1.

ssume you are a fresh graduate from University of Kenya with Public Finance as one of your specializations. You have been employed by the Ministry of Finance in your country. The government of your country is in the process of designing a better tax system in order to maximize revenue for accelerated economic development.

a. Your superior has assigned you the task of assisting in designing the new tax system. Discuss what a good tax system would require and explain the specific economic challenges that affect taxation in your country.

b. Explain two (2) major reasons why the incidence of taxation should be of paramount importance to the Government.

c. Discuss four (4) major recommendations you would offer a neigbouring country that is in the process of introducing VAT in their country.

Beth, a newlywed, just graduated from university as a Registered Nurse. She was just hired by a large hospital in Toronto that employs over 500 workers. She is hired at a rate of $40 per hour and has a probationary period of one-year. When she was hired, her employment offer was to get a minimum of 32 hours per week, but depending on the hospitals needs, may be up to 60 hours per week. Because of COVID-19, the hospital demands are high.

Beth's hours for this week were:

Monday: 12 hours

Tuesday: 9 hours

Wednesday: 12 hours

Thursday: 10 hours

Friday: Off

Saturday: 10 hours

1. What will be her pay for this week (assume no averaging agreement and breaks are paid)? Show your calculations.
2. Is it legal for the hospital to require her to work these many hours in a week? Explain your answer in detail.
3. Do you think the hospital may want to enter into an averaging agreement? Please discuss what it is, the advantages to the hospital, the advantages to Beth, and should she agree to it.

Ben Paul is an accounting major at a western university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Ben, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Ben has gathered the following investment information.

1.         Five used vans would cost a total of $90,000 to purchase and would have a 3-year useful life

    with negligible salvage value. Ben plans to use straight-line depreciation.

2.         Ten drivers would have to be employed at a total payroll expense of $43,000.

3.         Other annual out-of-pocket expenses associated with running the commuter service would  

    include Gasoline $26,000, Maintenance $4,000, Repairs $5,300, Insurance $4,500,

    Advertising $2,200.

4.         Ben desires to earn a return of 15% on his investment.

5.         Ben expects each van to make ten round trips weekly and carry an average of six students

    each trip. The service is expected to operate 32 weeks each year, and each student will be

    charged $15 for a round-trip ticket.

Instructions

(a)         Determine the annual:

                                                           (1) net income and

           (2) net annual cash flows for the commuter service.

(b)       Compute the:

           (1) cash payback period and

           (2) annual rate of return. (Round to two decimals.)

(c)         Compute the net present value of the commuter service. (Round to nearest dollar.)

(d)         What should Ben conclude from these computations?

1. A university found that 10% of students withdraw from a math course. Assume 25 students are enrolled.
   1. Write the prob. distribution function with the specific parameters for this problem

1. 2. Compute by hand (can use calculator but show some work) the pro that exactly 2 withdraw.
2. 3. Compute by hand (can use calculator but show some work) the prob. that exactly 5 withdraw.
3. 4. Construct the probability distribution table of class withdrawals in Excel. This is a table of x and f(x). Generate one column for the number of x successes with numbers 0 to 25 in each row. Generate a second column with the probability f(x) of each success using the Excel function =BINOM.DIST(x, n, p, FALSE) in each row. Attach the table
4. 5. What is the probability that 5 or less will withdraw?

We are interested in estimating the proportion of graduates from Lancaster University who found a job within one year of completing their undergraduate degree. Suppose we conduct a survey and find out that 354 of the 400 randomly sampled graduates found jobs. The number of students graduating that year was over 4000.

1. (a) State the central limit theorem.

2. (b) Why is the central limit theorem useful?

3. (c) What is the population parameter of interest? What is the point estimate of this parameter?

4. (d) What are the assumptions for constructing a confidence interval based on these data? Are they met?

5. (e) Calculate a 95% confidence interval for the proportion of graduates who found a job within one year of completing their undergraduate degree. Interpret this within the context of the data.

6. (f) Without doing any calculations, describe what would happen to the confidence interval if we decided to use a higher confidence level, e.g., 99%.

7. (g) Without doing any calculations, describe what would happen to the confidence interval if we used a larger sample.

1. Every day, Eric takes the same street from his home to the university. There are 4 street lights along his way, and Eric has noticed the following Markov dependence. If he sees a green light at an intersection, then 60% of time the next light is also green, and 40% of time the next light is red. However, if he sees a red light, then 75% of time the next light is also red, and 25% of time the next light is green. Let 1 = “green light” and 2 = “red light” with the state space {1, 2}.

(a) Construct the 1-step transition probability matrix for the street lights.

(b) If the first light is red, what is the probability that the third light is red?

(c) Eric’s classmate Jacob has many street lights between his home and the university. If the first street light is red, what is the probability that the last street light is red? (Use the steady-state distribution.)

Ms Mary was accepted to Big State University and received a reduced tuition from $50,000 to $20,000. Mary also received a scholarship of $30,000 to attend Big State University. Since Mary's tuition is $20,000 she will use the remaining portion to cover her room and board expenses. BSU also offered Mary a part-time job as an admin. assistant where she will be paid $2,500 per year. Mary Smith needs your help in determining what is taxable and what is not taxable. Please use IRS publication 970 and let her know what /if anything is taxable and what is nontaxable and any other info that is relevant. Please write at leat 200 words to explain why.

You wanted to be an entrepreneur after you graduate from university Along with your friends – one from marketing, another one from economics, you set up a new business. Your two friends from other majors are telling you – because you are a management major – to 2 design an organization with structural dimensions and contextual dimensions. You agreed to do it. Design your organization with the above dimensions.?

You receive a brochure from a large university. The brochure indicates that the mean class size for​ full-time faculty is fewer than

3333

students. You want to test this claim. You randomly select

1818

classes taught by​ full-time faculty and determine the class size of each. The results are shown in the table below. At

alphaαequals=0.100.10​,

can you support the​ university's claim? Complete parts​ (a) through​ (d) below. Assume the population is normally distributed.

​(a) Write the claim mathematically and identify

Upper H 0H0

and

Upper H Subscript aHa.

Which of the following correctly states

Upper H 0H0

and

Upper H Subscript aHa​?

A.

Upper H 0H0​:

muμequals=3333

Upper H Subscript aHa​:

muμless than<3333

B.

Upper H 0H0​:

muμequals=3333

Upper H Subscript aHa​:

muμnot equals≠3333

C.

Upper H 0H0​:

muμless than<3333

Upper H Subscript aHa​:

muμgreater than or equals≥3333

D.

Upper H 0H0​:

muμgreater than or equals≥3333

Upper H Subscript aHa​:

muμless than<3333

Your answer is correct.

E.

Upper H 0H0​:

muμless than or equals≤3333

Upper H Subscript aHa​:

muμgreater than>3333

F.

Upper H 0H0​:

muμgreater than>3333

Upper H Subscript aHa​:

muμless than or equals≤3333

​(b) Use technology to find the​ P-value.

Pequals=nothing

​(Round to three decimal places as​ needed.)

A student who expects to graduate from Wichita State University in May of 2019 is considering whether to go on to graduate school. Which three (3) of the following are opportunity costs that the student must consider in deciding whether to go to graduate school?

The $250 the student spend last year on books while working on her undergraduate degree?

The $35,000 per year that she would make if she accepts a job that will be available to her after graduating with her undergraduate degree.

The $350 she plans to spend to fix the brakes on the car she is currently using to get to the Wichita State campus.

The $6,000 per year in tuition for her graduate degree.

The value of the time she would like to spend with her family on weekends instead of studying while working on her graduate degree.

The $900 she plans to spend on a trip to New York City with friends to celebrate after she graduates in May of 2019.

The $150 per month she spends on dog care for the dog she plans to keep regardless of whether she goes to graduate school or works next year.