The personnel director for a small manufacturing company has collected the data found in the table 1 describing the salary (Y) earned by each machinist in the factory along with the average performance rating (X₁) over the past 3 years, the years of service (X₂), and the number of different machines each employee is certified to operate (X₃).

The personnel director wants to build a regression model to estimate the average salary an employee should expect to receive based on his or her performance, years of service, and certifications.

a. Prepare three scatter plots showing the relationship between the salaries and each of the independent variables. What sort of relationship does each plot suggest?

b. If the personnel director wanted to build a regression model using only one independent variable to predict the salaries, what variable should be used?

c. If the personnel director wanted to build a regression model using only two independent variables to predict the salaries, what two variables should be used?

d. Compare the adjusted-R² statistics obtained in parts b and c with that of a regression model using all three independent variables. Which model would you recommend that the personnel director use?

e. Suppose the personnel director chooses to use the regression function with all three independent variables. What is the estimated regression function?

f. Suppose the company considers an employee’s salary to be “fair” if it is within 1.5 standard errors of the value estimated by the regression function in part e. What salary range would be appropriate for an employee with 12 years of service, who has received average reviews of 4.5, and is certified to operate 4 pieces of machinery?

The firm is financed by 40% of debt and 60% of equity. It has the weigthed average cost of capital of 15%. The cost of equity is 25%. What is the cost of debt? Assume that there are no taxes.And think about another situation. The firm is financed by 40% of debt and 60% of equity. It has the weigthed average cost of capital of 15%. The cost of debt is 8%. What is the cost of equity? Assume that there are no taxes.Please answer the questions with two parts.

The authors of an article found that the speed of a prey (twips/s) and the length of a prey (twips ✕ 100) are good predictors of the time (s) required to catch the prey. (A twip is a measure of distance used by programmers.) Data were collected in an experiment in which subjects were asked to "catch" an animal of prey moving across his or her computer screen by clicking on it with the mouse. The investigators varied the length of the prey and the speed with which the prey moved across the screen.

The following data are consistent with summary values and a graph given in the article. Each value represents the average catch time over all subjects. The order of the various speed-length combinations was randomized for each subject.

(a) Fit a multiple regression model for predicting catch time using prey length and speed as predictors. (Use x₁ for prey length and x₂ for speed. Round your answers to three decimal places.)

=( ____) +(____  x₁₎ +( _____  x₂₎

(b) Predict the catch time for an animal of prey whose length is 6 and whose speed is 50. (Round your answer to three decimal places.)

(_____ s)

(C) Calculate the test statistic. (Round your answer to two decimal places.)

F = (_____)

(d) The authors of the article suggest that a simple linear regression model with the single predictor

x = length / speed

might be a better model for predicting catch time. Calculate the x values and use them to fit this linear regression model. (Round your answers to three decimal places.)

= (____) + (_____ x)

The authors of an article found that the speed of a prey (twips/s) and the length of a prey (twips ✕ 100) are good predictors of the time (s) required to catch the prey. (A twip is a measure of distance used by programmers.) Data were collected in an experiment in which subjects were asked to "catch" an animal of prey moving across his or her computer screen by clicking on it with the mouse. The investigators varied the length of the prey and the speed with which the prey moved across the screen.

The following data are consistent with summary values and a graph given in the article. Each value represents the average catch time over all subjects. The order of the various speed-length combinations was randomized for each subject.

(a) Fit a multiple regression model for predicting catch time using prey length and speed as predictors. (Use x₁ for prey length and x₂ for speed. Round your answers to three decimal places.)

=( ____) +(____  x₁₎ +( _____  x₂₎

(b) Predict the catch time for an animal of prey whose length is 6 and whose speed is 50. (Round your answer to three decimal places.)

(_____ s)

(C) Calculate the test statistic. (Round your answer to two decimal places.)

F = (_____)

(d) The authors of the article suggest that a simple linear regression model with the single predictor

x = length / speed

might be a better model for predicting catch time. Calculate the x values and use them to fit this linear regression model. (Round your answers to three decimal places.)

= (____) + (_____ x)

4.

Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house?

A) No, he will lose money.

B) Yes, his profits will be zero.

C) No, his profits will be positive but close to zero.

D) Yes, he will profit from this investment.

5.

Suppose that CSUSM offers you two payment plans for your last two years of college. You may either pay tuition of $20,000 per year at the beginning of each of the next two years, or pay just $38,000 before the start of freshman year. What would the interest rate have to be for you to be indifferent between these two deals? Explain.

6.A major corporation hires high school students on a part-time basis. It offers a reward of $5,000 to any of its high school seniors who graduate college in four years. What is the present value of that reward to a student who just finished her junior year of high school (i.e., 5 years later to graduate college), assuming a nominal rate of interest of 8%?

Miglietti Restaurants is looking at a project with the following forecasted​ sales: ​ first-year sales quantity of 35,000​, with an annual growth rate of 4.00​% over the next ten years. The sales price per unit will start at $44.00 and will grow at 2.00% per year. The production costs are expected to be 55​% of the current​ year's sales price. The manufacturing equipment to aid this project will have a total cost​ (including installation) of $2,300,000. It will be depreciated using​ MACRS, and has a​seven-year MACRS life classification. Fixed costs will be ​$330,000 per year. Miglietti Restaurants has a tax rate of 40​%. What is the operating cash flow for this project over these ten​ years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for $140,000 at the end of the​ ten-year project and the cost of capital for this project is 7​%.

a) What is the operating cash flow for this project in year​ 1? year 2? year 3? year 4? year 5? year 6? year 7? year 8? year 9? year 10?

b) What is the after tax cash flow of the project of disposal?

c) What is the NPV of the project?

• If a block of mass m at speed v collides inelastically with a block of mass M at rest, what is the final velocity of each block? What fraction of the initial energy is lost?

• Two identical circular hockey pucks of radius r traveling towards each other at the same speed v collide elastically. Their centers are separated by a vertical distance d, which is less than r. After the collision, with what angle relative to the initial path of the pucks will each one travel along?

• Explain the physics of Newton’s Cradle.

What is the pH of a solution made by mixing 500 mL of 1.00 M HCN and 1.50 L of 0.250 M NaOH, and then diluting the entire solution to a volume of 3.00 L? (Ka HCN = 4.0 x 10^-10)

• A.

  8.92

• B. 6.52

• C.

  9.88

• D.

  9.27

• E.

  5.08

To obtain one litre of a solution of pH = 7, you should dissolve in water

• A.

  Two mol of HI + two mol of CH₃NH₂

• B.

  One mol of H₂SO₄ + two mol of NH₃

• C.

  One mol of HF + one mole of KOH

• D.

  Two mol of H₂SO₄ + four mol of NaOH

• E.

  Two mol of H₃PO₄ + three mol of Ca(OH)₂

Question 5

Percy Bazaar did not keep proper accounting records. She asked you to review this informatio from her records.

ASSETS AND LIABILITIES:

The following expenses were paid during the year:

Telephone & internet N$ 8 000.00 paid by cheque.

Sundry expenses N$ 18 000.00 paid by cheque.

Telephone & internet paid by cash N$ 2 000.00.

Drawings N$ 10 000.00 by cash.

The bank statement from First National Bank Namibia indicated that:

There was N$ 50 000.00 paid b receivables and banked immediately.

Percy Bazaar received N$ 10 000 cash from one of the receivables. Payables were paid N$ 24 000.00 by cheque during the year.

You are required to:

5.1 Prepare the following General ledger accounts ( T- accounts) and balance them off properly:

1. Consider information regarding the following two stocks. The probability of each state of the economy is 1/3. No dividends are paid.

STOCK. Initial Price. Boom. Normal Bust

A. 40 60 50 25

B. 25 20 25 35

(a) What is the expected value and the standard deviation of the rate of return of each stock?

(b) Which stock is the better investment for you? Why?