The quarterly sales data (number of book sold) for Christian book over the past three years in California follow: (You can use Excel to compute the equation)

1. Construct a line graph showing the pattern of Christian book sales. Please make sure ‘time/quarter’ is represented by the horizontal line and ‘quarterly sale’ is represented by the vertical line. What type of pattern exists in the data?

2. Use the following dummy variables to develop an estimated regression equation to account for any seasonal effects in the data: Quarter1=1 if the sales data point is in Quarter 1, otherwise Quarter 1=0; Quarter 2=1 if the sales data point is in Quarter 2, otherwise, Quarter 2=0; Quarter 3=1 if the sales data point is in Quarter 3, otherwise Quarter 3=0. 3.

3. Compute the quarterly forecasts for next year.

4. 4. Let t=1 to refer to the observation in quarter 1 of year 1; t=2 to refer to the observation in quarter 2 of year 1;,,,, and t=12 to refer to the observation in quarter 4 of year 3. Using the dummy variables defined in part (b) and t, develop an estimated regression equation to account for seasonable effects and any linear trend in the time series. Based upon the seasonal effects in the data and linear trend, compute the quarterly forecasts for next year.

21Consumer spending and national income-how are they linked?

22What is a country’s productive capacity?

23Inflation exists when spending exceeds productive capacity-explain

24What tools does the government have to affect total spending in the economy?

What might be the short run impact of a completely open immigration policy that allowed labor to move freely across the U.S. border?

- An increase in real GDP growth caused by an increase in the labor force

- A decrease in real GDP growth caused by an increase in the labor force

- An increase in real GDP growth caused by an increase in demand for public goods

- A decrease in real GDP growth caused by an increase in demand for public goods

Most economists favor less interference in the marketplace by government because

-          Economist ignore the negative impact of government because they focus only on GDP

-          The government is too corrupt

-          They believe that cooperation’s and individuals are in a better position to know which investments are most likely to pay off

-          Economists have a lot of money invested in the stock market, and they don’t want the government to spoil their investments

An increase in living standards is measured by which of the following?

-          The increase in the number of workers employed

-          The increase in private consumption spending

-          The increase in real GDP

-          The increase in real GDP per capita

The economy is growing if and only if

-          GDP is rising

-          The average price level is rising

-          Real GDP is rising

-          GDP per capita is rising

The real growth rate is calculated by

-          The BEA adjusting the GDP for inflation

-          The BEA using nominal rates to reflect the GDP

-          The BLS adjusting the GDP per capita for inflation

-          The BLS calculating price level changes and population changes

GDP growth on a year-to-year basis is called

-          Nominal growth

-          Real growth

-          Short-term growth

-          Long-term growth

Productivity growth is usually an indicator of

-          The possibility of inflation

-          Future increases in the unemployment rate

-          The decline in the health and prosperity of the economy

-          The increase in the health and prosperity of the economy

Investment in physical capital means

-          Hiring more employees

-          Purchasing equipment and buildings

-          Purchasing supplies

-          Taking out loans

What would NOT be one of the reasons for a much lower real GDP in 1905, compared with 2007?

-          Productive capability in 1905 was lower than in 2007

-          Fewer goods and services were available in 1905 than in 2007

-          On average, there were fewer poor people in 1905 than in 2007

-          Automobiles were rare in 1905, but common in 2007

Real GDP is usually measured in

-          2009 dollars

-          Units of output

-          1982-1984 dollars

-          Tons (for goods) and hours (for services)

By 2016, economists had drawn what conclusion about the very low productivity growth that lasted from 2005 to 2015?

-          It was merely a temporary pause in otherwise strong productivity growth

-          Productivity slowed because of government overregulation

-          Productivity slowed because of a decrease in investment

-          Productivity averaged only 1.2 percent during that time

Standards of living are measured by

-          Nominal GDP per capita

-          Real GDP per capita

-          Inflation rates

-          Unemployment rates

Serial correlation, also known as autocorrelation, describes the extent to which the result in one period of a time series is related to the result in the next period. A time series with high serial correlation is said to be very predictable from one period to the next. If the serial correlation is low (or near zero), the time series is considered to be much less predictable. For more information about serial correlation, see the book Ibbotson SBBI published by Morningstar.

A company that produces and markets video games wants to estimate the predictability of per capita consumer spending on video games in a particular country. For the most recent 7 years, the amount of annual spending per person per year is shown here.

Original Time Series

(a) To construct a serial correlation, we use data pairs

(x, y)

where x = original data and y = original data shifted ahead by one time period. Construct the data set

(x, y)

for serial correlation by filling in the following table.

(b) For the

(x, y)

data set of part (a), compute the equation of the sample least-squares line

ŷ = a + bx.

(Use 4 decimal places.)

If the per capita spending was

x = $43

one year, what do you predict for the spending the next year? (Use 2 decimal places.)

$  per capita

(c) Compute the sample correlation coefficient r and the coefficient of determination

r².

(Use 4 decimal places.)

Test

ρ > 0

at the 1% level of significance. (Use 2 decimal places.)

Serial correlation, also known as autocorrelation, describes the extent to which the result in one period of a time series is related to the result in the next period. A time series with high serial correlation is said to be very predictable from one period to the next. If the serial correlation is low (or near zero), the time series is considered to be much less predictable. For more information about serial correlation, see the book Ibbotson SBBI published by Morningstar.

A company that produces and markets video games wants to estimate the predictability of per capita consumer spending on video games in a particular country. For the most recent 7 years, the amount of annual spending per person per year is shown here.

Original Time Series

(a) To construct a serial correlation, we use data pairs

(x, y)

where x = original data and y = original data shifted ahead by one time period. Construct the data set

(x, y)

for serial correlation by filling in the following table.

(b) For the

(x, y)

data set of part (a), compute the equation of the sample least-squares line

ŷ = a + bx.

(Use 4 decimal places.)

If the per capita spending was

x = $42

one year, what do you predict for the spending the next year? (Use 2 decimal places.)

$  per capita

(c) Compute the sample correlation coefficient r and the coefficient of determination

r².

(Use 4 decimal places.)

Test

ρ > 0

at the 1% level of significance. (Use 2 decimal places.)

A place-kicker must kick a football from a point 36.0 m (about 40 yards) from the goal. Half the crowd hopes the ball will clear the crossbar, which is 3.05 m high. When kicked, the ball leaves the ground with a speed of 20.2 m/s at an angle of 51.0° to the horizontal.

(a) By how much does the ball clear or fall short (vertically) of clearing the crossbar? (Enter a negative answer if it falls short.)

Find the two initial velocity components, and from them and the equations of motion, determine the time and height when the football has traveled the required distance measured along the ground. m

(b) Does the ball approach the crossbar (and cross above or beneath it) while still rising or while falling?

rising

or falling    

Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) $ 153.00 Direct labor (8 hrs. @ $14 per hr.) 112.00 Factory overhead—variable (8 hrs. @ $6 per hr.) 48.00 Factory overhead—fixed (8 hrs. @ $12 per hr.) 96.00 Total standard cost $ 409.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 52,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% Production in units 36,400 41,600 46,800 Standard direct labor hours 291,200 332,800 374,400 Budgeted overhead Fixed factory overhead $ 3,993,600 $ 3,993,600 $ 3,993,600 Variable factory overhead $ 1,747,200 $ 1,996,800 $ 2,246,400 During the current quarter, the company operated at 90% of capacity and produced 46,800 units of product; actual direct labor totaled 370,400 hours. Units produced were assigned the following standard costs. Direct materials (1,404,000 Ibs. @ $5.10 per Ib.) $ 7,160,400 Direct labor (374,400 hrs. @ $14 per hr.) 5,241,600 Factory overhead (374,400 hrs. @ $18 per hr.) 6,739,200 Total standard cost $ 19,141,200 Actual costs incurred during the current quarter follow. Direct materials (1,385,000 Ibs. @ $6.70 per lb.) $ 9,279,500 Direct labor (370,400 hrs. @ $11.50 per hr.) 4,259,600 Fixed factory overhead costs 3,196,600 Variable factory overhead costs 3,016,800 Total actual costs $ 19,752,500 Problem 23-4A Computation of materials, labor, and overhead variances LO P2, P3 Required: 1. Compute the direct materials cost variance, including its price and quantity variances.

(a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.)

Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $4.90 per Ib.) $ 147.00 Direct labor (4 hrs. @ $16 per hr.) 64.00 Factory overhead—variable (4 hrs. @ $6 per hr.) 24.00 Factory overhead—fixed (4 hrs. @ $10 per hr.) 40.00 Total standard cost $ 275.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 53,000 units per quarter. The following flexible budget information is available. Operating Levels 70% 80% 90% Production in units 37,100 42,400 47,700 Standard direct labor hours 148,400 169,600 190,800 Budgeted overhead Fixed factory overhead $ 1,696,000 $ 1,696,000 $ 1,696,000 Variable factory overhead $ 890,400 $ 1,017,600 $ 1,144,800 During the current quarter, the company operated at 90% of capacity and produced 47,700 units of product; actual direct labor totaled 185,800 hours. Units produced were assigned the following standard costs. Direct materials (1,431,000 Ibs. @ $4.90 per Ib.) $ 7,011,900 Direct labor (190,800 hrs. @ $16 per hr.) 3,052,800 Factory overhead (190,800 hrs. @ $16 per hr.) 3,052,800 Total standard cost $ 13,117,500 Actual costs incurred during the current quarter follow. Direct materials (1,412,000 Ibs. @ $7.70 per lb.) $ 10,872,400 Direct labor (185,800 hrs. @ $11.00 per hr.) 2,043,800 Fixed factory overhead costs 1,318,500 Variable factory overhead costs 1,282,700 Total actual costs $ 15,517,400

(a) Compute the variable overhead spending and efficiency variances. (Round "cost per unit" and "rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate

Suppose you take out a 30-year mortgage for $169,221 at an annual interest rate of 3.8%. After 19 years, you refinance to an annual rate of 1.1%. How much interest did you pay on this loan?

Problem: A popular brain teaser is to consider the motion of a quarter when you roll it around another one; how many times will Washington’s head rotate while the quarter rolls once around the other fixed quarter. This problem is a generalization of this puzzle. Assume a system of units such that the radius of the quarter is equal to one unit. Your task is to determine a parameterized position vector describing the location of the white dot on the rim of the rolling quarter. As the quarter moves, this dot will sweep out a curve in space. Derive the parametric equations for the curve and plot it. Include a copy or sketch of your plot. Hint: The center of the rolling quarter travels along a circle of radius 2