1. The provost at the University of Chicago claimed that the entering class this year is larger than the entering class from previous years but their mean SAT score is lower than previous years. He took a sample of 20 of this year’s entering students and found that their mean SAT score is 1,501 with a standard deviation of 53. The University’s record indicates that the mean SAT score for entering students from previous years is 1,520. He wants to find out if his claim is supported by the evidence at a 5% level of significance. Round final answers to two decimal places. Solutions only.

(C) State the null hypothesis for this study.

(D) State the alternative hypothesis for this study.

(E) What critical value should the president use to determine the rejection region?

(H) The lowest level of significance at which the null hypothesis can still be rejected is ___.

There is a 0.9968 probability that a female lives through the year. The cost of one year premium is $226. If she dies within the year the policy pays %50,000 in death benefit.

A. State the two events representing possible outcomes

B. Calculate the female's expected gain

450 policies are sold in one year. Let x = # of policyholders who die within the year.

C. Calculate the company's total intake from premiums for one year.

D. If the company is to make a profit, state the possible value(s) of x.

E. Find the probability that company makes a profit.

*Please show work, thank you*

ROBIN HOOD

It was in the spring of the second year of his insurrection against the High Sheriff of Nottingham that Robin Hood took a walk in Sherwood Forest. As he walked, he pondered the progress of the campaign, the disposition of his forces, the Sheriff’s recent moves, and the options that confronted him.

The revolt against the Sheriff had begun as a personal crusade, erupting out of Robin’s conflict with the Sheriff and his administration. However, alone, Robin Hood could do little. He therefore sought allies; men with legitimate grievances and a strong sense of justice. Later, he welcomed all who came, asking few questions and demanding only a willingness to serve. Strength, he believed, lay in numbers.

He spent the first year forging the group into a disciplined band, united in their hatred against the Sheriff, and willing to live outside the law. The band’s organization was simple. Robin ruled supreme, making all of the important decisions. He delegated specific tasks to his trusted lieutenants. Will Scarlett was in charge of intelligence and scouting. His main job was to shadow the Sheriff and his men, always alert to their next move. He also collected information on the travel plans of rich merchants and tax collectors. Little John kept discipline among the men and saw to it that their skills in archery were at the high peak that their profession demanded. Scarlock took care of finances, converting loot to cash, paying shares of the take, and finding a suitable hiding place for the surplus. Finally, Munch the Miller’s son had the difficult task of provisioning the ever-increasing band of Merrymen.

The increasing size of the band was both a source of satisfaction and concern for Robin. The fame of his Merrymen was spreading, and the new recruits were pouring in from every corner of England. As the band grew larger, their small bivouac became a major encampment. Between raids the men milled about, talking and playing games. Vigilance was in decline, and discipline was getting harder to enforce. “Why,” Robin reflected, “I don’t even know half the men I run into these days.”

The growing band was also beginning to exceed the food capacity of the forest. Game was getting scarce, and supplies had to be obtained from outlying villages. The cost of buying food was beginning to exceed the band’s financial reserves at the very time moment that revenues were in decline. Traveler’s, especially those with the most to lose were now giving Sherwood Forest a wide berth. This was costly and inconvenient to them, but it was preferable to having all of their goods confiscated. Robin believed that the time had come for the Merrymen to change their policy of outright confiscation of goods to one of a fixed transit fee. His lieutenants strongly resisted the idea. They were proud of the Merrymen’s famous motto: “Rob from the rich to give to the poor.” “The farmers and the townspeople,” they argued “are our most important allies.” “How can we tax them and still hope for their help in our fight against the evil Sheriff of Nottingham?”

Robin wondered how long the Merrymen could keep the ways and methods of their early days. The Sheriff was growing stronger and becoming better organized. He now had the money and the men and was beginning to harass the band, probing for weaknesses. The tide of events was beginning to turn against the Merrymen. Robin felt that the campaign must be decisively concluded before the Sheriff had a chance to deliver a mortal blow. “But how,” we wondered, “could this be done?”

Robin had entertained the possibility of killing the Sheriff, but the chances for this seemed increasingly remote. Besides, killing the Sheriff might satisfy his personal thirst for revenge, but would not improve the situation. Robin had hoped that the perpetual state of unrest, and the Sheriff’s failure to collect taxes, would lead to his removal from office. Instead, the Sheriff used his political connections to obtain reinforcements. He had powerful friends at court and was well regarded by the regent, Prince John.

Prince John was vicious and volatile. He was consumed by his unpopularity among the people, who wanted the imprisoned King Richard back. He also lived in constant fear of the barons, who had first given him the regency but were now beginning to dispute his claims to the throne. Several of the barons had set out to collect the ransom that would release Richard the Lionhearted from his jail in Austria. Robin was invited to join the conspiracy in return for future amnesty. It was a dangerous proposition. Provincial banditry was one thing; court intrigue quite something else. Prince John had spies everywhere, and he was known for his vindictiveness. If the conspirator’s plan failed, the pursuit would be relentless and retributions swift.

The sound of the supper horn startled Robin from his thoughts. There was the sweet smell of Bambi Bourguignon in the air. Nothing was resolved or settled. Robin headed for camp promising himself he would give these matters his utmost attention after tomorrow’s raid.

Will continue Robin Hood case discussion in class. Think of following discussion questions:

- What is the purpose of strategy? (in general terms)

- What strategic problems does Robin Hood have?

- What is the role of the organizational leader as strategist and articulator of global goals?

- What are some issues in this organization's external environment?

- How do stakeholder values or culture influence strategy making?

- What strategy can Robin Hood implement?

If the PV of an ordinary four year annuity is $1000 with an interest rate of 6%, what is the FV if were an annuity due instead?

1. Depreciation on the company's equipment for the year is computed to be $12,000.
2. The Prepaid Insurance account had a $7,000 debit balance at December 31 before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,930 of unexpired insurance coverage remains.
3. The Office Supplies account had a $520 debit balance at the beginning of the year; and $2,680 of office supplies were purchased during the year. The December 31 physical count showed $614 of supplies available.
4. One-fourth of the work related to $11,000 of cash received in advance was performed this period.
5. The Prepaid Rent account had a $5,900 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $3,970 of prepaid rent had expired.
6. Wage expenses of $5,000 have been incurred but are not paid as of December 31.

Prepare adjusting journal entries for the year ended (date of) December 31 for each of these separate situations.

You will be paying $12,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%.

a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.)

b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.)

c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 10%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. What if rates fall to 8%? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Consider the following two projects:

Year                            Cash Flow (ABC)       Cash Flow (XYZ)

0                                 −$23,000                    −$23,000

1                                        10,490                 12,000

2                                        10,900                 9,360   

3                                        10,500                 10,400

Instructions:

I. Using company cost of capital 15%, calculate the following investment criteria for both projects:

1.         Payback period

2.         Internal Rate of Return (IRR)

3.         Profitability Index (PI)

4.         Net Present Value (NPV)

II. If projects A and B are independent, which one(s) will you choose? Why?

III. If projects A and B are mutually exclusive, which one will you choose? Why?

An investment will pay $20,500 at the end of the first year, $30,500 at the end of the second year, and $50,500 at the end of the third year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)(Use the appropriate factor(s) from the tables provided.)

Determine the present value of this investment using a 8% annual interest rate. (Round your answer to nearest whole dollar.)

7. A stock will pay a dividend of amount Y at the end of each year for the next 14 years. At the end of the 15-th year the dividend increases by 1:5% and increases by 1:5% each year thereafter. Assuming an annual e?ective interest rate of 5%, the price of this stock is 123. Determine the value ofY.

The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people.

Make sure your answer is accurate to at least 2 significant figures (values after leading zeros)

c) What is the probability that you will die as a passenger car occupant next year?

c) What is the probability that you will died as a passenger car occupant last year?

a) What is the probability that an American chosen at random died as a passenger car occupant last year?