The mean cost of domestic airfares in the United States rose to an all-time high of $385 per ticket (Bureau of Transportation Statistics website, November 2, 2012 ). Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $110.

a. What is the probability that a domestic airfare is $550 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $250 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $500 (to 4 decimals)?

d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)

A survey shows that 81% of households in the United States own a computer. You randomly select 12 households and ask if they own a computer. Answer the following questions. 1) Identify n 2) Identify p 3) Calculate 1 - p 4) Find the probability that exactly 6 of them respond yes 5) Find the probability that at least 6 of them respond yes 6) Find the probability that fewer than 6 of them respond yes 7) Find the probability that between 5 and 10 of them (inclusive) respond yes 8) Find the probability that no more than 8 of them respond yes 9) Find the probability that more than 9 of them respond yes 10) What is the expected (mean) number of “yes” response? 11) What is the standard deviation of the expected (mean) number of “yes” response?

According to a recent study annual per capita consumption of milk in the United States is 21.5 gallons. Being from the Midwest, you believe milk consumption is higher there and wish to test your hypothesis. A sample of 14 individuals from the Midwestern town of Webster City was selected and then each person's milk consumption was entered into the Microsoft Excel Online file below. Use the data to set up your spreadsheet and test your hypothesis. 24.8 23.84 25.25 21.3 17.52 19.61 19.83 26.18 34.97 29.9 28.59 20.57 26.94 27.24 What is a point estimate of the difference between mean annual consumption in Webster City and the national mean? (2 decimals). At ? = 0.05, test for a significant difference by completing the following. Calculate the value of the test statistic (2 decimals). The p-value is (4 decimals).

The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $120. Use Table 1 in Appendix B.

  What is the probability that a domestic airfare is $530 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $260 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $320 and $490 (to 4 decimals)?

d. What is the cost for the 4% highest domestic airfares? (rounded to nearest dollar)

In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

Snow avalanches can be a real problem for travelers in the western United States and Canada. A very common type of avalanche is called the slab avalanche. These have been studied extensively by David McClung, a professor of civil engineering at the University of British Columbia. Suppose slab avalanches studied in a region of Canada had an average thickness of μ = 68 cm. The ski patrol at Vail, Colorado, is studying slab avalanches in its region. A random sample of avalanches in spring gave the following thicknesses (in cm).

(i) Use a calculator with sample mean and standard deviation keys to find x and s. (Round your answers to two decimal places.)

(ii) Assume the slab thickness has an approximately normal distribution. Use a 1% level of significance to test the claim that the mean slab thickness in the Vail region is different from that in the region of Canada.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: μ < 68; H₁: μ = 68H₀: μ = 68; H₁: μ ≠ 68    H₀: μ ≠ 68; H₁: μ = 68H₀: μ = 68; H₁: μ > 68H₀: μ = 68; H₁: μ < 68

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

The Student's t, since we assume that x has a normal distribution and σ is unknown.

The Student's t, since we assume that x has a normal distribution and σ is known.    

The standard normal, since we assume that x has a normal distribution and σ is unknown.

The standard normal, since we assume that x has a normal distribution and σ is known.

What is the value of the sample test statistic? (Round your answer to three decimal places.)


(c) Estimate the P-value.

P-value > 0.2500.100 < P-value < 0.250    0.050 < P-value < 0.1000.010 < P-value < 0.050P-value < 0.010

Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant

.At the α = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant.    

At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.01 level to conclude that the mean slab thickness in the Vail region is different from that in the region of Canada.

There is insufficient evidence at the 0.01 level to conclude that the mean slab thickness in the Vail region is different from that in the region of Canada.    

At the end of 2008, the United States Federal Reserve and Treasury Department announced programs to purchase various assets, such as mortgage-backed securities or even commercial bills, from banks. Briefly explain how such actions will affect the money supply. (Please provide the definition of M1 and explain if the above action will directly affect M1.)

2. Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. Assume that an arbitrager can borrow up to $1,000,000 or €625,000

a. Determine whether the interest rate parity is currently holding.

b. If the IRP is not holding, how would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit.

A. $238.65 B. $14,000 C. $46,207 D. $7,000

Circle the correct answer above and provide the workings to the answer above here:

c. Explain how the IRP will be restored as a result of covered arbitrage activities.

Question 253.125 pts

What was the first (and arguably most important) act of antitrust litigation in the United States?

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Question 263.125 pts

You are evaluating the possible merger of Honda and Philip Morris. What kind of merger is this?

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Question 273.125 pts

  When deregulation was initially being discussed, what was one of the most serious concerns raised for electric companies?

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Question 283.125 pts

Suppose there are 6 firms in an entire industry. Their market shares are as follows:

Firm 1: 20%

Firm 2: 10%

Firm 3: 30%

Firm 4: 5%

Firm 5: 17%

Firm 6: 18%

What is the 4-firm ratio and the HHI for this industry?