Researchers are comparing the proportion of University Park students who are Pennsylvania residents to the proportion of World Campus students who are Pennsylvania residents. Data from a sample are presented in the contingency table below.

1. Construct a 95% confidence interval to estimate the difference between the proportion of all University Park students who are Pennsylvania residents and the proportion of all World Campus students who are Pennsylvania residents. If assumptions are met, use the normal approximation method. Show how you checked assumptions. You should not need to do any hand calculations. Use Minitab Express to construct the confidence interval. Remember to copy+paste all relevant Minitab Express output and always clearly identify your final answer. [15 points]
2. B. Interpret the confidence interval that you computed in part A by completing the following sentence. [5 points]
3. C. Use the five-step hypothesis testing procedure given below to determine if there is evidence of a difference between the proportion of University Park students who are Pennsylvania residents and the proportion of World Campus students who are Pennsylvania residents. If assumptions are met, use the normal approximation method. Use Minitab Express. You should not need to do any hand calculations. Remember to copy+paste all relevant Minitab Express output. [30 points]

Deductible expenses for a service member’s moving do not include:

a. the cost of transporting household goods

b. Hotel Cost while moving to the new locations

c. Meals Incurred during the move

d. storage of household goods for a limited time upon arrival at the new location

) Sher Manufacturing Pty Ltd has two retail divisions., which have the following reported results for the year:

1. (i) Calculate the ROI for both divisions
2. (ii) Calculate residual income assuming the firm requires a return of 18% on invested capital
3. (iii) Which was the more successful division? Explain. (Hint: think carefully about this)

(b) Giratina is a retailer and is a division of a larger retail company. The following data relate to the most recent year of operations:

1. (i) Calculate the division’s return on sales, investment turnover and return on investment.
2. (ii) Describe how the division improve its ROI. (hint issue the 2 component ratios to explain)

Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster.

Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years.

The marketing team at Six Flags expects the coaster to increase attendance at the park by 5%. This translates to 107,883.00 more visitors at an average ticket price of $38.00. Expenses for these visitors are about 13.00% of sales.

There is no impact on working capital. The average visitor spends $21.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 34.00%. The tax rate facing the firm is 35.00%, while the cost of capital is 6.00%.

What is the project cash flow for year 1? (express answer in millions)

What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? (Six Flags expects the first year project cash flow to grow at 5% per year, going forward)
(Express answer in millions)

A) Find the equation of the tangent line to the curve y = 5e^-8x at the point (0, 5).

B) Solve for t.

e^0.09t = 9

C) Rancher Johann wants to build a three-sided rectangular fence near a river, using 280 yards of fencing. Assume that the river runs straight and that Johann need not fence in the side next to the river.

Johann wants to build a fence so that the enclosed area is maximized.

• What should be the length of each side running perpendicular to the river?
  yards
  
• What should be the length of the side running parallel to the river?
  yards
  
• What is the largest total area that can be enclosed?
  square yards

D) Find the absolute maximum and minimum values on the closed interval [-3,3] for the function below. If a maximum or minimum value does not exist, enter NONE.

f(x) = (4x)/(x² + 1)

E) When a baseball park owner charges $5.00 for admission, there is an average attendance of 100 people. For every $0.25 increase in the admission price, there is a loss of 2 customers from the average number.

1. What admission price should be charged in order to maximize revenue
   
2. What is the maximum revenue?

F) Find the derivative.

f(x) = x⁶ · e^2x

An asset has a $200k fair value. It is ‘rented’ on 1/1/A to Lessee Co. for 3 years. At EOY C the asset is expected to have a fair value of $100k when it is returned to Lessor Co. Assume the asset has an expected useful life of 5 years, and that Lessor Co. uses an implicit interest rate of 10% for lease accounting. Lessor depreciates leased type B assets S-L, -0- S.V. Provide the following information.

a. Right of Use Asset, 1/1/A_________

b. Performance Obligation, 12/31/A_________

c. Lease Receivable, 12/31/B_________

d. Annual lease payment__$45646.80__

e. Lessee’s annual lease entries

f. Lessor’s annual lease entries

g. Lessor’s annual depreciation expense_________

5. Calculate the net food cost percentage for the Food department of a hotel for the month of May. The total food sales revenue for May was $191,118. The following information has been gathered:

• beginning inventory on May 1st was $6,932
• purchases in May totaled $12,883
• food transferred from main storeroom was $61,315
• food transferred to other outlet was $114
• entertainment and promotion checks totaled $2,010
• management signed checks were $691
• documented food spoilage was $139
• food for employee meals was $5,795
• happy hour hors d’oeuvres was $2,040
• ending inventory on May 31st was $6,318

To earn full credit, please calculate these amounts. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

First calculate gross cost of food sales $___

6 . Please use the information from Question 5 to calculate the amount to transfer from mail storeroom. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Transfer from mail storeroom $___

2. Please use the information from Question 5 to calculate the amount to transfer to the other outlet. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Transfer to other outlet $___

3. Please use the information from Question 5 to calculate the amount in entertainment and promotion checks. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Entertainment & promotion checks $___

4.Please use the information from Question 5 to calculate the amount in management signed checks. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Management signed checks $___

5.Please use the information from Question 5 to calculate the amount of food spoilage. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Food spoilage $ ___

6. Please use the information from Question 5 to calculate the amount in Employees' meals. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Employees' meals $___

7.Please use the information from Question 5 to calculate the amount in happy hour hors d'oeuvres. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts:

Happy hour hors d'oeuvres $ ___

8. Please use the information from Question 5 to calculate the amount in net cost of food sales. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Net cost of food sales $___

9.Please use the information from Question 5 to calculate the amount in food cost percentage. Except as indicated below, answers are whole numbers. Be sure to include a minus sign (-) for any negative amounts.

Food cost percentage (round to two decimal points) ___%

10.A 345-room hotel’s food and beverage department recorded food revenue of $3,460,397.5 and beverage revenue of $1,483,027.5. The cost of sales was 27.3% of F & B revenue, and the departmental expenses were 43.2% of F & B revenue. What is the gross profit percentage for the hotel’s F&B department?

Gross profit percentage for the hotel's F&B department (round to one decimal point) ___%.

Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $25 million. Kim expects the hotel will produce positive cash flows of $4 million a year at the end of each of the next 20 years. The project's cost of capital is 14%.

1. What is the project's net present value? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places.

   $    million

2. Kim expects the cash flows to be $4 million a year, but it recognizes that the cash flows could actually be much higher or lower, depending on whether the Korean government imposes a large hotel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will be only $2.9 million. At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will be $5.1 million. Kim is deciding whether to proceed with the hotel today or to wait a year to find out whether the tax will be imposed. If Kim waits a year, the initial investment will remain at $25 million. Assume that all cash flows are discounted at 14%. Use decision-tree analysis to determine whether Kim should proceed with the project today or wait a year before deciding.

Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $20 million. Kim expects that the hotel will produce positive cash flows of $3 million a year at the end of each of the next 20 years. The project's cost of capital is 13%. While Kim expects the cash flows to be $3 million a year, it recognizes that the cash flows could, in fact, be much higher or lower, depending on whether the Korean government imposes a large hotel tax. One year from now, Kim will know whether the tax will be imposed. There is a 50% chance that the tax will be imposed, in which case the yearly cash flows will be only $2.2 million. At the same time, there is a 50% chance that the tax will not be imposed, in which case the yearly cash flows will be $3.8 million. Kim is deciding whether to proceed with the hotel today or to wait 1 year to find out whether the tax will be imposed. If Kim waits a year, the initial investment will remain at $20 million. Assume that all cash flows are discounted at 13%. Use the Black-Scholes model to estimate the value of the option. Assume the variance of the project's rate of return is 7.32% and the risk-free rate is 6%. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to two decimal places.

QUESTION 12

Assume that a firm's marginal revenue barely exceeds marginal cost. To maximize profit, teh firm should:

QUESTION 13

In the short run, a perfectly competitive firm will stay in business as long as:

QUESTION 14

Suppose that price is below the minimum average total cost (ATC) but above the minimum average variable cost (AVC), and the market price is expected to rise at least to ATC in the near future. In the short run, a firm that is a price taker would:

QUESTION 15

Where is the "short-run shut down point" for a perfectly competitive firm?