1. Insomnia has become an epidemic in the United States. Much research has been done in the development of new pharmaceuticals to aide those who suffer from insomnia. Alternatives to the pharmaceuticals are being sought by sufferers. A new relaxation technique has been tested to see if it is effective in treating the disorder. Sixty insomnia sufferers between the ages of 18 to 40 with no underlying health conditions volunteered to participate in a clinical trial. They were randomly assigned to either receive the relaxation treatment or a proven pharmaceutical treatment. Thirty were assigned to each group. The amount of time it took each of them to fall asleep was measured and recorded. The data is shown below. Run an independent samples t-test to determine if the relaxation treatment is more effective than the pharmaceutical treatment at a level of significance of 0.05. Report the test statistic using correct APA formatting and interpret the results.

(Refer to HW6 #4) A past survey shows that 49% of eighth-graders in the United States Believe
that smoking one pack of cigarettes a day does not pose a serious risk to their health. A recent
sample of survey of 400 eighth-graders from the United States showed that 176 of them believe that
smoking one pack of cigarettes a day does not pose a serious rick to their health.
Is the currant proportion of all U.S. eighth-graders who hold this opinion is less than 49%? Perform
the hypothesis testing at 1% significance level by answering the following questions.
(a) Define the p in the context of the problem.
(b) Formulate the null and alternative hypothesis.
(c) State the test statistic and its approximate distribution.
(d) Determine the critical value for α = .01 and state the decision rule.
(e) Calculate the observed value of the test statistic from the sample.
(f) State whether H0 is rejected and tell why.
(g) Calculate the P-value and do the hypothesis testing based on the P-value.
(h) Express the conclusion in the context of the problem, using common English.

Use the AD/AS model to illustrate what happens to United States equilibrium GDP and the price level under the following scenarios.  Also state what happens to national income and unemployment.  Illustrate only short run fluctuations in real GDP.

1.Canada, the number one destination of U.S. exports, goes into recession.

2.Energy prices rise throughout the economy.

3.Wages fall throughout the economy.

4.Congress passes a law lowering the income tax.

5.Businesses become more optimistic and raise their forecast ROI.

Include a caption! Beside or below each graph, explain why you shifted the curve.

In a survey of 1000 randomly selected adults in the United States, participants were asked what their most favorite and what their least favorite subject was when they were in school (Associated Press, August 17, 2005). In what might seem like a contradiction, math was chosen more often than any other subject in both categories! Math was chosen by 228 of the 1000 as the favorite subject, and it was also chosen by 366 of the 1000 as the least favorite subject.

(a) Construct a 95% confidence interval for the proportion of U.S. adults for whom math was the favorite subject in school. (Give the answers to four decimal places.)

( , )

(b) Construct a 95% confidence interval for the proportion of U.S. adults for whom math was the least favorite subject. (Give the answers to four decimal places.)

( , )

Smith Co. operates business in the United States and New Zealand. In attempting to assess its economic exposure, it compiled the following information.

      i.    Smith’s U.S. sales are slightly influenced by the New Zealand dollar (NZ$) value, due to confronts rivalry from New Zealand exporters. It estimates the U.S. sales based on the following three exchange rate scenarios:

                                                                               Revenue from U.S. Business

                        Exchange Rate of NZ$                             (in millions)

                                   NZ$ = $.48                                              $100

                                   NZ$ =   .50                                                105

                                   NZ$ =   .54                                                110

      ii.    Revenues for Smith Co. in New Zealand dollars are projected to be NZ$600 million.

      iii.   Cost of goods sold is projected at $60 million from the U.S. materials purchase and NZ$100 million from the New Zealand materials purchase.

      iv.  Fixed operating expenses are valued at $30 million.

v.   Variable operating expenses are projected at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount).

vi.  Interest expense is projected at $20 million on prevailing U.S. loans, and the company has no existing New Zealand loans.

Questions:

1. Generate a forecasted income statement for Smith Co. under each of the three exchange rate scenarios.                                                               

Also answer the following questions based on the rubric.                     

2. Discuss how Smith’s projected earnings before taxes are influenced by the vital of exchange rate forecasting. Justify your viewpoints.                                                    

Describe how Smith Co. can restruc­ture its operations to minimize the earnings sensitivity to the degree of exchange rate movements without reducing its business volume in New Zealand.

You will need to answer this question using the four steps process. In your answer, you are required to discuss and apply relevant cases, sections of Acts of Parliament and/or terms of a treaty. The question has three parts.                                                                                                                       

The Happy Wanderer is a ship registered in the United States which is regularly maintained by its owners. The vessel was loaded at Fremantle, Western Australia, with a cargo of flour, bound for South Africa. During the voyage the ship collided with a whale which was migrating north to breed. When the ship docked in Cape Town it was found that the flour had been damaged due to seawater leaking into the hold. An inspection of the hull showed that the collision with the whale had caused a crack that lead to the water seepage.

Discuss the carrier's obligations under the Hague-Visby Rules.

Consider a monopoly of your choice that exists in the United States. Examine its economic
characteristics and state how it differs from an oligopolist or a monopolistically competitive firm.
(explain how it can be an oligopolist, but usually has the price making power of a monopolist).
Also, determine if it differentiates on the basis of price and reduces economic efficiency. You
may state examples if you want to.
Your summary is like an essay, so try to write using technically correct English to earn points.

Estimate how many deaths there are annually from tornado and drowning in the United States. Provide an actual number in your answer and explain statistically how you came to that answer.

Info:

DROWNINGS:

From 2005-2014, there were an average of 3,536 fatal unintentional drownings (non-boating related) annually in the United States — about ten deaths per day.¹ An additional 332 people died each year from drowning in boating-related incidents.

TORNADOS:

6. The minimum legal drinking age in the United States is 21. Suppose we conduct a survey of students at URI. We collect data on their age (in months), the number of drinks they consumed in the last week, number of minutes of exercise in the last week, their body mass index (BMI), and other characteristics such as education, race, gender, class year, etc.

   1. Using this observational data, what would be an appropriate identification strategy if we are interested in estimating a causal effect of being legally allowed to drink (age >= 21) on: (1) number of drinks consumed in the last 7 days, (2) minutes of exercise in the last 7 days, and (3) BMI. Explain, in general, how the identification strategy works, and its assumptions. (10 points)

   2. Suppose we are interested in the effect of being legally allowed to drink (i.e. age >=21)on an individual’s BMI. Would you expect to find an effect of being legally allowed to drink on weight gain (measured by BMI) for individuals “very close” to age 21? Explain.

Following complaints about the working conditions in some apparel factories both in the United States and abroad, a join government and industry commission recommended in 1998 that companies that monitor and enforce proper standards be allowed to display a “No Sweat” label on their products. Does the presence of these labels influence consumer behavior? A survey of U.S. residents aged 18 or older asked a series of questions about how likel they would be to purchase a gament under various conditions. For some conditions, it was stated that the garment had a “No Sweat” label; for others, there was no mention of such a label. On the basis of the responses, each person was classified as a “label use” or a “label nonuser” there were 296 women surveyed. Of these, 63 were label users. On the other hand, 27 of 251 men were classified as users.

(a) Give a 95% confidence interval for the difference in the proportions.

(b) You would like to compare the women with the men. Set up appropriate hypotheses, and find the test staitistic and the P-value. What do you conclude?