A manager for an insurance company believes that customers have the following preferences for life insurance products: 40% prefer Whole Life, 20% prefer Universal Life, and 40% prefer Life Annuities. The results of a survey of 209 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data? Product Number Whole 86 Universal 54 Annuities 69 Step 4 of 10: Find the expected value for the number of customers who prefer Whole Life. Round your answer to two decimal places. Step 5 of 10: Find the expected value for the number of customers who prefer Universal Life. Round your answer to two decimal places. Step 6 of 10: Find the value of the test statistic. Round your answer to three decimal places. Step 7 of 10: Find the degrees of freedom associated with the test statistic for this problem. Step 8 of 10: Find the critical value of the test at the 0.025 level of significance. Round your answer to three decimal places. Step 9 of 10: Make the decision to reject or fail to reject the null hypothesis at the 0.025 level of significance. Step 10 of 10: State the conclusion of the hypothesis test at the 0.025 level of significance.

A study is conducted to survey (in thousands) of earned degrees in the United States in a recent year. The table is given below.

a) If one person is randomly selected, find the probability that this person is a female.      

  b)  If one person is randomly selected, find the probability that this person has a bachelor degree and is a male.   

  c)   If one person is randomly selected, find the probability that this person has an AA degree.  

d) If one person is randomly selected, find the probability that this person is a female, giventhat the person received an AA degree.

e) If one person is randomly selected, find the probability that this person has a master degree or is a female.

f) Are the events “female” and “AA degree” independent? Why or why not? Use the answers from a) and d) above to explain this.

g) If two people are randomly selected, find the probability that these two people are males.

Recall from Example 1 that whenever Suzan sees a bag of marbles, she grabs a handful at random. She has seen a bag containing three red marbles, five green ones, two white ones, and two purple ones. She grabs seven of them. Find the probability of the following event, expressing it as a fraction in lowest terms. HINT [See Example 1.]

She has all the red ones.

Recall from Example 1 that whenever Suzan sees a bag of marbles, she grabs a handful at random. She has seen a bag containing three red marbles, three green ones, four white ones, and three purple ones. She grabs eight of them. Find the probability of the following event, expressing it as a fraction in lowest terms. HINT [See Example 1.]

She has at least one green one

Recall from Example 1 that whenever Suzan sees a bag of marbles, she grabs a handful at random. She has seen a bag containing four red marbles, three green ones, four white ones, and two purple ones. She grabs five of them. Find the probability of the following event, expressing it as a fraction in lowest terms. HINT [See Example 1.]

She has two red ones and one of each of the other colors.

Forty architecture students were each asked to judge 5
different building structures. The response variable of interest
is the judge's overall satisfaction (SAT), where a higher score
is better. We wish to compare the mean satisfaction rating across
the five buildings, so the factor of interest is BLDG.

USE R OR SAS TO SOLVE THE PROBLEMS. PLEASE INCLUDE YOUR CODE TO GET THE ANSWER.

I am not sure how the data is not understandable. Literally take the data plug it into r or sas to get the answers. SUBJ - this is one of the fourty testers. BLDG - this is what building model they rated. SAT - is there rating of said building.

(a) Why does it make sense to use the judge (denoted SUBJ in the
data set) as a blocking variable? Why should we treat this block
as a random effect?

(b) Analyze the data as a RBD, where SAT is the response, BLDG is
the treatment factor, and SUBJ is the block. Based on the appropriate
F-test, is there a significant difference in mean satisfaction rating
across the five buildings? NOTE: Use a 0.10 significance level.

(c) Based on the appropriate F-test, is there significant variation
among the judges? NOTE: Use a 0.10 significance level.

(d) Of particular interest to the investigators is whether the mean
satisfaction for building 1 differs significantly from the mean satisfaction
for the other four buildings. Use an ESTIMATE statement to test the
appropriate contrast here. NOTE: Use a 0.10 significance level.

data buildings;                                                                                                                           
input SUBJ BLDG SAT;                                                                 
cards;                                                                                                                                  
 1 1 2
 1 2 5
 1 3 6
 1 4 5
 1 5 7
 2 1 5
 2 2 6
 2 3 6
 2 4 7
 2 5 4
 3 1 4
 3 2 7
 3 3 3
 3 4 6
 3 5 7
 4 1 6
 4 2 4
 4 3 7
 4 4 5
 4 5 7
 5 1 2
 5 2 6
 5 3 4
 5 4 7
 5 5 5
 6 1 4
 6 2 6
 6 3 7
 6 4 5
 6 5 3
 7 1 7
 7 2 5
 7 3 5
 7 4 7
 7 5 4
 8 1 3
 8 2 7
 8 3 6
 8 4 7
 8 5 6 
 9 1 6
 9 2 7
 9 3 8
 9 4 6
 9 5 3
 10 1 5
 10 2 3
 10 3 3
 10 4 5
 10 5 6
 11 1 3
 11 2 6 
 11 3 4 
 11 4 4 
 11 5 3
 12 1 3
 12 2 6
 12 3 7
 12 4 5
 12 5 3
 13 1 4
 13 2 1
 13 3 7
 13 4 1
 13 5 6
 14 1 4
 14 2 6
 14 3 8
 14 4 5
 14 5 1
 15 1 4
 15 2 4
 15 3 4
 15 4 5
 15 5 5
 16 1 8
 16 2 5
 16 3 9
 16 4 9
 16 5 5
 17 1 5
 17 2 5
 17 3 6
 17 4 7
 17 5 5
 18 1 5
 18 2 4
 18 3 6
 18 4 6
 18 5 6
 19 1 2
 19 2 5
 19 3 6
 19 4 2
 19 5 8
 20 1 2
 20 2 8
 20 3 7
 20 4 8
 20 5 2
 21 1 8
 21 2 8
 21 3 8
 21 4 8
 21 5 3
 22 1 5
 22 2 4
 22 3 4
 22 4 3
 22 5 5
 23 1 6
 23 2 6
 23 3 6
 23 4 6
 23 5 4
 24 1 3
 24 2 5
 24 3 8
 24 4 5
 24 5 6
 25 1 6
 25 2 2
 25 3 5
 25 4 7
 25 5 6
 26 1 2
 26 2 7
 26 3 4
 26 4 7
 26 5 2
 27 1 7
 27 2 7
 27 3 7
 27 4 7
 27 5 7
 28 1 8
 28 2 5
 28 3 5
 28 4 6
 28 5 3
 29 1 2
 29 2 6
 29 3 7
 29 4 4
 29 5 5
 30 1 1
 30 2 5
 30 3 5
 30 4 6
 30 5 6
 31 1 9
 31 2 7
 31 3 8
 31 4 2
 31 5 8
 32 1 6
 32 2 9
 32 3 1
 32 4 8
 32 5 4
 33 1 2
 33 2 6
 33 3 8
 33 4 9
 33 5 8
 34 1 8
 34 2 4
 34 3 3
 34 4 3
 34 5 9
 35 1 2
 35 2 7
 35 3 2
 35 4 9
 35 5 2
 36 1 2
 36 2 9
 36 3 1
 36 4 8
 36 5 3
 37 1 7
 37 2 2
 37 3 3 
 37 4 3
 37 5 6
 38 1 3
 38 2 7
 38 3 3
 38 4 2
 38 5 2
 39 1 3
 39 2 3
 39 3 5
 39 4 3
 39 5 3
 40 1 9
 40 2 5
 40 3 8
 40 4 7
 40 5 8    
;
run; 

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 7%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $15.368 million, and it faces a 40% federal-plus-state tax rate. The market risk premium is 4%, and the risk-free rate is 5%. BEA is considering increasing its debt level to a capital structure with 35% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 8%. BEA has a beta of 1.0.

1. What is BEA's unlevered beta? Use market value D/S (which is the same as w_d/w_s) when unlevering. Round your answer to two decimal places.
   
   
2. What are BEA's new beta and cost of equity if it has 35% debt? Do not round intermediate calculations. Round your answers to two decimal places.

   Beta
   Cost of equity	%

   
   
3. What are BEA’s WACC and total value of the firm with 35% debt? Do not round intermediate calculations. Round your answer to two decimal places.
   %
   
   What is the total value of the firm with 35% debt? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to three decimal places.
   $ million

1. The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements.

2. Distinguish between a primary government and a component unit. Include one example of each.

3. GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used.

4. The City of X is deciding whether or not to include a transit system in its financial report and how the transit system would be reported if a positive decision were made. The transit system is a legally separate entity, has its own governing board, not appointed by the city, has a different auditor, and issues its own financial report. The city has signed an agreement that, for the next ten years (the life of a bond issue related to transit operations), it will make up the deficit of the transit system. During the last two years, the deficit has been $10 million, approximately 50% of the amount reported as a profit of its other enterprise operations. Make recommendations to the city, including whether or not to include the transit system and, if so, how to report it.

list references

Provide complete answers to the following on Governmental Reporting Entities:

1) The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements.

2) Distinguish between a primary government and a component unit. Include one example of each.

3) GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used.

4) The City of X is deciding whether or not to include a transit system in its financial report and how the transit system would be reported if a positive decision were made. The transit system is a legally separate entity, has its own governing board, not appointed by the city, has a different auditor, and issues its own financial report. The city has signed an agreement that, for the next ten years (the life of a bond issue related to transit operations), it will make up the deficit of the transit system. During the last two years, the deficit has been $10 million, approximately 50% of the amount reported as a profit of its other enterprise operations. Make recommendations to the city, including whether or not to include the transit system and, if so, how to report it.

Option #2: Governmental Reporting Entities

Instructions:

Provide complete answers to the following:

The Governmental Accounting Standards Board has established rules for determining when a government should include another entity in its financial statements.

Distinguish between a primary government and a component unit. Include one example of each.

GASB permits two methods of reporting component units in the financial reporting entity. Describe the two methods and indicate when each should be used.

The City of X is deciding whether or not to include a transit system in its financial report and how the transit system would be reported if a positive decision were made. The transit system is a legally separate entity, has its own governing board, not appointed by the city, has a different auditor, and issues its own financial report. The city has signed an agreement that, for the next ten years (the life of a bond issue related to transit operations), it will make up the deficit of the transit system. During the last two years, the deficit has been $10 million, approximately 50% of the amount reported as a profit of its other enterprise operations. Make recommendations to the city, including whether or not to include the transit system and, if so, how to report it.

A project with an up-front cost at t=0 of $1500 is being considered by Nationwide Pharmaceutical Corporation (NPC). (All dollars in this problem are in thousands.) The project’s subsequent cash flows are critically dependent on whether a competitor’s product that is now under development is approved by the Food and Drug Administration. If the FDA rejects the competitive product upon the completion of its development, NPC’s product will have high sales and cash flows, but if the competitive product is approved, that will negatively impact NPC. There is a 75% chance that the competitive product will be rejected, in which case NPC’s expected cash flows will be $550 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitor’s product will be approved, in which case the expected cash flows will be only $20 at the end of each of the next seven years (t = 1 to 7). NPC will know only sometime later whether the competitor’s product is going to be approved.

NPC will proceed with the investment today to take advantage of the untapped market potential and at the end of the project’s life, after finding out about the FDA’s decision about the demand for competitor’s product, they will decide whether or not to renew the patent and rerun the project. The project rerun’s up- front cost (at t = 7) will remain at $1,500, and the subsequent cash flows will remain unchanged and will be received for seven additional years (t = 8 ... 14). They will only rerun the project if the rerun of the project adds value.

Assuming that all cash flows are discounted at 10%, what is the NPV of the project with and without the growth option?

2. A project with an up-front cost at t=0 of $1500 is being considered by Nationwide Pharmaceutical Corporation (NPC). (All dollars in this problem are in thousands.) The project’s subsequent cash flows are critically dependent on whether a competitor’s product that is now under development is approved by the Food and Drug Administration. If the FDA rejects the competitive product upon the completion of its development, NPC’s product will have high sales and cash flows, but if the competitive product is approved, that will negatively impact NPC. There is a 75% chance that the competitive product will be rejected, in which case NPC’s expected cash flows will be $550 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitor’s product will be approved, in which case the expected cash flows will be only $20 at the end of each of the next seven years (t = 1 to 7). NPC will know only sometime later whether the competitor’s product is going to be approved.

NPC will proceed with the investment today to take advantage of the untapped market potential and at the end of the project’s life, after finding out about the FDA’s decision about the demand for competitor’s product, they will decide whether or not to renew the patent and rerun the project. The project rerun’s upfront cost (at t = 7) will remain at $1,500, and the subsequent cash flows will remain unchanged and will be received for seven additional years (t = 8 ... 14). They will only rerun the project if the rerun of the project adds value.

Assuming that all cash flows are discounted at 10%, what is the NPV of the project with and without the growth option?