1. The data in BUSI1013 Credit Card Balance.xlsx is collected for building a regression model to predict credit card balance of retail banking customers in a Canadian bank. Use this data to perform a simple regression analysis between Account balance and Income (in thousands). (12 points)
   
2. Develop a scatter diagram using Account Balance as the dependent variable y and Income as the independent variable x.
3. Develop the estimated regression equation.
4. Use the estimated regression equation to predict the Account Balance of a customer with Income of $58 thousands.
5. Use the critical-value approach to perform an F test for the significance of the linear relationship between account balance and Income at the 0.05 level of significance.
6. What percentage of the variability of Account Balance can be explained by its linear relationship with Income?
7. Use the p-value approach to perform a t test for the significance of the linear relationship between Account Balance and Income at the 0.05 level of significance.

Suneview Ltd., a listed public company with actively traded securities, issued debentures with a total term of fifteen years and a face value of $1,000 to the public exactly five years ago for $1,000 each. The debentures were issued at an annual coupon interest rate of 12% p.a. with payments annually in arrears. Interest rates for debentures of a similar risk to those of Suneview Ltd. are currently (five years after originally being issued) being traded at a premium of 3% above the government bond rate. A new series of government bonds (Series XXIV) were issued today for a ten-year term at an annual coupon interest rate of 5% p.a. (with payments annually in arrears), a face value of $1,000 and a yield to bondholders of 7% p.a. Required:

1. Assume that a further three years has elapsed since the calculations undertaken in part a) of this question (a total of eight years after the original debenture issue) and the premium on Suneview Ltd. debentures has increased to 5% above the government bond rate. No further government bonds have been issued since Series XXIV bonds which closed trading today at a yield of 9% p.a.

1. How much would you now (a total of eight years after the original debenture issue) pay for Suneview Ltd. debentures?
2. Briefly discuss the possible ‘real-world’ factors that may have caused the differences in the premium on Suneview Ltd. debentures as compared to the government bond rate (from 3% to 5%).

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

X Company is a service company and prepares monthly financial statements. In April, it billed customers $400,000 for services it provided; in May, it billed customers $369,000 for services it provided.

In May, the company received $282,000 from its April customers and $254,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

- Income Statement, $536,000; Statement of Cash Flows, $769,000
- both statements, $254,000
- Income Statement, $369,000; Statement of Cash Flows, $536,000
- Income Statement, $769,000; Statement of Cash Flows, $536,000
- both statements, $369,000
- Income Statement, $536,000; Statement of Cash Flows, $369,000

X Company is a service company and prepares monthly financial statements. In April, it billed customers $418,000 for services it provided; in May, it billed customers $353,000 for services it provided.

In May, the company received $282,000 from its April customers and $241,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

both statements, $353,000
Income Statement, $353,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $771,000
both statements, $241,000
Income Statement, $771,000; Statement of Cash Flows, $523,000
Income Statement, $523,000; Statement of Cash Flows, $353,000

Watson Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2019.

1. Watson holds bonds issued by Fowler Corp. The bonds have an amortized cost of $600,000, and their fair value at December 31, 2019, is $700,000. Watson intends to hold the bonds until they mature on December 31, 2022.

2. Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to sell these securities during the first quarter of 2020, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $500,000 and a fair value of $620,000 at December 31, 2019.

3. Watson has a significant ownership stake in one of the companies that supplies Watson with various components Watson uses in its products. Watson owns 5% of the common stock of the supplier, does not have any representation on the supplier’s board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier’s operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,400,000, and the fair value of the investment at December 31, 2019, is $1,800,000. Watson does not intend to sell the investment in the foreseeable future. The supplier reported net income of $200,000 for 2019 and paid no dividends.

4. Watson owns some common stock of Stein Corp. The cost basis of the investment in Stein is $300,000, and the fair value at December 31, 2019, is $250,000. Watson believes the decline in the value of its investment in Stein is other than temporary, but Watson does not intend to sell its investment in Stein in the foreseeable future.

5. Watson purchased 25% of the stock of Love Co. for $500,000. Watson has significant influence over the operating activities of Love Co. During 2019, Love Co. reported net income of $200,000 and paid a dividend of $50,000.

Required: Determine whether each of the investments described should be classified as fair value securities, held-to-maturity securities, or equity method securities. Determine the reason of your classification.

1. Calculate the following white cell count if the dilution of 1/100. Show your calculations. (3pts)

Side #1                                                               Side #2

Square 1 = 30 white cells             Square 1 = 27 white cells

Square 2 = 28 white cells             Square 2 = 27 white cells

Square 3 = 25 white cells             Square 3 = 24 white cells

Square 4 = 27 white cells             Square 4 = 24 white cells

Imagine that there are only two countries in the world: America and China. Each country produces and consumes two goods – a tradable good (T) and a non-tradable good (NT). The production of these goods involves the use of labour, but no other resources are used in the production process. This is of course a ridiculous assumption, but it is one we will make for the purposes of this assignment. There are perfectly competitive markets for the non-tradable good (NT) in each country, but no trade in this good between the countries. There is a perfectly competitive global market in the traded good (T). Labour is homogeneous within America. An hour of labour produces 10 units of the traded good (T) or 5 units of the non-traded good (NT) in America. Labour costs are 10 dollars (USD) an hour in America. Labour is also homogenous within China. An hour of labour produces 5 units of the traded good (T) or 5 units of the non-traded good (NT) in China. Labour costs are 10 yuan (CNY) an hour in China.

Suppose that over time the productivity per hour of labour in China in the tradable good industry increases to 10 units of T, while the other three productivity figures do not change. What will happen to the real exchange rate? (1 mark)

Date Company 1 Company 2 Company 3 Jan-19 107 111 102 Feb-19 105 124 112 Mar-19 113 102 121 Apr-19 121 102 116 May-19 120 120 125 Jun-19 123 107 125 Jul-19 120 122 120 Aug-19 112 100 109 Sep-19 106 108 121 Oct-19 100 113 122 Nov-19 124 122 100 Dec-19 101 110 102 Jan-20 95 75 74 Feb-20 90 71 70 Mar-20 101 51 73 Apr-20 101 64 73 1)

1.Perform a regression analysis and determine what is the expected ouput for Company 1 in May-20 2)?

Perform an ANOVA to determine if the means are significantly different from each other or not. Set up Hypothesis and state whether you accept or reject it.