1. A survey of all students in a school showed that 3/7 have a dog, and 2/7 have a cat, and 1/7 have both a dog and a cat. If a student is selected at random, what is the probability of the student having OR a cat?

2. 40% of the students at a college live in the dorms. Of the students who live in the dorms, 10% are juniors. If a student from the college is picked at a random, what is the probability he or she is a junior who lives in the dorm?

Please explain and show steps.

3. Suppose you take out a loan for school this year for $9000. The bank expects that the rate

      of inflation for next year will equal 2%. You and the bank agree that in one year’s time, you

      will pay back the full amount at an interest rate of 5%. Next year though, there is a sudden

      rise in inflation, causing inflation to equal 12%.

      Based upon this information, answer the following questions.

1. 1. How much will you pay back in one year, assuming simple interest?
2. What is the anticipated rate of inflation?
3. What is the unanticipated rate of inflation?
4. What is the real rate of interest?
5. What is the nominal rate of interest?
6. Who wins and who loses from this loan?

In a study, 2,017 high school students were questioned on the prevalence of symptoms of severe cold at the age of 15 and again, two years later at the age of 17 years. Was there a significant difference in the prevalence of severe cold at the two ages? Use a 5% level of significance. Give each of the following to receive full credit: 1) the appropriate null and alternative hypotheses; 2) the appropriate test; 3) the decision rule; 4) the calculation of the test statistic; and 5) your conclusion including a comparison to alpha or the critical value. You MUST show your work to receive full credit. Partial credit is available.

The scores of students on the SAT college entrance examinations at a certain high school had a normal distribution with mean  and standard deviation .

(a) What is the probability that a single student randomly chosen from all those taking the test scores 545 or higher?
ANSWER:  

For parts (b) through (d), consider a simple random sample (SRS) of 30 students who took the test.

(b) What are the mean and standard deviation of the sample mean score , of 30 students?
The mean of the sampling distribution for  is:  
The standard deviation of the sampling distribution for  is:

(c) What z-score corresponds to the mean score  of 545?
ANSWER:

(d) What is the probability that the mean score  of these students is 545 or higher?
ANSWER:  

Jack, Jill, Mike and Molly are deciding whether or not to attend their high school reunion. However, not all four of them get along well and they would prefer to stay at home rather than meeting someone they do not like at the reunion. In particular, Jack prefers not to attend the reunion if Molly is attending the reunion, otherwise he prefers to attend. Molly prefers not to attend if Jack and/or Jill attends otherwise she prefers to attend. Mike prefers not to attend if Jack attends otherwise he prefers to attend. Finally, Jill prefers not to attend if Molly and/or Mike attends otherwise she prefers to attend. Assuming that all of them make their decision simultaneously find all of the pure strategy Nash equilibria of this game. You need to argue who will end up attending the reunion and who will stay at home in Nash equilibrium. Clearly explain your reasoning.

Faculty positions in a school district are classified as either teacher or administrator based on primary duties and responsibilities. The table below shows information on the number of national board-certified and not board-certified teachers and administrators.

Determine the probability, ?(board-certified or teacher), that a randomly chosen faculty member is either board-certified or a teacher. Please enter your answer as a decimal, precise to at least four decimal places.

?(board-certified or teacher) =

Personal Budget

At the beginning of the 2016 school year, Britney Logan decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. Brittany can see that her present plan   sufficient cash. If Logan did not budget but went ahead with the original plan, she would be $   at the end of December, with no time left to adjust.

ccountant and the Business Owner

A young accountant straight out of school applies for a job advertised in the Sydney Morning Herald. He is interviewed by the owner of a small business who has built it up from scratch.

"I need someone with an accounting degree," says the man, "but mainly I'm looking for someone to do my worrying for me."

"How do you mean?" says the accountant.

"I have lots of things to worry about, but I want someone else to worry about money matters."

"OK," says the accountant. "How much are you offering?"

"You can start on seventy-five thousand," says the owner.

"Seventy-five thousand dollars. How can a business like this afford to pay so much?"

"That," says the man, "is your first worry."

After you have a good laugh (or perhaps a few chuckles), please respond to the following questions:

• What are your career goals?

• What is your reaction to this story?

• Does this story portray the reality of the accountant's work?

• Does this joke portray a stereotype?

• If you agree with the substance of this story in terms of the accountant's role, is this attractive to you as a career?

You are the advisor of a Junior Achievement group in a local high school. You need to help the group make a decision about fees that must be paid to sell gardening tools at the Home and Garden Show. The group sells a set of tools for $20.00. The manufacturing cost (all variable) is $6 per set. The Home and Garden Show coordinator allows the following three payment options for groups exhibiting and selling at the show:

1.Pay a fixed booth fee of $5,600.

2.Pay a fee of $3,800 plus 10% of all revenue from tool sets sold at the show.

3.Pay 15% of all revenue from tool sets sold at the show.

REQUIRED

A.  Compute the breakeven number of tool sets for each option.

B.  Which payment plan has the highest degree of operating leverage?

C.  Which payment plan has the lowest risk of loss for the organization? Explain.

D.  At what level of revenue should the group be indifferent to options 1 and 2?

E.  Which option should Junior Achievement choose, assuming that sales are expected to be 1,000 sets of tools? Explain.