Customers arrive at a grocery store at an average of 2.2 per minute. Assume that the number of arrivals in a minute follows the Poisson distribution. Provide answers to the following to 3 decimal places.

Part a)

What is the probability that exactly two customers arrive in a minute?



Part b)

Find the probability that more than three customers arrive in a two-minute period.



Part c)

What is the probability that at least seven customers arrive in three minutes, given that exactly two arrive in the first minute?

The results of a (20 questions) multiple choice questions exam are recorded. Random samples of 10 and 12 students are investigated. For the 10 student sample, the individual performances are 11, 8, 8, 3, 7, 5, 9, 5, 1, and 3 errors. For the 12 student sample, the individual performances are 10, 11, 9, 7, 2, 11, 12, 3, 6, 7, 8, and 12 errors.

1. Assuming the population standard deviations are equal, use the 0.10 level of significance in testing whether the two samples average performances are the same.
2. Construct a 90% confidence interval for the difference between average performances.

Credit Cards

Credit card numbers follow patterns.

1. Cards must have 13 - 16 digits (inclusive)
2. Card numbers must start with the number(s):
   • 4 for Visa cards
   • 5 for MasterCard cards
   • 37 for American Express cards
   • 6 for Discover cards

Given that a number has satisfied the above criteria A and B the following steps are taken to validate the number:

1. Double every second digit from right to left.  If doubling the digit results in a two-digit number, add the two digits to get a single digit number
2. Add all of the single digit numbers from step 1 above
3. Add all of the digits in the odd places from right to left in the card number
4. Sum the results from steps 2 and 3 above
5. If the result from step 4 is evenly divisible by 10 the card number is valid.

Given the number:

4388576018402626

The steps 1 - 5 above would be (after determining that A an B above have been satisfied):

Step 1:

2 * 2 = 4

2 * 2 = 4

4 * 2 = 8

1 * 2 = 2

6 * 2 = 12 ( 1 + 2 = 3)

5 * 2 = 10 (1 + 0 = 1)

8 * 2 = 16 (1 + 6 = 7)

4 * 2 = 8

Step 2:

4 + 4 + 8 + 2 + 3 + 1 + 7 + 8 = 37

Step 3:

6 + 6 + 0 + 8 + 0 + 7 + 8 + 3 = 38

Step 4:

37 + 38 = 75

Step 5:

75 % 10

You are to write a program that will prompt the user to enter a card number.  You are then to determine if the number entered is valid or not.  You are then to print to the screen if the number entered is a valid credit card number or not.

Your are to complete this program using functions. You are to have a function main in which you will only call the functions you have developed.  The last line of your code is to be a call to main as below:

main()

Here are some valid numbers for testing purposes:

Done in Python Format please

Suppose that an investor with a five-year investment horizon is considering purchasing a seven-year 7% coupon bond selling at par. The investor expects that he can reinvest the coupon payments at an annual interest rate of 9.4% and that at the end of the investment horizon two-year bonds will be selling to offer a yield to maturity of 11.2%. What is the total return on this investment?

Extra information:

Draw the cashflows of the 7 year bond. Using Par Value of 100, investors pays 100 and receives 14 coupon payments and Par Value of 100 at the end of 7 years.

Part 1: As the investor has hold the bond for 5 years, he will have received 10 coupon payments. With an reinvestment rate of 9.4% (s.a. compounding), what is the coupons plus interest on coupons at the end of 5 years?

Part 2: At the end of year 5, what is the remaining life of the bond? With a yield to maturity of 11.2%, what is the value of the bond then?

Seasonal affective disorder (SAD) is a type of depression during seasons with less daylight (e.g., winter months). One therapy for SAD is phototherapy, which is increased exposure to light used to improve mood. A researcher tests this therapy by exposing a sample of patients with SAD to different intensities of light (low, medium, high) in a light box, either in the morning or at night (these are the times thought to be most effective for light therapy). All participants rated their mood following this therapy on a scale from 1 (poor mood) to 9 (improved mood). The hypothetical results are given in the following table.

(a) Complete the F-table and make a decision to retain or reject the null hypothesis for each hypothesis test. (Round your answers to two decimal places. Assume experimentwise alpha equal to 0.05.)

State the decision for the main effect of the time of day.

Retain the null hypothesis.Reject the null hypothesis.     

State the decision for the main effect of intensity.

Retain the null hypothesis.Reject the null hypothesis.     

State the decision for the interaction effect.

Retain the null hypothesis.Reject the null hypothesis.     

Summarize the results for this test using APA format.

EasyPoker Inc. needs to develop an estimate of its cost of capital. The firm’s marginal tax rate is 30%. The current price of EasyPoker’s 12 percent coupon, semiannual payment bonds with 15 years remaining to maturity is $1,153.72. The current price of the firm’s 10%, $100 par value quarterly dividend perpetual preferred stock is $110.00. EasyPoker’s common stock is currently selling at $50 per share. Its last dividend was 4.19, and dividends are expected to grow at a constant rate of 6 % forever. The firms’s beta is 1.35, the yield on T-bills is 7 percent, and the market risk premium is estimated to be 6%. EasyPoker’s capital structure is 40 percent debt, 10 percent preferred stock, and 50 percent common equity.

Please provide the following, showing all work:

2. Calculate the firm’s component cost of debt.

3. Calculate the firm’s cost of equity. Use all possible sources of information.

4. Calculate the firm’s WACC.

Bill has been adding funds to his investment account each year for the past 3 years. He started with an initial investment of $1,000. After earning a 10% return the first year, he added $3,000 to his portfolio. In this year his investments lost 5%. Undeterred, Bill added $2,000 the next year and earned a 2% return. Last year, discouraged by the recent results, he only added $500 to his portfolio, but in this final year his investments earned 8%. What was Bill's dollar-weighted average return for his investments?

Consider the following two bonds. One bond with a coupon rate of 6%, semi-annual coupons, and 20 years until maturity. The second bond has 10 years until maturity but is otherwise the same. a. What is the most you should pay for each asset if current yields are 7%? b. Do the bonds sell at a premium or a discount? c. Suppose current yields increase to 8%, what are the new bond prices? d. Which bond is more sensitive to yield changes? How can you tell?

A company randomly selected nine office employees and secretly monitored their computers for one month. The times (in hours) spent by these employees using their computers for non-job-related activities (playing games, personal communications, etc.) during this month are given below. Assuming that such times for all employees are normally distributed, make a confidence interval for the corresponding population mean for all employees of this company. Round your answers to two decimal places.

7, 9 ,10, 8, 11, 4, 14, 1, 6

The yield to maturity (YTM) on 1-year zero-coupon bonds is 7% and the YTM on 2-year zeros is 8%. The yield to maturity on 2-year-maturity coupon bonds with coupon rates of 10% (paid annually) is 7.5%.

a. What arbitrage opportunity is available for an investment banking firm?

The arbitrage strategy is to buy zeros with face values of $  and $  , and respective maturities of one year and two years.

b. What is the profit on the activity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)