1. As we have seen in class, hypothesis testing, and confidence intervals are the most common inferential tools used in statistics. Imagine that you have been tasked with designing an experiment to determine reliably if a patient should be diagnosed with diabetes based on their blood test results. Create a short outline of your experiment, including all the following:
   1. A detailed discussion of your experimental design. Detailed experimental design should include the type of experiment, how you chose your sample size, what data is being collected, and how you would collect that data. Sample size has to be 25 or less.

2. How is randomization used in your sampling or assignment strategy? Remember to discuss how you would randomize for sampling and assignment, what type of randomization are you using?
3. The type of inferential test utilized in your experiment. Include type of test used, number of tails, and a justification for this choice.
4. A formal statement of the null and alternative hypothesis for your test. Make sure to include correct statistical notation for the formal null and alternative, do not just state this in words.

5. A confidence interval for estimating the parameter in your test. State and discuss your chosen confidence level, why this is appropriate, and interpret the lower and upper limits.

6. An interpretation of your p-value and confidence interval, including what they mean in the context of your experimental design. Answer each part below. State your significance level, interpret your p-value, and make a decision on the null.

To illustrate the effects of driving under the influence​ (DUI) of​ alcohol, a police officer brought a DUI simulator to a local high school. Student reaction time in an emergency was measured with unimpaired vision and also while wearing a pair of special goggles to simulate the effects of alcohol on vision. For a random sample of nine​ teenagers, the time​ (in seconds) required to bring the vehicle to a stop from a speed of 60 miles per hour was recorded. Complete parts​ (a) and​ (b). ​Note: A normal probability plot and boxplot of the data indicate that the differences are approximately normally distributed with no outliers. LOADING... Click the icon to view the data table. ​(a) Whether the student had unimpaired vision or wore goggles first was randomly selected. Why is this a good idea in designing the​ experiment? A. This is a good idea in designing the experiment because reaction times are different. B. This is a good idea in designing the experiment because the sample size is not large enough. C. This is a good idea in designing the experiment because it controls for any​ "learning" that may occur in using the simulator. Your answer is correct. ​(b) Use a​ 95% confidence interval to test if there is a difference in braking time with impaired vision and normal vision where the differences are computed as​ "impaired minus​ normal." The​ 95% confidence interval is ​( nothing​, nothing​). ​(Round to the nearest thousandth as​ needed.)

​Normal, Upper X Subscript i
4.49
4.34
4.58
4.56
4.31
4.83
4.55
5.00
4.79
​Impaired, Upper Y Subscript i
5.86
5.85
5.51
5.29
5.90
5.49
5.23
5.63
5.63

Michael has a box of colored balls. It contains two red balls, three green balls, one purple ball, two yellow balls, and five blue balls. Michael will perform an experiment which goes as follows.

First, a ball is drawn from the box at random, the color of the ball is noted (R for red, G for green, etc.), and the ball is set aside (i.e. not replaced into the box). The next stage of the experiment depends on the color of the ball Michael draws. If the ball is red, he will draw another ball and note its color. If the ball he draws at the beginning is green, he will draw five more balls, simultaneously and at random, and note how many of the balls he has drawn are red. Otherwise (if the ball drawn at the beginning is neither green nor red), he will flip a coin and note the result (H for heads, T for tails). Thus, for example, BH, RR, and G2 are three possible outcomes of the experiment.

Let S denote the sample space of the experiment, and let E denote the event that the ball drawn at the beginning is blue.
What is n(S)?

What is n(E′)?

Andre's dog Fifi knows fifteen tricks, five of which are interesting. Fifi does a show by performing either two or three different tricks one after another. If the first two tricks are both interesting, she will perform a third trick; otherwise, she only performs two tricks.
How many different shows could Fifi do?

Suppose the economy has one good: candy bar. The real GDP is 1,000 candy bars, velocity is constant over years. In 2016, the money supply is $1,500, price level is $1.5 per candy bar.

In 2017, the Fed manipulates open-market operations to increase the money supply by 10%.

a. Compute the 2017 values of nominal GDP and price. Compute the inflation rate for 2016–2017.(In part a, assume the real GDP does not change)

b. Suppose the real GDP increases from 1,000 to 1,025 candy bars, compute 2016-2017 inflation rate.

Equity Method

On January 2, 2015, Winstead & Company purchased 1,000,000 shares of the Secrest Company for $32 million. The investment represented 40 percent of the outstanding common shares of The Secrest Company. During 2015, Secrest reported net earnings of $1.05 per share and paid a cash dividend of $0.35 per share.

During 2016, Secrest reported net earnings of $1.50 per share and paid a cash dividend of $0.40 per share.

Calculate the book value of Winstead’s investment in Secrest as of December 31, 2015, and December 31, 2016.

4. On January 2, 2016, Prebish Corporation issued $1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually, each December 31. The bonds are callable at 101 (i.e., at 101% of the face amount) and on January 2, 2019, Prebish called $1,500,000 face amount of the bonds and retired them. (100 POINTS)

Instructions

1. Determine the price of the Prebish bonds, when issued on January 2, 2016.
2. Prepare an Amortization Schedule for 2016-2020 for the bonds.
3. Prepare the journal entry to record the retirement of $1,500,000 by Prebish on January 2, 2019.

Crystal Corporation earned net income of $750,000 in 2016. It has a complex capital structure as follows: 10,000 shares outstanding of 10%, $100 preferred stock, and 150,000 shares issued of $5 common stock. There is also 20,000 common stock in the treasury. The preferred stock can be converted into 25,000 shares of common. In addition Crystal has Bonds Payable of $250,000 that pay interest of 8% and can be converted into 10,000 shares of common stock. The applicable federal income tax rate is 40%.

Calculate the basic earnings per share for 2016.

Calculate the diluted earnings per share for 2016.

During 2015, Nilsen Company started a construction job with a contract price of $3,200,000. The job was completed in 2017. The following information is available:
2015 2016 2017
Costs incurred to date $ 800,000 $1,650,000 $2,140,000
Estimated costs to complete 1,200,000 550,000 -0-
Billings to date 600,000 1,800,000 3,200,000
Collections to date 540,000 1,620,000 2,850,000
Required:
a. Prepare all the necessary accounting entries for 2015, 2016 &2017, assuming the percentage-of-completion method is used.
b. Prepare all the necessary accounting entries for 2015, 2016 &2017, assuming the cost-recovery method is used.

Martin Inc., a U.S. multinational, began operations in 2016. Martin had pretax U.S. source income and foreign source income as follows:

Income earned in the US            $900,000

Income earned in Country E 200,000

   Total global income                   $1,100,000

  

Martin paid $135,000 income tax to Country E.

Compute the amount that Martin would owe the U.S. Federal government for 2016 if it takes the foreign tax credit.

Assume that Martin's U.S. tax rate is 37% for 2016.

* make sure you read LO 13-5 before answering this question.