Clara and Charles decide to form a business. They each plan to contribute $ 15,000 in exchange for a 50 percent interest. The business will borrow $ 20,000 to cover the balance of its working capital needs. In their business plan, Clara and Charles show that the business will have a loss of $ 54,000 in its first year. In the second year, however, the business will a profit of $60,000 and they will each be able to withdraw $5,000 from the business. Clara is in the 28 percent marginal tax bracket and Charles is in the 25 percent marginal tax bracket.

A. Determine the taxes paid by the business (if any) in the first and second year if they organize the business as (1) a partnership, (2) an S corporation and (3) a C corporation

B. Determine Clara’s and Charles’s income tax savings in the first year and their bases in the business at year-end if they organize the business as (1) a partnership, (2) an S corporation and (3) a C corporation

C. Determine the income tax Clara and Charles will pay in the second year from business operations and their bases in the business at year-end if they organize the business as (1) a partnership, (2) an S corporation, and (3) a C corporation.

1. There are four loci in wild sorghum that each contribute equally to the height of the plant. The smallest plant is 2 feet tall. When homozygous for contributing alleles at all four loci, however, the plant stands at 10 feet tall. If one crosses a small sorghum plant (2 ft tall) with a giant sorghum plant, the F1 are all 6 feet tall. Letting the F1 self-pollinate, how often will a plant 8 feet tall be found in the F2 progeny?

Here is a statement:

“The concepts of probability and statistics are powerful ones and contribute extensively to the solutions of many types of engineering problems”.

What would be the best way to answer the following:

Why, in your own words, do you think in your specifically engineering professional practice, probability and statistics will help you to be successful?

You want to come up with a plan to save for retirement. You will contribute to your retirement account monthly for 40 years. One month after your last contribution you will begin monthly withdrawals of $7,500 from that retirement account. You earn 6.6% APR while you’re contributing to your retirement savings and 3.6% APR while you are withdrawing. You want to have enough money to finance 35 years in retirement. (Assume compounding frequencies match the payment frequencies.)

What kind of cash flow pattern are the retirement withdrawals?

a.Lump sum b.Annuity c. Perpetuity d. Growing perpetuity

What variable would you solve for to find the value of all the retirement withdrawals at the beginning of retirement?

a. Present value b. Payment c.Interest rate d. Time e. Future Value

What is the value of the retirement withdrawals at the beginning of retirement?

What kind of cash flow pattern is the savings contributions?

a. Lump sum b. Annuity c. Perpetuity b. Growing perpetuity

What variable would you solve for to find the monthly savings contribution?

a. Present value b. Payment c. Interest rate d. Time e. Future Value

What is the monthly savings contribution you must make to fully fund your retirement?

Which of the following did NOT contribute to an increase in antibiotic resistance in bacteria? Question 24 options: A) Prescribing of antibiotics for viral infections B) Addition of antibiotic to common household products, such as hand soap C) Failure by hospitals to sterilize surgical tools D) All of the above contributed to antibiotic resistance in bacteria.

You are given the following information on probabilities of events happening, and rates for return for possible projects A and B.

1. Calculate the expected returns of A (E[rA]) and B (E[rB]) .

2. Calculate the absolute risk levels of A and B.

3. Calculate the relative risk levels of A and B. If you have to invest in one asset which asset would you invest in and why?

4. A portfolio is formed with a w_A invested in project A and w_B invested in project B. Calculate the expected return E[rp] and standard deviation σp for the portfolio when w_A=0.5 and w_B=0.5. The correlation between A and B is 0.5.

5. Assume that there is another possible project C. You decide to create a new portfolio with all three projects A, B, and C. The return for the new portfolio with three assets will be the weighted average of the expected returns of the three assets. A variance of a portfolio with three assets is:

σp2=wA2σA2+wB2σB2+wC2σC2+2wAwBσAσBρA,B+2wAwCσAσCρA,C+2wBwCσBσCρB,C

where w denotes the weight, σ denotes the standard deviation, and ρ denotes the correlation between two denoted assets of the subscript.

The expected return of C is 13% and the variance is 16. The correlation between A and C is 0.7, and the correlation between B and C is -0.1. The correlation between A and B is again 0.5. You allocate 50% of your capital into A, 25% into B, and 25% into C.

For the new portfolio with three assets, calculate (1) the expected return and (2) standard deviation. Then briefly discuss the relationship between the risk and the number of holdings in a portfolio based on your findings from this question and from (d) .

49.

{Exercise 12.26 (Algorithmic)}

The following data on price ($) and the overall score for 6 stereo headphones that were tested by Consumer Reports were as follows.

a. Does the t test indicate a significant relationship between price and the overall score?

The test t-Conclusion at α = .05

t =  (to 2 decimal places.)

p-value is - Select your answer -less than .02between .02 and .05between .05 and .1between .1 and .2greater than .2Item 2

What is your conclusion? Use α = .05.
- Select your answer -There is a significant relationship between price and overall scoreThere is no significant relationship between price and overall scoreItem 3 .

b. Test for a significant relationship using the F test.
p-value is - Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .1greater than .1Item 4

What is your conclusion? Use α = .05.

Because p-value is - Select your answer -greater than or equal toless than or equal toequal toItem 5 .05, we - Select your answer -acceptrejectItem 6 H₀: β₁ is - Select your answer -greater than or equal to zeroless than or equal to zeroequal to zeroItem 7 .

c. Show the ANOVA table for these data. Round your answers to three decimal places, if necessary.

The following data on price ($) and the overall score for 6 stereo headphones that were tested by Consumer Reports were as follows.

a. Does the t test indicate a significant relationship between price and the overall score?

The test t-Conclusion at α = .05

t =  (to 2 decimal places.)

p-value is - Select your answer -less than .02between .02 and .05between .05 and .1between .1 and .2greater than .2Item 2

What is your conclusion? Use α = .05.
- Select your answer -There is a significant relationship between price and overall scoreThere is no significant relationship between price and overall scoreItem 3 .

b. Test for a significant relationship using the F test.
p-value is - Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .1greater than .1Item 4

What is your conclusion? Use α = .05.

Because p-value is - Select your answer -greater than or equal toless than or equal toequal toItem 5 .05, we - Select your answer -acceptrejectItem 6 H₀: β₁ is - Select your answer -greater than or equal to zeroless than or equal to zeroequal to zeroItem 7 .

c. Show the ANOVA table for these data. Round your answers to three decimal places, if necessary.

The data in the attached excel file comes from Consumer Reports and was collected over a two-year period. It gives the average mpg over a 195-mile trip, the weight of the vehicle (pounds), engine displacement (liters), number of cylinders, horsepower, type of transmission (0 = manual, 1 = automatic), the number of gears and whether the car was foreign (1) or domestic (0).

Part a: Build a model for predicting the average mpg based on the data in the attached excel spread sheet. Show and annotate your work in the excel spread sheet. Include an interpretation of the final model.

Part b: Using your final model from part a, construct an interval estimate of the average mpg of a vehicle which weighs 3000 pounds, with an engine displacement of 2.5 liters, 4 cylinders, 150 hp, manual transmission, 5 gears and is a domestic car. Explain what this means.