. A certain supermarket has both an express checkout line and a super-express checkout line. Let X1 denote the number of customers in line at the express checkout at a particular time of day, and let X2 denote the number of customers in line at the super-express checkout at the same time. Suppose the joint probability distribution of X1 and X2 is as follows

x2

0 1 2

0 0.1 0. 1 0.0

x1 1 0.1 0.2 0.1

2 0.0 0.1 0.3

(a) Find P(X1 = X2). (4 pts.)

(b) Find P(X1 6= 0). (4 pts.)

(c) Find the marginal distribution of X1. (4 pts.)

(d) Find Cov(X1, X2). (4 pts.)

(e) Are X1 and X2 independent? Why? (4 pts.)

(1) Conditional Mean Table 1 is the probability of admission in the university. X=1 means that students are admitted; x=0 means that students are not admitted. Students are divided into two groups: male and Female.

Table 1: Admission Table

Admit . (x=1) Not Admit(x=0)

Male (0.3) . ( 0.2)

Female ( 0.4) . ( 0.1)

(a) Calculate the probability of admit, the probability of not admit, and the expectation of x.

(b)Calculate the probability of male, the probability of female, conditional probability of admit given male, conditional probability of not admit given male, conditional probability of admit given female, and conditional probability of not admit given female.

(c) Calculate the conditional expectation of x given male and the conditional expectation of x given female.

(d)Show that the expectation of x equals to the expectation of conditional expectation of x

Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity of its aerobics dancing. The equipment will cost $20,900. Debby is not sure how many members the new equipment will attract, but she estimates that her increased annual cash flows for each of the next five years will have the following probability distribution. Debby’s cost of capital is 15 percent. Probability Cash flow 0.1 $4,570 0.3 5,550 0.4 7,400 0.2 9,930 a. What is the expected cash flow? Expected cash flow $ b. What is the expected NPV? (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) NPV $ c. Should Debby buy the new equipment? Yes No

Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its staff and an outside vendor. The profit of the corporation depends on future demand. The annual profit of each option (in thousands of dollars) depends on demand as follows: Demand Staffing Options High Median Low Own staff 650 650 600 Outside vendor 900 600 300 Combination 800 650 500 a. Construct a decision tree. b. Recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches (show steps). c. If the demand probabilities are 0.2, 0.5, and 0.3, respectively for High, Median, and Low demands, use the expected value approach to determine the optimal decision (show steps)

1-Describe how rock musicals changed the trajectory of musical theater and give an example of two early rock musicals.?

Post the definition of an adhesion contract and an example of how dry cleaners or movie theater might have an adhesion contract with the customers.

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.3 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $519,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.20 per trap and believes that the traps can be sold for $5 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 10%. Use the MACRS depreciation schedule. Year: 0 1 2 3 4 5 6 Thereafter Sales (millions of traps) 0 0.5 0.6 0.7 0.7 0.5 0.2 0

a. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.)

b. By how much would NPV increase if the firm depreciated its investment using the 5-year MACRS schedule? (Do not round intermediate calculations. Enter your answer in whole dollars not in millions.)

Question 5 Accounting for Consolidation                                                                

The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:

Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:

Share capital                                 $320,000

Reserve                                        $160,000

Retained earnings                         $280,000

The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.

1. The directors of Park Ltd believed that goodwill acquired was impaired by 20 per cent for the year ended 30 June 2020.
2. On 17 February 2020, Sun Ltd paid $60,000 in management fees to Park Ltd.
3. On 3 March 2020, Park Ltd sold inventory to Sun Ltd at a value of $48,000.
4. The above inventory had a cost of $29,000 for Park Ltd to produce. All inventories remained unsold in Sun Ltd on 30 June 2020. Park Ltd and Sun Ltdadopt the perpetual inventory system for inventory accounting. The income tax rate is 30%.

Required: (Narrations are required in this question)     

1. Describe the measurement of goodwill acquired in this question according to AASB 3.
2. Prepare relevant consolidation journal entries on 30 June 2020.

The accountant of Park Ltd needs to prepare consolidated financial statements for Park Ltd at the end of financial year. Following information was available on 30 June 2020:

Park Ltd acquired 100 per cent interest in Sun Ltd for $850,000 on 1 July 2015. All assets and liabilities were fairly valued on the acquisition date. At the date of acquisition, the equity of Sun Ltd included:

Share capital                                 $320,000

Reserve                                        $160,000

Retained earnings                         $280,000

The balance of the investment account was $850,000 as shown in the Statement of Financial Position of Park Ltd on 30 June 2020.

1. The directors of Park Ltd believed that goodwill acquired was impaired by 20 per cent for the year ended 30 June 2020.
2. On 17 February 2020, Sun Ltd paid $60,000 in management fees to Park Ltd.
3. On 3 March 2020, Park Ltd sold inventory to Sun Ltd at a value of $48,000.
4. The above inventory had a cost of $29,000 for Park Ltd to produce. All inventories remained unsold in Sun Ltd on 30 June 2020. Park Ltd and Sun Ltd adopt the perpetual inventory system for inventory accounting. The income tax rate is 30%.

Required: (Narrations are required in this question)     

1. Describe the measurement of goodwill acquired in this question according to AASB 3.
2. Prepare relevant consolidation journal entries on 30 June 2020.

4)

Long Beach, CA has a city center that is located on the waterfront. If sea-level increases submerge a portion of the city center, then we expect that

Select one:

a. there will be excess labor supply

b. household bids for residential land will shift upward

c. wages will increase

d. the residential territory will grow

5)

Suppose we have a monocentric city. If a zoning policy is enacted that limits the height of buildings at the city center to the current height of buildings 2 miles from the city center, then which of the following is notexpected to occur

Select one:

a. households will decrease their bid for residential land

b. firms will decrease their bid for business land

c. wages for labor will increase

d. demand for labor will decrease