Discuss the importance of network applications and services in those respective domains. Choose any three (3) domain below for your discussion:
-Education and learning
-Entertainment and Multimedia
-Communication and social networking
-Business and Financial services
-Public services
-Healthcare

Please watch A TV in the Baby Bottle (52:00) from Films on demand. Next post a summary of the video. Finally, can children really learn from targeted entertainment in the same manner as they can from live human beings?

1. Explain why trade leads to mutually beneficial gain

2.Think about an example from your own life, someone you know, sports, entertainment, or business that demonstrates how comparative advantage is used in the real world.

In December 1997, stress-testing by a U.S. investment bank showed that the firm could face severe losses should Russia default on its debt. The company reduced its exposure to Russia and purchased credit derivatives. Explain the concept of stress-testing. Do you think this strategy helped the company be unaffected by the Russian default which indeed happened in August 1998?

The following data represent Aggregate Consumption (Y) and Disposable Income (X) for one country.

Year Y X

1993 102 114

1994 105 118

1995 109 126

1996 110 130

1997 121 134

1998 125 140

a. Develop the least squares estimated regression equation.

b. Find coefficient of correlation and coefficient of covariance

1. You have $20,000. After the “success” of the sequel of the “Hunger Games”, you want to know if Lions Gate Entertainment Corp. (NYSE:LGE) is a good buy. The firm’s total risk is 19%, its systematic risk is 0.57, the t-bill rate is 2.0%, the 30 year treasury rate is 3.5%, and the average market return is 8.8%.
   1. What is the expected return on Lions Gate Entertainment Corp?
   2. Assume you constructed a DCF model to evaluate Lions Gate Entertainment Corp and you found that the current market price of the stock implies an expected return of 8.05% [Note: You do not actually have to do a DCF model for this problem]. Given you answer in part (a), is the firm overvalued, undervalued, or properly priced? Explain.

2. You are considering an investment in firm ABC. You know the risk free rate is 3.5%, the expected return on the market portfolio is 8.8%, and the standard deviation of the market portfolio is 15.35%. You also know that stock ABC has a standard deviation of 45.3% but it is uncorrelated with the market portfolio.
   1. What is the beta of stock ABC?
   2. According to the CAPM, what is the expected return on stock ABC?
   3. You know that firm ABC has a higher standard deviation than the market portfolio. How do you explain the return in part (b) and the fact that is has a high standard deviation? In particular, what do you know about the risk?

2. (Hypothesis testing) Suppose you collect a random sample of 2,610 homes sold in Stockton, CA, between the years 1996 and 1998. For each of the 2,610 sold homes within this sample, you obtain data on the home size, sale price, number of bedrooms, etc. You then summarize this data and variables in the table of descriptive statistics displayed below. Please use the results in that table of descriptive statistics to answer the following questions related to statistical inference. (a) Your friend claims that the population mean for house prices in Stockton (CA) between the years 1996 and 1998 was equal to $124,500. Based on the results displayed in the table of descriptive statistics, and using a two-sided alternative hypothesis, do you statistically “reject” or “fail to reject” your friend’s null hypothesis at the 5% significance level? How about at the 1% significance level? Please use the “t-stat” method to answer this question. (b) Additionally, please calculate the “p-value” of this hypothesis test. Please make sure to explain and show your work. (unable to post table)

Consider the following given information, determine the 3-year moving averages that would have been used to forecast the sales (in millions) for the years subsequent to each group of three years. Determine the forecast error associated with each forecast.

Year(t) 1993／ 1994 ／1995 ／1996 ／1997 ／1998 ／1999 ／2000

Profit Y(t) 0.9 ／ 1.1 ／1.2 ／ 1.3 ／ 1.4 ／ 1.5 ／ 1.6 ／ 1.7

You may create a table with below information.

Year ／ Sales in millions ／ 3-year Moving Forecast ／ Forecast error ／ Absolute error

b) In the below table, by using the actual level of sales for 1994 of 1.1 million dollars as the “seed” forecast for 1995, determine the forecast for each annual sales amount by the method of simple exponential smoothing. First use a smoothing constant of alpha = 0.8, then use a smoothing constant of alpha = 0.2, and compare the two sets of forecasts.

Year(t) 1993 /1994 /1995 /1996 /1997 /1998 /1999 /2000

Sales in millions Y(t) 0.9 /1.1 /1.5 /1.3 /1.1 /1.7 /1.9 /2.3

.Belinda wants to buy a second-hand car and visits a number of car dealers before deciding to purchase an as new 1998 Ford Mustang from American Car Sales. The sales person, Jaxson, tells Belinda that the car was manufactured in 1998 and had only done 54,000 kms. Three months later, Belinda has the Mustang serviced with her local mechanic who was a Mustang enthusiast. He comments on the fact that the car was in pretty good condition for a 1994 Mustang, though he was surprised that it had only done 54,000 kms. He would not have been surprised if it had done 100,000 kms. Belinda makes further inquiries and discovers that the Mustang was in fact made in 1994 and she has paid about $5,000 more than the actual market value of the car. Belinda intends to approach American Car Sales about this issue. Does Belinda have any contractual rights against American Car Sales? (10marks) Required: You are expected to discuss legal rules learned regarding terms of a contract, in particular statements and representations, and conditions and warranties.