The dean of Mihaylo Business School is forecasting total student enrollment for next year based on the following historical data: Year Total Enrollment 2015 1600 2016 2000 2017 2200 2018 2600 2019 3000 What is 2020's forecast using a 2-period moving average? Select one: a. 2,800 b. None of the choices c. 3,000 d. 1,960 e. 2,450 What is the MAPE value based on 2 year moving average? Select one: a. None of the choice b. 0.191 c. 0.178 d. 0.144 e. 0.237 What is the forecasted value of 2020 by using a 3 year weighted moving average by using weights of 0.6, 0.3 and 0.1. Select one: a. 2480 b. 2800 c. 2680 d. None of the choices e. 2400 a. None of the choice b. 0.191 c. 0.178 d. 0.144 e. 0.237 What is the MSE value based on exponential smoothing forecast with smoothing constant of 0.4? Select one: a. 1,557,436 b. None of the choices c. 576 d. 1,297,863 e. 357,985 Compare 2 year moving average and exponential smoothing with alpha=0.4, which forecasting approach is better? Using MAE as your forecast accuracy measure. Select one: a. Exponential smoothing with alpha=0.4 b. 2 year moving average

The table below gives the annual total returns on Global Balanced Index Fund from 1999 to 2008. The returns are in the local currency. Use the information in this table to answer the following questions:

1. (5.0 pts) Calculate the mean absolute deviation (MAD).

2. (4.0 pts) Calculate the variance.

Solution

3. (2.0 pts) Calculate the standard deviation.

Solution

3. (4.0 pts) Calculate the semi variance (the average squared deviation below the mean), a measure of downward risk.

Solution:

Workers are compensated by firms with “benefits” in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $35 per hour and in addition received health benefits at the rate of $7 per hour. Also suppose that by 2010 workers at that plant were paid $36.75 per hour but received $31.5 in health insurance benefits.

a. By what percentage did total compensation (wages plus benefits) change at this plant from 2000 to 2010?

total compensation increased or decreased(choose one) by _______ percent

What was the approximate average annual percentage change in total compensation?

b. By what percentage did wages change at this plant from 2000 to 2010?

wages increased or decresed (choose one) by ________ percent

What was the approximate average annual percentage change in wages?

c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period?

What if they only consider wages when calculating their incomes?

incomes increased or decreased (choose one) by _____ percent

d. Is it possible for workers to feel as though their wages are stagnating even if total compensation is rising?

The town of Cypress Creek is preparing to go to war against the American government. To do this, it is building a giant satellite laser! To build the laser, the government of the town will resort to taxation to fund its expenditure. The initial economy of Cypress Creek can be expressed by the following agents:

Consumers, C = 25 + 0.95(Y-T)

Output, Y = 5000

Government expenditures, G = 2000

Taxation, T = 2000

Investors, I = 750-125r

Markets are fully competitive and the equilibrium condition for markets are:

Goods and service market: Y =C + I + G

Financial market: I = S

When it builds the Satellite, government and taxation change to

Government expenditures, G = 4000

Taxation, T = 4000

Hank Scorpio, the towns' founder, announces that "even by increasing government spending and

taxation, we are not worst off, as production has not changed!"

i) [2 points] check to make sure output does not change.

j) [2 points] find the consumption level in both scenario's (low and high government spending)

k)[3 points] who is paying for the burden of taxation? (how is this new spending/taxation being

distributed between investors and consumers)

l)[2 points] as the government increases its spending (G from 2000 to 4000) why won't output

change?

1. During the spring of 1999, many fuel storage facilities in Serbia were destroyed by bombing. As a result, significant quantities of oil products were spilled and burned, resulting in soil pollution. An article reports measurements of heavy metal concentrations at several industrial sites in June 1999, just after the bombing, and again in March of 2000. At the Smederevo site, on the banks of the Danube River, eight soil specimens taken in 1999 had an average lead concentration (in mg/kg) of 10.7 with a standard deviation of 3.3. Fifteen specimens taken in 2000 had an average lead concentration of 33.8 with a standard deviation of 0.50. Let μXμX represent the population mean for the year 2000 and let μYμY represent the population mean for the year 1999. Find a 95% confidence interval for the difference μX−μYμX−μY. Round down the degrees of freedom to the nearest integer and round the answers to three decimal places.

The 95% confidence interval is (, ).

2. In a survey of 500 residents in a certain town, 272 said they were opposed to constructing a new shopping mall. Can you conclude that more than half of the residents in this town are opposed to constructing a new shopping mall? Find the P-value and state a conclusion. Round the answer to four decimal places.

The P-value is_.

(Hybrid Harrod-Domar-Solow Model) An economy has a population of 2 million, the current capital stock of $6 billion, and a current GDP of $3 billion. The savings rate is a constant 8% and depreciation rate is 3%. The population growth rate is 0. Its production function is given by Yt=AtKt, where Yt denotes GDP, Kt denotes capital stock and At denotes productivity of capital in year t. Capital productivity will remain at its current level until the economy achieves a per capita income of $2000. Between per capita income of $2000 and $3000, capital productivity will be at a constant level, which will be 10% lower than what it is currently, owing to some natural resource (energy) constraints. Between per capita income of $3000 and $4000, capital productivity will also be at a constant level, which will be 10% lower what it would be between per capita income of $2000 and $3000. And so on: for every successive range of per capita income of a thousand dollars, capital productivity will be (constant at a level which is) 10% lower what it was for the previous range.

A) Calculate the current and future growth rates of per capita income. how will they differ?

B) What will the growth rate and level of per capita income be in the long-run?

Segment profitability Calculation

(Please show both the calculation process and the final answer)

Q1 What is the margin ($ dollar value) of each segment (experientials, indulgents and frugals) per customer per year for Red Lobster according to the table below?

(hint: food margin($)for each customer+ alcohol margin($)for each customer)

Q2 Which segment is the most profitable and should be target at according to results in Q1?

Q3 Calculate each segment’s total margin change ($) if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.

Q4 Calculate the restaurant level total margin($)change if Red Lobster gain 2000 new unique Experiential customers, but lose 1000 Indulgent and 1000 Frugals.

Jensen and Meckling (1976) refers to the costs that arise due to the use of an agent by a principal in an agency relationship as agency cost. These costs include (1) the costs of opportunistic behaviour by the agent (such as when the agent places his own self-interest over that of the principal’s), (2) the costs to the principal of monitoring the agent; and (3) the “bonding” costs incurred by the agent to induce the principal to rely on it. Nonetheless, the opportunistic behaviour of the agent may work in the favour of principal when the agent contracts with other parties such as debtholder. This phenomenon has been explained as the agency cost of debt (Kim and Sorenson, 1986). Furthermore, Coffee, Jackson, Mitts and Bishop (2018) extend the agency cost argument to the relationship between the different types of shareholders associated with modern corporations. Specifically, Coffee et al., (2018) find that there is the tendency for strong and powerful shareholders to exploit less powerful shareholders. These empirical evidences suggest that any investor may be susceptible to some form of exploitation as result of the agency relationship and its associated agency problem.

Critically examine the following scenarios and state with explanation;

Whether an investor has a high, medium or low level of agency cost

The type of agency cost likely to be assume an investor

The type of corporate governance mechanism which would be appropriate in addressing the type of agency cost

Note: the following scenarios are independent of each other.

SCENARIO ONE

ABC Ltd, an Australian based firm is a large manufacturing firms with 25 subsidiaries which operates from different part of the world. On 30th July 2018, Birim Equity fund acquired an additional 25% of shares of ABC Ltd resulting in its total shareholding of 48%. The Herald Sun in its business segment described the acquisition as one which makes Birim Equity a dominant shareholder. How would this situation affect agency cost for prospective investor if

Birim Equity is separated from management

Birim Equity is not separated from management

SCENARIO TWO

Michael Bloomberg, a recent graduate of La Trobe University received $0.5 million cash as his inheritance after the death of his father. Michael has decided to invest his wealth in a listed firm which characterised by many shareholders with each shareholder having a small amount of shares

SCENARIO THREE

Tori, a small-time investor, has decided to invest in Dada PLC. Dada PLC has a large bank loan on its books.

Please use the following papers to critically examine the scenarios:

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.

Kim, W. S., & Sorensen, E. H. (1986). Evidence on the impact of the agency costs of debt on corporate debt policy. Journal of Financial and quantitative analysis, 21(2), 131-144.

Coffee, J. C., Jackson, R. J., Mitts, J., & Bishop, R. (2018). Activist Directors and Agency Costs: What Happens When an Activist Director Goes on the Board?

Required Length: 500 words excluding the references.

Marking criteria

Marks will be allocated to:

Clear and concise discussion of the key points

Relevance to the topic and evidence of wide reading/research

Presentation – format, spelling, vocabulary, readability

Appropriate referencing, including in-text referencing and a reference listStudents may follow either:

Harvard referencing style or ;

APA 6 referencing style

What is the average monthly return and standard deviation of returns for

(i) S&P 500:

(ii) GE:

'driver', 'car', 'accident' and 'report' are names of some tables in the insurance database system. These tables were created by executing the following SQL creation statements.

CREATE TABLE driver( driverID INT NOT NULL PRIMARY KEY, name VARCHAR(30) NOT NULL, cityAddress VARCHAR(25) );

CREATE TABLE car( plateID INT NOT NULL PRIMARY KEY, model VARCHAR(20) NOT NULL, year YEAR(4) NOT NULL );

CREATE TABLE accident( reportNumber INT NOT NULL PRIMARY KEY, date Date NOT NULL, location VARCHAR(20) NOT NULL );

CREATE TABLE report ( reportNumber INT NOT NULL, plateID INT NOT NULL, driverID INT NOT NULL, damageAmount DOUBLE );

Based on the previous SQL creation statements, you are required to write each of the following queries in SQL.

1- List the models of all cars which were not involved in any accident.

2- List the names and addresses of all drivers who were not involved in any accident.