Since you are working on your MBA you have been asked to speak to the board of directors of your firm about various methods of analyzing the companies financial statements. One of the board members states she has heard about a technique called"common-size" financial statements, but knows nothing about it. She would like you to explain what they are, how they are prepared,how they differ from regular financial statements, and how they can help the board in its decision making. What your account say?

1. Women athletes at the University of Jamestown have a long-term graduation rate of 72%. Over the past several years, a random sample of 45 women athletes at the school showed that 30 eventually graduated. Does this indicate that the population proportion of women athletes who graduate from the university is now less than 72%?

1. State the null (H₀) and alternative (H₁) hypotheses.

2. Give the test statistics and the p-value for this significance test.

3. Make a decision on whether or not to reject the null hypothesis.

4. Summarize the conclusion in the context of this problem.

2. A random sample of 300 one-year old baby boys is studied and their weights in pounds are recorded. Their mean weight was 25.7 pounds with a standard deviation 5.3 pounds. A medical researcher claims that the mean weight of one-year old boys is greater than 25 pounds. Does this study provide convincing evidence that the researcher’s claim is true? Use a 0.02 level of significance.

1. State the null (H₀) and alternative (H₁) hypotheses.

2. Give the test statistics and the p-value for this significance test.

3. Make a decision on whether or not to reject the null hypothesis.

4. Summarize the conclusion in the context of this problem.

Women athletes at the a certain university have a long-term graduation rate of 67%. Over the past several years, a random sample of 36 women athletes at the school showed that 18 eventually graduated. Does this indicate that the population proportion of women athletes who graduate from the university is now less than 67%? Use a 1% level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: p < 0.67; H₁: p = 0.67H₀: p = 0.67; H₁: p < 0.67    H₀: p = 0.67; H₁: p > 0.67H₀: p = 0.67; H₁: p ≠ 0.67

(b) What sampling distribution will you use?

The Student's t, since np < 5 and nq < 5.The standard normal, since np > 5 and nq > 5.    The standard normal, since np < 5 and nq < 5.The Student's t, since np > 5 and nq > 5.

What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)

You have been hired as an economic consultant to your state’s US Senator or Congressional Representative. Your first assignment is to prepare a brief about the US federal budget and the national debt. There are several issues you are expected to cover in your brief including, but not limited to, the following: Describe the recent trend (approximately during the last 20 years) that is occurring with the federal deficits and the national debt in the US. What were/are the primary drivers of the federal deficits and the rise in the national debt? Who owns the US national debt? In your opinion, should we worry about the national debt? What consequences would a large and growing national debt have in the long run? What are the policy options for dealing with the skyrocketing national debt?

1. Data were collected on number of credit hours earned from a random sample of 40 JMU students. The mean was 57.2 and the standard deviation was 8.9. Conduct a test to determine whether the true mean number of credit hours earned differs from 55.0, allowing a Type I error rate of 0.05. Assume that the distribution of the number of credit hours earned is normal. Show your full work. You may not use your calculator’s built-in function.

Mill argues that utilitarianism requires us to be strictly impartial. That is to say, my own happiness and well being do not count any more than that of anyone else who will be affected by my actions, including complete strangers. But, according to this standard of strict impartiality, who else’s happiness doesn’t count any more than that of a complete stranger? Are all human beings all equally morally worthy, and worthy of equal moral consideration, by anyone? Is it ever right to give preferential treatment to some people (say, my children) from a moral perspective? Or, does Mill have it right, and does morality require impartiality, even when it leads to some really difficult choices?

The core business of Green Apple Ltd involves the sale of anti-virus software. The following took place during the financial year ended 30 June. The company earned $25 000 000 from the sale of software; $3 000 000 from update downloads; and $50 000 in interest from investing on the short-term money market. The company also received a $2000 discount arising out of the early settlement of a liability; and issued shares in exchange for $500 000 cash during the year. Page 3 of 7 HC1010 Accounting for Business Discuss whether the foregoing five financial items would meet the definition of income to the company during the year? Give reasons for your answer. Which, if any, of the items would meet the definition of revenue to the company for the year? Give reasons for your answer.

The core business of Green Apple Ltd involves the sale of anti-virus software. The following took place during the financial year ended 30 June. The company earned $25 000 000 from the sale of software; $3 000 000 from update downloads; and $50 000 in interest from investing on the short-term money market. The company also received a $2000 discount arising out of the early settlement of a liability; and issued shares in exchange for $500 000 cash during the year. Page 3 of 7 HC1010 Accounting for Business Discuss whether the foregoing five financial items would meet the definition of income to the company during the year? Give reasons for your answer. Which, if any, of the items would meet the definition of revenue to the company for the year? Give reasons for your answer.

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household. Assume the original facts except that Jeremy had only $7,000 in itemized deductions. ( use 2019 )

1. (1.3) Determine Jeremy’s tax refund or taxes due. You must show work.

2. (0.3) Copy and paste the applicable table showing tax rates used.

3. Comment (optional)

1.) Most taxes distort incentives and move the allocation of resources away from the social optimum. Why do corrective taxes avoid the disadvantages of most other taxes?

A Corrective taxes apply only to goods that are bad for people's health, such as cigarettes and alcohol.

B Because corrective taxes correct for market externalities, they take into consideration the well-being of bystanders.

C Corrective taxes provide incentives for the conservation of natural resources.

D Corrective taxes do not affect deadweight loss.

2.) University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. What could the federal government do to equate the equilibrium quantity of university research and the socially optimal quantity of university research produced?

A tax university researchers

B offer grants to university researchers

C eliminate subsidized student loans

D nothing

3.) Tradable pollution permits

A have prices that are set by the government.

B will be more valuable to firms that can reduce pollution only at high costs.

C are likely to create a higher level of total pollution.

D are less desirable than corrective taxes in reducing pollution.

4.) Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?

A One neighbor lets his dog run through another neighbor’s garden, damaging her flowers.

B One neighbor doesn't mow her yard.

C One neighbor plays his music loudly.

D All of the above are correct.

5.) When a particular negative externality affects a very large number of people/parties, it is likely that

A government will not find it worthwhile to impose a corrective tax.

B private solutions to the problem will dominate any attempt by government to alleviate the problem.

C the solution to externalities suggested by the Coase theorem will work very well.

D the solution to externalities suggested by the Coase theorem will not work.