MULTIPLE CHOICE Question 1

All of the following have been major, recent trends in mutual fund investing EXCEPT:

Question 2

There are many types of mutual funds and exchange traded funds, but as an entire group, their primary and defining benefit relative to other types of investments is which of the following:

Question 3

Which of the following is typically NOT one of the major investment objectives used to categorize mutual funds?

PYTHON - You are given a data.csv file in the /root/customers/ directory containing information about your customers. It has the following columns: ID,NAME,CITY,COUNTRY,CPERSON,EMPLCNT,CONTRCNT,CONTRCOST where ID: Unique id of the customer NAME: Official customer company name CITY: Location city name COUNTRY: Location country name CPERSON: Email of the customer company contact person EMPLCNT: Customer company employees number CONTRCNT: Number of contracts signed with the customer CONTRCOST: Total amount of money paid by customer (float in format dollars.cents) Read and analyze the data.csv file, and output the answers to these questions: How many total customers are in this data set? How many customers are in each city? How many customers are in each country? Which country has the largest number of customers' contracts signed in it? How many contracts does it have? How many unique cities have at least one customer in them? The answers should be formatted as: Total customers: Customers by city: : : ... Customers by country: : : ... Country with most customers' contracts: USA ( contracts) Unique cities with at least one customer: The answers for Customers by city and Customers by country must be sorted by CITY and COUNTRY respectively, in ascending order. If there are several cities that are tied for having the most customers' contracts, print the lexicographically bigger one.

Researchers experimenting with cloud seeding in Arizona want a random sequence of days for their experiments. (Reference: Proceedings of the National Academy of Science, Vol. 68, pp. 649-652.) Suppose they have the following itinerary for consecutive days, where S indicates a day for cloud seeding and N indicates a day for no cloud seeding.

Test the sequence for randomness. Use α = 0.05.

Find the sample test statistic R, the number of runs.

Find the upper and lower critical values in Table 10 of Appendix II.

The following data represent annual percentage returns on Vanguard Total Bond Index for a sequence of recent years. This fund represents nearly all publicly traded U.S. bonds. (Reference: Morningstar Mutual Fund Analysis.)

Test the sequence for randomness about the median. Use α = 0.05.

Find the sample test statistic R, the number of runs.

Find the upper and lower critical values in Table 10 of Appendix II.

Is the crime rate in New York different from the crime rate in New Jersey? Independent random samples from region A (cities in New York) and region B (cities in New Jersey) gave the following information about violent crime rate (number of violent crimes per 100,000 population). (Reference: U.S. Department of Justice, Federal Bureau of Investigation.)

Use a 10% level of significance to test the claim that there is no difference in the crime rate distributions of the two states.

Find the P-value of the sample test statistic. (Use 4 decimal places.)

The following data represent annual percentage returns on Vanguard Total Bond Index for a sequence of recent years. This fund represents nearly all publicly traded U.S. bonds. (Reference: Morningstar Mutual Fund Analysis.)

Test the sequence for randomness about the median. Use α = 0.05.

Find the sample test statistic R, the number of runs.

Consider recent financials for Ellie's Essentials LLC:

Balance Sheet

Going forward, analysts have forecasted the following free cash flows: $2,600.00 in 2019, and $2,600.00 in 2020. After that point, analysts expect free cash flows to grow at 3.00%. The firm has no short-term debt or preferred stock, and there are 1,000 shares outstanding. The firm's cost of capital is 10.00%.

You are trying to estimate the value of Doc McRuffins Incorporated. It is a rival firm to Ellie's Essentials, but not publicly traded. You do know that Doc McRuffins has an EBITDA of $4,750 for 2018. Using multiples, what is a rough estimate for the enterprise value of Doc McRuffins

Is there a correlation between mean course grade and mean attendance in data set 7176? What is the equation of the regression line? What is the best prediction for a mean attendance of 80%?

I chose the temperature of New Jersey in two different months as below, I need to calculate mean, median, mode, and range for each group. Find the variance and standard deviation for each group. Find the 95% confidence interval the mean of each group and test the hypothesis that the means are different (.05 significance)

I chose the temperature of New Jersey in two different months as below, I need to calculate mean, median, mode, and range for each group. Find the variance and standard deviation for each group. Find the 95% confidence interval the mean of each group and test the hypothesis that the means are different (.05 significance)

QUESTION 27

1. Company R has produced the following variance analysis report. If Company R has a policy to investigate variances over 10% of the flexible budget, which variances should be investigated?

   	Actual	Flexible budget	Budget Variance		Price Variance		Quantity Variance
   DM	$78,580	$88,000	($9,420)	F	$1,200	U	($10,620)	F
   DL	$123580	$145,000	($21,420)	F	($2,650)	F	($18,770)	F
   VOH	$126,860	$119,000	$7,860	U	($5,560)	F	$2,300	U

   
   

   		The direct materials quantity variance and the direct labor efficiency variance.
   		The direct materials price variance and the direct materials quantity variance.
   		The direct materials quantity variance and the variable overhead efficiency variance.
   		The direct labor rate variance and the direct labor efficiency variance.

QUESTION 36

1. The current pretax income for Coretax is $40,000 (tax rate is 30%), with an average asset base of $120,000 and an expected return of 15 percent or higher. The ROI for Coretax would amount to:

   		23.3%
   		33.3%
   		15%
   		66.7%

QUESTION 38

1. Assume the following information for a product line:

   Sales revenue	$1,500,000
   Variable manufacturing costs	140,000
   Fixed manufacturing costs	160,000
   Variable selling/administrative costs	130,000
   Fixed selling/administrative costs	90,000
   What is the product line's segment income?

   		$980,000
   		$1,200,000
   		$1,230,000
   		$1,250,000

QUESTION 39

1. The Rubber Division of Morgan Company manufactures rubber moldings and sells them externally for $50. At the current level of production, its  variable cost is $20 per unit, and its fixed cost per unit is $7. Morgan's president wants the Rubber Division to transfer 5,000 units to another company division. Assuming the Rubber Division has available capacity for 5,000 additional units, the economic rule would set transfer price as:

   		$27.
   		$50.
   		$7.
   		$20.

Case 27-1

Sinclair Company.[*]

A.         EQUIPMENT REPLACEMENT

Sinclair Company is considering the purchase of new equipment to perform operations currently being performed on different, less efficient equipment. The purchase price is $250,000, delivered and installed.

            A Sinclair production engineer estimates that the new equipment will produce savings of $72,000 in labor and other direct costs annually, as compared with the present equipment. She estimates the proposed equipment’s economic life at five years, with zero salvage value. The present equipment is in good working order and will last, physically, for at least five more years.

            The company can borrow money at 9 percent, although it would not plan to negotiate a loan specifically for the purchase of this equipment. The company requires a return of a least 15 percent before taxes on an investment of this type. Taxes are to be disregarded.

Questions

1.         Assuming the present equipment has zero book value and zero salvage value, should the company buy the proposed equipment?

2.         Assuming the present equipment is being depreciated at a straight-line rate of 10 percent, that it has a book value of $135,000 (cost, $225,000; accumulated depreciation, $135,000), and has zero net salvage value today, should the company buy the proposed equipment?

3.         Assuming the present equipment has a book value of $135,000 and a salvage value today of $75,000 and that if retained for 5 more years its salvage value will be zero, should the company buy the proposed equipment?

4.         Assume the new equipment will save only $37,500 a year, but that its economic life is expected to be 10 years. If other conditions are as described in (1) above, should the company buy the proposed equipment?

B.         REPLACEMENT FOLLOWING EARLIER REPLACEMENT

Sinclair Company decided to purchase the equipment described in Part A (hereafter called ‘model A” equipment). Two years later, even better equipment (called “model B”) comes on the market and makes the other equipment completely obsolete, with no resale value. The model B equipment costs $500,000 delivered and installed, but it is expected to result in annual savings of $160,000 over the cost of operating the model A equipment. The economic life of model B is estimated to be 5 years. Taxes are to be disregarded.

Questions

1.         What action should the company take?

2.         If the company decides to purchase the model B equipment, a mistake has been made somewhere, because good equipment, bought only two years previously, is being scrapped. How did this mistake come about?

C.         EFFECT OF INCOME TAXES

Assume that Sinclair company expects to pay income taxes of 40 percent and that a loss on the sale or disposal of equipment is treated as a capital loss resulting in a tax saving of 28 percent of the loss. Sinclair uses an 8 percent discount rate for analyses performed on an aftertax basis. Depreciation of the new equipment for tax purposes is computed using the accelerated cost recovery system (ACRs) allowances; assume that these allowances were 35, 26, 15, 12, and 12 percent for years 1 to 5, respectively. The new equipment qualifies for a 5 percent investment tax credit, which will not reduce the cost basis of the asset for calculating ACRS depreciation for tax purposes.

Questions:

Should the company buy the equipment if the facts are otherwise the same as those described in Part A(1)?

If the facts are otherwise the same as those described in Part A(2)?

If the facts are otherwise the same as those described in Part B?

D. [†]CHANGE IN EARNINGS PATTERN

Assume that the savings are expected to be $79,500 in each of the first 3 years and $60,750 in each of the next 2 years, other conditions remaining as described in Part A(1).

Questions:

What action should the company take?

Why is the result here different from that in Part A(1)?