The epidemiology lab at the UVA Hospital is trying to estimate how COVID-19 is affecting African American communities living near the Hospital. They know that the infection rates of African Americans in the Baltimore area have been high, at 12% since March 2020. A small team of courageous researchers samples 12 people on the street in several areas near the Hospital – to ensure that they don’t know each other.

a. Please write out the values of the random variable X (the number of people who could be infected in the sample) and its probability distribution. Also draw a histogram of this probability distribution. Then, compute the mean using both the definitional formula and the special formula for this probability distribution.

b. What is the standard deviation of this sample? Compute this standard deviation using both the definitional formula and the special formula for this probability distribution.

c. What is the probability that exactly one-third of this sample is infected with COVID-19?

d. What is the probability that less than 3 students in this sample are infected with the virus?

e. If a much larger group of 110

A real estate investor wants to study the relationship between annual return on his commer- cial retail shops (measured in thousands of dollars) as it relates to their location and the number of homes near the shops. Specifically, the investor has collected data on the annual return of the shops, the number of households within 15 miles of the shops (measured in thousands), and the location of the shops (whether the shops are in a suburban area, near a shopping mall, or downtown). The annual return data can be found in the file “RealEstate.csv” in the d2l. As demonstrated in the lecture, please create a subset data of size 18 and perform your statistical analysis for the subset data. Please note that the subset data should be a random sample of the given data.

(a) State the mean of the response.
(b) Is the multiple linear regression model useful for prediction? Show details. Use ? = 0.05. (c) Provide the detailed interpretations of b1, b2, and b3 in the context of the problem.

(d) Use your estimated regression equation to predict the annual return for a shop in mall with 120,000 households near the shop.

Shop. Annual Return($1000s). Number of Households(1000s). Location.
3 245.81   232   Mall
4   137.07   108   Mall
5   207.36   220   Suburban
6   146.12   150   Suburban
8   188.19   198   Suburban
9   152.23   149   Downtown
10   182.23   192   Suburban
11   198.88   179   Mall
13   156.22   130   Mall
15   195.62   199   Downtown
16   210.38   224   Suburban
17   209.16   215   Downtown
18   260.82   250   Mall
20   127.66   129   Suburban
22   219.93   203   Mall
23   166.61   166   Downtown
27   219.67   227   Downtown
29   232.32   217   Mall

Real GDP (Y) can be decomposed into the sum of spending by consumers (C), firms (I), the government (G), and net exports (X-M). Y = C + I + G + NX. A common approach taken in exploring real GDP developments is to explore how each of these four spending components identified will develop in the near future. For example, if consumer confidence (an example of a forward-looking indicator) is increasing, this is usually taken as a signal that C will be increasing at a 'healthy' growth rate in the near future. If consumer confidence is decreasing, then C is expected to be flat. Since the spending components feed into real GDP (go back to the circular flow diagram), the development of C gives some indication about near-future developments in real GDP or economic growth. Thus, one can explore expected changes in C, I, G, and NX to get a handle on the expected real GDP growth for the next quarter or year. Your assignment is to develop a report that describes expectations for US RGDP in the short term (6 months to 1 year) and medium-term (2 to 3 years). This type of macroeconomic outlook report is important and of interest to every type of business enterprise as it is the basic indicator of future output and input market conditions. Your report should be addressed to someone who has only a basic understanding of economics; thus, you should as part of your report, explain the definition of each of the spending components (any other technical terms you use). You may use charts and graphs as appropriate. The finished report should be 3 to 5 pages and include an Executive Summary of no more than 200 words.

BOSS Manufacturing Company, which employs about 160 productions and administrative workers have the following payroll procedures:

The factory supervisor interviews and hires all job applicants. The new employee prepares a W-4 form (Employee’s Withholding Exemption Certificate) and gives it to the supervisor. The supervisor writes the hourly rate of pay for the new employee in the corner of the W-4 form and then gives the form to the payroll clerk as notice that a new worker has been hired. The supervisor verbally advises the payroll department of any subsequent pay raises.

A supply of blank time cards is kept in a box near the entrance to the factory. All workers take a time card on Monday morning and fill in their names. The workers are nice people. During the week they record the time they arrive and leave work by punching their time cards in the time clock located near the main entrance to the factory. At the end of the week, the workers drop the time cards in a box near the exit.

A payroll clerk, who is also nice, retrieves the completed time cards from the box on Monday morning. Employees are automatically removed from the payroll master file when they fail to turn in a time card.

The payroll checks are manually signed by the chief accountant and then given to the factory supervisor, who distributes them to the employees. The factory supervisor arranges for delivery of the paychecks to any employee who is absent on payday.

The payroll bank account is reconciled by the chief accountant, who also prepares the various quarterly and annual tax reports.

a.   Identify weaknesses in current procedures and explain the threats that they may allow to occur.

b.   Suggest ways to improve the BOSS Manufacturing Company’s internal controls over hiring and payroll processing. List up to five recommendations.

Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to​ forecast, the company has come up with the following estimates of the initial capital requirements and

NPVs

for the projects. Given a wide variety of staffing​ needs, the company has also estimated the number of research scientists required for each development project​ (all cost values are given in millions of​ dollars).

a. Suppose that Orchid has a total capital budget of $60 million. How should it prioritize these​ projects?

b. Suppose that Orchid currently has 12

research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these​ projects?

For each of the following situations, identify the inventory method that you would use or, given the use of a particular method, state the strategy that you would follow to accomplish your goal:

1. Inventory costs are increasing. Your company uses weighted-average cost and is having an unexpectedly good year. It is near year-end, and you need to keep net income from increasing too much in order to save on income tax.
2. Suppliers of your inventory are threatening a labour strike, and it may be difficult for your company to obtain inventory. This situation could increase your income taxes.
3. Inventory costs are decreasing, and your company’s board of directors wants to minimize income taxes.
4. Inventory costs are increasing, and the company prefers to report high income. e. Inventory costs have been stable for several years, and you expect costs to remain stable for the indefinite future. (Give the reason for your choice of method.)

On January 1, 2020 , WXY Inc. replaced the roof on its warehouse. WXY originally built the warehouse and placed it into service on January 1, 1995. The cost of the building was $1,000,000. The building has been depreciated using the straight-line method over an originally estimated 40-year useful life with an estimated salvage value of $50,000. Based on original construction records, WXY is able to calculate that the old roof's cost and accumulated depreciation are 8% of the amounts for the entire building.

The new roof cost $200,000. WXY estimates that the new roof will extend the useful life of the building by 10 years. When the old roof was removed, the old scrap was simply thrown away.

Which of the following statements it true?

On January 1, 2020 , WXY Inc. replaced the roof on its warehouse. WXY originally built the warehouse and placed it into service on January 1, 1995. The cost of the building was $1,000,000. The building has been depreciated using the straight-line method over an originally estimated 40-year useful life with an estimated salvage value of $50,000. Based on original construction records, WXY is able to calculate that the old roof's cost and accumulated depreciation are 8% of the amounts for the entire building.

The new roof cost $200,000. WXY estimates that the new roof will extend the useful life of the building by 10 years. When the old roof was removed, the old scrap was simply thrown away.

Which of the following statements it true?

Indicate for each transaction below the account(s) and amount(s) that should be debited and credited. Use abbreviated account titles.