Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

Find the ‘best fit’ equation of net income for last year on last year’s sales. Test the significance of the overall model at 1% level of significance.

A simple random sample of 50 items from a population with

σ = 8

resulted in a sample mean of 32. (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

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

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.

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.

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?

(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

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?

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?

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.

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.