Models with Categorical Variables

1. A study was done to determine whether the gender of the credit card holder was an important factor in generating profit for a certain credit card company. The independent variables considered were income, the number of family members, and gender of the card holder. The data can be found in the Excel file “CreditCard.” Run a multiple regression in Minitab to answer the following questions.

The Gender dummy variable was created using Male as the base.

1. What is the prediction equation?

2. Predict profit for a female card holder with an income of 50,000 and 3 family members.

3. Based on the results, would the company prefer a male or female customer? Explain.

4. Would you say that income is an important factor in explaining the variability of profit? (Perform a hypothesis test with α = 0.05)

5. Would you say that number of family members is an important factor in explaining the variability of profit? (Perform a hypothesis test with α = 0.05)

6. What is the value of R²? What is the value of adj R²? What is the interpretation of R²?

The hydrolysis of 1-chloro-1-methyl cylcoheptane in 80% ethanol follows a first order rate equation. The values of the specific reaction rate constants are:

1. Plot Ln(k) against 1/T

2. Calculate the activation energy

3. Calculate the pre-exponential factor

Calculate the standard deviation of the following returns.

Year Return

1 0.18

2 0

3   -0.05

4   0.2

5 -0.17

Enter the answer with 4 decimals, e.g. 0.1234

. Which of the following are redox reactions?

I: 2 HF(aq) + Ca(OH)₂(aq) → CaF₂(s) + 2 H₂O(l)

II: 2 CH₃OH(g) + 3 O₂(g) → 2 CO₂(g) + 4 H₂O(l)

III: 2 HNO₃(aq) + NO(g) → 3 NO₂(g) + H₂O(l)

(1) Only I                   (2) Only II                  (3) I and III                (4) II and III              (5) I, II, and III

Upper Division of Lower Company acquired an asset with a cost of $550,000 and a four-year life. The cash flows from the asset, considering the effects of inflation, were scheduled as follows:

The cost of the asset is expected to increase at a rate of 10 percent per year, compounded each year. Performance measures are based on beginning-of-year gross book values for the investment base. Ignore taxes.

Year Cash Flow

1 $200,000

2 $245,000

3 $280,000

4 $305,000

Required:

a. What is the ROI for each year of the asset's life, using a historical cost approach? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

ROI

Year

1    _____ %

2   _____ %

3   _____ %

4   _____ %

b. What is the ROI for each year of the asset's life if both the investment base and depreciation are determined by the current cost of the asset at the start of each year? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

ROI

Year   

1    _____ %

2   _____ %

3   _____ %

4   _____ %

Given the root C++ code:

void sort()
{
   const int N = 10;
   int x[N];
   for(int i = 0; i < N; i++)
   {
       x[i] = 1 + gRandom-> Rndm() * 10;
       cout<<x[i]<<" ";
}

   cout<<endl;
   int t;
  
   for(int i = 0; i < N; i++)
   {
   for(int j = i+1; j < N; j++)
   {
       if(x[j] < x[i])
       {
           int t = x[i];
           x[i] = x[j];
           x[j] = t;
   }
   }
       }
   cout << endl;
  
   for(int i = 0; i < N; i++)
   {
       cout << x[i] <<" ";
   }
   cout << endl;
}

Given the order of numbers (10, 9, 8, 7, 6, 5, 4, 3, 2, 1)

Why does the program sort into (1, 2, 3, 4, 5, 6, 7, 8, 9, 10)

and not into (9, 8, 7, 6, 5, 4, 3, 2, 1, 10)?

Please explain in detail.

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 140 $ 4 2011 $ 159 $ 4 2012 $ 132 $ 4 2013 $ 137 $ 4 An investor buys five shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all seven remaining shares at the beginning of 2013. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic mean 2.93 % Geometric mean 2.08 % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 1/1/2010 $ -700 1/1/2011 -457 1/1/2012 164 1/1/2013 987 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return %

QUESTION 1

1. Consider the Boolean function F(x, y) = x + y, how many cells in the Kmap representing this function have value of “1”?

10 points   

QUESTION 2

1. Using Kmap for simplification, we can select multiple smaller groups (instead of a larger group) as long as all “1” are selected.

10 points   

QUESTION 3

1. In Kmap representation, how many values of “0” and “1” two neighboring minterms can differ?

10 points   

QUESTION 4

1. Consider the Boolean function F(x, y) = x’y’ + xy, the minterm x’y’ represents the input pair _________________.

10 points   

QUESTION 5

1. Consider two input variables x and y, how many minterms exist?

10 points   

QUESTION 6

1. Using Kmap for simplification, number of elements grouped must be _________________.

10 points   

QUESTION 7

1. Consider the Boolean function F(x, y) = xy, how many cells in the Kmap representing this function have value of “1”?

10 points   

QUESTION 8

1. Minterm is to indicate a product term includes

10 points   

QUESTION 9

1. Using Kmap for simplification, groups can contain both “0” and “1” as long as they simplify the given function.

10 points   

QUESTION 10

1. Consider a Boolean function consisting of 4 variables, is it correct to say two cells in the upper right and lower left corners of the Kmap will never be grouped?