Since the computer hard drive was invented in 1956, a con- stantly increasing data storage capacity has been available at an ever-decreasing cost. Use the historical data of hard drive capacities and prices shown in Figure 3-29 (or download the Excel file named CH03Ex01). Modify the spreadsheet so that it includes a new column containing formulas that calculate a common measure of disk size (GB) and a second new column that computes the cost per GB for each year. (Recall 1 gigabyte = 1,024 megabytes; 1 terabyte = 1,024 gigabytes.) Now, create one line graph to show the cost per gigabyte from the period 1995 to 2016. Create a second line graph to show changes in the size of hard disks across the same period. (Tip: Use the “Hide” function to cover the columns you don’t need for each graph.) Write a brief summary of the trends you found. What factors have contributed to these trends? What are the implications of these trends? 1980 26 MB $5,000 1981 63 MB $2,895 1983 20 MB $3,495 1984 20 MB $2,399 1987 40 MB $1,799 1989 20 MB $899 1995 1.7 GB $1,499 1996 3.2 GB $469 1997 7.0 GB $670 1998 8.4 GB $382 1999 19.2 GB $512 2000 27.3 GB $375 2001 40 GB $238 2002 100 GB $230 2003 120 GB $168 2004 250 GB $250 2006 390 GB $106 2008 1 TB $200 2010 1.5 TB $220

(Covering concepts for Chapter 3 and 8)

The following attached file presents the annual returns for two mutual funds offered by the investment giant Fidelity. The Fidelity Select Automotive Fund invests primarily in companies engaged in the manufacturing, marketing, or sales of automobiles, trucks, specialty vehicles, parts, tires and related services. The Fidelity Gold Fund invests primarily in companies engaged in exploration, mining, processing, or dealing in gold and, to a lesser degree, in other precious metals and minerals.

In a report, use the above information and attached file to

1. Calculate descriptive statistics to compare the returns of the mutual funds using the Data Analysis Descriptive Box.
2. Compare and interpret the mean, median and skewness of Fidelity Select Automotive Fund and Fidelity Select Gold Funds.

3. Compare and interpret the range and the standard deviation of Fidelity Select Automotive Fund and Fidelity Gold Funds.
4. Discuss the range of each funds returns? Is the range the best descriptive measure? Why or Why not?
5. Assess reward by constructing and interpreting 95% confidence intervals for the population mean return. What assumption did you make for interval estimates?

Example p. 314/ Note Use standard deviation as a measure of risk!

Above is a CSV file from the file do the following:

(a) Subset the data to include only those from 1947 to 1964.

(b) Fit a linear regression model, M1, to model population as a function of the year using this data from 1947 to 1964.
(c) Predict the population for the missing years 1955 and 1960.
(d) Plot the population versus Year including the predicted values for 1955 and 1960 in the range 1947 to 1964. The predicted values must be annotated (marke

The following table contains the historic returns from a portfolio consisting of large stocks and a portfolio consisting of long-term Treasury bonds over the last 20 years. T-bills returns represent risk-free returns. Analyze the risk-return trade-off that would have characterized these portfolios. The following dataset is also available in Excel format in Module 3 Resources on Canvas. Returns in the dataset are in percents. For example, 31.33 means 31.33% per year.

a. Estimate the annual risk premium of large stocks and T-bonds, respectively.

b. Estimate the annual volatility of large stocks and long-term T-bonds, respectively.

c. Estimate the Sharpe ratio of large stocks and long-term T-bonds, respectively.

d. Now assume that you have always invested half of your wealth in the stock and the other half in the T-bonds. Estimate the Sharpe ratio of your portfolio.

​India's Current Account. Use the following balance of payments data for India from the​ IMF. What is​ India's current account balance for years 2007​, 2008​, and 2014​?

1) Using the excel data file “US violent crime” which shows the violent crime rate in the US from 1960 to 2012:

(20 pts) Make a time series plot of the data

(5 pts each 25 pts total) Determine the following: Mean, Median, Standard deviation, Q1 and Q3. (25 pts)

Make a histogram of the data. Hint the year is not used, you need to determine how many years fall into each of the classes.

(7) What are your thoughts on the time series plot, i.e. trends etc.?

(8) Thoughts on the histogram i.e. shape of distribution etc.?

[Excel sheet]

You receive a year-end statement from your broker that details your stock ownership over the years, and the total gain or loss over the holding period for each. You want to devise a method to make a meaningful comparison of the returns in order to determine which stock performed the best and which performed the worst. The problem is, the holding periods all have different starting and ending dates and are different lengths.

Stock returns
Stock   Buy date   Buy price (P0)   Sell date   Sell price (P1)   Total return
((P1-P0)/P0)
A   1/1/2002   16.00   1/1/2016   25.00   56.3%
B   1/1/2014   87.00   1/1/2015   80.00   -8.0%
C   1/1/2008   26.00   1/1/2014   28.00   7.7%
D   1/1/2001   17.50   1/1/2008   23.50   34.3%
E   1/1/2004   76.00   1/1/2007   68.00   -10.5%
F   1/1/2006   12.00   1/1/2016   13.00   8.3%


What is the best way to compare the returns of these stocks?
   Use the return over the entire holding period for each stock to compare
   Using the total return over the holding period for each stock, take the geometric mean to get the one year average return, and compare
   Find the dollar change of each stock (Sell price minus Buy price) and compare
   Using the total return over the holding period for each stock, take the straight average to get the one year average return, and compare

Answer the following question using R:

(a) Use linear regression to estimate the GDP of the missing years 1955 and 1960. Use the Population estimate for the missing years found using M1.

(b) Create a new data frame showing Population and GDP from 1947 to 1964 including the values for 1955 and 1960 predicted by regression models M1 and M2.

(c) Use this data frame (b) to plot the GDP and Population in a scatter plot for the years 1947 -1964, clearly marking the missing years in the original data

For 2019, Chanda is 36, single, and an active participant in a qualified employee pension plan. Determine the maximum Roth IRA contribution that she can make in each of the following cases:

a. Assume that she did not make any contributions to other IRA accounts during the year. When her adjusted gross income for the year is $66,000, Chanda is allowed to contribute $_6,000_ to her Roth IRA.

b. When her adjusted gross income for the year is $125,000, Chanda is allowed to contribute $______ to her Roth IRA.

c. When her adjusted gross income for the year is $139,000, Chanda is allowed to contribute $_0_ to her Roth IRA.

d. When her adjusted gross income for the year is $65,000, and she makes a $3,500 contribution to a deductible IRA account, Chanda is allowed to contribute $_2,500_ to her Roth IRA.

No matter what your business, to stay in business you have to attract and retain customers. How do you do that? One way is to deliver a quality product or service in a high-quality manner. In other words, it is a combination of what is offered and how it is offered that determines whether a buyer will become a loyal customer. Training is one way to make sure that employees’ technical skills and customer-service skills meet customer expectations. When making a business decision, two basic elements are typically considered: costs and benefits. In the case of training, the issues are: (1) how much does the training reduce costs? and (2) how much does the training increase revenues? If the training sufficiently reduces costs and/or increases revenues, then there is a strong business case to conduct the training. Your ability to identify the potential sources of revenue and costs and to estimate their levels can be an important business skill. It can be the basis by which you can successfully make the case for needed training for your employees.

1) Given your answers to the previous questions (1. How much does the training reduce cost? and 2) How much does the training increase revenues - no data necessary), estimate the combined impact on the bottom line of direct and indirect savings generated by training. Extrapolate this number over a one- or two-year time period.

2) As you have read, training can increase revenue. The revenue could come from increased quality of the customer experience due to the impact of training. Consider, as an example, the following table of customer survey responses before and after training. The number are percentages of customers in each satisfaction category six months before and six months after employees received their training. A key change is a reduction in the "Very dissatisfied-will never return" category of customers, which fel from 15 to 5 percent.

A) What will this 10-percent change mean to the bottom line? Assume that the avergae revenue renerated per month by a customer is $500. Also assume that you have 500 customers.

B) What is the increased revenue due to the training for the past six months?

C) What would be the revenue generated if you had 1,000 customers?

3)  Make assumptions about the costs in each of these direct cost categories and any other direct costs you can think of. Also assume that you can expect a 10-percent reduction in each of these categories. Generate the direct cost savings estimate due to the training. Training can also impact the bottom line by reducing indirect costs. These are costs that may not be obvious, but that are still important. For example, the safety of work processes or equipment can be improved due to training if workers handle materials or equipment more safely. Employee turnover can also be reduced, because of improved job satisfaction due to the training.

4)Assume that training results in a 10-percent reduction in your turnover rate. Also, assume that the cost of a turnover is 1.5 times the departing employee’s salary. For a given average employee salary of your choosing, estimate the reduced costs due to the reduction in turnover.