A simple random sample of 50 items from a population with
σ = 8
resulted in a sample mean of 38. (Round your answers to two decimal places.)
(a)
Provide a 90% confidence interval for the population mean.
to
(b)
Provide a 95% confidence interval for the population mean.
to
(c)
Provide a 99% confidence interval for the population mean.
to
In: Statistics and Probability
Scenario:
River Rosewell is a professional rower who has just been
accepted into the USA athlete in residence program at the Olympic
Training Center in Colorado Springs. He has been team rowing since
the age of 11. He attended Harvard University on a rowing
scholarship is now 21 years old. He has spent the last year after
graduation (graduated with a BS degree in Business) pursuing his
dream of making it on to the USA rowing team for the single skulls
event (heavyweight).
The typical length of a single skulls race is 2 kilometers. He
rowed a practice event at the same course he is going to open the
season at and had an average (average of two race runs) of 7.01
minutes. This placed him 12th out a field of 30 international
qualifiers. This was good enough to qualify him for the actual
rowing event event held 12 weeks later.
Assume that the “actual” race will be carried out under very
similar weather conditions.
He has worked with a personal trainer for the last year, working on
improving his basic strength, strength endurance, power and
mobility, and is ready for more “sport specific training” as he
approaches skulling circuit.
Listed below are some of his current anthropometric and performance based characteristics
Physical Characteristics
Height 6”2
Weight 195lb
% Body Fat 11%
1RM Back Squat 330lb
1RM Power clean 260lb
1RM Bench press 280lb
Deadlift 450lb
CMVJ height (hands on hips) 27.0 inches
Can perform 20 bodyweight pull ups
Rowing ergometer, based incremental Vo2max 59ml.kg.min
1. Highlight the key physiological (and some anthropometric)
characteristics which would seem important if you wanted to be an
elite rower. Please provide rationales for your choices.
2. Design the first 4 weeks (1-4) of his preparation for the rowing
event concentrating upon his; Strength and Conditioning, sport
specific balance and mobility. Please spell out; exercises used and
why, sets, reps, rest periods and relative loads used and why. Pay
close attention to the exercises you prescribe and their
physiological suitability for the sport of rowing.
In: Anatomy and Physiology
Two companies have $1M in assets and the same basic earning power ratio of 25 percent. Neither company owns securities, so each company’s income will be comprised solely of operating income. The only difference between the two companies is the fact that Company A’s assets are 100 percent equity financed whereas Company B’s assets are 45 percent debt financed with that debt carrying an 8 percent interest rate. If both companies have a 40 percent tax rate, find each company’s ROE and ROA.
In: Finance
We assume that our wages will increase as we gain experience and become more valuable to our employers. Wages also increase because of inflation. By examining a sample of employees at a given point in time, we can look at part of the picture. How does length of service (LOS) relate to wages? The data here (data408.dat) is the LOS in months and wages for 60 women who work in Indiana banks. Wages are yearly total income divided by the number of weeks worked. We have multiplied wages by a constant for reasons of confidentiality.
(a) Plot wages versus LOS. Consider the relationship and whether
or not linear regression might be appropriate. (Do this on paper.
Your instructor may ask you to turn in this graph.)
(b) Find the least-squares line. Summarize the significance test
for the slope. What do you conclude?
| Wages = | ______+______ LOS |
| t = | |
| P = |
(c) State carefully what the slope tells you about the relationship
between wages and length of service.
This answer has not been graded yet.
(d) Give a 95% confidence interval for the slope.
( ____ , ____ )
work# wages los size 1 69.2413 34 Large 2 40.0111 19 Small 3 70.6251 194 Small 4 49.3129 29 Small 5 55.6213 80 Large 6 44.6338 42 Small 7 39.6074 20 Large 8 49.9032 50 Large 9 39.5058 139 Large 10 60.0777 110 Small 11 47.509 39 Large 12 51.8078 36 Small 13 55.3064 140 Small 14 38.8426 144 Large 15 59.1806 29 Large 16 50.1731 109 Large 17 44.784 35 Large 18 37.8216 103 Small 19 60.3116 123 Large 20 80.9877 137 Large 21 50.576 18 Large 22 46.3306 91 Small 23 47.9091 69 Large 24 58.5582 85 Small 25 63.9038 74 Large 26 44.5448 34 Small 27 49.5359 85 Small 28 48.9933 56 Large 29 57.1764 130 Large 30 52.9005 38 Large 31 63.7324 35 Small 32 37.9304 49 Large 33 39.3526 55 Large 34 64.5674 116 Small 35 61.2771 29 Large 36 46.991 113 Large 37 74.5818 55 Large 38 41.5655 22 Small 39 51.3884 71 Large 40 40.896 47 Small 41 40.7185 45 Small 42 57.1712 70 Small 43 42.7096 90 Large 44 49.8057 132 Small 45 38.0929 30 Large 46 41.3269 30 Small 47 64.3603 50 Large 48 53.1662 129 Large 49 39.1688 30 Small 50 55.8157 99 Large 51 63.1372 43 Large 52 62.6847 30 Large 53 46.9151 47 Large 54 80.2559 168 Small 55 51.5097 53 Small 56 57.0483 151 Large 57 85.3793 76 Small 58 68.0978 69 Large 59 45.4022 73 Small 60 58.0315 33 Large
In: Statistics and Probability
The table below gives today’s prices of one-year European call
options written on a share of stock XYZ at different strike prices.
Strike Price ($) Call Price ($) 50 11 60 5 70 1 In each of the
following strategies, derive a table showing the relationship
between profit and stock price at maturity as well as the range of
stock prices at maturity for which the strategy is profitable.
Explain your calculations.
a) A bear spread with strike prices of $50 and $60. b) A portfolio
where you buy one $50 call and sell two $60 calls. c) A portfolio
where you buy one share of stock for $60 and sell one $70 call.
In: Accounting
A stock is expected to pay a dividend of $0.50 per share in two month, in five months and in eight months. The stock price is $20, and the risk-free rate of interest is 5% per annum with continuous compounding for all maturities. You have just taken a short position in a nine-month forward contract on the stock. Seven months later, the price of the stock has become $23 and the risk-free rate of interest is still 5% per annum. What is the value your position seven months later?
In: Finance
A stock is expected to pay a dividend of $0.50 per share in two
month, in five months and in eight
months. The stock price is $20, and the risk-free rate of interest
is 5% per annum with continuous
compounding for all maturities. You have just taken a short
position in a nine-month forward contract
on the stock. Seven months later, the price of the stock has become
$23 and the risk-free rate of
interest is still 5% per annum. What is the value your position
seven months later?
In: Finance
1. What is the special type of property ownership reserved for
married couples? If property
is owned in this manner and one spouse dies, what happens to the
property? What is necessary
for one spouse to sell their interest during the ownership?
2. If I take a temporary job in New York City that will last for
two years, after which I will
return to my home in Bethesda and I want to rent an apartment for
my time in New York, what is
the best type of tenancy for me to take and why? List two other
types of tenancies that are not as
effective and why.
In: Psychology
Social Security system is a pay as you go retirement
plan. Money taken from workers checks is
transferred to retirees. At one time there were 42 workers per
retiree; today the ratio is now under 3 to 1.
By 2030, the ratio is expected to fall to 2 to 1. The only way to
keep the current system solvent is to raise
taxes on those currently working or cut benefits to those already
retired. Neither of these options is
particularly pleasant. Another option is now being debated,
privatization. Under this plan, the government
would still deduct money from our checks, but it would be put into
personal retirement accounts under our
own individual (but limited) control.
Carefully read the information below, and then do three things with
the data. (1) Make two columns (one
for costs and the other for benefits) and place each piece of
information in the correct column. (2) Prioritize
each list, from most important to least important. (3) Write a
three-paragraph analysis. Paragraphs one
and two should explain why you feel the top two costs and top two
benefits are the most important. Finally,
paragraph three is your analysis, based on your interpretation of
all the facts listed below, explain whether
you believe we should privatize Social Security or not. The paper
should be word-processed and no
more than one page in length.
1. The stock market has averaged a 7% return on peoples’
investments over the last
50 years, which is significantly higher than the 1-2% or less most
will receive
under the current Social Security plan.
2. Many people close to retirement could be harmed by a sudden drop
in the market,
reducing the value of their retirement accounts just when they need
it the most.
3. Any privatization plan would have much higher administrative
costs than our
current transfer program, reducing the potential returns.
4. Disabled workers and widows of workers who die young would see a
reduction in
benefits.
5. Under privatization, people would be more in control of their
own retirement.
6. Social Security is indexed to protect against inflation (there
is a COLA tied to the
CPI), private retirement accounts would not be able to guarantee
this protection.
7. If we try to privatize, the only way to continue to pay for
today’s retiree’s benefits
and put money into separate accounts for each individual would be
to raise taxes
or cut benefits or both (at least in the short run).
8. Instead of the government simply paying out the collected money
in transfer
payments, this money could now be funneled into investments across
the country
leading to more economic growth.
9. Privatization may lead to a loss of “community”, the idea that
we are all in the
same retirement plan together.
10. Under privatization, even the poor would have a chance to
invest in the stock and
bond markets normally only available to the wealthy.
11. Some people are concerned that many people are totally
unprepared to choose the
investment strategy best suited to their individual needs. This
could lead to
people making bad choices and having less retirement income.
12. If you die before retirement age the money in the account would
pass to your
heirs, not the government.
In: Economics
QUESTION 15 VFIC Industries has come up with a new mountain bike prototype and is ready to go ahead with pilot production and test marketing. The pilot production and test marketing phase will cost $500,000 and last for one year. The management team believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike. If the test-marketing phase is successful, then VFIC will invest $3 million to build a plant immediately that will generate expected annual after-tax cash flows of $400,000 in perpetuity starting in year two. If the test marketing is not successful, VFIC can still go ahead and build the new plant, but the expected annual after-tax cash flows would be only $200,000 in perpetuity starting in year two. VFIC's cost of capital is 10%. Suppose that VFIC has the option to sell the prototype mountain bike at the end of the first year for $300,000. The NPV of the VFIC Mountain Bike Project is around:
A. $90,909 B. $204,545 C. $455,000 D. -$45,455 E. None of the above
In: Finance