Answers should be substantive and include consideration of relevant accounting concepts.

What are the trade-offs in financing a company by owner versus non-owner financing? If non-owner financing is less costly, why don’t we see companies financed entirely with borrowed money?

For these discussion questions:

Define Type I and Type II error and explain their importance in statistical research (5 points).

Discuss the use of directional and non-directional hypotheses. How do we make the decision to use directional or non-directional tests? (5 points)

Thermodynamics:

What is the significance of:

a reduced pressure and reduced temperature of 1, and;

a compressibility factor (Z) of 1?

At room temperature, what pressure is needed in order to say that nitrogen is non-ideal if you define non-ideal as 5% error from the ideal gas law?

Profitability Index

Per the strict observance of the rules of Profitability Index, this project would be accepted because it meets the definition of >1. But as your pointed out, there are other considerations to factor into this decision. Most business decisions have a basis in financial support - or reason for undertaking a project. But there are non-quantitative reasons for undertaking or not undertaking a project...

Class

What are some non-financial reasons for undertaking a project that has a Profitability Index of less than 1?

Also, what are some non-financial reasons for not undertaking a project that has a Profitability Index of greater than 1?

Health insurers and the federal government are both putting pressure on hospitals to shorten the average length of stay (LOS) of their patients. In 2003, the average LOS for non-heart patients was 4.6 days. A random sample of 20 hospitals in one state had a mean LOS for non-heart patients in 2008 of 3.8 days and a standard deviation of 1.2 days. Calculate a 95 percent confidence interval for the population mean LOS for non-heart patients in these hospitals in 2008. 41) ______

A) [3.24, 4.36] B) [3.27, 4.33] C) [3.34, 4.26] D) [3.38, 4.22]

1. Suppose we have the following information on GMAT scores for business and non-business majors:

Business Majors                     Non-Business Majors

n₁ = 8                                      n₂ = 5

_                                              _

X₁ = 545                                  X₂ = 525

s₁ = 120                                   s₂ = 60

1. Using a 0.05 level of significance, test to see whether the population variances are equal. (4 points)

b. Using a 0.05 level of significance, test the clam that average GMAT scores for business majors is above the average GMAT scores for non-business majors in the population. Assume unequal population variances.

3. A widget company tested 101,000 widgets, of which only 1,000 had defects. The company’s test correctly identified defects 99% of the time and correctly identified non-defects 95% of the time.

   1. (a) What percentage of the widgets marked as defects were actually defective?

   2. (b) What percentage of the widgets marked as non-defects were not defective?

   3. (c) The answer to problem a is counter-intuitive. Explain what happened?

   4. (d) What would be your suggestion for improving the accuracy of the defect/non- defect identification. Improving the accuracy of the tests is not a valid answer. R-Studio

1. Suppose we have the following information on GMAT scores for business and non-business majors:

Business Majors                      Non-Business Majors

n₁ = 8                                       n₂ = 5

_                                              _

X₁ = 545                                  X₂ = 525

s₁ = 120                                   s₂ = 60

a. Using a 0.05 level of significance, test to see whether the population variances are equal. (4 points)

b. Using a 0.05 level of significance, test the clam that average GMAT scores for business majors is above the average GMAT scores for non-business majors in the population. Assume unequal population variances.