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?

Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by​ US$6.40, or nearly two​ percent, on the news.

Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While​ Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.

   Question

“When a financial manager makes good or bad financial decisions the impact of these decisions will be reflected in the​ company's Stock price”. Do you agree with the decision taken in the above case?

What decisions you will take to improve the stock price of Apple Computers in this situation?

Use the following information to answer the questions. A more recent study of Feline High-Rise Syndrome (FHRS) included data on the month in which each of 119 cats fell ( Vnuk et al. 2004) The data are in the accompanying table. Can we infer that the rate of cat falling varies between months of the year?

Month Number fallen

January 4

February 6

March 8

April 10

May 9

June 14

July 19

August 13

September 12

October 12

November 7

December 5

1. Assume a catfall is equally likely to occur in each month and carry out a suitable test.

2. Assume a catfall is equally likely to occur on each day and carry out a suitable test. Use a calendar for a non-leap year to obtain the needed probabilities.

3. Which method out of (a) and (b) would be best to use, if it were reasonable to assume that a cat could fall at any moment? Explain, briefly.

A study has been conducted on the rate of depression and
their relation to demographic features such as age, race, gender,
etc. The survey was administered to 155 patients and it was found
women are more likely to be depressed compared to men (Data
extracted from: Gottlieb SS, Khatta M, Friedmann E, et al. The influence
of age, gender, and race on the prevalence of depression in
heart failure patients. J Am Coll Cardiol. 2004; 43(9):1542-1549.
doi:10.1016/j.jacc.2003.10.064.). The following data related to the
depression and the gender has been imported from the study:

Depressed Not Depressed Total
Men 54 68 122
Women 21   12 33
Total 75   80 155

a. Set up the null and alternative hypotheses to determine whether
there is a difference in the depression levels of men and women.
b. At 0.05 significance level, compute x2 STAT. Is there any evidence
of a significant difference between the proportion of men
and women and their depression levels?
c. Determine the p-value in (a) and interpret its meaning.

Use the following information to answer the questions. A more recent study of Feline High-Rise Syndrome (FHRS) included data on the month in which each of 119 cats fell ( Vnuk et al. 2004) The data are in the accompanying table. Can we infer that the rate of cat falling varies between months of the year?

Month Number fallen

January 4

February 6

March 8

April 10

May 9

June 14

July 19

August 13

September 12

October 12

November 7

December 5

1. Assume a catfall is equally likely to occur in each month and carry out a suitable test.

2. Assume a catfall is equally likely to occur on each day and carry out a suitable test. Use a calendar for a non-leap year to obtain the needed probabilities.

3. Which method out of (1.) and (2.) would be best to use, if it were reasonable to assume that a cat could fall at any moment? Explain, briefly.

Sachs Brands defined benefit pension plan specifies annual retirement benefits equal to: 1.3% x service years x final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $96,000 at the end of 2018 and the company's actuary projects her salary to be $310,000 at retirement. The actuary's discount rate is 6%.

Required:

2) estimate by the projected benefits approach the amount of Davenport's annual retirement payments earned as of the end of 2018. (I got 60,450 which was correct)

3) What is the company's projected benefit obligation at the end of 2018 with respect to Davenport? (I got 204,082 which was correct)

4) If not estimates are changed in the meantime, what will be the company's projected benefit obligation at the end of 2021 (three years later) with respect to Davenport? I NEED THIS ANSWER