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.

Xander, summer statistics intern in the Superintendent’s Office for the Palisades Point School District, wonders if the homerun teacher referrals in the 7^th grade for two week periods are comparable. He tests this claim very preliminarily at the 1% significance level as a pilot study, and presumes that the distribution of referrals among these teachers is reasonably normal. He collects independent, simple random samples. The following data tables represent the numbers of referrals made by these seventh grade teachers:

What hypotheses should he test? Were the results statistically significant? What conclusion should he draw, qualifying the result as extreme or marginal if appropriate? Explain his anticipated findings in detail, both technically and contextually. Be sure to identify the necessary critical and p-values as part of the analysis.

An article compared the drug use of 288 randomly selected high school seniors exposed to a drug education program (DARE) and 335 randomly selected high school seniors who were not exposed to such a program. Data for marijuana use are given in the accompanying table.

Is there evidence that the proportion using marijuana is lower for students exposed to the DARE program? Use α = 0.05.(Use p_DARE − p_{No DARE}. Round your test statistic to two decimal places and your P-value to four decimal places.)

z=

P-value=

State your conclusion.

We reject H₀. We do not have convincing evidence that the proportion of students using marijuana is lower for students exposed to the DARE program than for students not exposed to the program.

We fail to reject H₀. We have convincing evidence that the proportion of students using marijuana is lower for students exposed to the DARE program than for students not exposed to the program.    

We reject H₀. We have convincing evidence that the proportion of students using marijuana is lower for students exposed to the DARE program than for students not exposed to the program.

We fail to reject H₀. We do not have convincing evidence that the proportion of students using marijuana is lower for students exposed to the DARE program than for students not exposed to the program.

Jessica is a recent graduate of Brenau University’s business school entrepreneurship program. The business plan that she created before she graduated was for a business developing websites for individuals and commercial businesses. Friends and family provided funding for the start-up, and she has been in business for the last two and a half years.

Jessica had learned about the balanced scorecard in her accounting classes and has been applying some of the techniques. Her vision for this business is to provide clients with high quality websites that receive a relatively high numbers of hits. Recently, word-of mouth advertising had led to more requests for websites with creative animated graphics. As part of her balanced scorecard, she tracked the following measures over the last two years for her individual clients:

                                                                                              20x1                20x2

Average revenue per individual client                              $2,000             $1,500

Average time from start to finish (business days)           10 days            13 days

Average site ranking on top two search engines                     15                    21

Total revenue                                                                   $80,000           $78,000

Total labor cost                                                                $20,000           $22,000

Utilities cost (electricity and phone)                                 $2,100             $2,400

Number of individual clients                                                    40                    52

Employee turnover                                                                     1                      0

a.   Classify each performance measure according to one of the four balanced scorecard perspectives. Explain your reasoning.

b.   Analyze the change in each performance measure from 20X1 to 20X2. Give one possible reason for the change.

MB’s School of Beauty calls you because their beginning balance is off in their reconciliation window for their checking account. You log in and see that there are many transactions that were changed/deleted on the last couple of months' reconciliations. She likes to do as much she can on her own. Which of the following next steps would you take?

A. Enter a journal entry to Opening Balance Equity to compensate for the difference

B. Advise her to use the Undo button to undo the reconciliation and re-reconcile the account

C. Undo the previous months' reconciliations for her so that she can re-reconcile each month

D. Advise her to complete the reconciliation as normal, then use the auto-adjustment feature to balance the reconciliation

E. Re-enter the changed/deleted transactions and manually reconcile them in the register, then advise her to complete the current month’s reconciliation as usual

Reba Dixon is a fifth grade school teacher who earned a salary of 38,000 in 2018. She is 45 years old and has been divorced for four years. She receives 1,200 of alimony payments each month from her former husband. Reba also rent out a small apartment building. This year Reba receive 50,000 of rental payments from tenant and she incurred 19,500 of expenses associated with the rental.
        Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one half of Heather support. They had been living in Colorado for the past 15 years, but ever since her divorced, Reba has been wanting to go back to Georgia to be closer to her family. Luckily last December, a teaching position opened up and Reba and Heather decided to make a move. Reba paid a moving company 2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia.
          Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full time in January at near by university. She was awarded a & 3000 partial tuition scholarship this year and Reba help out by paying the remaining 500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses.
           Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return, however she kept track of several expenses this year that she thought might qualify if she was able to itemized. Reba paid 5800 in state income taxes and 12500 in charitable contribution during the year. She also paid the following medical related expenses for herself and Heather :
Insurance premiums.     5,795
Medical care expenses   1,100
Prescription medicine         350
Nonprescription medicine. 100
New contact lenses for Heather. 200

   Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused 900 in damage to the car and gave her whiplash. Because the repair was less than her insurance deductible, she paid the entire cost of the repair. Reba wasn't able to work for two months after the accident. Fortunately, she receives 2000 from her disability insurance. Her employer, the central Georgia school district, paid 60%of premium on the policy as a non-taxable fringe benefits and Reba paid the remaining 40% portion.
      A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments : 2200 of interest income from corporate bonds and 1500 interest income from city of Denver municipal bonds. Overall, Reba stock portfolio appreciated by 12000 but she did not sell any of her stock.
      Heather reported 6200 of interest income from corporate bonds she received as a gift from her father over the last several years. This was Heather only sources of income for the year. Reba had 10,000 of federal income taxes withheld by employer. Heather made 1000 estimates tax payments during the year. Reba did not make any estimate payments. Reba had qualifying insurance for purposes of the affordable care Act (ACA).

Required :

(A) Determine Reba federal income taxes due or taxes payable for current year, complete pages 1 and 2 of forms 1040 for Reba.

(b) is Reba allowed to file as a head of household or single?

(c) Determine the amount of FICA taxes Reba was required to pay on her salary.

(d) Determine Heather federal income taxes due or payable

1. Use the following information to calculate the price elasticity of demand for school fees:

If P=30; Q^d =6000

If P=50; Q^d =4000

1. The elasticity is 0.5
2. The elasticity is 0.8
3. The elasticity is 1.8
4. The elasticity is 1.2

2. Which one of the following is a normative statement?

1. Price rise when the government increase the quantity of money
2. When more people find jobs, unemployment rates drop
3. The government should invest more money in research
4. When the price of a good increase, the quantity demanded goes down

3. The biggest reason people face trade-off is because

1. People tend to disagree with each other
2. Resources are scarce
3. People’s incomes increase and decrease with business cycles
4. There are too many goods and services to choose from

4. “Society should allocate more money for research” this is an example of a positive economic statement

TREU / FALSE

5. The cross-price elasticity of beef and chicken is 2, which indicates that beef and chicken are substitutes

TRUE / FALSE  

6. The opportunity cost of any item is whatever must be given up to obtain it.

TRUE / FALSE

7. In the markets for factors of production in the circular- flow diagram, households are buyers, and firms are sellers.

TRUE / FALSE

8. Regarding elasticities, the flatter the curve, the bigger the elasticity, and the smaller the elasticity. This is true:

1. Only for seller
2. Only for buyers
3. For both buyers and sellers
4. All answers are incorrect

Yasmin Jamieson is 18 years old and is about to graduate from an Ottawa high school. She must decide: which university will she attend in September? She wants to follow a 4-year undergraduate degree in Economics. Yasmin has been accepted to attend McMaster University in Ontario, Canada, and Stanford University, California, United States. She faces only one annual cost for the each of the four years she is in university: tuition. Annual tuition at McMaster is $15,000. At Stanford, annual tuition is $45,000. Assume that she is not considering the option of working after high school. Therefore, do not consider the foregone labour earnings when going to university. After graduation, Yasmin has a strong interest in Labour Economics and hopes to receive job offers from Capital Economics (near Hamilton, Canada) and from Insight Economics (near Stanford, USA).

She knows that these two companies offer different annual salaries depending on where one has graduated. Capital Economics will offer a McMaster graduate an annual salary of $128,000 and a Stanford graduate an annual salary of $160,000. Insight Economics will offer a McMaster graduate an annual salary of $175,000 and a Stanford graduate an annual salary of $250,000.

Let’s assume the following:

• Yasmin’s objective in her decision-making is to maximize the present value of net future income over her career (that is, income net of costs).

• She is certain to get job offers from both companies.

• Please ignore differences between these two cities in terms of income taxes, the exchange rate, the cost of living and moving costs.

• These annual salaries do not change for the duration of her expected career, from age 22 to 65. Hint: this time horizon is sufficiently long to use the present value (PV) approximation formula.

• However, the present value of annual tuition costs should be calculated using the expanded present value formula.

• The market interest rate is 5%. Which university would you recommend to Yasmin? Please show all your calculations and explain your recommendation. (20 points)