A company wants to study the relationship between an employee's length of employment and their
number of workdays absent. The company collected the following information on a random sample of
seven employees.

Number of workdays absent 4,2,3 , 5, ,7 ,7 8
length of employment(in yrs) 10, 5, 9 , 2 , 2 ,2 0

1. in this problem whuch is the dependent variable, what is the correlation? and interpret its meaning.

what is the coefficient of determination? interpret its meaning

2. suposse you know that a person has worked for the company for 8 years. how many workdays would you predict he/ she would be absent?

3. Interpret in physical terms the meaning of slope in this example

1.How does Economic exposure to exchange rate movements affect the capital budgeting of a firm? Provide an example?

2a. Give an example of how a firm might be affected by translation exposure

2b. Give an example of how a firm might be affected by transaction exposure.

3.

When the dollar strengthens, the reported consolidated earnings of U.S.-based MNCs are ____ affected by translation exposure. When the dollar weakens, the reported consolidated earnings are ____ affected.

a. favorably; favorably affected but by a smaller degree

b. favorably; favorably affected by a higher degree

c. unfavorably; favorably affected

d. favorably; unfavorably affected

4.

Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of €2,000,000 this year, while the Greek subsidiary generated a net inflow of €1,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05.

a. $3,675,000 outflow

b. $525,000 outflow

c. $525,000 inflow

d. $210,000 outflow

5.

Volusia, Inc. is a U.S.-based exporting firm that expects to receive payments denominated in both euros and Canadian dollars in one month. Based on today's spot rates, the dollar value of the funds to be received is estimated at $500,000 for the euros and $300,000 for the Canadian dollars. Based on data for the last fifty months, Volusia estimates the standard deviation of monthly percentage changes to be 8 percent for the euro and 3 percent for the Canadian dollar. The correlation coefficient between the euro and the Canadian dollar is 0.30.

What is the portfolio standard deviation?

a. 3.00%.

b. 5.44%.

c. 17.98%.

d. none of the above

6.

Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP). 25% of the MNC's funds are Taiwan dollars and 75% are pounds. The standard deviation of exchange movements is 7% for Taiwan dollars and 5% for pounds. The correlation coefficient between movements in the value of the Taiwan dollar and the pound is .7. Based on this information, the standard deviation of this two-currency portfolio is approximately:

a. 5.13%.

b. 2.63%.

c. 4.33%.

d. 5.55%.

7.

Treck Co. expects to pay €200,000 in one month for its imports from Greece. It also expects to receive €250,000 for its exports to Italy in one month. Treck Co. estimates the standard deviation of monthly percentage changes of the euro to be 3 percent over the last 40 months. Assume that these percentage changes are normally distributed. Using the value-at-risk (VAR) method based on a 95% (z=1.65) confidence level, what is the maximum one-month loss in dollars if the expected percentage change of the euro during next month is -2%? Assume that the current spot rate of the euro (before considering the maximum one-month loss) is $1.23.

a. -$38,468

b. -$21,371

c. -$17,097

d. -$4,274

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,130,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 5.0 times during the year, and its DSO was 39 days. Its annual cost of goods sold was $1,750,000. The firm had fixed assets totaling $505,000. Strickler's payables deferral period is 41 days. Assume a 365-day year. Do not round intermediate calculations.

1. Calculate Strickler's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places.

     days

2. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Do not round intermediate calculations. Round your answers to two decimal places.

   Total assets turnover:  ×

   ROA:   %

3. Suppose Strickler's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 8 for the year? Do not round intermediate calculations. Round your answers to two decimal places.

   Cash conversion cycle:   days

   Total assets turnover:    ×

   ROA:    %

We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

PROBLEM ONE - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (the small stores rent) is not $200 but $220. A new lease may have caused the rent to increase. I have created Table 1 for you to put your answers in. Assume the price of the variable input, labor, is still $50 per unit.  When fixed costs change which other costs will increase? Compare the costs you calculate for table one to the costs calculated in the notes in chapter 7 to find the answer.

TABLE ONE FOR ANSWERS TO PROBLEM ONE

Problem Two - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the variable input (which is labor in this example) is not $50 but $55. I have created Table 2 for you to put your answers in. Assume that fixed costs remain at $220.  When the price of a variable input changes which other costs will increase? Compare the costs you calculate for table two to the costs calculated in table one to find your answers.

TABLE TWO FOR ANSWERS TO PROBLEM TWO

PROBLEM THREE

What assumption is made concerning short-run production that causes the short-run cost curves to have their typical shapes?

PROBLEM FOUR

Why would this firm not produce 12 or less units of the its output?

Create one Excel file to submit named "Exam 3 Team X.xlsx" where X is your team letter.

Show work for credit. USE EXCEL

1. Use the data below.

a. Create a scatter plot. Say what you see.

b.  Use the data to develop an estimated regression equation showing how your team data is related to DOW, the Dow Jones industrial average. What is the estimated regression model (y-mx+b, slope & intercept)?
Let x represent the DOW indexes.

c.  How much of the variation in the sample values of your team data does the model estimated in part (b) explain?
Round your answer to two decimal places.

d. Suppose that the closing price for the DOW is 29,000. Estimate the closing price for your data

e. Preform a hypothesis test for the model (F test) with an significance of 0.05. State your conclusion.

f. Preform a hypothesis test for each of the estimated coefficients at the 0.05 level of significance. State your conclusions.

2. From the data above create 3 variables where Month01=1, 0 otherwise for Janurary, Month02=1, 0 otherwise for February, Month03=1, 0 otherwise for March.

a..  Use the data to develop an estimated regression equation showing how your team data is related to DOW, the Dow Jones industrial average. What is the estimated regression model?
Let x represent the DOW indexes.

b.  How much of the variation in the sample values of your team data does the model estimated in part (b) explain?
Round your answer to two decimal places.

c. Suppose that the closing price for the DOW is 29,000. Estimate the closing price for your data for April.

d. Preform a hypothesis test for the model (F test) with an significance of 0.05. State your conclusion.

e. Preform a hypothesis test for each of the estimated coefficients at the 0.05 level of significance. State your conclusions.

3. Use the data below

a.  Show the naive forecast, an exponential smoothing forecasts using α = 0.2, and a 3-month moving average forecast.

b. Compare the MFE, MSE, and MAPE on the models

c.  Make a conclusion on which model to use.

d. Find the alpha (smoothing constant) that minimizes the MSE.

A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows:

a. Find the sample regression equation for the model: Salary = β₀ + β₁Education + ε. (Round answers to 2 decimal places.)

Salaryˆ=Salary^=    +   Education

b. Interpret the coefficient for Education.

• As Education increases by 1 unit, an individual’s annual salary is predicted to increase by $8,590.

• As Education increases by 1 unit, an individual’s annual salary is predicted to increase by $10,850.

• As Education increases by 1 unit, an individual’s annual salary is predicted to decrease by $8,590.

• As Education increases by 1 unit, an individual’s annual salary is predicted to decrease by $10,850.

c. What is the predicted salary for an individual who completed 7 years of higher education? (Round coefficient estimates to at least 4 decimal places and final answer to the nearest whole number.)

SalaryˆSalary^ = $

a single stub tuner, connected in parallel, has a 50 ohm main line, and a 50 ohm short- circuited stub .It is used to match a load of Zr = 20+j70 to a 50 ohm system. What are the lengths of the line and stub in centimeters if the single stub tuner is using air filled coaxial lines and the system is operating at 600MHz