QUESTION 4

Jefta has a 30-year policy with SANLAM. The illustrated growth rate is 6% p.a. compounded monthly and the premium increases every January 01 by 10%. The initial premium was $300 per month. Jefta’s first monthly premium was deducted on January 31, 1998.

1. Determine the monthly premium in the last year.

2. Determine the maturity value. A compact disc press is purchased for $1.2 million and is expected to rise in cost at a rate of 8% p.a., whilst it will depreciate at a rate of 7.5% p.a. A sinking fund is set up to make provision for the replacement of the machine in ten years’ time, and pays interest at a rate of 9.25% p.a. compounded monthly.

3. Determine the monthly amount that has to be deposit into the sinking fund to realize enough money for a replacement machine in ten years’ time. Payments start immediately and end on the day that the replacement machine is purchased.

4. After five years new technology in Compact Discs are introduced to the market. This machine will cost $2 million. If you decide to replace your current machine immediately, how much money will you have to borrow to purchase the new equipment, if you use the sinking fund and the sales of the old machine towards paying for this new machine?

2. Let’s use the data from the sea ice extent by year. a. Do a t-test to determine if the slope = 0, give null and alternative hypotheses, test statistic, pvalue, decision and interpretation. b. Construct a residual plot vs fitted values. c. Look at a histogram of the residuals. d. Are there any obvious outliers? Find that observation that is the most glaring and find out how many standard deviations it is from the mean. Can this be justified to be removed? e. Are the assumptions for regression met? (Linearity, Constant Standard Deviation and Normality of errors). If not, which one is violated.

data:

Year Extent

1980 9.18

1981 8.86

1982 9.42

1983 9.33

1984 8.56

1985 8.55

1986 9.48

1987 9.05

1988 9.13

1989 8.83

1990 8.48

1991 8.54

1992 9.32

1993 8.79

1994 8.92

1995 7.83

1996 9.16

1997 8.34

1998 8.45

1999 8.6

2000 8.38

2001 8.3

2002 8.16

2003 7.85

2004 7.93

2005 7.35

2006 7.54

2007 6.04

2008 7.35

2009 6.92

2010 6.98

2011 6.46

2012 5.89

2013 7.45

2014 7.23

2015 6.97

2016 6.08

2017 6.77

2018 6.13

2019 5.66

By using the definition and discussing what is relevant to the situation, interpret each of the following for both the coffee and tea data. Also, compare each for coffee and tea. Be sure to include the relevant information (state the value of or, in the case of the distribution, include the graphs) with each component.

1. Mean
2. Median
3. Modal Interval
4. Range
5. IQR
6. Standard Deviation
7. Distribution of histogram and box plot
8. Slope of each linear model
9. Y-intercept of Coffee vs. Tea
10. Correlation coefficient for each linear model
11. Relevant interpolations or extrapolations
12. Correlation type (from Activity 5) for coffee and tea

Consider the following Data:

By using the definition and discussing what is relevant to the situation, interpret each of the following for both the coffee and tea data. Also, compare each for coffee and tea. Be sure to include the relevant information (state the value of or, in the case of the distribution, include the graphs) with each component.

1. Mean
2. Median
3. Modal Interval
4. Range
5. IQR
6. Standard Deviation
7. Distribution of histogram and box plot
8. Slope of each linear model
9. Y-intercept of Coffee vs. Tea
10. Correlation coefficient for each linear model
11. Relevant interpolations or extrapolations
12. Correlation type for coffee and tea

Research results suggest a relationship between TV viewing habits of 5-year old children and their future performance at high school. Wright and Collins (1998) reported that children who regularly watched Sesame Street as children receives better grades than those had not watched the show as children. Suppose another researcher wants to replicate this study on 20 high school children. The researcher first surveyed the parents of the students to obtain information about their TV viewing habits during the times that the students were 5 years old. Based on the survey results researcher selects a sample of n=10 with a history of watching Sesame Street and n=10 that did not watch the program. The average high school grade is recorded for each student and the data are as follows:

How would the researcher test if there were a significant difference between the two groups of students? Use JASP to conduct an independent sample t-test. Write all the steps of hypothesis testing using t-test (as shown in the handout) and attach the document (WORD DOC) here.  

Grab a blank sheet of paper and try some inflation analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class.

1. Because inflation increased by only 1.7% in 2008, the American Association of Retired Persons comments that this is “an unfortunate side effect of inflation, since Social Security payments, which are indexed to inflation, will increase by only 1.7% in 2008.” Comment on whether this is an “unfortunate side effect of inflation” or not.
2. The Federal Reserve Bank (Fed) can impact the economy through changes in the Federal funds rate, because changes in this interest rate will change all interest rates throughout the economy. The Federal funds rate was constant at 5.25% from 1996–1998, a time of falling inflation. What impact did this have on real interest rates during this time? What was likely to happen to investment spending?
3. “Traveling in Turkey is much cheaper now than it was 10 years ago,” says a friend. "Ten years ago, a dollar bought 1,000 lira; this year, a dollar buys 1,500 lira.” Total inflation over this period was 25% in the United States and 100% in Turkey. Is your friend right or wrong—has it become more or less expensive to travel in Turkey?

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

Must be in python

The ISO 8601 Standard date format for Information Interchange indicates that a date be written as such:

yyyy-MM-dd (eg. 2012-07-02, 1999-12-05, 1998 -01-27 )   

where yyyy represents the four digit year

MM represents a two digit numerical month

dd represents a two digit numerical day

Chinese date format is specified as: yyyy-M-d

Macedonean date format is specified as: d.M.yyyy.

where yyyy represents the four digit year

M represents a one or two digit numerical month, as appropriate

d represents a one or two digit numerical day, as appropriate

You are to write a program which converts dates from Chinese and Macedonean formats to ISO format. The program will repeat the following until the user wishes to exit:

* ask the user which format they will be entering (C - Chinese or M-Macedonean)

* accept the user input

* output the ISO version of the date that was input

Your program should handle user input errors such as:

* leading blanks

* blanks within the input string

Your program should delegate any large operations to functions which should be DEFINED AN IMPORTED MODULE, for example month conversion to mFormat, MMformat.

You need to obtain the country-level data for Argentina and El Salvador on:

i. Imports of goods and services (in current US$)

ii. Exports of goods and services (in current US$)

iii. GDP (in current US$)

iv. GDP per capita (in current US$)

v. GINI Index (World Bank estimate) from the World Bank's World Development Indicators.

Q1. Using trade flows in your data, calculate openness as a percentage for Argentina and El Salvador and present them for each year for both countries as a table. You need to explain your method, namely, how you calculated openness using trade flows (write down the formula). In addition, you need to state what other alternative ways you could have adopted to calculate openness other than using trade flows.

Q2. Using the calculations you did for openness in Step 1, plot openness (as a percentage) against time (1998-2014) for both countries (Argentina and El Salvador) in a single graph (as a chart type: you are required to use line graph). Put openness (as a percentage) on the vertical axis and time on the horizontal axis. Explain and compare briefly how openness changes for these countries over time. Make sure you limit your explanation to 200 words.

Please answer in detail with every step along with the graph which is required for question bit C.

The table below shows hypothetical values, in billions of dollars, of different forms of money.

a.     Use the table to calculate the M1 and M2 money supplies for each year, as well as the growth rates of the M1 and M2 money supplies from the previous year.

b.     Why are the growth rates of M1 and M2 so different? Explain.

c. Go to the web site of the St. Louis Federal Reserve Bank FRED database and graph the (year-over-year) growth rates of M1 and M2 for the sample period 1998-2018. Show your graph in your submission.