research provides evidence for a positive relationship between Gross Domestic Product (GDP) and Asylum Applications across the EU. This provides support for the view that a strong economy tend to have higher level of asylum applications.

The Table below gives Asylum Applications and an index of GDP per capita (written as GDP for short) for each year from 2003 to 2014. A regression analysis with Asylum Applications as the response variable and GDP as the predictor variable is shown at the end of the question.

Table: Asylum Applications and GDP in each year

Regression Analysis: Asylum Applications versus GDP (GDP per Capita (index))

1. Discuss the interpretation of the panel in the Regression Analysis output below which relates to the regression coefficients stating the Null Hypothesis
2. Obtain and interpret a confidence interval for the slope parameter and explain how it relates to the corresponding t-test of part (a)

3. How would you interpret the expected response of the Asylum Applications to an increase of 1 unit in GDP per capita?

4. The output contains intervals corresponding to values for GDP of 140 and 177 respectively. Explain how the two types of interval should be interpreted for both levels of absences

5. Given the true GDP value in 2015 turned out to be 177 and the actual level of Asylum Applications was 3,276, would you be willing to use this model for future predictions?Explain your answer taking into consideration the Adj-R squared value

Explain your answer taking into consideration the Adj-R squared value

Regression Equation

Asylum Applications = -19.720 + 166 GDP

Analysis of Variance

Predicted Values for New Observations

XX denotes an extremely unusual point relative to predictor levels used to fit the model

The following data relates to the size of the electricity bill sent to 7 randomly selected customers and the
time the customers took to pay the bills.
Customer 1 2 3 4 5 6 7
Size of bill($) 1500 1800 2300 2700 3300 3700 4600
Time to pay (days) 16 21 19 20 24 30 27
a) State the dependent variable and independent variable of the data set.
b) Plot the data on a scatter graph and add a trend line on the scatter graph.
c) Find the correlation coefficient and comment on it.
d) Determine the linear regression equation that can be used to predict how long a bill of a given size
will take to pay.
e) Interpret your equation.
f) Use your equation to predict how long it will take a customer to pay:
i. A bill of $1050, and
ii. A bill of $8000.
What reservations do you have about these predictions?

A regional electrical distributor currently has 1,000 customers who buy an average of $5,000 per year, generating a 50% margin. From experience, the company knows that 20% of its customers will not return the next year and it takes an average of $500 to acquire each new customer.

Given a choice of 1) investing $50,000 in a new customer acquisition program for 100 additional customers or 2) investing $50,000 in a new retention program which would take the rate of retention from 80% to 85%, what should the company do? complete the Excel template for both scenarios (customer acquisition and customer retention) to show which option is the most profitable. Assume the new programs are in effect and you are calculating the impact for both beginning Year 1. Also, do not account for the cost of the programs since it doesn't impact the overall conclusion.

You are working for The Wellington Company on temporary assignment while one of the accountants is on family leave. You have been asked to review the company’s investment

The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business.

journal entries and provide necessary information to the accountant preparing the financial statements.

PAGE 8

JOURNAL

The accountant preparing the financial statements has asked you to provide the fair value as of the end of the year for the investments. Present the information as it would be shown on the financial statements. Last year, The Wellington Company reported costs of $68,000 in trading investments and $82,000 in available-for-sale investments. Refer to the journal entries shown on The Wellington Company panel. Assume that all investments sold during this year were trading investments and that purchases during the year were new investments.

Refer to Notes to Consolidated Financial Statements.

Review Coca-Cola's financial statements and answer the following questions:

1. How are Coke's numbers reported (in what denomination)?

For items 2-4, enter the answers as presented (e.g. $24,088 not $24,088,000).

2. What is Coke's net operating revenue for 2008?
$

3. What is Coke's cost of goods sold for 2008?
$

4. What is Coke’s net income 2008?
$

5. What is Coke’s percent of interest expense to net operating revenue on its 2008 income statement? Rounding your answer to two decimal places.
%

6. What is Coke's percent of increase in net operating revenue from 2007 to 2008? Rounding your answer to one decimal place.
%

True or False?

1. Merchandise inventory consists of products that a company acquires to resell to customers.

2. A service company earns net income by buying and selling merchandise.

3. Gross profit is the same as gross margin.

4. Cost of goods sold is also called cost of sales.

5. A wholesaler is an intermediary that buys products from a manufacturers or other wholesalers and sells them to consumers.

6. Goods in transit are automatically included in a company's inventory account.

7. If damaged & obsolete goods cannot be sold they are not included in inventory.

8. Goods on consignment are goods shipped by their owner, called the consignee, to a party called the consignor.

9. If obsolete or damaged goods can be sold, they will be included in inventory for realizable value.

10. If the seller is responsible for paying freight charges, then ownerships is passed when goods arrive at their destination.

11. A properly designed internal control system is a key part of accounting information systems design, analysis and performances.

12. The use of internal controls provides guaranteed protection against losses due to operating activities.

13. Internal control policies and procedures are the same for all companies

14. Maintaining adequate business records is an important internal control principle.

15. Proper internal control means that the responsibility for a task is clearly established and assigned to one person.

16. Accounts receivables occur from credit sales to customers

17. Credit sales are recorded by crediting an account receivable for the specific customer who is making the purchase

18. As long as a company accurately records total credit sales information, it is not necessary to have separate accounts for specific customers

19. If a customer owes interest on accounts receivable, the interest revenue account is debited and account receivable is credited

20. If a credit card sale is made, the seller can either debit cash or debit accounts receivable when the sale occurs.

8. A professor tests whether the loudness of noise during an exam (low, medium, and high) is independent of exam grades (pass, fail). The following table shows the observed frequencies for this test.

Part A) Conduct a chi-square test for independence at a 0.05 level of significance. (Round your answer to two decimal places.)

Decide whether to retain or reject the null hypothesis.

Part B) Compute effect size using Cramer's V. (Round your answer to two decimal places.)

9. What is Cramer's V for each of the following values for the chi-square test for independence? (Round your answers to two decimal places.)

Part A) X² = 3.63, n = 50, df_smaller = 1

Part B) X² = 9.27, n = 120, df_smaller = 2

Part C) X² = 12.23, n = 160, df_smaller = 3