Read the passage provided, and then consider the following scenario. A physician is trying to decide whether to prescribe medication for cholesterol reduction in a 45-year-old female patient. The null hypothesis is that the patient’s cholesterol is less than the threshold of treatable hypercholesterolemia. However, a sample of readings over a 2-year time period shows considerable variation, usually below but sometimes above the threshold. Define Type I and Type II error. List the costs of each type of error (in general terms). Who bears the cost of each? How might the patient’s point of view differ from the HMO’s or doctor’s? In what sense is this a business problem? A societal problem? An individual problem?

The company issued the following debt: senior unsecured debt, secured bonds (backed by a mortgage on a firm’s property) and shareholder loans. In case of default the group of investors that will be served as first from the proceeds from selling the property is:

A. Holders of senior unsecured debt

B. Holders of secured debt

C. Shareholders who provided loan to the company

a. A US corporation has an account payable to an unrelated Irish company in 90 days. The amount of the payable is €500,000. The spot exchange rate for the euro is EUR/USD 1.2131. The company’s combined federal and state income tax rate is 27.3%; the Irish corporate income tax rate is 12.5%. The company expects the exchange rate for the euro to decline to 1.2030 prior to the account’s due date. When should the company make the payment? Explain.

b. If the payee on the account is an affiliated corporation, when should the company make the payment? Explain.

c. What is the payment described in part b called? How can the company justify the amount of the payment if it is challenged by the US Internal Revenue Service or Ireland’s Revenue authority?

In 2018, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs. What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10. a. Their AGI is $18,600, consisting of $6,800 of capital gains and $11,800 of wages b. Their AGI is $18,600, consisting of $11,800 of lottery winnings (unearned income) and $6,800 of wages. . Their AGI is $27,700, consisting of $21,800 of wages and $5,900 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Their AGI is $27,700, consisting of $5,900 of wages and $21,800 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.)

Following are two income statements for Alexis Co. for the year ended December 31. The left column is prepared before any adjusting entries are recorded, and the right column includes the effects of adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts. ALEXIS CO. Income Statements For Year Ended December 31 Unadjusted Adjusted   Revenues      Fees earned $ 24,000 $ 30,000      Commissions earned 42,500 42,500      Total revenues 66,500 72,500   Expenses      Depreciation expense—Computers 0 1,500      Depreciation expense—Office furniture 0 1,750      Salaries expense 12,500 14,950      Insurance expense 0 1,300      Rent expense 4,500 4,500      Office supplies expense 0 480      Advertising expense 3,000 3,000      Utilities expense 1,250 1,320      Total expenses 21,250 28,800   Net income $ 45,250 $ 43,700    Analyze the statements and prepare the eight adjusting entries that likely were recorded. (Note: 30% of the $6,000 adjustment for Fees Earned has been earned but not billed, and the other 70% has been earned by performing services that were paid for in advance.)

Because of the high cost of hiring and training new employees, employers would like to ensure that they retain highly qualified workers. To help develop a hiring program, the human resources manager of a large company wanted to compare how long business and non-business university graduates worked for the company before quitting to accept a position elsewhere. The manager selected a random sample of 25 business and 20 nonbusiness graduates who had been hired 5 years ago. The number of months each employee 3 had worked for the company was recorded. (Those who had not quit were recorded as having worked for 60 months.) Is the average duration of employment the same for business and non-business graduates before quitting to accept a position elsewhere?

a) Are the samples independent? What is the appropriate parametric test here? Draw the histograms of duration of employment for business and non-business graduates and comment on the justification of using/not using a parametric test here to address the question of interest.

b) Use an appropriate non-parametric test to compare the average duration of employment of business and non-business graduates at 5% level of significance. Make sure you follow all the steps for hypothesis testing indicated in the Instructions section and show your computations.

Suppose I want to estimate the effect of exercising on GPA. I collect a random sample of data. For each individual, I collected the current GPA (variable GPA measured 0-4) and an average number of hours spent exercising during a week (variable excer in hours).

a) Write down the population model.(2pts)

b) Suppose the sample covariance between GPA and exercising is 100 and suppose that the variance of the variable excer is 200. Also, it was calculated that the average GPA in the sample is 3.0 while the average number of hours individuals spent exercising per week is 2 hours. Write down the estimated regression. (5pts)

c) Given ??(? 0 ̂ ) = 0.2 ??? ??(? 1 ̂ ) = 0.1, construct 95% level confidence intervals for both the intercept and the slope.(5pts) 6

d) Interpret the coefficients. (5pts)

e) What is the predicted value of the GPA for an individual who spends 3 hours exercising per week? What is the residual for this individual given that you know that the individual’s GPA is 2.5? Is the estimated regression under- or over-predicating GPA for this individual? (5pts) 7

f) Is there evidence that the true effect of exercising on GPA is 0.55?(2pts)

Define and defend your own position on the University of Texas/Texas A& M admissions policy of granting admission to the Top 7-8% of students from Texas High Schools.

"America was founded on the principle of property rights, that is, the right of the owner to do whatever he wanted with his property, whether that property was a cow, a slave, or a corporation employing millions. But what about the rights of the slave, the employee or, for that matter, and this is not covered in this course, the rights of the cow? But an economy ruled only by the rights of private property not only had no room for the rights of employees, but, when the free market or laissez faire economy (don’t worry, you will learn the meaning of these words) collapses, what should be the role of the government to bring the economy back to life, or to prevent the next collapse? That brings in the idea of government regulation of the economy, and the debate over the rightness or wrongness, the wisdom or foolishness of government intervention in the economy that has dominated American politics since the days of Hamilton and Jefferson until today’s political struggles between conservatives and progressives. Prepare to have your fundamental ideas about the economy shaken, strengthened, or even changed by the debates you will be following in this last part of the course."

What is the appropriate role of government in a modern capitalist economy?