Discuss the nature and purpose of derivative products. In your answer consider the different types of derivative products, the risks managed by these products and the differences between exchange-traded contracts and over-the-counter contracts.

Python program:

Write a program that reads a text file named test_scores.txt to read the name of the student and his/her scores for 3 tests. The program should display class average for first test (average of scores of test 1) and average (average of 3 tests) for each student.
Expected Output:
['John', '25', '26', '27']
['Michael', '24', '28', '29']
['Adelle', '23', '24', '20']
[['John', '25', '26', '27'], ['Michael', '24', '28', '29'], ['Adelle', '23', '24', '20']]
Class average for test 1 is: 24.0
Average for student John is 26.00
Average for student Michael is 27.00
Average for student Adelle is 22.33

Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below:

Pin Cushion’s fixed costs total $38,500.

Required:

1. Determine Pin Cushion’s weighted-average unit contribution margin and weighted-average contribution margin ratio.

2. Calculate Pin Cushion’s break-even units and break-even sales revenue.

3. Calculate the number of units of each product that must be sold to break even.

4. Calculate the total sales necessary for Pin Cushion to earn a profit of $65,400.

5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $65,400.

6. Using the original information, calculate Pin Cushion’s degree of operating leverage.

The Columbus Dispatch conducted a study. Two identical football, one filled with helium and one filled with ordinary air, were used. A casual observer was unable to detect a difference in the two footballs. A novice kicker was used to punt the footballs. A trial consisted of kicking both footballs in a random order. The kicker did not know which football he was kicking. The distance of each punt was recorded, then another trial was conducted. A total of 39 trials were run. Do the data indicate that helium-filled footballs travel farther than air-filled footballs? Give a confidence interval and significance test. (Data: FTBALL)

Question 27)

Orange Valley Aviation is considering a project that would last for 2 years. The project would involve an initial investment of 115,000 dollars for new equipment that would be sold for an expected price of 106,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 24,000 dollars over 7 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 91,000 dollars per year and relevant annual costs for the project are expected to be 38,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 8.96 percent. What is the net present value of the project?

12. The Law School Admission Test (LSAT) is designed so that test scores are normally distributed. The mean LSAT score for the population of all test-takers in 2005 was 154.35, with a standard deviation of 5.62. Calculate the value of the standard error of the mean for the sampling distribution for 100 samples. (0.5 Points)