The technology underlying hip replacements has changed as these operations have become more popular (over 250,000 in the United States in 2008). Starting in 2003, highly durable ceramic hips were marketed. Unfortunately, for too many patients the increased durability has been counterbalanced by an increased incidence of squeaking. An article reported that in one study of 146 individuals who received ceramic hips between 2003 and 2005, 11 of the hips developed squeaking.

(a) Calculate a lower confidence bound at the 95% confidence level for the true proportion of such hips that develop squeaking. (Round your answer to three decimal places.)

The technology underlying hip replacements has changed as these operations have become more popular (over 250,000 in the United States in 2008). Starting in 2003, highly durable ceramic hips were marketed. Unfortunately, for too many patients the increased durability has been counterbalanced by an increased incidence of squeaking. An article reported that in one study of 146 individuals who received ceramic hips between 2003 and 2005, 13 of the hips developed squeaking.

(a) Calculate a lower confidence bound at the 95% confidence level for the true proportion of such hips that develop squeaking. (Round your answer to three decimal places.)

Fill in the blank options questions 16:

0.66:1

cost of goods available for sale

estimated cost of goods sold

FIFO

first-in, first-out

gross margin method

higher      

historical

last-in, first-out

less

LIFO

Lower

Merchandise Inventory

net sales

replacement

retail inventory method

Fill in the blank options questions 17:

$840

$957

$990

$1017

$1525.50

$3360

$3393

$3510

$32250

$32500

$54000

$55880

Fill in the blank options questions 18:

Overstated

understated

Fill in the blank options questions 19(1-3 Ending Inventory/Cost of Goods Sold):

$840

$957

$990

$1017

$1525.50

$3360

$3393

$3510

$32250

$32500

$54000

$55880

Fill in the blank options questions 20:

0.66:1

cost of goods available for sale

estimated cost of goods sold

FIFO

first-in, first-out

gross margin method

higher      

historical

last-in, first-out

less

LIFO

Lower

Merchandise Inventory

net sales

replacement

retail inventory method

True or false?

- The investment demand function shows the relationship between investment spending and real interest rate

- The IS curve consists of every equilibrium spending at each real interest rate

- The IS curve represents the combination of GDP and interest rate for which injections and leakages are equal.

- If an economy is currently at a point to the left of the IS curve, this means that the aggregate spending is more than the actual output. Therefore, there will be a pressure to lower the actual output back towards equilibrium spending.

- The intersect of the IS and LM curves means that the economy is currently experiencing money market clearing and also spending equilibrium.

Operating Budget, Comprehensive Analysis

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow:

The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing:

Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales.

The data on materials used are as follows:

Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year.

The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is $14.25.

Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.)

Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.)

The unit selling price of the subassembly is $205.

All sales and purchases are for cash. The cash balance on January 1 equals $400,000. The firm requires a minimum ending balance of $50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January.

Required:

prepare the following: Selling and Administrative Expenses Budget, Ending Finished Goods Inventory Budget, Cost of Goods Sold Budget, Budgeted Income Statement, Cash Budget

The time married men with children spend on child care averages 6.0 hours per week. You belong to a professional group on family practices that would like to do its own study to determine if the time married men in your area spend on child care per week differs from the reported mean of 6.0 hours per week. A sample of 40 married couples will be used with the data collected showing the hours per week the husband spends on child care. The sample data are contained in the table below.

a. What are the hypotheses if your group would like to determine if the population mean number of hours married men are spending in child care differs from the mean reported in your area?

b. What is the sample mean (to 1 decimal)?

Calculate the value of the test statistic (to 2 decimals).

What is the p-value?

- Select your answer -lower than .01between .01 and .025between .025 and .05between .05 and .10between .10 and .20greater than .20Item 5

c. Select your own level of significance. What is your conclusion?

QUESTION 7 Consider a 15 percent increase in the price of a box of 50 of mailing envelopes and a 15 percent increase in the price of designer leather goods. In response to the price changes, which of the following is most likely to be true?

The percentage change in the quantity demanded for designer leather goods will be larger than the percentage change in the quantity demanded for a box of 50 of mailing envelopes.

The percentage change in the quantity demanded of designer leather goods will be approximately equal to the percentage change in the quantity demanded of a box of 50 mailing envelopes.

The percentage change in the quantity demanded for a box of 50 of mailing envelopes will be larger than the percentage change in the quantity demanded for designer leather goods.

The total revenue from designer leather goods will not change.

3.

Please use the economics knowledge you have learned so far to analyze the case below. You can propose your own questions and then answer them. Remember, there is no absolutely correct answer to this exercise. Its purpose is to provide you an opportunity to demonstrate your ability to think like an economist by applying economic principles to interpret the logic of a real-world phenomenon.

Economic Growth and the Business Cycle at Corning, Inc.

In 1851, Amory Houghton founded the company that became Corning, Inc. By 2015, Corning had more than 34,000 employees and sales of nearly $10 billion. Corning’s experience has mirrored two key macroeconomic facts: In the long run, the U.S. economy has experienced economic growth, and in

the short run, the economy has experienced a series of business cycles. During the 2001 recession, Corning suffered a $5 billion loss as the market for fiber-optic cable collapsed. Similarly, the recession of 2007–2009 caused a sharp decline in durable goods, which caused Corning’s sales of ceramics for automobile emissions systems and display panels for computers and televisions to decline. Despite these setbacks, Corning continued to make a profit during the recession due to sales of new products, such as Gorilla glass. A similar product, Willow glass, can be wound and shipped in rolls, which might make it possible for Apple and other firms to produce foldable electronic devices.