It is not uncommon to see that alumni often give back to their schools. The question is, what factors influence their gratitude and goodwill and play an important role in them deciding how much to contribute? A sample of some top universities has been analyzed to determine if there is a relationship between the Alumni Giving rate (percentage of alumni who give) and factors like Graduation rate (percentage), % of class Under 20, and Student / Faculty ratio. Run a regression model to determine the relationship.  Answer the following questions based on the Excel table.    

School   State     Graduation Rate   % of Classes Under 20   Student / Faculty Ratio   Alumni Giving Rate
Boston College   MA   85   39   13   25%
Brandeis University    MA   79   68   8   33%
Brown University   RI   93   60   8   40%
California Institute of Technology   CA   85   65   3   46%
Carnegie Mellon University   PA   75   67   10   28%
Case Western Reserve University   OH   72   52   8   31%
College of William and Mary   VA   89   45   12   27%
Columbia University   NY   90   69   7   31%
Cornell University   NY   91   72   13   35%
Dartmouth College   NH   94   61   10   53%
Duke University   NC   92   68   8   45%
Emory University   GA   84   65   7   37%
Georgetown University   DC   91   54   10   29%
Harvard University   MA   97   73   8   46%
John Hopkins University   MD   89   64   9   27%
Lehigh University   PA   81   55   11   40%
Massachusetts Inst. of Technology   MA   92   65   6   44%
New York University   NY   72   63   13   13%
Northwestern University   IL   90   66   8   30%
Pennsylvania State University   PA   80   32   19   21%
Princeton University   NJ   95   68   5   67%
Rice University   TX   92   62   8   40%
Stanford University   CA   92   69   7   34%
Tufts University   MA   87   67   9   29%
Tulane University   LA   72   56   12   17%
U. of California-Berleley   CA   83   58   17   18%
U. of California-Davis   CA   74   32   19   7%
U. of California-Irvine   CA   74   42   20   9%
U. of California-Los Angeles   CA   78   41   18   13%
U. of California-San Diego   CA   80   48   19   8%
U. of California-Santa Barbara   CA   70   45   20   12%
U. of Chicago   IL   84   65   4   36%
U. of Florida   FL   67   31   23   19%
U. of Illinois-Urbana Champaign   IL   77   29   15   23%
U. of Michigan-Ann Arbor   MI   83   51   15   13%
U. of North Carolina-Chapel Hill   NC   82   40   16   26%
U. of Notre Dame   IN   94   53   13   49%
U. of Pennsylvania   PA   90   65   7   41%
U. of Rochester   NY   76   63   10   23%
U. of Southern California   CA   70   53   13   22%
U. of Texas-Austin   TX   66   39   21   13%
U. of Virginia   VA   92   44   13   28%
U. of Washington   WA   70   37   12   12%
U. of Wisconsin-Madison   WI   73   37   13   13%
Vanderbuilt University   TN   82   68   9   31%
Wake Forest University   NC   82   59   11   38%
Washington University - St. Louis   MO   86   73   7   33%
Yale University   CT   94   77   7   50%
1.  Do you think this model is good?  That is, do you see an evidence of relationship? Pick the right option.  
2. What proportion of the variation in Alumni giving is explained by the three variables?
3. Suggest 2 variables (reasons) not in the table that can also be affecting the alumni giving rate.   
3. The coefficient for student / faculty ratio is negative in Excel output.  Give a reason as to why this is the case.  
5.  Find the alumni giving rate for Carnegie-Mellon from the table.  Compare this to your results in Q4.  What is the residual (error)?  

Frank Rizzo is considering two investment  options with seven-year lives. Option one pays $250 every quarter, the other pays $500 semi-annually. The option with the better value would be:

The Zara Company has one million ordinary shares outstanding, which currently trade at a price of $50. The company believes that its shareholders require a 15% return on their investment. The company also has a $47.1 million (face value) in five-year, fixed rate bonds with a coupon rate of 8% and a yield to maturity of 7%. Because the yield on these bonds is less than the coupon rate, they trade at a premium. Tax rate applicable on the company is 30%. Lastly, the company has 200,000 outstanding preferred shares, which pay an $8 annual dividend and currently sell for $80 per share.

1) What is the market value of the ordinary shares?

2) What is the cost of ordinary shares?

3) What is the after tax cost of debt?

4) What is the current market value of the bond? (Round your answer to whole number.)

5) What is the current market value of preference shares?

6) What is the cost of preference shares?

7) What is the Weighted Average Cost of Capital?

8) Explain Ordinary Shares and its characteristics.

9) Explain its any two advantages and disadvantages to the company.

A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.03 million, and the concrete option has an initial cost of $2.42 million. Every 25 years, the steel bridge must be painted at a cost of $420,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete bridge is expected to last 75 years. Both are assumed to be identically replaced indefinitely. Based on the shortest acceptable analysis period for each option, determine the equivalent uniform annual cost (EUAC) for the best option using an interest rate of 8%. Express your answer in $ to the nearest $1,000.

My second question

A mental health service agency is conducting a study of how clients pay for the counseling services they receive. The agency accepts payment in one of four ways: in person, by mail, by credit card, or by third-party insurance. The agency randomly sampled 400 clients to determine if there is a relationship between the client’s age and the payment method used. The following sample results were obtained:

Counseling Service Payments

Based on the sample data, can the agency conclude there is a relationship between the age of the client and the payment method used? Conduct the appropriate test at the α = 0.01 level of significance.

6. Given a six (6) percent interest rate per year, compute the year seven (7) future value at year end if deposits of $1,000 and $1,500 are made at end of years two (2) and three (3) respectively, and a withdrawal of $500 is made at end of year five (5).

Group of answer choices

A. $5,918.91

B. $3,201.48

C. $2,992.04

D. $2,500.00

E. $2,670.14

Suppose you roll, two 6-sided dice (refer back to the sample space in the sample space notes). Write any probability as a decimal to three place values and the odds using a colon. Determine the following:

a. the probability that you roll a sum of seven (7) is .

b. The odds for rolling a sum of four (4) is .

c. The odds against the numbers on both dice being the same is .

It has been suggested that the highest priority of retirees is travel. Thus, a study was conducted to investigate the differences in the length of stay of a trip for pre- and post-retirees. A sample of 689 travelers were asked how long they stayed on a typical trip. The observed results of the study are found below.

With this information, construct a table of estimated expected values.

Now, with that information, determine whether the length of stay is independent of retirement using α=0.01.

(a) χ2=

(b) Find the degrees of freedom:

(c) The final conclusion is

A. There is not sufficient evidence to reject the null hypothesis that the length of stay is independent of retirement.

B. We can reject the null hypothesis that the length of stay is independent of retirement and accept the alternative hypothesis that the two are dependent
.

The following are the cash flows of two independent projects: Year Project A Project B 0 $ (250 ) $ (250 ) 1 130 150 2 130 150 3 130 150 4 130 a. If the opportunity cost of capital is 10%, calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Which of these projects is worth pursuing? Project A Project B Both Neither