1. Between 1982 and 2006, the S(¥/$) exchange rate moved from S(¥/$) 249.05 to S(¥/$) 116.34. During this same 25-year period, the consumer price index (CPI) in Japan rose from 80.75 to 97.72, and the CPI in the US rose from 56.06 to 117.07.

1. If PPP held over this 25-year period, what should the S(¥/$) exchange rate have been in 2006?

2. Was there a real appreciation or depreciation in the ¥ over this 25-year period (be sure to provide quantitative justification for your answer)?

3. Were there likely any associated positive or negative competitive pressures on Japanese exporters vs importers? If so, what likely happened to the competitive position of Japanese exporters? Japanese importers? Why (briefly)?

3. [8 marks] Suppose a survey is conducted by Ipsos, a Canadian market research polling firm, on user satisfaction with cell phone coverage across the country. They sample 10 customers at random without replacement. Assume all sampled customers are independent. Suppose 30% of users nationwide are satisfied with their cell phone coverage.

a) [5 marks] Calculate the probability that 3 or more of the 10 randomly sampled cell phone customers are satisfied with their cell phone coverage.

b) [1 mark] Why is the probability that exactly 3 out of the 10 randomly sampled customers are satisfied with their cell phone coverage different from 0.3? Please answer in at most three sentences.

c) [1 mark] On average, in a sample of 10 customers, how many do you expect to be satisfied with their cell phone coverage?

d) [1 mark] Calculate the variance of the random variable associated with the number of satisfied customers.

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $270,000 in additional credit sales, 9 percent are likely to be uncollectible. The company will also incur $16,700 in additional collection expense. Production and marketing costs represent 75 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers. The firm has a 8 percent desired return.  

a-1. Calculate the incremental income after taxes.  
  

    

a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.)
  

   

a-3. Should Fast Turnstiles Co. extend credit to these customers?
  

  

b-1. Calculate the incremental income after taxes if 12 percent of the new sales prove to be uncollectible.
  

   

b-2. Calculate the return on incremental investment if 12 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

     

b-3. Should credit be extended if 12 percent of the new sales prove uncollectible?
  

  

c-1. Calculate the return on incremental investment if the receivables turnover drops to 2.0, and 9 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

   

c-2. Should credit be extended if the receivables turnover drops to 2.0, and 9 percent of the accounts are uncollectible?
  

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $126,000 in additional credit sales, 9 percent are likely to be uncollectible. The company will also incur $15,900 in additional collection expense. Production and marketing costs represent 70 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return.  

a-1. Calculate the incremental income after taxes.  
  

    

a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.)
  

   

a-3. Should Fast Turnstiles Co. extend credit to these customers?
  

  

b-1. Calculate the incremental income after taxes if 12 percent of the new sales prove to be uncollectible.
  

   

b-2. Calculate the return on incremental investment if 12 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

     

b-3. Should credit be extended if 12 percent of the new sales prove uncollectible?
  

  

c-1. Calculate the return on incremental investment if the receivables turnover drops to 2.0, and 9 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

   

c-2. Should credit be extended if the receivables turnover drops to 2.0, and 9 percent of the accounts are uncollectible?

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $486,000 in additional credit sales, 12 percent are likely to be uncollectible. The company will also incur $17,800 in additional collection expense. Production and marketing costs represent 75 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return. a-1. Calculate the incremental income after taxes. a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.) a-3. Should Fast Turnstiles Co. extend credit to these customers? Yes No b-1. Calculate the incremental income after taxes if 15 percent of the new sales prove to be uncollectible. b-2. Calculate the return on incremental investment if 15 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.) b-3. Should credit be extended if 15 percent of the new sales prove uncollectible? Yes No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.5, and 12 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.) c-2. Should credit be extended if the receivables turnover drops to 1.5, and 12 percent of the accounts are uncollectible? Yes No

Currently a company that designs Web sites has five customers in its backlog. The time since the order​ arrived, processing​ time, and promised due dates are given in the following table. The customers are ready to be scheduled​ today, which is the start of day

190.

a. Develop separate schedules by using the FCFS and EDD rules. Compare the schedules on the basis of average flow time and average days past due.

Using the FCFS​ (first come, first​ served) decision rule for sequencing the​ customers, the order​ is:

Using the EDD​ (earliest due​ date) decision rule for sequencing the​ customers, the order is​ (to resolve a​ tie, use the order in which the jobs were​ received):

The average flow time and average days past due for each option​ are: ​(Enter your responses rounded to one decimal​ place.)

Suppose you work at a local state hospital. In 2015, the infectious disease department of the hospital was operating at max capacity. Your supervisor has given you the job of presenting to the hospital leadership board about the number of patients who contracted infections while at 30 different hospitals in your state in 2015. The board will use your findings to make informed decisions about possible expansion of the infectious disease department. You will review the data, create visuals for the data, and create a presentation for the hospital leadership board to help with the decision.

2015
Hospital   Infections *Secondary column are the # of infections*
1 89
2 58
3 96
4 206
5 31
6 16
7 249
8 79
9 29
10 6
11 222
12 108
13 58
14 54
15 81
16 64
17 9
18 130
19 37
20 121
21 27
22 6
23 95
24 7
25 18
26 37
27 140
28 74
29 134
30 184

   Infections
Min=
Q1=   
Median=   
Q3=   
Max=   

Check for Outliers  
IQR=   
Lower=   
Upper=   

Infection Class Frequency
6 - 81=   
82 - 156=
157-231=   
232-306=   

•   Use the following data to complete the values, a histogram, box & whisker plot, bell curve with distribution, and answer the following questions below.
•   How did the outliers impact the mean and median? How did they impact the histogram?
•   How would you describe the shape of your histogram? Is it skewed?
•   Which do you think is a better measure of central tendency, median or mean? Why?
•   How would you describe how spread out your data is? What did you calculate or which visual supports your conclusion on how spread out the data is?
•   How does your data support your conclusion?

Two major automobile manufacturers have produced compact cars with the same size engines. We are interested in determining whether or not there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles. A random sample of eight cars from each manufacturer is selected, and eight drivers are selected to drive each automobile for a specified distance. The following data show the results of the test and if the variance of MPG is the same, Driver Manufacturer A Manufacturer B 1 32 28 2 27 22 3 26 27 4 26 24 5 25 24 6 29 25 7 31 28 8 27 27 Refer to Exhibit 6. The test statistic and the p-value at 99% confidence level are

Toronado Ltd. reported the following items in its unadjusted trial balance as of 31 December 20X4 for the 20X4 fiscal year. This trial balance is listed in alphabetical order. Note that this is a partial trial balance and does not include all accounts. Accounts have normal (debit or credit) balances.

Other information:

• The tax rate is 30%, but no tax has yet been recorded.
• Closing merchandise inventory is $76,700. Closing supplies inventory is $1,500.
• The insurance expense represents a payment made on 1 May for a 24-month fire insurance policy.
• Customers owe $53,200 for goods delivered on 31 December; this amount has not yet been recorded.
• All sales are on account, except those that are prepaid.
• Unearned revenue represents all customer deposits received during the year. Of this
   amount, 60% is still unearned at the end of the year.
• Bad debt expense is to be recognized as 1% of total sales.
• Interest on the note payable was last paid and recorded on 31 October.
• The company owes $3,400 in utilities.
• Interest on the loan receivable has not been paid or recorded all year.

Required:
1. Prepare journal entries to reflect the required adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round "Bad debt expense" and "Income tax expense" to the nearest $100.)      

a. Record the entry to close merchandise inventory.

b. Record the entry to close supplies inventory.

c. Record the prepaid insurance expense.

d. Record the sales on account.

e. Record the deposit received last year which relate to current year sales.

f. Record the bad debt expenses.

g. Record the interest payable.

h. Record the utilities expense.

i. Record the interest revenue.

j. Record the income tax expense.

2. Prepare an SCI based on the adjusted balances. (Do not round your intermediate calculations.

3. Prepare a statement of changes in equity (for retained earnings only) based on the adjusted balances.

1)In monopolistic​ competition, profit is maximized when the amount produced is such that

A.

marginal revenue is greater than marginal cost.

B.

marginal revenue equals marginal cost.

C.

total revenue is maximized.

D.

total revenue equals total cost.

2)Dole Co. operates in a monopolistically competitive market. To try to earn an economic​ profit, Dole Co. will

A.

increase output.

B.

prevent other firms from entering the market.

C.

continually seek to differentiate its product.

D.

increase its​ product's price.

3) How does a​ single-price monopoly determine the price it will charge its​ customers?

A​ single-price monopoly​ _______.

A.

produces the quantity at which marginal revenue equals marginal cost and sets the price equal to marginal revenue at that quantity

B.

charges the price from the demand curve that corresponds to the quantity where the price elasticity of demand equals 1

C.

produces the quantity at which average total cost is minimized and charges the highest price consumers will pay for that quantity from the demand curve

D.

produces the quantity at which marginal revenue equals marginal cost and charges the highest price consumers will pay for that quantity from the demand curve

4) What are some of the ways that​ real-world airlines price​ discriminate?

​Real-world airlines price discriminate by separating travelers according to​ _______.

A.

their price elasticity of​ demand, their form of​ identification, and whether they are traveling first class or economy

B.

how far in advance they purchase​ tickets, physical disabilities that make boarding​ difficult, and the length of time required to make a connection

C.

their price elasticity of​ demand, whether they will stay at their destination over a​ weekend, and how far in advance they purchase tickets

D.

their willingness to go through airport​ security, their proximity to an​ airport, and the number of children traveling in the family

5) AT&T Moves Away From​ Unlimited-Data Pricing

​AT&T said it will eliminate its​ $30 unlimited data plan as the crush of data use from the iPhone has hurt call quality.​ AT&T is introducing new plans costing​ $15 a month for 200 megabytes of data traffic or​ $25 a month for 2 gigabytes.​ AT&T says those who exceed 2 gigabytes of usage will pay​$10 a month for each additional gigabyte.​ AT&T hopes that these plans will attract more customers.

​Source:

The

Wall Street

Journal​,

June​ 2, 2010

Explain why​ AT&T's new plans might be price discrimination.

​AT&T's new plans might be price discrimination because​ ______.

A.

​AT&T is selling data plans at different prices but its marginal cost is the same regardless of how much data is downloaded

B.

​AT&T is a monopoly and only monopolies can price discriminate

C.

​AT&T changed their price structure because of an increase in demand for data traffic

D.

the cost of supplying different sizes of data plans increases as more data is downloaded