Diane has just turned 19 and also completed high school. She is wondering about the value of a college education. She is pretty good with numbers, and driven by financial considerations only, so she sits down to calculate whether it is worth the large sum of money involved. She knows that her first year tuition will be $14,000, due at the beginning of the year (that is, right away). Based on historical trends she estimates that tuition will rise at 7% per year for the 4 years she is in school. She also estimates that her living expense above and beyond tuition will be $8,500 per year (assume this extra expense occurs at the end of each year only when she is in college) for the first year and will increase $500 each year thereafter to keep up with inflation. She does not plan to work at all while attending school. Were she to forgo college she would be able to make $22,000 per year out of high school and expects that to grow 3% annually. With the college degree, she estimates that she will earn $40,000 per year out of college, again with annual 3% increases in salary. Either way, she plans to work until 64 (she begins college right away). The interest/discount rate is 5%. What is the NPV of her college education? (Note: All cash flows except tuition payments occur at the end of the year.)

Drew wondered if the average age of students in AP Statistics classes in his high school is under 18. He randomly selected 10 AP Statistics students in his school and the data set is given below. Using the information from a previous survey, he has concluded that the population standard deviation for the age of AP Statistics students in his school is 1.23. Assume that the ages of students in AP Statistics classes in this high school are normally distributed.

A calculator was used to determine the p-value for this hypothesis test. The p-value was 0.005. If the level of significance was 0.01, interpret the results.

The p-value, 0.005, is less than the level of significance, 0.01. Reject the null hypothesis that the mean age is 18. There is sufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Reject the null hypothesis that the mean age is 18. There is insufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Do not reject the null hypothesis that the mean age is 18. There is insufficient evidence to conclude that the mean age is under 18.

The p-value, 0.005, is less than the level of significance, 0.01. Do not reject the null hypothesis that the mean age is 18. There is sufficient evidence to conclude that the mean age is under 18.

1. In an effort to compare student grades in 4 different high schools, random samples of students from 4 local high schools were selected. Their first year average college grades were computed and recorded. Can we conclude that there are differences in the mean grades of these students from those 4 high schools? (20 points)

1. Apply either the Fischer-LSD or Tukey-Omega method to determine specifically whether schools A and C have a significant difference in population means.

2. Perform the appropriate F-max test, to determine if the ANOVA assumption of equal population variances is satisfied in this problem.

Suppose you are interested in how neighborhood income around a school attendance zone would affect student test scores.
A) First, consider a regression where the independent variable is the neighborhood income around a school attendance zone and the dependent variable is student test scores (Note that, this is based on our research question). Create the variable names on your own and write down the regression model. What is the likely sign of the coefficient on the neighborhood income? (2 points)
B) Now, consider a regression where the independent variable is a measure of violent crime incidents around the school and the dependent variable is student test scores. Create the variable names on your own and write down the regression model. Make sure the variable names are consistent in each part of this question. What is the likely sign of the coefficient on violent crime? (2 points)
C) Finally, consider a regression where the independent variable is neighborhood income levels and the dependent variable is the violent crime incidents. Use the variable names you discussed in previous questions, and write down the regression model. What is the likely sign of the coefficient on area income levels? (2 points)
D) Now consider the sign of omitted variable bias in the regression in part a. What is the sign of omitted variable bias if we omit a measure of violent crime around a school? Is the estimated coefficient in the first regression larger or smaller than the true parameter? (4 points)

Q. 6

Each of the questions below is INDEPENDENT of the other.

(Timelines are not required.)

(a) Your sister has a $5,000 debt balance on her credit card that charges 18.5% interest compounded semi-annually. The monthly payment is 3% of the starting debt balance.

Required:

If your sister stops using the credit card for purchases, how many months (round up) will it take her to pay off the credit card balance? (Timeline not required.)

(b) Your high school guidance counsellor encouraged you to follow your dream and learn a trade following high school. You became a licensed mechanic, opened your own shop which later franchised and you became independently wealthy. You decided to create a bursary at the high school to be given to a student planning to pursue a trade following high school. You want to give a lump sum amount that would generate a $3,000 bursary per year into perpetuity.

Required:

Assuming an investment rate of 5%, how large must the lump sum amount be?

(c) Your Aunt asks for your help in deciding on a Bank Loan.

Bank Loan # 1 charges 4.95% compounded continuously.

Bank Loan # 2 charges 5.0% compounded monthly.

Required:

Which Bank Loan would you recommend to your Aunt, and why?

(Show all calculations to support your answer.)

A school has a principal, many students, and many teachers. Each of these persons has a name, birthdate, and may borrow and return books. Teachers and the principal are both paid a salary; the principal evaluates the teachers. A school board supervises multiple schools and can hire and fire the principal for each school. A school has many playgrounds and rooms. A playground has many swings. Each room has many chairs and doors. Rooms include restrooms, classrooms, and the cafeteria. Each classroom has many computers and desks. Each desk has many rulers. Given this specification, you must enhance your class diagram as flowing specification (Course Registration System). The principal can add courses. Student can select some of the courses. To add courses, student will see all the courses as illustrated in Table 1 Table 1. Example of Courses Major Name ID CRN Teacher Max Classroom Time Computer CSII CS101 12345 MM 20 B10R101 TR2,3:20 R U Mathematics Calculus2 MATH201 12346 XX 10 B10R102 MW2,3:20 R U Physics Physics II PY301 12347 DD 15 B10R101 F10:11:20 R U Note: R and U is buttons. Student can select R (Register). If a student is registered for a course, this student can select U (unregister) for this course.

From the following details you are required to:

1. Record in a petty cash book, with headings for school bus expenses, staff travelling expense, postage, cleaning and ledger accounts

2. Show the balance carried down to 1 October 2018

3. Show how the items would be entered in the general ledger, use your own folio references

2018                                                                                                     $

Sept. 1        The head teacher gave $300 as float to the Petty

                    Cashier

                    Payments out of petty cash during September

Sept. 2        Petrol: School bus                                                           16

Sept. 3        T. Keats – travelling expenses of staff 23

Sept. 3        Postage                                                                         12

Sept. 4        D. Twist – travelling expenses of staff 32

Sept. 7        Cleaning expenses                                                         11

Sept. 9        Petrol: School bus                                                           21

Sept. 12      K. Woods: Travelling expenses of staff 13

Sept. 14      Petrol: School bus                                                         23

Sept. 15      L. Blake: Travelling expenses of staff 5

Sept. 16      Cleaning expenses                                                         11

Sept. 18      Petrol bus                                                                        22

Sept. 20      Postage                                                                           12

Sept. 22      Cleaning expenses                                                         11

Sept. 24      H. Williams – travelling expenses of staff 7

Sept. 27      Settlement of T. Clarke’s account in the purchases

                    Ledger (PL18)                                                                 13

Sept. 29      Postage                                                                         12

Sept. 30      The head teacher reimbursed the petty cashier the

                    amount spent in the month

Each of the questions below is INDEPENDENT of the other.

(Timelines are not required.)

(a) Your sister has a $5,000 debt balance on her credit card that charges 18.5% interest compounded semi-annually. The monthly payment is 3% of the starting debt balance.

Required:

If your sister stops using the credit card for purchases, how many months (round up) will it take her to pay off the credit card balance? (Timeline not required.)

(b) Your high school guidance counsellor encouraged you to follow your dream and learn a trade following high school. You became a licensed mechanic, opened your own shop which later franchised and you became independently wealthy. You decided to create a bursary at the high school to be given to a student planning to pursue a trade following high school. You want to give a lump sum amount that would generate a $3,000 bursary per year into perpetuity.

Required:

Assuming an investment rate of 5%, how large must the lump sum amount be?

(c) Your Aunt asks for your help in deciding on a Bank Loan.

Bank Loan # 1 charges 4.95% compounded continuously.

Bank Loan # 2 charges 5.0% compounded monthly.

Required:

Which Bank Loan would you recommend to your Aunt, and why?

(Show all calculations to support your answer.)