With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies.

Health Insurance Size of Company Yes No Total Small 36 14 50 Medium 65 10 75 Large 88 12 100

The table shows a short excerpt from the "car weight and mileage" data file on the text CD. That file lists several 2004 model cars with automatic transmission and their x = weight (in pounds) and y = mileage (miles per gallon of gas). The scatterplot is roughly linear and r = -0.74. The regression equation is  = 47.140 - 0.0051x.

(a) Find the predicted mileage and residual for a Hummer H2.

(b) Use this information in a sentence.
The Hummer gets miles/gallon  ---Select--- (fewer) (more) than one would predict.
(c)  % (Enter a number between 0 and 100; 2 decimal places) of the variability in  ---Select--- (Mileage) (Weight) can be explained by  ---Select--- (Mileage) (Weight)

The National Sleep Foundation used a survey to determine whether hours of sleeping per night are independent of age (Newsweek, January 19, 2004). The following show the hours of sleep on weeknights for a sample of individuals age 49 and younger and for a sample of individuals age 50 and older.

Conduct a test of independence to determine whether the hours of sleep on weeknights are independent of age. Use  = .05. Use Table 12.4.

A.) Compute the value of the  2 test statistic (to 2 decimals).

B.) Using the total sample of 500, estimate the percentage of people who sleep less than 6, 6 to 6.9, 7 to 7.9, and 8 or more hours on weeknights (to 1 decimal).

The budget surplus is defined as taxes less transfers and government purchases, T − G, where T is net taxation (taxes less transfers) and G is government purchases. If the government has collected more than it has spent, the term T − G is positive and the budget is in surplus. If T − G < 0 then the budget is in deficit. Recall that T and G are flows (as is GDP). The budget deficit or surplus is measured in currency, e.g., dollars, and is often expressed as a percentage of Gross Domestic Product, (T − G)/Y × 100. Find FRED series for the U.S. Federal government budget surplus or deficit measured in (millions of) dollars and measured as a percent of GDP. Focus on the period since 1950. (a) When was the most recent period of surplus? (b) Under what circumstances (hint: shading) does GDP move towards deficit? What is a possible explanation of this relationship? (c) Why is expressing the deficit as a percent of GDP a useful way to describe the deficit? Compare the currency and percent of GDP measures of the deficit for 1986 and 2004.

Use the following information on Disney to answer the case questions.

◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018

◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.

◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.

◼ Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021. ◼ Disney’s peers in media networks trade at 25.5 times their current year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.

◼ Assume the expected return for Disney’s stock is 6.9%.

What is Disney stock’s intrinsic value using The Constant Growth Model and the Multi-Stage Growth Model

The National Sleep Foundation used a survey to determine whether hours of sleeping per night are independent of age (Newsweek, January 19, 2004). The following show the hours of sleep on weeknights for a sample of individuals age 49 and younger and for a sample of individuals age 50 and older.

1. Conduct a test of independence to determine whether the hours of sleep on weeknights are independent of age. Use  = .05. Use Table 12.4.
   
   Compute the value of the  ² test statistic (to 2 decimals).
     
2. Using the total sample of 500, estimate the percentage of people who sleep less than 6, 6 to 6.9, 7 to 7.9, and 8 or more hours on weeknights (to 1 decimal).
   

   Less than 6 hours	%
   6 to 6.9 hours	%
   7 to 7.9 hours	%
   8 or more hours	%

You are a healthcare professional who provides care directly to patients (pick which kind you want to be based on your readings from this module). You feel very confident that the medical care you provide is extremely important to your patients and to the U.S. healthcare system but you also know that there are many kinds of care and care providers. You like to think of yourself as open-minded about other providers of care, particularly because there are many kinds of patients and different people need different kinds of care and treatment. You read a back issue of O Magazine (August 2004, to be precise), and come across the following quote from Oprah: “Getting my lifelong weight struggle under control has come from a process of treating myself as well as I treat others in every way.” How does this fit with your own philosophy of medicine and, if many other people were to take Oprah’s perspective, would that be a good thing or a bad thing for our healthcare system?