in 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion.

1.  Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. ( Do not round intermediate calculation. Loss amounts should be indicated with a minus sign.)

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,580,000 $ 4,042,000 $ 2,175,800 Estimated costs to complete as of year-end 6,020,000 1,978,000 0 Billings during the year 2,060,000 4,562,000 3,378,000 Cash collections during the year 1,830,000 4,200,000 3,970,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

Great Adventures obtains a $42,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. Record adjusting entries as of December 31, 2018.

Assume the following ending balances for the month of July.

Cash $ 27,250 Prepaid insurance 5,640 Supplies (Office) 1,800 Equipment (Bikes) 15,700 Accounts payable 1,800 Deferred revenue 6,500 Common stock 39,000 Service revenue (Clinic) 5,350 Advertising expense 1,060 Legal fees expense 1,200

Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern U.S. The owners would like to estimate weekly gross revenue as a function of advertising expenditures. Data for a sample of eight markets for a recent week follow.

(a) Use the data to develop an estimated regression with the amount of television advertising as the independent variable. Let x represent the amount of television advertising. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

(b) How much of the variation in the sample values of weekly gross revenue does the model in part (a) explain? If required, round your answer to two decimal places.

(c) Use the data to develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. Let x1 represent the amount of television advertising. Let x2 represent the amount of newspaper advertising. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

(d) How much of the variation in the sample values of weekly gross revenue does the model in part (c) explain? If required, round your answer to two decimal places. %

Support of Background Checks by Political Party: USE SOFTWARE - In April of 2013, the U.S. Senate did not pass a bill to expand background checks to all gun sales despite popular approval of the idea. Gallup conducted a poll on this issue with the question: Would you vote for or against a law to require background checks for all gun sales?. The results by political affiliation are summarized in the contingency table below.

Observed Frequencies: O_i's

The Test: Test for a dependent relationship between party affiliation and opinion on expanded background checks. Conduct this test at the 0.01 significance level.

(a) What is the test statistic? Round your answer to 3 decimal places.

χ² =  

(b) What is the conclusion regarding the null hypothesis?

reject H₀

fail to reject H₀    

(c) Choose the appropriate concluding statement.

We have proven that opinion on expanded background checks and political affiliation are independent.

The evidence suggests that there is a dependent relationship between opinion on expanded background checks and party affiliation.     

There is not enough evidence to conclude that opinion on expanded background checks and political affiliation are dependent.

10.48  Predicting water quality. The index of biotic integrity (IBI) is a measure of the water quality in streams. IBI and land use measures for a collection of streams in the Ozark Highland ecoregion of Arkansas were collected as part of a study.²¹ Table 10.4 gives the data for IBI, the percent of the watershed that was forest, and the area of the watershed in square kilometers for streams in the original sample with watershed area less than or equal to 70 km².

1. (a) Use numerical and graphical methods to describe the variable IBI. Do the same for area. Summarize your results.

   TABLE 10.4 Watershed Area (km²), Percent Forest, and Index of Biotic Integrity

   Area	Forest	IBI	Area	Forest	IBI	Area	Forest	IBI	Area	Forest	IBI	Area	Forest	IBI
   21	0	47	29	0	61	31	0	39	32	0	59	34	0	72
   34	0	76	49	3	85	52	3	89	2	7	74	70	8	89
   6	9	33	28	10	46	21	10	32	59	11	80	69	14	80
   47	17	78	8	17	53	8	18	43	58	21	88	54	22	84
   10	25	62	57	31	55	18	32	29	19	33	29	39	33	54
   49	33	78	9	39	71	5	41	55	14	43	58	9	43	71
   23	47	33	31	49	59	18	49	81	16	52	71	21	52	75
   32	59	64	10	63	41	26	68	82	9	75	60	54	79	84
   12	79	83	21	80	82	27	86	82	23	89	86	26	90	79
   16	95	67	26	95	56	26	100	85	28	100	91

2. (b) Plot the data and describe the relationship between IBI and area. Are there any outliers or unusual patterns?

3. (c) Give the statistical model for simple linear regression for this problem.

4. (d) State the null and alternative hypotheses for examining the relationship between IBI and area.

5. (e) Run the simple linear regression and summarize the results.

6. (f) Obtain the residuals and plot them versus area. Is there anything unusual in the plot?

7. (g) Do the residuals appear to be approximately Normal? Give reasons for your answer.

8. (h) Do the assumptions for the analysis of these data using the model you gave in part (c) appear to be reasonable? Explain your answer.

Problem 4.

(problem 5.23 page 74) A company‘s management is worried about employee drug

use and is instituting a policy of mandatory drug test. If an employee is a drug user, there is an 85%

chance that he or she will test positive. If the employee is not a drug user, there is 95% chance that

he or she will test negative. Individuals who test positive are fired. We don‘t know the fraction of

employees who are drug users. We do know, however that 10% of all employees tested positive.

a. What fraction of employees are drug users?

b. Of those who tested positive, what fraction are in fact not drug users?