Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining. The anticipated annual return percentages for each market segment under each economic condition are as follows.

(a)

Assume that an individual investor wants to select one market segment for a new investment. A forecast shows improving to declining economic conditions with the following probabilities: improving (0.2), stable (0.5), and declining (0.3). What is the preferred market segment for the investor?

ComputersFinancial     ManufacturingPharmaceuticals

What is the expected return percentage of the preferred market segment?

%

(b)

At a later date, a revised forecast shows a potential for an improvement in economic conditions. New probabilities are as follows: improving (0.4), stable (0.4), and declining (0.2). What is the preferred market segment for the investor based on these new probabilities?

ComputersFinancial     ManufacturingPharmaceuticals

What is the expected return percentage of the preferred market segment?

%

When an automobile is stopped by a roving safety patrol, each tire is checked for tire wear, and each headlight is checked to see whether it is properly aimed. Let X denote the number of headlights that need adjustment, and let Y denote the number of defective tires.

(a) If X and Y are independent with p_X(0) = 0.5, p_X(1) = 0.3, p_X(2) = 0.2, and p_Y(0) = 0.1, p_Y(1) = 0.2, p_Y(2) = p_Y(3) = 0.05, p_Y(4) = 0.6, display the joint pmf of (X, Y) in a joint probability table.

(b) Compute P(X ≤ 1 and Y ≤ 1) from the joint probability table.
P(X ≤ 1 and Y ≤ 1) =  

Does P(X ≤ 1 and Y ≤ 1) equal the product P(X ≤ 1) · P(Y ≤ 1)?

YesNo    

(c) What is P(X + Y = 0) (the probability of no violations)?
P(X + Y = 0) =  

(d) Compute P(X + Y ≤ 1).
P(X + Y ≤ 1) =

Case:

Rent Relief Caravans4Hire Ltd1 provides short-term rental of caravans to tourists for camping holidays throughout Australia. Caravans4Hire Ltd leases several large properties in Adelaide, Perth and Sydney, which it needs to park its caravans when not in use.

Due to border restrictions, travel restrictions, localised lockdowns and Government advice to stay home, Caravans4Hire Ltd has suffered a significant loss of revenue and cash flow. On 1 May 2020 the National Hotel and Tourism Industry Association which is a non-government, not-for-profit industry association. It supports its members, who are businesses operating in the hospitality and tourism industry awarded Caravans4Hire Ltd a grant of $360 000 in total for rent relief for the three months ended 31 July 2020. The grant was received in cash on 1 May 2020. Caravans4Hire Ltd is under no obligation to repay the money received.

REQUIRED

All questions should be answered from the perspective of Caravans4Hire Ltd. The word lengths are a suggestion only, i.e., they are NOT strict word limits for each part.

a) What is the main accounting policy issue(s) that need to be resolved to account for the grant from the National Hotel and Tourism Industry Association? (20%) (part a) 15 – 50 words)

b) i) Identify one principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle (e.g., AASB XXX, para. zz; or Conceptual Framework, Chapter X, para. x.xx) AND explain why you chose that principle. (20%)

ii) identify another principle that is relevant to the accounting policy issue that you identified in part a) by providing a reference for that principle.(10%) (part b) 50 – 100 words).

c) Describe an accounting policy to account for the grant from the National Hotel and Tourism Industry Association. Do not justify your policy. Just describe it. (50%) (part c) 20 - 80 words)

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds? (Round your answer to 3 decimal places.)

c. What would be the customer time in the system if a second window was opened with each server doing all three tasks? (Use closest λ/µ value . Do not round intermediate calculations. Round your answer to 3 decimal places.)

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers' parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don't get in until after the feature has started.)

a. What is the average customer time in the system?

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds?

c. Would system waiting time be less than you found in(b) if a second window was opened with each server doing all three tasks.

Part C. is the one I need help with the most. Please explain in depth. Thank you!

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 36 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.) (Use the Excel spreadsheet Queue Models.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 25 seconds? (Round your answer to 3 decimal places.)

Average time in system ________ minutes

c. What would be the customer time in the system if instead of the change in Part b, a second window was opened with each server doing all three tasks? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

d. Would system waiting time which is obtained in part (c) be less than you found in (b)?

• Yes

• No

Problem 1 (3 + 3 + 3 = 9) Suppose you draw two cards from a deck of 52 cards without replacement. 1) What’s the probability that both of the cards are hearts? 2) What’s the probability that exactly one of the cards are hearts? 3) What’s the probability that none of the cards are hearts?

Problem 2 (4) A factory produces 100 unit of a certain product and 5 of them are defective. If 3 units are picked at random then what is the probability that none of them are defective?

Problem 3 (3+4=7) There are 3 bags each containing 100 marbles. Bag 1 has 75 red and 25 blue marbles. Bag 2 has 60 red and 40 blue marbles. Bag 3 has 45 red and 55 blue marbles. Now a bag is chosen at random and a marble is also picked at random. 1) What is the probability that the marble is blue? 2) What happens when the first bag is chosen with probability 0.5 and other bags with equal probability each?

Probem 4 (3+3+4=10) Before each class, I either drink a cup of coffee, a cup of tea, or a cup of water. The probability of coffee is 0.7, the probability of tea is 0.2, and the probability of water is 0.1. If I drink coffee, the probability that the lecture ends early is 0.3. If I drink tea, the probability that the lecture ends early is 0.2. If I drink water, the lecture never ends early. 1) What’s the probability that I drink tea and finish the lecture early? 2) What’s the probability that I finish the lecture early? 3) Given the lecture finishes early, what’s the probability I drank coffee?

Problem 5 (4+4+4=12) We roll two fair 6-sided dice. Each one of the 36 possible outcomes is assumed to be equally likely. 1) Find the probability that doubles were rolled. 2) Given that the roll resulted in a sum of 4 or less, find the conditional probability that doubles were rolled. 3) Given that the two dice land on different numbers, find the conditional probability that at least one die is a 1. Problem 6 (8) For any events A, B, and C, prove the following equality: P(B|A) P(C|A) = P(B|A ∩ C) P(C|A ∩ B)

Is the product or service of the hotel industry standardized or differentiated? Explain. Compared to other industries, is it difficult or easy to enter the hotel industry? Explain. Are there examples of nonprice competition in the hotel industry? Illustrate. Based on the above, would you say that the hotel industry is monopoly, oligopoly, monopolistic competition or perfect competition? Explain.

Chapter 10
6. Test H₀: 8 versus H_A: > 8, given = 0.01, n = 25, = 8.13 and s = 0.3. Assume the sample is selected from a normally distributed population.

7. Test H₀: π = 0.25 versus H_A: π 0.25 with p = 0.33 and n = 100 at alpha = 0.05 and 0.10.

8. Test at α = 0.01 the hypothesis that a majority (more than 50%) of students favor the plus/minus grading system at a university if in a random sample of 500 students, 285 favor the system?

9. Test whether the sample evidence indicates that the average time an employee stays with a company in their current positions is less than 3 years when a random sample of 64 employees yielded a mean of 2.76 years and s = 0.8. Use = 0.01. Assume normal distribution.