Large Sample Proportion Problem. A survey was conducted on high school marijuana use. Of the 2266 high school students surveyed, 970 admitted to smoking marijuana at least once.  A study done 10 years earlier estimated that 45% of the students had tried marijuana. We want to conduct a hypothesis test to see if the true proportion of high school students who tried marijuana is now less than 45%.   Use alpha = .01.
What is the conclusion for this test?

1. Suppose you will go to graduate school for 4 years beginning in year 4. Tuition is $25,942 per year, due at the end of each school year. What is the Macaulay duration (in years) of your grad school tuitions? Assume a flat yield curve of 0.06. Assume annual compounding.

2. Suppose in the question above, the tuition obligations have a Macaulay duration of 3.93 in years, and that you wish to immunize against the tuition payments by buying a single issue of a zero coupon bond. What maturity zero coupon bond should you buy? Assume annual compounding.

3. Suppose in question 1, the tuition obligations have a Macaulay duration of 6.75 in years and a present value of 59,578. In order to immunize against the tuition payments by investing in some combination of two bonds with duration 2.99 and 8.49, what is the dollar amount that you should invest in the bond with duration 8.49? Assume annual compounding.

A prospective MBA student earns $50,000 per year in her current job and expects that amount to increase by 12% per year. She is considering leaving her job to attend business school for two years at a cost of $45,000 per year. She has been told that her starting salary after business school is likely to be $85,000 and that amount will increase by 15% per year. Consider a time horizon of 10 years, use a discount rate of 11%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice?

4.42 Child care hours, Part II. Exercise 4.22 introduces the China Health and Nutrition Survey which, among other things, collects information on number of hours Chinese parents spend taking care of their children under age 6. The side by side box plots below show the distribution of this variable by educational attainment of the parent. Also provided below is the ANOVA output for comparing average hours across educational attainment categories.

150

100

50

0

college

lower middle school primary school

technical or vocational

F value Pr(>F) 1.26 0.2846

upper middle school

Df Sum Sq education 4 4142.09 Residuals 794 653047.83

Mean Sq 1035.52 822.48

1. (a) Write the hypotheses for testing for a difference between the average number of hours spent on child care across educational attainment levels.

2. (b) What is the conclusion of the hypothesis test?

1) A prospective MBA student earns $50,000 per year in her current job and expects that amount to increase by 9% per year. She is considering leaving her job to attend business school for two years at a cost of $50,000 per year. She has been told that her starting salary after business school is likely to be $105,000 and that amount will increase by 10% per year. Consider a time horizon of 10 years, use a discount rate of 10%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice?

Is there a linear correlation between students' high school GPA and their current GPA( College GPA)? Here is the link to our survey

1. Let's try to test this claim by using the survey. Assume that alpha is 0.05.

2. What is the equation of the regression line?

3. What is the best-predicted GPA if the high school GPA is 3.5?

Your parents have accumulated a $140,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $17,000 to help her get started, and they have decided to take year-end vacations costing $7,000 per year for the next four years. Use 7 percent as the appropriate interest rate throughout this problem. Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. How much money will your parents have at the end of four years to help you with graduate school, which. You plan to work on a master’s and perhaps a PhD. If graduate school costs $21,980 per year, approximately how long will you be able to stay in school based on these funds? you will start then?

Large Sample Proportion Problem. A survey was conducted on high school marijuana use. Of the 2266 high school students surveyed, 970 admitted to smoking marijuana at least once.  A study done 10 years earlier estimated that 45% of the students had tried marijuana. We want to conduct a hypothesis test to see if the true proportion of high school students who tried marijuana is now less than 45%.   Use alpha = .01.
What is the conclusion for this test?

Group of answer choices

The p-value was below .05, therefore we failed to reject the null hypothesis.

The p-value was below .01, therefore we failed to reject the null hypothesis.

Based on a tests statistic that is not in the rejection region for alpha = .01, we failed to reject the null hypothesis.

Based on a p-value less than .01, we would reject the null hypothesis and conclude the rate is now lower than 45.

Complete the table by classifying each of the independent expenditures and assume that no reimbursement takes place and that employee business expenses are not deductible.

Label each one: Deductible for AGI, Deductible from AGI or Not deductible

1. Tax return preparation fee incurred by an employed plumber

2. Safety glasses purchsed by an employed plumber

3. Dues to auto club (for example AAA) for taxpayer who uses the automatic mileage method

4. Nursing refresher course for taxpayer who retired from nursing five years ago

5. Gambling loss not in excess of gambling gain by self employed architect

6. Contribution to Roth IRA by a self employed attorney

7. Business travel expenses by a statutory employee

8. Job hunting expense by an elementary school teacher seeking a position as an elementary school principal

9. Cost of bar fee review course taken by a recent law school graduate

A study is being conducted to monitor how second-level students progress in education and how this is influenced by the economic position of their school. A randomly selected sample of such students who complete the Junior Cycle are identified; they are then categorized by their subsequent education outcome, Category A being little or no further education, to Category E the furthest level of education. The schools they attended are put in groups 1 to 3, with group 1 schools being the most economically disadvantaged, group 3 being the least disadvantaged. The numbers of pupils in each category of school with each type of educational outcome are given in the table in ‘Dataset'. Carry out an appropriate statistical test to determine whether the data support a link between the category of school and educational outcome.

Dataset: