The following data show the brand, price ($), and the overall score for 6 stereo headphones that were tested by Consumer Reports. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest). The estimated regression equation for these data is  = 23.395 + 0.316 x, where x = price ($) and y = overall score.

Round your answers to three decimal places.

a. Compute SST, SSR, and SSE.

b. Compute the coefficient of determination r ². Comment on the goodness of fit.

r ² =

SelectThe least squares line provided a very good fitThe least squares line provided a bad fitItem 5

c. What is the value of the sample correlation coefficient?

r =

The Nature and Wildlife Corporation has manufacturing facilities in country A and an assembly plant in country B. In June 2017, the company will ship 1,000 units with a production cost of $65 per unit to it's plant in country B. It's operating expenses in country A are $15,000 for the month. The income tax rate in country A is 20% and in country B it is 40%. The company plans to have a transfer price of $100 per unit. The final product can be sold in country B for $140. Country B's operating expenses are $10,000 during the month. How much will the combined profits of the two operations be in April 2018? Could the company benefit by changing the transfer price to $120? Suppose the income tax rate in Country A is 40% while in country B it is 20%. what will the combined profit be if all of the numbers are the same as the original assignment description. What would be the result in question 3 if the company decreased it's transfer price to $90?

You own a copper mine. The price of copper is currently €1.50 per pound. The mine produces 1 million pounds of copper per year and costs €2 million per year to operate. It has enough copper to operate for 100 years. Shutting the mine down would entail bringing the land up to environmental standards and is expected to cost €5 million. Reopening the mine once it is shut down would be an impossibility given current environmental standards. The price of copper has an equal (and independent) probability of going up or down by 25% each year for the next two years and then will stay at that level forever. Calculate the NPV of continuing to operate the mine if the cost of capital is fixed at 15%. Is it optimal to abandon the mine or keep it operating? Explain how you reach your conclusion and provide an estimate of the net present value of the company as a function of the year 2 copper price.

2.  Suppose that a hypothetical “consumer market basket” consists only

of goods B and C, in the quantities:  B = 10 and C = 5.  

Use 2018 as a base year (i.e., 2018 = 100).

                                                                   Year 2017      Year 2018     Year 2019

Quantity of Good A                                            3                      4                     5

Price of Good A                                                 $9                  $10                $11

Quantity of Good B                                          10                    10                   10

Price of Good B                                                 $2                    $4                   $6

Quantity of Good C                                            2                      4                      6

Price of Good C                                                 $5                    $6                    $7

e.  If an individual’s nominal income rises 50% from 2018 to 2019, what is the growth rate of their real income?

f.  If the base year is 2017 (instead of 2018), what will be the new CPI values for all three years?

g.  With the “updated” CPI values from question “f”, will the inflation rates for 2017 - 2018, and 2018 - 2019 change, or stay the same?  Justify your answer.

1. A bond issued on January 1, 2018 with a face amount of ​$5,000 at 5% has a current price quote of 100. Interest is payable on 7/1 and 1/1. The market rate is 5%. This is a 2 year bond.

What is the amount of the discount or premium? Enter a number value.

2.A bond issued on January 1, 2018 with a face amount of ​$8,000 at 5% has a current price quote of 103. Interest is payable on 7/1 and 1/1. The market rate is 4%. This is a 2 year bond.

What is the amount of discount or premium amortized on 7/1? Enter a number value.

3.A bond issued on January 1, 2018 with a face amount of ​$3,000 at 5% has a current price quote of 102. Interest is payable on 7/1 and 1/1. The market rate is 4%. This is a 2-year bond.

What is the interest expense amount on 7/1? Enter a number value.

Consumers Union provides ratings on a large variety of consumer products. They use sophisticated testing methods as well as surveys of their members to create these ratings.

One recent article rated laundry detergents on a scale from 1 to 100. Here are the ratings along with the price per load, in cents, for 24 laundry detergents:

Use these data to compute the correlation between rating and the price per load.

(Use decimal notation. Give your answer to three decimal places.)

Refer to the table below.

Suppose that aggregate demand increases such that the amount of real output demanded rises by $21 billion at each price level.

Instructions: Enter your answers as whole numbers.

a. By what percentage will the price level increase?  percent.

     Will this inflation be demand-pull inflation or will it be cost-push inflation? (Click to select)Cost-push inflationDemand-pull inflation.

b. If potential real GDP (that is, full-employment GDP) is $510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? $ billion.

c. If the government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it? (Click to select)IncreaseDecrease.

Consumer Reports provided extensive testing and ratings for more than 100 HDTVs. An overall score, based primarily on picture quality, was developed for each model. In general, a higher overall score indicates better performance. The following (hypothetical) data show the price and overall score for the ten 42-inch plasma televisions (Consumer Report data slightly changed here): Brand Price (X) Score (Y) Dell 3800 50 Hisense 2800 45 Hitachi 2700 35 JVC 3000 40 LG 3500 45 Maxent 2000 28 Panasonic 4000 57 Phillips 3200 48 Proview 2000 22 Samsung 3000 30 Use the above data to develop and estimated regression equation. Compute Coefficient of Determination and correlation coefficient and show their relation. Interpret the explanatory power of the model. Estimate the overall score for a 42-inch plasma television with a price of $3600. Perform test of significance for slope coefficient.

The Nature and Wildlife Corporation has manufacturing facilities in country A and an assembly plant in country B. In June 2017, the company will ship 1,000 units with a production cost of $65 per unit to its plant in country B. Its operating expenses in country A are $15,000 for the month. The income tax rate in country A is 20% and in country B it is 40%. The company plans to have a transfer price of $100 per unit. The final product can be sold in country B for $140. Country B’s operating expenses are $10,000 during the month.

How much will the combined profits of the two operations be in April 2018?

Could the company benefit by changing the transfer price to $120?

Now, suppose the income tax rate in country A is 40% while in country B it is 20%. What will the combined profit be if all of the other numbers are the same as they were in the original assignment description?

What would be the result in question 3 if the company decreased its transfer price to $90?

(PPP in China) The International Comparison Program (ICP) reported a price level index (PLI) for China of 42 in 2005 and 54 in 2011. Recall that, by construction, the PLI for the United States is always 100. 1. Find the percent change in the Yuan-dollar real exchange rate between 2005 and 2011. 2. In 2005 the size of the Chinese economy, at PPP exchange rates, was 43 percent that of the U.S. economy. Ignoring growth in physical output, find the size of the Chinese economy, at 2011 PPP exchange rates, relative to that of the U.S. economy. 3. Suppose instead that all of the observed real appreciation of the yuan was due to the imposition of import tariffs by China. Assume that in the U.S. and China the price level is given by P = Pγ XP1−γ M , where γ = 0.5, PX and PM denote export and import prices, respectively, and that absent tariffs the law of one price holds. Find the size of the import tariff.