QUESTION ONE
The data below represent statistics and probability end of semester examination marks of 30
students randomly selected from the population of students who registered for probability and
statistics during 2018/2019 academic year.
16 51 36 45 23 48
37 19 28 28 25 36
76 22 27 18 28 42
38 47 44 29 37 42
27 33 35 46 28 27
Using sturge’s approximation rule with all your answers in one decimal place,
construct a frequency distribution table as follows
Class
Boundary
Tally Frequency Class
midpoint
CF FX FX^2
Calculate the coefficient of skewness for the data set and interpret our result.

QUESTION TWO
Suppose that the operations manager of a nose mask packaging delivery service is
contemplating the purchase of a new fleet of trucks during this COVID-19 period. When
packages are efficiently stored in the trucks in preparation for delivery, two major constraints
have to be considered. The weight in pounds and volume in cubic feet for each item. Now
suppose that in a sample of 200 packages the average weight is 26.0 pounds with a standard
deviation of 3.9 pounds. In addition suppose that the average volume for each of these
packages is 8.8 cubic feet with standard deviation of 2.2 cubic feet. How can we compare the
variation of the weight and volume?

QUESTION THREE
The marketing director of GH HOTEL was interested in studying the intention of consumers
to visit their facility after the president has fully lifted the restriction on public gathering in
2020 and as a follow- up, whether they in fact actually visited. Suppose that a sample of 1000
household was initially selected and the respondents were asked whether they planned to visit
GH HOTEL. Twelve months later the same respondents were asked whether they actually
visited the hotel. The results are summarized in the table below
Planned to visit
Actual visit
Yes No Total
Yes 200 50 250
No 100 650 750
Total 300 700 1000
i. Draw a tree diagram to represent the information in the table.
ii. Find the probability of selecting a respondent who actually visited GH HOTEL.
Interpret your answer in a simple single sentence.
iii. Find the probability of panned visit or actual visit.
iv. Calculate the probability that a respondent actually visited GH HOTEL given that he
or she planned to visit GH HOTEL

The traditional business of banking comprised lending, deposit-taking and the provision of transaction services. Through the first half of the twentieth century, banking was a regulated, local, low risk business based on a customer’s credit worthiness and yielded returns based on interest.

Much has changed, but the mid-century model persists in the popular consciousness. Bank advertising draws heavily on this historical image. During the 1950s, banking had little to do with funds management, where an entity pools and invests money on behalf of customers.

The funds management sector was composed largely of superannuation and life insurance. For reasons discussed below, the reach of this sector was limited until regulatory and financial conditions changed.

In the 1970s, Australia began to deregulate its financial markets. Restrictions on bank interest rates and liability structures were removed; foreign banking was made easier to access; the Australian dollar was floated. The financial sector expanded. At the same time, growth in the size and liquidity of securities markets allowed more diverse financial products to develop.

The next critical steps were the expansion of superannuation, which shifted the responsibility for and control of provision for retirement from employers into the hands of individuals. From 1983, successive changes to the tax treatment of superannuation increased the complexity of superannuation but also established it as a vehicle for compulsory saving. These developments included the incorporation of superannuation into employment awards in 1986 and legislation in 1991 imposing tax penalties where employer contributions were not made.

With greater amounts of savings invested in superannuation funds, Australians now have a far higher exposure to capital markets and since the 1980s Australians have increasingly seen a need for financial advice.

In 2000, CBA acquired Colonial Mutual Life Assurance Ltd, which conducted life and other insurance business, and a funds management business

In 2000, NAB acquired the financial services businesses of Lend Lease, including its MLC Holdings Ltd. advice, platform and superannuation and asset management businesses.

In 2002, ANZ entered joint venture arrangements with ING Group in respect of wealth management and life insurance businesses in Australia and New Zealand, and later acquired the full business.

In 1999, Westpac founded Magnitude Group Pty Ltd. In 2008, as part of its merger with St George Bank Ltd, Westpac acquired St George’s financial advice business, which included employed advisers as well as Securitor Financial Group Ltd. In 2002, Westpac acquired all of BT Financial Group’s asset accumulation businesses.

Scandals dating back to the GFC began to shed light on the conflicts and culture in the financial advice industry.

In their submissions to the Commission, financial services entities acknowledged conduct that amounted to misconduct or conduct falling below community standards and expectations in connection with the provision of financial advice.

Clients of financial advisers or financial advice licensees being charged fees for services not provided to them is now rightly recognised to have been a large and endemic problem in the industry.

Charging for doing what you do not do is dishonest. No-one needs legal advice to tell them that.

https://financialservices.royalcommission.gov.au/Documents/interim-report/interim-report-volume-1.pdf (Links to an external site.)Links to an external site.

1. What are the core traditional functions of commercial banks? (1 mark)
2. How did banks generate profits prior to the 1980s, and what was their attitude to risk? (1 mark)
3. Identify two major changes which happened in the funds management sector of the Australian financial system between the 1970s and the 1990s. (1 mark)
4. How did Australia’s big-4 banks respond to these changes? (1 mark)
5. What is the main problem which arises as a result of providing financial advice and selling investment products in the same organisation? (1 mark)
6. Identify evidence of undesirable cultural change in the banking and financial services sector of the economy in the above extract. (1 mark)
7. Identify and distinguish between the roles played in the Australian banking system by APRA and ASIC. Which of these two institutions appears to have been more heavily criticised by the Royal Commission, and what is the main reason for this criticism?
8. What does it mean to say that the big-4 banks are ‘too big to fail’? Explain your answer clearly and concisely. (1 mark)
9. In what sense do the big-4 banks face a problem of moral hazard? (1 mark)

11. The following is true about natural-logarithm (ln) changes (“log-changes”): a. They can be added together to explain a total log-change. b. They reflect a given dollar gain or loss symmetrically. c. For small changes, they are quite close to percentage changes. c. They are more reliable than percentage changes, which can be misleading. e. All of the above are correct.

12. Regarding financial statements: a. The balance sheet shows what a company owns and owes through time. b. The income statement shows what a company earned at a point in time. c. The cash-flow statement shows changes in revenue and liabilities. c. Both the income statement and the balance sheet show flows in time. e. None of the other choices are correct.

13. Entreprise Value is: a. generally larger than the market value of a company’s total assets. b. the combined value of a company’s assets, debt, and equity. c. the sum of the market value of a company’s debt and equity. c. the market values of interest-bearing debt and equity, net of cash. e. All of the above are correct.

Phase changes also involve changes in enthalpy (H). Assume an ideal system: Calculate the total H to bring m=46.884g of ice at T=0 deg C to steam at T=100 deg C. Show your work. (Hint: Cp values vary based on states of matter and energy is required to execute a phase change.)

Describe how changes in moisture content below FSP are different from changes in moisture content above FSP. What parts of the wood structure are changing in each condition? How are the mechanical properties changed in each condition?