Emma Emerson is a proud woman with a problem. Her daughter has been accepted into a prestigious law school. While Ms. Emerson is proud of her daughter, she is worried sick about paying for the education - she is a single parent who has worked hard to raise her 3 children. She had to go heavily into debt to finance her own education. Even though she now has a good job, her family's needs continue to outpace her income and her debt burden is staggering. She knows she will be unable to borrow the money needed for her daughter's education.

Ms. Emerson is the chief financial officer (CFO) of a small manufacturing company. She has just accepted a new job and she hasn't notified her boss yet that she will be leaving in a month. She is concerned that her year-end bonus may be affected if her boss learns of her plan to leave. She knows her behavior is less than honorable but she believes that she in entitled to the bonus. Her boss makes twice what she does! She is considering an opportunity to boost the bonus.

Ms. Emerson's bonus is based on a percentage of net income. Her company recently introduced a new product line that required substantial start-up costs. GAAP requires these costs to be expensed in the current accounting period but if the costs are classified as product cost, net income will be higher. By the time the auditors discover the misclassification, Ms. Emerson will be at her new job. If her new employer hears about it, she can just claim ignorance.

Required:

1. Based on this information, do you think Ms. Emerson believes the number of units sold will be equal to, less than or more than production this year? Explain your logic.

2. Explain how the misclassification could mislead an investor or a creditor regarding the company's financial condition.

3. Explain how the misclassification could affect income taxes.

4. Review the Statement of Ethical Professional Practice shown in Exhibit 10.17 - is Ms. Emerson's misclassification of the start-up costs a violation of this statement?

The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, high-school sporting events, and so on. The El Dorado Star faces the revenue and cost schedules shown in the spreadsheet that follows: A template for the spreadsheet is provided in the Course Materials. You may download my template or create your own. Since we are using dollars and cents, be sure to go out two decimal places on your calculations. Add columns to show, respectively, marginal cost (MC), marginal revenue (MR), and total profit

What price should the manager of the EI Dorado Star charge? How many papers should be sold daily to maximize profit?

At the price and output level you answered in the previous question, is the EI Dorado Star making the greatest possible amount of total revenue? Is this what you expected? Explain why or why not.

Use the appropriate formulas to create two new columns (7 and 8) for total profit and profit margin, respectively. What is the maximum profit the EI Dorado Star can earn? What is the maximum possible profit margin? Are profit and profit margin maximized at the same point on demand?

What is the total fixed cost for the El Dorado Star? Explain how you arrived at this conclusion.

Create a new spreadsheet in which total fixed cost increases to $5,000. What price should the manager charge? How many papers should be sold in the short run?

Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to Wilton University. Although internships are encouraged by the school, to get class credit for the internship, no salary can be paid. Other than internships, the school will not allow its students to work while enrolled in its MBA program.

Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $65,000 per year, and his salary is expected to increase at 3 percent per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program.

The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the university. The annual tuition is $70,000, payable at the beginning of each school year. In addition, books and other supplies are estimated to cost $3,000 per year, payable at the beginning of each year. Ben expects that after graduation from Wilton, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 percent per year. Because of the higher salary, his average income tax rate will increase to 31 percent.

The school offers a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $2,000 more per year than his current expenses, payable at the beginning of each year. The appropriate discount rate is 4.7 percent.

Question: Assuming all salaries are paid at the end of each year, what is the best option for Ben — remaining at his current job or pursuing an MBA —from a strictly financial standpoint?

Twenty years​ ago, 46​% of parents of children in high school felt it was a serious problem that high school students were not being taught enough math and science. A recent survey found that 190 of 750 parents of children in high school felt it was a serious problem that high school students were not being taught enough math and science. Do parents feel differently today than they did twenty years​ ago? Use the alpha equals 0.05 level of significance.Because

np 0 left parenthesis 1 minus p 0 right parenthesis equals186.3 greater than equals less than not equals greater than

​10,

the sample size is

less than

less than

greater than

​5% of the population​ size, and the sample

can be reasonably assumed to be random,

cannot be reasonably assumed to be random,

can be reasonably assumed to be random,

is given to be random,

is given to not be random,

the requirements for testing the hypothesis

are

are not

are

satisfied.

​(Round to one decimal place as​ needed.)

What are the null and alternative​ hypotheses?

Upper H 0

​:

p

p

mu

sigma

equals

not equals

less than

greater than

equals

. 46versus

Upper H 1

​:

p

p

mu

sigma

not equals

equals

not equals

less than

greater than

. 46

​(Type integers or decimals. Do not​ round.)

Find the test statistic.

z 0

equalsnothing

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

Find the​ P-value.

​P-valueequals

nothing

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

Determine the conclusion for this hypothesis test. Choose the correct answer below.

A.

Since

​P-valuegreater than alpha

​,

reject

the null hypothesis and conclude that there

is not

sufficient evidence that parents feel differently today.

B.

Since

​P-valueless than alpha

​,

reject

the null hypothesis and conclude that there

is

sufficient evidence that parents feel differently today.

C.

Since

​P-valueless than alpha

​,

do not reject

the null hypothesis and conclude that there

is

sufficient evidence that parents feel differently today.

D.

Since

​P-valuegreater than alpha

​,

do not reject

the null hypothesis and conclude that there

is not

sufficient evidence that parents feel differently toda

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the evening, Frank went to school and received his MBA in Finance. By then, Arnold’s had expanded to include long distance moving as well as office moves in the Mid-Atlantic area. The company was making over $3,000,000 in sales and was growing at a rate of 8% -10 % a year. Competition was strong in the Mid-Atlantic region so Fred wanted to expand southward. About this time, Fred’s son decided it was time to come back into the business. He had been working in IT in Miami. He liked Miami and felt he could work from there and bring the business down the Eastern Seaboard.

Frank had been with the business for 12 years now and felt that with Fred’s son now back in the business, it might be time to leave. Fred saw Frank at lunch one day shortly after Frank started looking for a new job. “Frank, I just heard that you are looking for a senior management position. In fact, I had to hear it from Janice Jeppy of all people. I ran into her at the bank. She says you applied to Jeppy Movers for a job and was wondering why you would want to switch moving companies. I am wondering too. Don’t you want to stay with us?”

Frank was surprised. The thought had never occurred to him. He assumed that Mr. Arnold’s son and daughter would take over the business. Both of Fred’s children had been working in the business since they were in high school. “I don’t want to leave Mr. Arnold,” Frank replied, “but I assumed that with Frank back in the business, he would take over. I just couldn’t see where there was room for advancement.” Fred was afraid this is what the boy would say. His son was bright and showed promise, but Fred knew they needed experienced people like Frank to keep the company moving forward. Frank was great support for the business and would be the best support that he and his son could have. Fred wondered how he could keep Frank in the business. “Come see me tomorrow at 10 a.m., Frank and we will talk. I can’t let you go to Jeppy Movers, can I”?

What Can Fred Arnold do to keep Frank now and in the future? Include in the discussion how the growth of the company will affect Fred’s ideas.

Also, address succession and Frank’s role in the business going forward.

Learning Activity #1

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the evening, Frank went to school and received his MBA in Finance. By then, Arnold’s had expanded to include long distance moving as well as office moves in the Mid-Atlantic area. The company was making over $3,000,000 in sales and was growing at a rate of 8% -10 % a year. Competition was strong in the Mid-Atlantic region so Fred wanted to expand southward. About this time, Fred’s son decided it was time to come back into the business. He had been working in IT in Miami. He liked Miami and felt he could work from there and bring the business down the Eastern Seaboard.

Frank had been with the business for 12 years now and felt that with Fred’s son now back in the business, it might be time to leave. Fred saw Frank at lunch one day shortly after Frank started looking for a new job. “Frank, I just heard that you are looking for a senior management position. In fact, I had to hear it from Janice Jeppy of all people. I ran into her at the bank. She says you applied to Jeppy Movers for a job and was wondering why you would want to switch moving companies. I am wondering too. Don’t you want to stay with us?”

Frank was surprised. The thought had never occurred to him. He assumed that Mr. Arnold’s son and daughter would take over the business. Both of Fred’s children had been working in the business since they were in high school. “I don’t want to leave Mr. Arnold,” Frank replied, “but I assumed that with Frank back in the business, he would take over. I just couldn’t see where there was room for advancement.” Fred was afraid this is what the boy would say. His son was bright and showed promise, but Fred knew they needed experienced people like Frank to keep the company moving forward. Frank was great support for the business and would be the best support that he and his son could have. Fred wondered how he could keep Frank in the business. “Come see me tomorrow at 10 a.m., Frank and we will talk. I can’t let you go to Jeppy Movers, can I”?

Learning Activity #2

How might Arnold’s son attempt to engage the business in the Miami community to solidify the company’s move southward?

Explain how small businesses and community support is important to business sustainability?

Becky is a first-year player on a nationally ranked women’s NCAA Division I tennis team. She is six feet tall with a powerful left-handed serve. Her groundstrokes are technically sound, but she makes too many unforced errors. Her volleys are solid, and she moves well for a tall player. As a high school tennis player, Becky always played a great deal in the spring and summer, but never practiced in the fall or winter. In addition, she never participated in junior tennis associations.

In her senior year in high school, Becky won her state high school singles and doubles championship. She was especially dominant in doubles, winning the state finals 6-2, 6-1. It was after these accomplishments that the tennis coach of Major University contacted her about playing collegiate tennis.

The fall season was a rude awakening for Becky. Not only did she not make the starting lineup, but she also did not even make the traveling squad. In addition, she lost every challenge match she played except one. Becky began to feel that maybe she was not such a good tennis player after all. She stopped hanging around with her new college friends because she thought they would not like her since she was such a “loser.”

Compared to the other women on her college tennis team, Becky had very little experience. Most of her teammates had played the junior tennis circuit and had achieved national rankings or, at the very least, sectional rankings. The coach believes Becky is a very talented tennis player, but her lack of experience has held her back. The coach has told her that she is number 9 out of 12 players on the team.

Your role on the team is that of a student sport psychology consultant. One day about three weeks into the spring season, Becky comes to you before practice and says, “I need help. I’ve got no confidence, the coach doesn’t believe in me, and I’m not having any fun. Every time I step on the tennis court, I feel so anxious I could throw up. My heart is pounding, and I can't stop thinking about how likely I am to screw something up.” You set up a time to talk, and the next day meet in your office.

Identify how anxiety, arousal, and stress might play a facilitative or debilitative role in Becky’s performances within the case. Use at least one specific theory to explain your answer.

Identify three intervention strategies that Becky can use to help manage her anxiety, arousal, and/or stress.  For each strategy, discuss why this strategy will work based on relevant theory and research. (please expand on all areas as much as you can)

Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton's support.

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The school district reimbursed Walter $550 for moving expenses. These are reflected on his W-2 (see separate tab). Walter’s previous job, as a high school teacher in Maine, was only 5 miles from his home. Skylar was unemployed prior to the move.

The Blacks received a 1099-DIV from their mutual fund investments (see separate tab).

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:

Required:
Complete Form 1040 and the schedules and forms provided for the Blacks.

• Assume the taxpayers had health coverage for the entire year.
• Neither taxpayers wants to contribute to the presidential election campaign.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Do not round any percentages.
• If required, round your answers to the nearest dollar.
• If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.
• Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.

-------------------------------Complete Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E, Form 8582--------------------------------------------------------------------------------

BOOKS FOR PROGRESS (B4P)

It was May 2019, and Maria Robinson, chief executive officer of Books for Progress (B4P), was evaluating the success of B4P's April textbook drive. In addition to B4P's textbook drives in Southern California, for the first time, Robinson’s team had run a textbook drive through a student group at San Francisco University, CA. This new drive had been successful, and Robinson was considering developing a more permanent presence at San Francisco University.

This new endeavor would involve establishing relationships with student groups, professors, and university administration so that textbook-collection boxes (drop boxes) could be permanently located in central areas on campus. The boxes would then be monitored so the textbooks could be picked up regularly and shipped to the B4P headquarters, where the books would then be donated to schools across South Africa, sold online to fund shipping and implementation costs, donated to student clubs at California universities, or recycled appropriately. While considering this eastward expansion, Robinson also wanted to investigate the viability of undergoing similar expansions to Victoria University, Victoria, CA and the University of Sacramento (U of Sacramento). She wanted to evaluate the financial feasibility of each of these proposed locations before making any final decisions.

History

B4P was Inspired by a trip Robinson took to South Africa in 2017. While teaching at the University of South Africa of Finance and Banking, Robinson noticed a deficit in the educational materials available at the institution. She knew there were thousands of textbooks in California that were no longer being used, which could be redistributed to students in need in South Africa. After graduating from Southern University with an honors degree in business from the Elite Business School (San Diego, CA) in 2017, Robinson partnered with an acquaintance William Hartness to found B4P at the Southern University, CA.

In the beginning, B4P collected textbooks from the Southern University campus and soon expanded to other schools in California. A list of campus locations with B4P drop boxes can be found in Exhibit l. To be more central to the textbook collections, Robinson and her team were in the process of moving B4P's headquarters from Southern University, California to San Francisco. The move would be complete by August 2019, before textbook collections

from the 2019-20 school year would begin. Textbook collections had grown by over 200%, so Robinson was optimistic about B4P's future.

Operations

Post-secondary textbooks were inserted by their owners into drop boxes or given to student representatives through student-club textbook-collection drives on behalf of B4P. California's academic school year ran primarily from September to April, so the majority of textbooks were collected in April. The textbooks were collected and transported to B4P headquarters at a cost of .20 cents 1 per mile and $ 14 per hour for the drivers' wages. Six hundred books could be shipped in a single shipment, although the average shipment consisted of only 250 books. Drivers were located in San Francisco and were compensated for the round trip from the collection school to headquarters, as well as for one hour of time at the collection school. After reaching B4P's warehouse, the books were sorted by warehouse workers. Warehouse workers were paid $ 11 per hour, and they scanned, sorted, shelved, and tracked 30 books in an hour.

25% of the textbooks collected were sorted for listing on Amazon; half of those books listed had been sold at an average price of $40. After a period of time, any listed unsold books were deemed unsalable and were then donated to schools in South Africa. 50% of the textbooks collected were immediately categorized for donation to South Africa. Donated textbooks were shipped to South Africa once 24,000 books (deemed appropriate for donation) had been collected. Shipping costs fluctuated widely due to a variety of factors (e.g. distance from the South African coast and the number of border crossings required) and averaged $ 16,000 per shipment. The remaining 25% of books collected were too out of date to sell online or to donate, so they were recycled. Since textbooks were difficult to recycle responsibly, all textbook recycling was done through an eco-reliable partner in the United States at a recycling cost of $ 15 (including transportation) for every 500 textbooks.

Management Team

B4P had five members on its management team, including Robinson and Hartness, who assumed corporate financial officer roles. These members were employed full time by B4P. All were recent graduates of Western University, McMillen University, or Mary & William University. All five management team members had travelled to Africa to witness B4P's impact on the post-secondary education system, and to learn how they could maximize their contributions on behalf of B4P.

Outcomes

As of May 2019, B4P had donated 24,000 books to South African universities, provided $69,300 in micro loans, donated $37,600 to California non-profits,' and reused or recycled

1 All currency amounts are in U.S. dollars unless otherwise specified.

37,000 textbooks. In the 2018-19 post-secondary academic year, 88,000 books had been collected. Robinson was proud of the contribution her team was making to their local and global communities, but she was eager to further that impact through more growth and expansion.

Expansion Opportunities

B4P had already executed successful expansions into the Los Angeles & Baja. Eventually, Robinson wanted to expand B4P textbook collections to other states, but she understood that achieving successful local expansion should be the first step. Expansions were executed by forming relationships with student clubs, school administration (staff), and faculty departments and members. Through these relationships, B4P obtained permission to place drop boxes in central locations and hired student ambassadors at each institution to monitor the drop boxes. The majority of student ambassadors were volunteers, but B4P paid one student ambassador at each school an annual salary of up to $ 1,750.

Any expansion to a new location would follow the same collection process, and textbook collections would be similarly shipped to B4P's warehouse. In order to manage additional student ambassadors and relationships with collection schools, Robinson planned to hire a campus community manager if the eastern expansion was pursued. The campus community manager would work full time and earn an annual salary of $ 40,000. 75% of the manager's time would be spent on managing the eastern expansion, and 25% would be spent on managing existing drop box locations where B4P presence was lacking. Robinson expected that historical proportions of textbooks sold, donated, and recycled would be the same for all new locations. An expansion would be considered successful if B4P could break even and increase its exposure and book donations; however, Robinson and Hartness would consider an expansion a financial success if B4P could earn a 5% profit.

B4P's new warehouse would have the capacity to sort and store textbooks from all three proposed universities. However, Hartness was concerned about potential roadblocks to transporting textbooks from the collection universities to B4P's warehouse. The textbooks would need to be stored at the collection universities until enough books had been collected to warrant the driver's pickup time. If pickups took longer than anticipated, the driver might need to stay overnight in the region due to regulatory requirements. Hartness was unsure how this constraint would affect the financial feasibility of the expansion, so she wanted to ensure that any expansion that B4P pursued would have a healthy margin of safety.

Victoria University

1
Victoria was located in Fresno, approximately 330 miles east of San Francisco . Victoria was

home to 17,400 full-time, undergraduate students and over 4,000 graduate and post-graduate students. These students studied at one of the university's six facilities, the largest of which was the Faculty of Arts and Sciences. Victoria was known for its school spirit, its long history, and its attractive waterfront campus.

Victoria student government, the Alma Mater Society (AMS), included the Campus Activities Commission (CAC). CAC was responsible for running campus events and programs to promote school spirit and social awareness (including mental-health awareness initiatives) at Victoria. If B4P decided to start an on-campus textbook collection at Victoria, Robinson thought CAC would make a good partner. B4P had hosted a textbook-collection drive in April 2019 with AMS members and potential campus ambassadors. Based on this experience, Robinson was optimistic about Victoria students' support of on-campus drop boxes, so she estimated that 12,250 books could be collected in the 2019-20 school year at Victoria.

Brownstone University

2 Brownstone was located just south of Riverside, 520 miles east of San Francisco . The

university enrolled 24,100 undergraduate students and 3,700 graduate students. Brownstone was known for its interdisciplinary and flexible degree program options, a global focus, and its self-contained campus that fostered a sense of campus community. Brownstone offered more than 65 degree programs across a wide range of disciplines.

Brownstone's undergraduate students were represented by the Brownstone University Student's Association (CUSA). CUSA did not have a committee similar to CAC at Victoria, but CUSA regularly funded and supported over 250 student clubs. Since B4P had not yet performed any on-campus marketing at Brownstone, Robinson estimated that 5,500 books could be collected from Brownstone in B4P's first year.

The University of Sacramento

Located in California's capital city of Sacramento, U of Sacramento was the largest bilingual

(English-French) university in the world, and it was situated 540 miles east of San

3
Francisco . The campus was also within walking distance of California's government

buildings on Capitol Hill. The school was known for its co-operative education program, bilingualism, and research. Over 36,000 undergraduate, 4,500 masters and 1,900 doctorate and post-graduate students studied on U of Sacramento's campus. At U of Sacramento, the

1 Driving from Victoria to the B4P headquarters took approximately 3 hours and 15 minutes. 2 Driving from Brownstone to San Francisco took approximately 5 hours.
3 Driving from Univ. of Sacramento to San Francisco took approximately 5 hours.

largest faculty was social science, which registered almost 25% of the student population. The balance of the students studied at one of U of Sacramento's nine other facilities.

The Student Federation of the University of Sacramento (SFUO), the university's student council, managed over 250 clubs and organized awareness campaigns, philanthropic initiatives, and on-campus social events. The federation was committed to advocating for affordable post-secondary education in California; therefore, Robinson believed that B4P's mission to support education in developing regions would align with the interests of U of Sacramento's students. Since U of Sacramento was larger than Brownstone, Robinson estimated that 12,250 books could be collected from U of Sacramento in B4P's first year.

Decision

B4P had already established partnerships with students at Victoria while conducting its April textbook drive, so Robinson was confident that B4P would be able to do the same at Brownstone and U of Sacramento. It would, however, take time to gain permission to place the drop boxes around each campus. Robinson was open to expanding to all three schools eventually, but she wanted to select one school to expand to first, if at all. This approach would give Robinson and her team time to improve the textbook collection and transportation model without expanding too quickly. Since B4P management would not be able to visit campuses very often, it would be important to hire a dedicated team of volunteer campus ambassadors. Robinson was anxious to make a decision about her next steps so that B4P's team would have time to place drop boxes on the campuses during the first semester of the 2019-20 academic year.

EXHIBIT 1: CAMPUS LOCATIONS WITH B4P DROP BOXES

l. Western University

2. Shawe College

3. Mary & William University

4. Mary & William University — Brantford Campus

5. University of Waterford

6. University of Gulliver

7. Shenandoah College

8. McMillen University

9. Northeast College

10. Branford University

11. Humboldt College

12. University of Sacramento – St. George Campus

13. York University

Required:

1. Qualitatively, what are the pros and cons of expansion?

2. Qualitatively, what are the pros and cons of partnering with Victoria University, Brownstone University, and the University of Sacramento?

3. Identify the fixed and variable costs relevant to an expansion.

4. Calculate how many textbooks B4P would need to collect to break even at each of the three universities: Victoria, Brownstone, and U of Sacramento.

5. As Maria Robinson, what would you do? Defend your decision using your analysis.

Responses should be typed in paragraph format and use proper grammar and punctuation. Recommendations must be thorough and fully supported by evidence from the case study. Responses to questions 1 -5 above require at least one page of content or more. Therefore, the case study paper should be, at a minimum, five pages of content, excluding calculations and tables. Please be sure to include all tables, calculations, and analysis in an Appendix to the report.

5. This problem illustrates an interesting variation of simple random sampling.

a. Open a blank spreadsheet and use the RAND() 
function to create a column of 1000 random numbers. Don’t freeze them. This is actually
a simple random sample from the uniform distribution between 0 and 1. Use the COUNTIF function to count the number of values between
0 and 0.1, between 0.1 and 0.2, and so on. Each such interval should contain about 1/10 of all values. Do they? (Keep pressing the F9 key to see how the results change.) 


b.Repeat part a, generating a second column of random numbers, but now generate the first 100
as uniform between 0 and 0.1, the next 100 as uniform between 0.1 and 0.2, and so on, up to
0.9 to 1. (Hint: For example, to create a random number uniformly distributed between 0.5 and 0.6, use the formula =0.5+0.1*RAND(). Do you see why?) Again, use COUNTIF to find the number of the 1000 values in each of the intervals, although there shouldn’t be any surprises this time. Why might this type of random sampling be preferable to the random sampling in part a? (Note: The sampling in part a is called Monte Carlo sampling, whereas the sampling in part b is basically Latin Hypercube sampling, the form of sampling we advocate in Chapters 15 and 16 on simulation.)