The manager of a department store believes that the mean annual income of the store's credit card customers is at least $21,000. For a sample of 90 customers the mean and standard deviation of income were found to be $20700 and $1450 respectively.

(1) Use the tables in the textbook to determine the critical value for the test statistic at the 5% level of significance. State your answer correct to three decimal places.

(2) Determine the calculated test statistic correct to 3 decimal places

Markov Processes (Market Share Analysis)
In Westvale, a small rural town in Maine, virtually all shopping and business are done in the town. The town has one farm and garden center that sells fertilizer to the local farmers and gardeners. The center carries three brands of fertilizer--- Plant plus, Crop extra, and Gro-fast--- so every person in the town who uses fertilizer uses one of the three brands. The garden center has 9,000 customers for fertilizer each spring. An extensive market research study has determined that customers switch brands of fertilizer according to the following probability transition matrix

The number of customers presently using each brand of fertilizer is shown in the following table

A) Determine the steady-state probabilities for the fertilizer brands.
B) Forecast the customer demand for each brand of fertilizer in the long run and the changes in customer demand.

uppose that the monthly demand for housing in Egypt is QD = 1000 – 5P.

• Using the formula for elasticity we have described in class, suppose that the initial price is $500 dollars, calculate the price elasticity of demand between a price of $600 and $500.
• Explain the meaning of your answer using the concept of elasticity
• Suppose that the prevailing price is $500. Would you recommend an increase in the price to $500, why or why not? Explain using the concept of elasticity. If not, describe the conditions under which you could make such a recommendation.
• Calculate the total revenue first from the sale of houses at a price of $500 and then at a price of $600. Do you reach a different conclusion regarding the effect of the increase in price?
• Suppose that when an average customers income increases rises from $18,000 to $20,000 per year, annual housing purchases increase from 5,500 units to 6,500 units. Calculate the income elasticity of demand. Is housing a normal good? Why or why not?

note; please o need it typed not hand writing, Thank you

For each of the following, evaluate if it is a good argument. Provide reasons for why or why not.

16. Tax. Jane is doing an income tax return. There are two different methods of determining some revenues. If method A is used her taxable income will be $50,000. If method B is used, her taxable income will be $56,000. Jane thinks that she better chooses method A.

17. Taxi driver. King is a taxi driver working for a yellow cab company in a developing country. Mostly, the drivers take cash and receipts are not issued. Only King knows how much revenue is generated from fares. King’s wage is 30% of the reported fare revenue. Whatever revenue he reports, he has to turn in that amount to the company first. To maximize his wages, King believes that he wants to over-report the fare revenue to the company.        

18. Saved money? We were looking for a three bedroom house. We were three people. Our budget was $ $240,000 ($80,000 per bedroom). We actually paid $220,000 for a three bedroom house. Soon after, one of us left for another state, and one bedroom is empty.   We saved $20,000, and it is good news for us.

25

Based on the expectations hypothesis, what does the market expect the 2 year rate in 1 years to be?

State your answer as a percentage to 2 decimal places (e.g., 4.39)

26

Based on the expectations hypothesis, what does the market expect the 1 year rate in 2 years to be?

State your answer as a percentage to 2 decimal places (e.g., 4.39)

27

Bond A has the following features:

         Face value = $1,000,       

Coupon Rate = 9%,       

Maturity = 9 years, Yearly coupons

         The market interest rate is 4.56%

         If interest rates remain at 4.56%, what will the price of bond A be in year 1?

28

How much would you pay today for a bond that has a face value of $1,000, and annual coupon of $74 and a maturity of 9 years? (=what is the price of the bond?)

         The annual interest rate is 6.44%?

29

Given the following information, what is TODAY’s stock price?

Calculate your answer to the nearest penny (e.g., 2.51)

30

Given the following information, what is the percentage capital gain/loss between today and period 1?

Calculate your answer to two decimal places (e.g., 2.51)

If there is a loss indicate this by using a negative number (e.g., -4.29)

Toy Story Factory hires six workers to produce toys in the three divisions: “Toddle Toy”, “Girl Toy” and “Boy Toy”. The major decision is the allocation of the workers among the three divisions, so as to maximize the amount of toy produced. The following table shows the amount (unit) of toys that will be produced in a division as a function of the number of workers deployed in the corresponding division. For instance, when 2 workers are sent to the Boy Toy division, a total of 66 units of toy will be produced there.

If the factory wants to maximize the amount of toy produced, the maximum output will be [Answer] units of toys in total. (Integer, please.)

A sample of size n equals 76 is drawn from a population whose standard deviation is o equals 27

A) Find the margin of error for a 99% confidence interval for U. Round the answer to at least three decimal places.

B) if the confidence level were 95%, would the margin of error be larger or smaller?

_______ because the confidence level is _______

Consider the following three stocks that constitute a stock market index.

Market-cap-weighted index and price-weighted indexes would be most sensitive to which of these stocks and why?

Is there a relationship between handedness and gender? A researcher collected the following data in hopes of discovering if handedness and gender are independent (Ambidextrous individuals were excluded from the study). Use the Chi-Square test for independence to explore this at a level of significance of 0.05.