The Fijian government has been recently holding budget consultations around the country. In June 2019, the government will come up with an expenditure and revenue plan. What kind of goods and services should the government tax if we wish to maximize our revenue collections for the upcoming fiscal year? How will be the tax burden shared between ordinary Fijians and firms? Explain your answer.

25.Determine the strategy a Financial Planner should recommend to a client who is seeking to reduce her average tax rate.

1. Payoff mortgage debt
2. Obtain an investment loan
3. Contribute to a TFSA
4. Contribute to an RRSP

33.Types of personal installment loans include:

1. Debt consolidation loan
2. Car loan
3. Investment loan
4. All of the above
5. a & b

52.Tax deductions include:

1. RRSP contributions
2. Annual union dues
3. Childcare expenses
4. All of the above
5. a & c

HISTORY OF ECONOMIC THOUGHT QUESTION:

1. Recall from your basic studies of economics, when markets are working well, the factors of production (land owners, laborers, and the owners of capital) are paid according to the value they contribute to the production process. Was that true during the time of the utopian socialists? HINT: Were some factors getting paid more than they contributed while others were paid less? How did this contribute to the problems the utopians proposed to change?

1-What is the difference between Discontinued Operations and Extraordinary Items?

2-What is the difference between Deferred Charges and Unearned Revenue?

3-Which of the following is not a stock market ratio?

A. Earnings per share B. Book value C. Working capital investment D. Dividend Yield

The table below represents 2 attempts that students had to complete the same statistics exam in a course.

1) The professor believes that, on average, students will do better on the second attempt than on the first.

a) Choose an appropriate test to determine if students improved on the second attempt compared to their first. Draw appropriate conclusions.

b) Calculate the size/magnitude of this effect.

c) Identify the 95% confidence interval around our measurement and explain what this result tells us about our data.

2) I modify the table so that the column labelled 1st attempt now represents the results from students in Prof A’s statistics class, and the column labelled 2^nd attempt represents the results of a completely different group of students taking Prof B’s class.

a) Choose the appropriate test to demonstrate if there is a significant difference in the results in Professor A’s class compared to Professor B.

b) Is my approach to this problem the same as in Question 1). Why or why not?

3) I keep the table changes mentioned in question 2. The 1st attempt column still represents the results from students in Professor A's statistics class and the 2nd attempt column represents different students from Professor B.'s class. Professor A discovers that 3 students in his class cheated so he eliminates their grades from the group. If I now wanted to compare the performance of class A and class B, should the statistical approach change compared to Question 2? Why or why not? (Note: You do not need to do the calculations; you just need to provide an explanation.)

**********************
I'm going to modify the table a bit. Data now represent the marks obtained by students in the statistics course at the mid-term exam and in the final exam in 2018.

4) I would like to know if there is a relationship or link between the grades that the students obtained in the midterm exam and in the final exam.

a) Make an appropriate graphical representation to illustrate these data.

b) What conclusions can we draw only by looking at this graph? Are there any data points that seem problematic?

5) a) What is the strength of the relationship between these two variables?

b) What part of the variance could be explained by the relationship that exists between these variables?

c) Is this relationship statistically significant?

6) In the 2019 winter semester, a student obtained a grade of 64 in her midterm exam. What grade could we predict that she will get in the final exam?

7) a) If I wanted to test the relationship between the midterm exam performance and the final exam using a chi-square test, how would the above data table need be rearranged/modified?

b) Despite my suggestion in 7a) to use a chi-square test, it would actually be a bad idea to use the chi-square test with this type of problem. Why might that be the case? What problem (s) would it cause? (Think of the rules we discussed for using chi-square.)

The manager of a discount store would like to determine whether there is a relationship between the number of customers who visit the store each day and the dollar value of sales that day. A random sample of n = 20 days was taken and the number of customers in the store and the dollar value of sales were recorded for each day. (Note: n = the sample size = 20). The sample results are shown below.

As a part of the study, the manager would like to estimate the correlation between the two variables, number of customers and $Sales. She would also like to conduct a hypothesis test to determine if the linear relationship between $Sales and the number of customers is positive.   

7. The calculated sample correlation coefficient, r, for the two variables $Sales and number of customers = 0.955. The correct specification for the null and alternative hypothesis to determine if the true population correlation is positive would be:

A. Ho: r = 0 vs. Ha: r ≠ 0

B. Ho: r < 0 vs. Ha: r > 0

C. Ho: ρ = 0 vs. Ha: ρ ≠ 0

D. Ho: ρ < 0 vs. Ha: ρ > 0

E. Ho: ρ > 0 vs. Ha: ρ < 0

8. The critical value for the test statistic for the test of positive correlation between the two variables with n = 20 and α = 0.05 is

a. t = 1.7247

b. t = -1.7247

c. t = 1.7341

d. t = -1.7341

e. t = 2.1009

The calculated value of the test statistic computed from the sample correlation coefficient of r = 0.955 is

a. 5.79                        b. 13.66                       c. 18.9             d. 33.23

The simple linear regression was developed with the number of customers as the independent variable and the $Sales as the dependent variable. The following results were obtained:

Use the information provided to develop a 90% confidence interval estimate for the true value of the slope coefficient, β1

A. 7.6 < β1 < 9.8

B. 7.4 < β1 < 10.1

C. 14121.6 < β1 < 3433.5

D. 8.7 < β1 < 9.34

E. 7.6 < β1 < 8.24

The simple linear regression of the data on $Sales and number of customers produced the following ANOVA output:

Complete as much of the ANOVA table as you need to answer the following two questions (Questions 11 and 12):

What percent of the variation in the dependent variable $ Sales is explained by the regression model?

A. 100%

B. 91.2%

C. 95.5%

D. 90%

The calculated value of the test statistic used to test the following null and alternative hypotheses

Ho: The overall regression model is not significant

Ha: The overall regression model is significant

would be

A. F = 186.22

B. F = 4.4139

C. F = 2.1009

D. Z = 1.645

E. Z = 2.288

Use the following information to answer the next 2 questions (Questions 13 and 14)

A simple linear regression was developed with the number of customers as the independent variable and the $Sales as the dependent variable. The following results were obtained:

For a week having 750 customers the point estimate for the $ value of Sales predicted by the simple linear regression equation would be (that is, predict $Sales for Customers = 750)

A. $750

B. $6525

C. $2332

D. $8948

Compute the 95% confidence interval for the expected (average) sales for many days where the number of customers averages 700 (that is, Xp = 700). In addition to the information provided above, the following is also available to assist you in constructing the confidence interval:

x = 700.    

E(x-x)² = 614602. This is the DEVSQ formula result from Excel.

You will need to use the partially provided output earlier to find the other necessary inputs. Please show your work: The 95% confidence interval for the expected (average) sales for an average of many days where there are 700 customers is:

MY DEAKIN STUDENT ID NUMBER IS 217225221

There are two ice cream shops, A and B, in a touristic town. Each shop needs to individually choose the price it charges for a scoop of ice cream, which can be either $2, $4 or $5. Each firm wants to maximize their total revenue from customers via an appropriate choice of price. It is expected that

− 8,000 scoops of ice cream are purchased by tourists, who are split evenly between the two shops regardless of the prices charged by these shops.

− Locals also purchase scoops of ice cream.

• Scenario 1: If the 7th digit in your Student ID number is odd (that is, it is either 1, 3, 5, 7 or 9), then assume that locals purchase 800 scoops in total. My Student Id is 217225221 and the seventh number is 2 which is even.

• Scenario 2: If the 7th digit in your Student ID number is even (that is, it is either 0, 2, 4, 6, or 8) then assume that locals purchase 5000 scoops in total.

− Being more knowledgeable of market conditions, locals purchase their ice cream from the shop with the lowest price. If both shops charge the same price, then the locals are split evenly between the two shops.

(a) What is the 7th digit in your Deakin Student ID number? Based on this, which of the above two scenarios apply to you? Now, write the normal form game between the two ice cream shops where payoffs in each cell of the table represents the total revenue of each shop. Make sure to write your calculated payoff pairs for each cell of the normal form game.

(b) Explain the underlying logic behind your calculated payoffs in the normal form game of part (a) by showing your full workings of payoffs for a sample case where both shops charge the same price. Do the same also for a sample case where firms charge different prices.

(c) Reproduce the normal form game from part (a) and use it to determine the outcome of this game by applying iterated elimination of strictly dominated strategies. Explain your workings.

Compute and Interpret Z-score

Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements.

As of December 31, there were the approximate shares outstanding:
2005 - 434,264,432
2004 - 440,445,630

As of December 31, the company's stock closed at the following values:
2005 - $63.63
2004 - $55.55

(a) Compute and compare the Altman Z-scores for both years. (Do not round until your final answer; then round your answers to two decimal places.)
2005 z-score = Answer
2004 z-score = Answer

Which of the following explain the trend in the Z-scores from 2004 to 2005? (Select all that apply.)
Answeryesno The market value of Lockheed's equity improved somewhat over the year.
Answeryesno Lockheed decreased its liquidity due to an increase in retained earnings.
Answeryesno Lockheed improved its short-term liquidity by increasing cash.
Answeryesno Lcokheed improved its long-term liquidity by decreasing total liabilities.

(b) Which of the following statements best describes the company's Altman Z-scores?

The Altman Z-scores have increased from 2004 to 2005 which indicates the company's bankruptcy risk has decreased. YES? OR NO

Both the Altman Z-scores are above 3.00 which indicate the company has a very low probability of bankruptcy. YES? OR NO

Both the Altman Z-scores are below 1.80 which indicate the company has a very high probability of bankruptcy. YES? OR NO

The Altman Z-scores have decreased from 2004 to 2005 which indicates the company's bankruptcy risk has increased. YES? OR NO

Use the following information to complete the subtotals for current assets, long-term investments, property plant and equipment, other assets, current liabilities and long-term liabilities.

The following represents a December 31, 2016, post-closing trial balance for Excell Company.

Additional Information:

The cash account includes $22,000 set aside in a legally restricted fund to pay bonds payable that mature in 2024 and $15,000 cash surrender value of a life insurance policy on the company's CEO.

2. The accounts receivable balance consists of the following:
      a. Amounts owed by customers with debit balances                             $ 217,100
      b. Allowance for uncollectible accounts - trade customers                         (9,400)
      d. Non-trade note receivable due in three equal payments on

June 25 over the next 3 years                             64,500
      e. Interest receivable on note due in nine months                                      7,800
                                    Total                                                                               $ 280,000

3. The prepaid expenses include $18,000 that will be consumed during 2017 and $14,000 that will be consumed during 2018.

4. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2017. Of the remaining investments balance, management intends to hold for at least the next three years. All investments in the portfolio have already been marked-to-market and are reported at Fair Value.

5. The land account includes land which cost $75,000 that the company purchased for speculative purposes and is currently held for sale. The remaining $100,000 is the cost of land on which the company's office building resides. The equipment account includes idle machinery with a book value of $45,000.

6. The unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for five years and will be earned evenly over each of the years beginning January 1, 2017.

7. The notes payable account consists of the following:

a $50,000 note due in six months

a $100,000 bond due in eight year

a $150,000 note due in six annual installments of $25,000 each, with the next installment due Nov. 1, 2017.
*Interest on all notes has been properly accrued and is included in accrued expenses.