Janie graduates from high school in 2019 and enrolls in college in the fall. Her parents (who file a joint return) pay $14,350 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $170,600, what is the American Opportunity tax credit they can claim for Janie? $ b. Assuming Janie's parents have AGI of $68,240, what is the American Opportunity tax credit they can claim for Janie? $

Martha and Lew are married taxpayers with $1,300 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $1,300 as a foreign tax credit. Their tax bracket is 15 percent and they itemize deductions.

Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A?

If required, round your answer to the nearest dollar.

The foreign tax deduction will result in a $ tax benefit where as claiming the foreign tax credit yields a $ tax benefit. Therefore, the taxpayers should

1. For tax year 2017. Marty is 17 years old, in high school, and is claimed as a depended by his parents. He earned $950 in 2017 at a summer job; he has no other income.

a. Will Marty’s employer send Him a W2 for this small amount?

b. If Marty files a tax return what will be the amount of his standard deduction?

c. What will be his personal exemption amount on his tax return?

d. Under what conditions should Marty file a return?

2. What is the difference between deductions for AGI and deductions from AGI?

3. During 2017, Jenna had the following transactions:

Salary                                                                                               $45,000

Loan from bank to buy a car                                              8,000

Business loss (filed on Sch C)                                              2,000

Alimony paid                                                                              6,000

Child support paid                                                                  8,000

Casino winnings (the casino didn’t give her

any paperwork)                   1,540

Gift from father                                                                         12,000

In November 2017 she sold stock for $6,000 that she purchased In January of 2017 for $3,500

a. What is Jenna’s AGI?

b. If Jenna is single, has no dependents and does not itemize, what is her taxable income?

c. Should Jenna figure her tax using the tax tables or tax rate schedule? Why?

d. What is Jenna’s 2017 federal income tax liability using the tax table?

4. Lisa is single and has a 4 year old daughter who lives with her. What is her correct filing status?

5. A taxpayer had a salary of 35,000 and the following transactions:

i.Sold collectibles for 3,000 (basis 2,000, held 18 months)

ii.Sold stock for 5,000 (basis 8,000, held 9 months)

iii.Sold stock for 6,000 (basis 5,000, held 2 years)

a. What is the overall, net effect of these asset sales on the taxpayers AGI?

b. What is the character of the income or loss from the above capital asset transactions? And what is the character of the taxpayers taxable income overall. Ordinary, capital [28%, 25%, {0,15,20%}]?, Explain.

A recent 10-year study conducted by a research team at the Great Falls Medical School was conducted to assess how age, systolic blood pressure, and smoking relate to the risk of strokes. Assume that the following data are from a portion of this study. Risk is interpreted as the probability (times 100) that the patient will have a stroke over the next 10-year period. For the smoking variable, define a dummy variable with 1 indicating a smoker and 0 indicating a nonsmoker.

a) Develop an estimated multiple regression equation that relates risk of a stroke to the person's age, systolic blood pressure, and whether the person is a smoker.

Let x₁ represent the person's age.

Let x₂ represent the person's systolic blood pressure,

Let x₃ represent whether the person is a smoker.

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) What is the probability of a stroke over the next 10 years for Art Speen, a 67-year-old smoker who has a systolic blood pressure of 172? If required, round your answer to two decimal places. Do not round intermediate calculations.

Suppose school has figured out a way to deliver the lectures all around the world in a way that creates a demand for their lectures because in some way they're better than the lectures that you could get from other universities. They evaluate the demand in Korea and demand in Germany. The demands are as follows: PK = 5,000 – 0.5QK PG = 3,000 – 0.5QG where PK and PG are the prices per course (per student) in Korea and Germany, respectively, and QK and QG are the number of students in Korea and Germany willing to enroll at those prices, respectively. The cost of online delivery is C = 1,800Q, where Q is the total number of students enrolled (i.e., Q = QK + QG). If school has decided to charge the same (uniform) tuition (price) to their online students everywhere around the world,

1. What price would they charge?

2. What would be their total online enrollment?

3. What would be their enrollment in Germany?

4. What would be their enrollment in Korea?

5. What would be the combined surplus in all the markets? I.e., what is the sum of the consumer surplus in Korea, consumer surplus in Germany, and school’s producer surplus from selling the instruction in both countries?

In a recent survey of county high school students, 100 males and 100 females, 66 of the male students and 47 of the female students sampled admitted that they consumed alcohol on a regular basis. Find a 90% confidence interval for the difference between the proportion of male and female students that consume alcohol on a regular basis. Can you draw any conclusions from the confidence interval?

For the test of significance questions, clearly indicate each of the formal steps in the test of significance.

Step 1: State the null and alternative hypothesis.
Step 2: Calculate the test statistic.
Step 3: Find the p-value.
Step 4: State your conclusion. (Do not just say “Reject H0” or “Do not reject H0”, state the conclusion in the context of the problem.)

Getting in to a prestigious law school can have lasting effect’s on lawyer’s careers, thus the admission process is important. One measure that admissions officers look at is prospective law student’s LSAT scores. Because of that, companies that specialize in preparing students for the LSAT have sprouted up. Altair Test Preparation, in an effort to differentiate themselves from the rest and to assure their clients that they are being provided with what really is having an effect, have decided to conduct some research to identify what has the greatest impact on student’s LSAT scores. All companies advertise that the number of hours they give them study sessions is what makes a difference. Based on the results, Altair will either recommend the hours needed to obtain a “good” score vs an “excellent” score. (Good is 155, excellent is 169), or will decide to investigate other learning interventions, and academic counseling which might have a greater impact.

Altair collected a sample of 50 students, who in the previous year, were their clients and subsequently took the LSAT. The looked at the relationship between the number of hours they used the service, and their LSAT score. You, as the statistician, will run the analysis and make your recommendations to Altair Test Preparation.

Your report should have the following qualities:

• What LSAT score would you predict for a student that used the service for 10 hours? What

  recommendation would you give the student concerning the number of hours they have used

  the service?

• Your final conclusion should use both the 95% confidence and prediction intervals. Improper use

  of these and corresponding wrong/sloppy interpretations is highly penalized.

• Use Data Analysis for Regression and the Regression Template provided on the course website

  for the intervals.

• data below:

  • Hours	LSAT
    13	161
    13	158
    11	147
    14	164
    3	124
    10	130
    4	114
    7	131
    12	156
    7	135
    8	150
    11	150
    9	121
    10	160
    18	170
    17	155
    13	160
    14	154
    5	132
    11	156
    10	153
    8	150
    15	172
    7	141
    9	140
    11	155
    10	149
    8	149
    5	140
    6	142
    14	167
    12	166
    10	161
    14	162
    12	154
    12	156
    8	167
    12	160
    10	156
    11	170
    15	177
    5	130
    8	151
    11	160
    15	171
    11	154
    6	143
    6	165
    13	165
    9	145

Lary got a referral from a school to run an academic motivation program to 4th graders who got low grades in their last year. She wanted to check whether these students are below average for the intelligence level. The mean IQ of her students is 98, SD is 10, and she has 25 students. The average IQ is known as 100.

1. Indicate the null and research hypothesis.
2. What test do you do to test the null hypothesis above, among independent-sample t-test, paired-sample t-test, or one-sample t-test?
3. What is the t-statistics?
4. What is the d.f. for the test?
5. Do you reject the null hypothesis?
6. So, is the average IQ score of her class significantly different from 100?

1)

If you were a member of the Second Chicago School, which standard model of oligopoly would you think best models market performance?

2)

In a game, if every firm is best-responding to every other firm in a game, then

3)

Instead of a pure strategy, firms may randomly choose their actions according to a probability distribution or probability density function. What kinds of strategies are these?

3.

How do we solve for the equilibrium of a two-stage game?

4.

Which principle, illustrated in Hotelling's beach model, seemed to explain the way new firms tended to sell goods that were very similar, though not identical, to their competitors?

Q 1 A survey of 200 workers was conducted regarding their education (school graduates or less, college graduates, university graduates) and the level of their job satisfaction (low, medium, high). These are the results:

We will test at a 0.025 level of significance whether the level of job satisfaction depends on the level of education. (Critical Value = 11.14)                                       

Q 2 Four hostels took a random sample of students regarding their grade averages for the past term. The results are shown below:

Use a significance level of 1%, is there a difference in grade averages among the hostels? (Critical Value = 4). Also make the ANOVA summary table.                   

Q 3 Researchers are interested in the mean age of a certain population. A random sample of 32 individuals drawn from the population of interest has a mean of 27. Assuming that the population is approximately normally distributed with variance 20, can we conclude that (a) the mean is different from 30 years (b) the mean is greater than 30 years (c) the mean is less than 30 years ? (α=0.05) .                                                                        

Q 4 A certain company would like to determine the amount of time employees waste at work each day. A random sample of 10 of its employees shows a mean time of 121.80 minutes wasted per day with a standard deviation of 9.45 minutes per day. Does the data provide evidence that the mean amount of time wasted by employees each day is more than 120 minutes? Test at α=.05. Assume the population is at least approximately normally distributed.                                                                                                 

Q 5 The government is concerned that in Pakistan the percentage of deaths of Sindhi prisoners was higher than the per cent of deaths of other prisoners, which is 0.25%. A sample of six years was collected, and 51 out of 14,495 Sindhi prisoners died. Does data provide evidence to show that the proportion of deaths of Sindhi prisoners is more than 0.25%?