Calculate the government purchases multiplier if the marginal propensity to consume equals 0.75, the tax rate is 0.2, and the marginal propensity to import equals 0.3.

Select one: a. 1.43 b. 1.6 c. 3.33 d. 4

Find the variance of the following data. Round your answer to one decimal place. x 3 4 5 6 7 8 P(X=x) 0.1 0.1 0.1 0.2 0.2 0.3

Consider the following scenario analysis:

Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.)

b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification.

Use the following table to answer questions:

1. Using a two month moving average, what is the forecast for October?
   1. 142
   2. 143
   3. 144
   4. 145

2. Using a 3 month weighted moving average where the latest month has a weight of 0.5 and the month before that 0.3 and the oldest month has a weight of 0.2, what is the forecast for October?
   1. 142
   2. 143
   3. 144
   4. 145

3. The Forecast for May was 141. Using an alpha of 0.3, what is the forecast for October using exponential smoothing (round your answer to the nearest integer)?
   1. 142
   2. 143
   3. 144
   4. 145

The unequally spaced data given in Table 2 were generated from f(x)=3xcos(x)

Table 2

a) Calculate f^''(0.1), f^''(0.95) and f^'' (0.3) by using the appropriate divided difference
(forward, backward and central) equations which will give the most accurate result.
Compute the true percent relative error for each case.

b) Evaluate the integral from a=0.1 to b=0.95 using a combination of the trapezoidal and
Simpson’s rules; employ Simpson’s rule wherever possible to obtain the highest
accuracy. Compute the true percent relative error.

1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

1. Develop an estimated regression equation in Excel with the amount of television advertising as the independent variable
2. Develop an estimated regression equation in Excel with both television advertising and newspaper advertising as the independent variables
3. Develop an estimated regression equation in Excel with all three independent variables: television advertising, newspaper advertising, and radio advertising
4. Is the estimated regression equation coefficient for television advertising expenditures the same in par a), in part b) and in part c)? Interpret the coefficient in each case
5. Obtain and compare the multiple coefficient of determination and the adjusted multiple coefficient of determination for parts a), b) and c). How does the coefficient of determination changes as a result of adding more independent variables in the equation?
6. What is the estimate of the weekly gross revenue for a week when $3500 is spent on television advertising, $1800 is spent on newspaper advertising, and $350 in radio advertising?
7. Use the F test to determine the overall significance of the relationship. What is the conclusion at the .05 level of significance?
8. Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?
1. Determine the sample correlation coefficient between all possible pairs of independent variables to measure multicollinearity. Is there any value high enough to predict any potential problem in the regression model? Explain

SHOW ALL WORK

What is Reeby Sports worth per share? We will value the company using George
Reeby's forecasts.
The spreadsheet accompanying this solution sets out a forecast in the same
general format as Table 4.5. Historical results from 2011 to 2016 are also shown.Earnings
per share (EPS)equals return on equity (ROE) times starting book value per share
(BVPS). EPS is divided between dividends and retained earnings, depending on the
dividend payout ratio.BVPS grows as retained earnings are reinvested.
The keys to Reeby Sports’ future value and growth are profitability (ROE) and
the reinvestment of retained earnings. Retained earnings are determined by dividend
payout. The spreadsheet sets ROE at 15% for the six years from 2018 to 2022. If Reeby
Sports will lose its competitive edge by 2022, then it cannot continue earning more than
its10% cost of capital. Therefore ROE is reduced to 10%startingin 2023.1
The payout ratio is set at .30 from 2018 onwards. Notice that the long-term
growth rate, which settles inafter 2023, is ROE × ( 1 – dividend payout ratio) = .10 × (1 -
.30) = .07.
The spreadsheet allows you to vary ROE and the dividend payout ratio separately
for 2018-2022 and for 2023-2024.2But let’s start with the initial input values. To
calculate share value, we have to estimate a horizon value at H = 2022 and add its PV to
the PV of dividends from 2017 to 2022. Using the constant-growth DCF formula,
PV = 0.71 = 23.72 H .10- .07
The PV of dividends from 2017 to 2022 is $3.43 at the start of 2017, so share value is:3
6
PV = 3.43+ 23.72 = $16.82
(1.1)
The spreadsheet also calculates the PV of dividends through 2024 and the horizon
value at 2024. Notice that the PV at the start of 2017 remains at $16.82. This makes sense, since the value of a firm should not depend on the investment horizon chosen to calculate
PV. (If you calculate a value that does depend on the horizon, you have made a mistake.)
We have reduced ROE to the 10% cost of capital after 2022, assuming that Reeby
Sports will have exhausted valuable growth opportunities by that date. With PVGO = 0,
PV = EPS/r.4So we could discard the constant-growth DCF formula and just divide EPS
in 2023 by the cost of capital:
PVH = 2.37 = $23.72 .10
This PVis identical to the PV from the constant-growth DCF formula. It doesn’t matter
how fast a company grows after the horizon date H if it only earns its cost of capital.
How much of Reeby Sports’ value is due to PVGO?You can check by setting
ROE = .10 for 2018 and all later years.You should get PV = $13.82. Thus PVGO = 16.82
– 13.82 = $3.00 per share for investments made in 2017onward.
George Reeby has also identified a "comparable," Molly Sports. We could use its
P/E ratio of 13.1 to calculate horizon value in 2022 and PV at the start of 2017. Using
the original inputs for ROE, EPS in 2023 is 2.37.5
H
6
PV 13.1 2.37 $31.05
PV 3.43 31.05 $20.96
(1.10)
= ´ =
= + =
We couldalso use Molly’s P/E ratio to calculate Reeby Sports’ PV at the start of 2017
directly from 2017 EPS:
PV = 13.1 ´ 2.03 = $26.59

The Question is ?
Both values based on Molly’s P/E are higher than our DCF calculations. Is Molly
significantly more profitable than Reeby Sports, or does our spreadsheet understate
Reeby Sports’ prospects?
What if Reeby Sports could continue to earn ROE = .15 for two extra years, until
2024?You can check by changing ROE for 2023-2024 from .10 to .15. (The ROE for
2025 and 2026 is hard-wired at .10.)You should get NPV of $18.04, somewhat higher
than our original DCF calculations, but not enough for Reeby Sports to match Molly’s P/E.You may wish to experiment to find inputs that generate P/E = 13 for Reeby Sports
at the start of 2017. Do you think these inputs are reasonable?

The following emprical equation is derived for the solution of an engineering problem: Z = X Y^2 √ W where:     X : Uniformly distributed between 2.0 and 4.0, Y: Normally distributed with median 1.0 and Pr(Y ≤ 2.0) = 0.9207, W: Exponentially distributed with a median of 1.0, and X, Y and W are statistically independent.

a) Compute the mean values, variances and coefficients of variation of X, Y and W, respectively.

b) Compute the mean, standard deviation and coefficient of variation of Z using the first-order approximation.  

The following data for a random sample of banks in two cities represent the ATM fees for using another​ bank's ATM. Compute the range and sample standard deviation for ATM fees for each city. what is the standard deviation for city A? what is the standard deviation for city B? Which city has the most dispersion based on​ range? Which city has more dispersion based on the standard​ deviation? City A 2.5 1.0 1.0 0.0 2.0 City B 1.25 1.00 1.50 1.00 1.00