In the United States, voters who are neither Democrat nor Republican are called Independent. It is believed that 12% of voters are Independent. A survey asked 30 people to identify themselves as Democrat, Republican, or Independent.

A. What is the probability that none of the people are Independent?

Probability =

B. What is the probability that fewer than 6 are Independent? Probability =

C. What is the probability that more than 2 people are Independent? Probability =

Fresh!Now! is a chain of grocery stores in the United States with 1921 grocery stores in total, some of which also sell bakery goods and freshly made food-to-go. Fresh!Now!’s goal is to provide good quality fresh vegetables at affordable prices. However, given the existing market of organic food supplies, Fresh!Now! is facing tremendous competition. They realize that Fresh!Now! has to make their stores more attractive to customers.

In 19 stores across Massachusetts and New York, they have implemented a new concept to present the vegetables in the stores and have collected information of the average daily profit of leafy vegetables (in dollar) per customer per store (see table below). Janine, the head of the analytics department at Fresh!Now!, has tasked you with developing an anlaysis to better understand if the new concept has any effect.

Your first task it to create a 95% confidence interval for the mean of the dataset using the sample collected from Massachusetts and New York.

What is the upper limit of this confidence interval?

What is the lower limit of this confidence interval?

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Part 2

To understand if the new concept has taken effect, you want to conduct a hypothesis test. Average daily profit per customer per store for the leafy vegetables in all other Fresh!Now! grocery stores is 14.

You formulate the following hypothesis test:

H0: Average daily profit at Fresh!Now! in the New York/Massachusetts stores is not higher than the average daily profit of all other Fresh!Now! grocery stores at a confidence level of 95%.

H1: Average daily profit at Fresh!Now! in the New York/Massachusetts stores is higher than the average daily profit of all other Fresh!Now! grocery stores at a confidence level of 95%.

1) Calculate the test-statistic for the hypothesis test above?

2) Please select the result of your hypothesis test:

Choose the correct answer.

Fail to reject H0: You are not 95% confident that the mean profit in the Massachusetts/Boston stores is higher than the population mean.

Accept H0: Profit in the Massachusetts/Boston stores is lower than the population mean at the 95% confidence level.

Reject H0: You are 95% confident that the mean profit in the Massachusetts/Boston      stores is higher than the population mean.

The result of your hypothesis test does not tell you if you can reject H0 or not.

3) Calculate the p-value for the hypothesis test above?

The mean cost of domestic airfares in the United States rose to an all-time high of $380 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.

a. What is the probability that a domestic airfare is $545 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $265 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $510 (to 4 decimals)?

d. What is the cost for the 2% highest domestic airfares? (rounded to nearest dollar)

Suppose the current exchange rate is $1.42/€, the interest rate in the United States is 3.50%, the interest rate in the EU is 6%, and the volatility of the $/€ exchange rate is 17%.

(a). Using the Black-Scholes formula, calculate the price of a three-month European call option on the Euro with a strike price of $1.45/€.

The price of a three-month European call option is ____________$ (round to five decimal places).

Use the data and Excel to answer this question. It contains the United States Census Bureau’s estimates for World Population from 1950 to 2014. You will find a column of dates and a column of data on the World Population for these years. Generate the time variable t. Then run a regression with the Population data as a dependent variable and time as the dependent variable. Have Excel report the residuals.

(a) Based on the ANOVA table and t-statistics, does the regression appear significant?

(b) Calculate the Durbin-Watson Test statistic. Is there a serial correlation problem with the data? Explain.

(d) What affect might your answer in part (b) have on your conclusions in part (a)?

Can you please give detailed steps to do on excel?

The Bureau of the Census in the United States attempted to count every U.S. resident. Suppose that the counts in the table are obtained for four counties in one region. (Give all answers to four decimal places.)

C. If one Hispanic person is selected at random from this region, what is the estimated probability that the selected individual is from Ventura?

(e) If one person is selected at random from this region, what is the estimated probability that the person is either Asian or from San Luis Obispo County?


(f) If one person is selected at random from this region, what is the estimated probability that the person is Asian or from San Luis Obispo County but not both?


(g) If two people are selected at random from this region, what is the estimated probability that both are Caucasians?


(h) If two people are selected at random from this region, what is the estimated probability that neither is Caucasian?


(i) If two people are selected at random from this region, what is the estimated probability that exactly one is a Caucasian?


(j) If two people are selected at random from this region, what is the estimated probability that both are residents of the same county?


(k) If two people are selected at random from this region, what is the estimated probability that both are from different racial/ethnic groups?

1. Which of the following represents an important difference between the United States and a socialist economy?

1. In the U.S., most forms of capital are available to private ownership; in a socialist system, they are generally not.
2. In a socialist system, the government conducts extensive research activities; in the U.S., it does not.
3. The U.S. is an example of pure capitalism; a socialist system is an example of mixed capitalism.
4. In a socialist system, the government decides how much of each kind of good is to be produced; in the U.S., this is left entirely to business firms.
5. The socialist system relies more heavily on markets to answer the basic economic questions.

2. In mixed capitalism, a market demand curve

1. Slopes upward from left to right.
2. Is unaffected by changes in consumers’ incomes and tastes.
3. Shows the amount buyers would like to purchase at various prices.
4. Measures the rate of growth of per-capita output.
5. Shifts as the price falls.

3. A decrease in demand

1. Causes the equilibrium price to rise.
2. Results from a decrease in supply.
3. Increases the quantity sold in the market.
4. Reflects an increasing consumer preference for the item.
5. Means that the demand curve has shifted to the left

Research in the gaming industry showed that 8% of all slot machines in the United States stop working each year. Short’s Game Arcade has 70 slot machines and only 5 failed last year. Use the five-step hypothesis-testing procedure at the 0.05 significance level to test whether this data contradicts the research report.

(a) State the null hypothesis and the alternate hypothesis. (Round your answers to 2 decimal places.)
H0: π =
H1: π ≠

(b) State the decision rule for 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
H0 is rejected if z is not between _______ and _______

(c) Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

(d) Determine the p-value. (Round your answer to 4 decimal places.)

Examine a famous leader here in the United States applying concepts and theories explored in a Leadership course. Follow this outline: Open with an opening paragraph describing the leader and summarizing the leadership theory that you will be addressing. (keep the background information very brief) Name three specific leadership behaviors and three specific leadership traits of this leader. Name the leadership skill and trait that you think best explains the success of this leader, and explain why. Apply this leader’s approach or style to one of the leadership theories include in this class. Explain why this leadership style or approach has been successful for this leader and make logical arguments supporting your case. Write a summarizing paragraph.

Background information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.

Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce?

What would be the total number of jeans and cell phones produced by the two countries combined? (Show your work.)

Part B: Calculate the opportunity cost of producing jeans for each country. (Show your work.)

Part C: Calculate the opportunity cost of producing cell phones for each country. (Show your work.)

Part D: Determine how many jeans should be produced by each nation. (Show your work).

Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your explanation.

Part F: Finally, how many total jeans and cell phones will be produced by the two nations combined after specialization?