The expected returns, standard deviations and correlation between Xerox (XRX) and Yahoo! (YHOO) are shown below:

Draw the combination line for portfolios of these two stocks.

Calculate the correlation of the two stocks below based on the scenario forecasts given:

Provide your answer in decimals, rounded to two decimals.

The accompanying table shows a portion of data consisting of the selling price, the age, and the mileage for 20 used sedans.

a. Determine the sample regression equation that enables us to predict the price of a sedan on the basis of its age and mileage. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) [If you are using R to obtain the output, then first enter the following command at the prompt: options(scipen=10). This will ensure that the output is not in scientific notation.]

b. Interpret the slope coefficient of Age.

• The slope coefficient of Age is −528.13, which suggests that for every additional year of age, the predicted price of car decreases by $528.13.

• The slope coefficient of Age is −0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09.

• The slope coefficient of Age is −528.13, which suggests that for every additional year of age, the predicted price of car decreases by $528.13, holding number of miles constant.

• The slope coefficient of Age is −0.09, which suggests that for every additional year of age, the predicted price of car decreases by $0.09, holding number of miles constant.

c. Predict the selling price of a seven-year-old sedan with 66,000 miles. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)

Which hypothesis test you believe you should use and why.

• One Sample Proportion Z-test

• Two Sample Proportion Z-test

• One Mean t-test

• Pooled t-test

• Non-Pooled t-test

• Paired t-test

• ANOVA F-test

• Bootstrapping is also an option

Questions:

4. The NOAA National Climatic Data Center of the United States provides data on the average annual temperature for every state in the United States. The average annual temperatures are based on data collected by weather stations throughout each state during the years 1971 to 2000. Is there strong evidence that the mean average annual temperature in the United States is greater than 50 degrees Fahrenheit? Explain. Use a significance level of 5%.

5. As gas prices continue to rise, more customers are beginning to take into account miles per gallon (a measure of the average distance traveled per unit of energy consumed) when determining which type of car to purchase. Do cars made in Japan typically get more miles per gallon than cars made in the United States? A random sample of 79 cars made in Japan had a mean of 30.48 and a standard deviation of 6.11 miles per gallon. A random sample of 249 cars made in the United States produced a mean of 20.14 and a standard deviation of 6.41 miles per gallon. Use a significance level of 0.10.

6. The U.S. Census Bureau reports that 26% of all U.S. businesses are owned by women. A Colorado consulting firm surveys a random sample of 410 businesses in the Denver area and finds that 115 of them have women owners. Should the firm conclude that its area is unusual? Test an appropriate hypothesis and state your conclusion. Use =0.05.

Problem 2: Maximizing Net Benefits

There are important trade-offs involved in granting "Wild and Scenic River Status" to portions of a river. How much of this public good, a free-flowing river, should be protected from further development? As an analyst in the Office of Policy Analysis of the U.S. Department of the Interior, you are called upon to make a recommendation. Each year, 1,000 people benefit from the river's various services. A contingent valuation survey carried out by your office has estimated that each individual beneficiary has the same demand function for river preservation,

Q = 75 - (0.25)(P)

where P is the price-per-mile which persons are willing to pay (per year) for Q miles of river preserved. You find that the marginal (opportunity) cost of preservation is $60,000 per mile per year. ($60,000 for every one mile)

[Hint: You need to derive the market (aggregate) demand curve for a public good.]

a)How many miles of the river would be preserved in an efficient allocation?

b) What is the magnitude of the total (gross), annual benefits associated with this (efficient allocation) policy?

c)What are the total, annual costs of the policy?

d) What is the magnitude of the total (annual) consumers' surplus?

e)How large are net, annual benefits?

f) If it turns out that the marginal cost of preservation is only $20,000 per mile per year, how many miles of the river would be preserved in an efficient allocation?

g) Now assume substitute sites are available to beneficiaries, so their demands are substantially more elastic: their individual demand functions for river preservation are Q = 75 - (0.75)(P) In this case, with the original marginal costs of preservation of $60,000 per mile per year, how many miles of the river would be preserved in an efficient allocation?

A consumer agency claims that the average fuel mileage of Sedan A exceeds that of Sedan B. To test this claim, a random sample of 17 Sedan A vehicles were tested and the sample mean fuel mileage was found to be 28.25 miles per gallon with a known population standard deviation of 1.30 miles per gallon. A random sample of 14 Sedan B vehicles also were tested and the sample mean fuel mileage was found to be 27.25 miles per gallon with a known population standard deviation of 1.35 miles per gallon. Use a 1% significance level and assume the fuel mileage values for each of the two populations of sedans are normally distributed.

a. Select the correct symbol to replace "?" in the null hypothesis H₀: μ_A − μ_B? 0

b. Select the correct symbol to replace "?" in the alternative hypothesis H_a: μ_A − μ_B? 0

c. Compute the value of the test statistic used to test the agency's claim.

Do not round any intermediate calculations. Round your answer to two decimal places. Enter a "−" sign directly before a negative answer.

Test statistic =

d. Determine the critical value used to test the agency's claim.

Enter your critical value to three decimal places. Enter a "−" sign directly before a negative answer.

Critical value =

e.  Compute the p-value for this hypothesis test.

Use your rounded test statistic from Part c. Do not round any other intermediate calculations. Round your final answer to four decimal places.

p-value =

f. Based on the above results, choose the appropriate initial conclusion.

g. Based on the claim and your initial conclusion, choose the appropriate final conclusion.

Account Analysis Method Shirrell Blackthorn is the accountant for several pizza restaurants based in a tri-city area. The president of the chain wanted some help with budgeting and cost control, so Shirrell decided to analyze the accounts for the past year. She divided the accounts into four different categories, depending on whether they appeared to be primarily fixed or to vary with one of three different drivers. Food and wage costs appeared to vary with the total sales dollars. Delivery costs varied with the number of miles driven (workers were required to use their own cars and were reimbursed for miles driven). A group of other costs, including purchasing, materials handling, and purchases of kitchen equipment, dishes, and pans, appeared to vary with the number of different product types (e.g., pizza, salad, and lasagna). Shirrell came up with the following monthly averages: Food and wage costs $ 155,000 Delivery costs $ 22,950 Other costs $ 260 Fixed costs $ 265,000 Sales revenue $ 650,000 Delivery mileage in miles 9,000 Number of product types 20 Required: 1. Calculate the average variable rate for the following costs: food and wages, delivery costs, and other costs. If required, round your answers to two decimal places. Use your rounded answers in subsequent computations if necessary. Average Variable Rate Food and wages % Delivery costs $ per mile Other costs $ per product 2. Form an equation for total cost based on the fixed costs and your results from Requirement 1. Enter the sales percent in decimal form, rounded to four decimal places. For example, 62.75% would be entered as 0.6275. Total cost = $ + (sales) + $ (miles) + $ (product) 3. The president is considering expanding the restaurant menu and plans to add one new offering to the menu. According to the cost equation, what is the additional monthly cost for the new menu offering? $

The Toyota Camry is one of the best-selling cars in North America. The cost of a previously owned Camry depends on many factors, including the model year, mileage, and condition. To investigate the relationship between the car’s mileage and the sales price for Camrys, the following data show the mileage and sale price for 19 sales (PriceHub web site, February 24, 2012).

Function Return Value

In this program, you will be using C++ programming constructs, such as functions and loops.

main.cpp

Write a program that allows the user to enter the information for multiple packages to determine the shipping charges for each package. The program will exit when the user enters 0 or negative for the package weight.

Your program will ask the user to enter the weight of a package they want to ship. If the weight they enter is a positive number, your program will then prompt the user to enter the distance the package will be shipped. Your program will then output the shipping charges with a precision of 2 digits past the decimal point, and will prompt the user for the next package.

calculateCharge

Create a function called calculateCharge that contains 2 parameters: a double to represent the weight of the package, and an integer to represent the distance the package will be shipped. This function returns the shipping charge. See types.hpp for the function prototype for this function.

This function calculates the charge based on the package weight as well as the distance. The rates per weight are defined in types.hpp. And that rate is multiplied by how many 500 mile segments the package will be traveling. For instance, if the distance is 1-500 then the rate is multiplied by one. If the distance is 501-1000 then the rate is multiplied by two. 1001-1500, multiplied by three, and so forth.

Input Validation

1. You can assume the user will always input valid data types (floating-point for package weight and integer for distance).

Hints

1. Be sure to include the file types.hpp with the #include files so that the compiler knows where to find the program constants and function prototype.
2. Shipping charges should be displayed with a precision of 2 digits past the decimal point.
3. Don't forget to add comments to explain what the code is doing and where control of the program is executing.
4. Choose variable names and function names that describe the purpose of the variable.

Sample Output

Welcome to Fast Freight Shipping Company

Enter the package weight in lbs (or 0 to exit): 0

Welcome to Fast Freight Shipping Company

Enter the package weight in lbs (or 0 to exit): 33
Enter shipping distance in miles: 3

Shipping cost: $6.40

Enter the package weight in lbs (or 0 to exit): -1

Welcome to Fast Freight Shipping Company

Enter the package weight in lbs (or 0 to exit): 3.4
Enter shipping distance in miles: 501

Shipping cost: $8.40

Enter the package weight in lbs (or 0 to exit): 3.4
Enter shipping distance in miles: 500

Shipping cost: $4.20

Enter the package weight in lbs (or 0 to exit): 1.1
Enter shipping distance in miles: 1100

Shipping cost: $9.30

Enter the package weight in lbs (or 0 to exit): 1.1
Enter shipping distance in miles: 1

Shipping cost: $3.10

Enter the package weight in lbs (or 0 to exit): 0

Here is is the information on the types.hpp file to be used:

//-----------
// Constants
//-----------

// shipping distance per segment

const int SEGMENT_MILES = 500;

// rates per 500 miles shipped

const double RATE1 = 3.10; // pkgs weighing <= 2 lb
const double RATE2 = 4.20; // pkgs > 2 lb but <= 6 lb
const double RATE3 = 5.30; // pkgs > 6 lb but <= 10 lb
const double RATE4 = 6.40; // pkgs > 10 lb

//---------------------
// Function prototypes
//---------------------

// This function receives a package weight in lbs and
// a shipping distance in miles. It uses these to compute
// and return the shipping charge.

double calculateCharge(double weight, int distance);