A consumer allocates all of her income between two goods, food and clothing, with the quantity of food consumed captured by the variable F while that of clothing by the variable C. The consumer has usual strictly convex preferences between the two goods. Assume that food is an inferior good and it is kept on the horizontal axis.

Suppose that the consumer’s income remains unchanged but prices of both of these goods change.

• Scenario A: Assume that both prices fall with price of food falling by a higher percentage relative to clothing.

(a) State the impact of the price changes you are required to examine on the relative price of food.

(b) Determine whether clothing should be treated as a normal or inferior good and explain your answer.

(c) Now proceed with doing a geometric analysis to portray one case that is logically consistent with the price change scenario you need to examine as specified in (a). In doing so, illustrate and explain how the consumer’s optimal bundle might change in response to the cumulative impact of these price changes.

(d) Comment on whether the direction of total change in optimal quantities of food and clothing that you have shown in your diagram for part (c) are the only logically consistent possibilities. Or, is it also possible that changes could also be in the opposite direction? Explain your answer. You do not need to do additional diagrammatic analysis to answer this part.

Devon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The below data table and more data pertain to Devon Manufacturing's operations:

REQUIREMENTS

1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.

2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)

3. Prepare a direct materials budget.

4. Prepare a cash payments budget for the direct material purchases from Requirement 3.

5. Prepare a cash payments budget for direct labor.

6. Prepare a cash payments budget for manufacturing overhead costs.

7. Prepare a cash payments budget for operating expenses.

8. Prepare a combined cash budget.

9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be per $0.80 unit for the year).

10. Prepare a budgeted income statement for the quarter ending March 31.

11. Prepare a partial balance sheet for march 31. Follow the same format as the original balance sheet provided for Dec 31, adding loans payable and income tax payable

DATA TABLE

Current Assets as of December 31 (prior year):

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,640

Accounts receivable, net . . . . . . . . . . $ 57,600

Inventory . . . . . . . . . . . . . . . . . . . . . . . $ 15,600

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Property, plant, and equipment, net . .. . $ 121,500

Accounts payable . . . . . . . . . . . . . . .. $ 42,800

Capital stock . . . . .. . . . . . . . . . . . . . . $ 124,500

Retained earnings .. . . . . . . . . . . . . . .. $ 22,800

MORE DATA

a. Actual sales in December were $72,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:

January . . . . . . . . $ 104,000

February . . . . . . . $ 108,000

March . . . . . . . . . $ 112,800

April . . . . . . . . . . $ 109,200

May . . . . . . . . . . $ 105,600

b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale.

c. Devon Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units).

d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct material is needed per unit at $2 per pound. Ending inventory of direct materials should be 30% of next month's production needs.

e. Monthly manufacturing overhead costs are $4,500 for factory rent, $2,800 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred.

f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Devon Manufacturing will purchase equipment for $6,000(cash), while February's cash expenditure will be $12,800 and March's cash expenditure will be $15,600.

g. Operating expenses are budgeted to be $1.30 per unit sold plus fixed operating expenses of $1,800 per month. All operating expenses are paid in the month in which they are incurred.

h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,600 for the entire quarter, which includes depreciation on new acquisitions.

i. Devon Manufacturing has a policy that the ending cash balance in each month must be at least $4,200. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of$130,000 . The interest rate on these loans is 2% per month simple interest (not compounded). The company would pay down on the line of credit balance if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter.

j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes.

explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure or basic research) qualify as either consumption or investment spending. explain how the various categories of federal government spending (such as spending on entitlements, or infrastructure or basic research) qualify as either consumption or investment spending.

You are hired by a Danish distributor of consumer goods, Dicgø, to improve their forecasting capabilities. You are tasked with coming up with quarterly forecasts for an item that appears to have level, seasonality, and trend. While the company does have an existing Holt-Winter forecasting model, no one knows what the parameters (Alpha, Beta, or Gamma) are.

You do have some information. For example, you know that historically, the demand in each quarter follows this distribution:

- Q1 (January through March) = 60% of average quarterly demand

- Q2 (April through June) = 80% of average quarterly demand

- Q3 (July through September) = 140% of average quarterly demand

- Q4 (October through December) = 120% of average quarterly demand.

You just ran the forecast at the end of September (end of 2014Q3) and you have the following estimates:

For level: a^2014Q3 = 1050 units

For trend: b^2014Q3= 41.9 units per quarter

Q1) What is your forecast for demand for 2014Q4? In other words, what is x^2014Q3,2014Q4?

Q2) Suppose the actual demand in 2014Q4 is 1050 units. What is the lowest possible value for your estimate for level, a^2014Q4?

Q3) The model was run at the end of 2014Q4. It provided you with the most recent estimates of each pattern. The estimate for level, a^2014Q4 was 1067.8. What is the value of alpha?

Q4) The model was run at the end of 2014Q4. The estimate for trend, b^2014Q4 was found to be 39.6. What is value of beta?

Q5) The model was run at the end of 2014Q4. The estimate for seasonality, F^2014Q4 was found to be 1.189, before any normalization was done. What is the value of gamma?

AND CAN YALL PUT EACH PROCESS ON HOW YOU FIND THE ANSWER? PLEASE IT WILL HELP ME A LOT TO UNDERSTAND THE PROCESS.

The data in the accompanying table is from a paper. Suppose that the data resulted from classifying each person in a random sample of 45 male students and each person in a random sample of 92 female students at a particular college according to their response to a question about whether they usually eat three meals a day or rarely eat three meals a day.

(a)

Is there evidence that the proportions falling into each of the two response categories are not the same for males and females? Use the

X²

statistic to test the relevant hypotheses with a significance level of 0.05.

State the null and alternative hypotheses.

H₀: The proportions falling into the two response categories are not the same for males and females.
H_a: The proportions falling into the two response categories are the same for males and females.H₀: The proportions falling into the two response categories are the same for males and females.
H_a: The proportions falling into the two response categories are not the same for males and females.    H₀: The proportions falling into the two response categories are 0.5 for both males and females.
H_a: The proportions falling into the two response categories are not 0.5 for both males and females.H₀: The proportions falling into the two response categories are not 0.5 for both males and females.
H_a: The proportions falling into the two response categories are 0.5 for both males and females.

Calculate the test statistic. (Round your answer to two decimal places.)

χ² =

What is the P-value for the test? (Use a statistical computer package to calculate the P-value. Round your answer to four decimal places.)

P-value =

What can you conclude?

Reject H₀. There is convincing evidence that the proportions falling into the two response categories are not the same for males and females.Reject H₀. There is not convincing evidence that the proportions falling into the two response categories are not the same for males and females.    Do not reject H₀. There is convincing evidence that the proportions falling into the two response categories are not the same for males and females.Do not reject H₀. There is not convincing evidence that the proportions falling into the two response categories are not the same for males and females.

(b)

Are your calculations and conclusions from part (a) consistent with the accompanying Minitab output?

YesNo    

(c)

Because the response variable in this exercise has only two categories (usually and rarely), we could have also answered the question posed in part (a) by carrying out a two-sample z test of

H₀: p₁ − p₂ = 0

versus

H_a: p₁ − p₂ ≠ 0,

where

p₁

is the proportion who usually eat three meals a day for males and

p₂

is the proportion who usually eat three meals a day for females. Minitab output from the two-sample z test is shown below. Using a significance level of 0.05, does the two-sample z test lead to the same conclusion as in part (a)?

(d)

How do the P-values from the tests in parts (a) and (c) compare? Does this surprise you? Explain?

The two P-values are equal when rounded to three decimal places. It is not surprising that the P-values are at least similar, since both measure the probability of getting sample proportions at least as far from the expected proportions as what was observed, given that the proportions who usually eat three meals per day are the same for the two populations.The two P-values are very different. It is quite surprising that the P-values are this different, since both measure the probability of getting sample proportions at least as far from the expected proportions as what was observed, given that the proportions who usually eat three meals per day are the same for the two populations.    The two P-values are not equal when rounded to three decimal places. It is not surprising that the P-values are different, since the P-value from the chi-squared test is measuring the probability of getting sample proportions at least as far from the expected proportions as what was observed, given that the proportions who usually eat three meals per day are the same for the two populations and the z-test is measuring the probability of getting sample proportions closer to the expected proportions than what was observed, given that the proportions who usually eat three meals per day are the same for the two populations.The two P-values are equal when rounded to three decimal places. It is surprising that the P-values are at least similar, since the P-value from the chi-squared test is measuring the probability of getting sample proportions at least as far from the expected proportions as what was observed, given that the proportions who usually eat three meals per day are the same for the two populations and the z-test is measuring the probability of getting sample proportions closer to the expected proportions than what was observed, given that the proportions who usually eat three meals per day are the same for the two populations.

1.

2.

The purpose of​ long-term care insurance is to cover expenses associated with​ long-term health​ illnesses:  ​(Select the best answer​ below.)

3.

What is a health savings​ account, or​ HSA? Why is this account often preferable to a flexible spending​ account?

4.

What is a​ high-deductible health​ plan? How is this type of plan related to an​ HSA?

entitlement spending in the US is a fiscal nightmare. Entitlement spending includes programs such as Social Security, Medicare and Medicaid.

(a) What are three economic explanations for the apparent lack of sustainability of these entitlement programs given current policies?

(b) In some ways these programs are similar. Yet - future solvency is a much larger issue for Medicare and Medicaid than for Social Security. Explain this discrepancy

1. What are the economic benefits of infrastructure spending?
2. What are the economic costs of infrastructure spending?
3. Explain the economic circumstances in which you think the benefits of increased infrastructure spending would outweigh the costs?

1 How does the spending by government and the taxes used to finance that spending affect the overall economy?

2 Explain how low interest rates impact banks compared to consumers