Progressive Insurance offers mail-order automobile insurance to preferred-risk drivers in New York State. The company is the low-cost provider of insurance in this market with fixed costs of $20 million per year, plus variable costs of $500 for each driver insured on an annual basis. Annual demand and marginal revenue relations for the company are:

P = $1,500 - $0.005Q

MR = $1,500 - $0.01Q

How do you Graph the firm’s demand curve and marginal revenue curve in excel?

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise:

Beginning Inventory at FIFO: 17 Units @ $20 = $340

Beginning Inventory at LIFO: 17 Units @ $16 = $272

Required:

1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods.

2. Which costing method is the more accurate indicator of the efficiency of inventory management?

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 14 Units @ $16 = $224 Beginning Inventory at LIFO: 14 Units @ $12 = $168 Transactions Units Unit Cost Total Cost Purchase, January 9 28 $ 14 $ 392 Purchase, January 20 54 19 1,026 Sale, January 21 (at $42 per unit) 37 Sale, January 27 (at $43 per unit) 27

Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Discuss the 3 components of the Cash Conversion cycle. Discuss some of the ways you would speed up cash flow such as, how would you encourage your customers to pay their bills? Is it better to offer your customers credit or take credit cards instead?

Part II: Causes

A.

Consider whether each of the following relationships is a causal relationship or merely a correlation.

Discuss how you would go about verifying which type it is. (10 points)

1. There has been an increase in the number of twins being born and a later age of marriage in the past

decade.

2. During the past decade there has been a decrease in the size of the Greenland ice cap and an increase in

the number of twins being born.

3. People who are members of a religious organization tend to be happier.

4. Jason drank nine bottles of beer at the party and is having trouble walking straight.

5. Almost all the animals that could flee to higher ground did so shortly before the tsunami struck Indonesia in

2004.

​Wellness, a healthy living​ magazine, collected $ 540, 000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12​ months, beginning with the June issue. The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of December​ 31?

With the COVID-19 crisis, a manager is concerned with handling the amount of customers arriving to his store. The manager assumes that the number of customers, X, arriving per hour has a Poisson distribution with mean rate of 10 customers per hour. Use this distribution for exercises!

1. Use R to generate the pmf of X.

2. Use R to plot the pmf of X.

3. Give the probability that at least 11 customers arrive to the store in a given hour.

4. There are 10 cards face down on a table and 3 of them are aces. If 5 of these cards are selected at random, what is the probability that at least 2 of them are aces?

5. Defects in a certain type of aluminum screen appear on the average of one in 150 square feet. If we assume the Poisson distribution, find the probability of at most one defect in 230 square feet.

With the COVID-19 crisis, a manager is concerned with handling the amount of customers arriving to his store. The manager assumes that the number of customers, X, arriving per hour has a Poisson distribution with mean rate of 10 customers per hour. Use this distribution for exercises!

1. Use R to generate the pmf of X.

2. Use R to plot the pmf of X.

3. Give the probability that at least 11 customers arrive to the store in a given hour.

4. There are 10 cards face down on a table and 3 of them are aces. If 5 of these cards are selected at random, what is the probability that at least 2 of them are aces?

5. Defects in a certain type of aluminum screen appear on the average of one in 150 square feet. If we assume the Poisson distribution, find the probability of at most one defect in 230 square feet.

The project is about airline revenue and the factors that impact it. All the knowledge you obtain in chapter 4, is enough to do the project.

Revenue of an airline is influenced by several factors, including fuel cost, employees’ salary, operating expenses, maintenance costs, fleet size, available seats. This project aims to find out the influence of some of these factors on revenue for U.S. airline industry for the period of 11 years.

In airline industry one of the variables that represent revenue is “Revenue Passenger mile”.

Attached is the data (revenue passenger mile, fuel cost, salary cost and seat available” of some U.S. airlines for the period of 2005 till 2015. Data has been collected from The Bureau of Transportation Statistics (BTS) database.

Each team should use regression tool to interpret the relation between revenue of airlines and the above mention factors for each year.

Each team should run a regression for each year separately, write the regression equations for each year and compare in which year each of these three factors impacts revenue the most and the least.

Finally, run the regression for whole the period and write the equation line for all observation and interpret the result in terms of the positive/negative influence of factors on revenue.

1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses = Net Income. c. Revenues - Expenses - Dividends = Retained Earnings. d. Assets = Liabilities + Stockholders’ Equity.

2. On January 1, Art Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock. During the year, the company earned net income of $92,000, paid a dividend of $15,200, and issued more common stock for $27,500. What is total stockholders' equity at the end of the year? a. $1,231,700. b. $1,097,000. c. $1,201,300. d. $1,588,300.

3. Which financial statement is typically prepared first? a. Balance sheet. b. Income statement. c. Statement of stockholders’ equity. d. Statement of cash flows.

4. Which of the following would increase assets and increase liabilities? a. Provide services to customers on account. b. Purchase office supplies on account. c. Pay dividends to stockholders. d. Receive a utility bill but do not pay it immediately. 2 / 10

5. The Unearned Revenue account is shown in which statement? a. Income statement. b. Statement of cash flows. c. Balance sheet. d. Statement of stockholders’ equity.

6. Consider the following accounts: Utility Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with credits? a. One. b. Two. c. Three. d. Four.

7. Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as: a. Debit Equipment, credit Cash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable, credit Equipment. d. Debit Equipment, credit Notes Payable.

8. Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5. According to the revenue recognition principle, in which month should Air France have recognized this revenue? a. January. b. February. c. April. d. Evenly in each of the three months.

9. Which of the following regarding adjusting entries is correct? a. Adjusting entries are recorded for all external transactions. b. Adjusting entries are recorded to make sure all cash inflows and outflows are recorded in the current period. c. Adjusting entries are needed because we use accrual-basis accounting. d. After adjusting entries, all temporary accounts should have a balance of zero. 3 / 10

10. An adjusted trial balance: a. Is a list of all accounts and their balances after adjusting entries. b. Is a list of all accounts and their balances before adjusting entries. c. Is a list of all accounts and their balances after closing entries. d. Is a trial balance adjusted for cash-basis accounting.