The idea of insurance is that we all face risks that are unlikely but carry high cost. Think of a fire destroying your home. So we form a group to share the risk: we all pay a small amount, and the insurance policy pays a large amount to those few of us whose homes burn down. An insurance company looks at the records for millions of homeowners and sees that the mean loss from fire in a year is μ = $500 per house and that the standard deviation of the loss is σ = $10,000. (The distribution of losses is extremely right-skewed: most people have $0 loss, but a few have large losses.) The company plans to sell fire insurance for $500 plus enough to cover its costs and profit. (a) Explain clearly why it would be unwise to sell only 100 policies. Then explain why selling many thousands of such policies is a safe business. (b) Suppose the company sells the policies for $600. If the company sells 50,000 policies, what is the approximate probability that the average loss in a year will be greater than $600?

1- Who Corporation (a C-Corporation) and Rose each own 50% of Tardis Corporation’s (a C-Corporation) common stock. On January 1, 2017 Tardis has positive accumulative E&P of $120,000. On December 31, 2017 when its current E&P has deficit of $30,000, Tardis makes a cash distribution of $40,000 each to Who and Rose. Who’s stock basis in Tardis is $35,000. Rose’s stock basis in Tardis is $8,000.

How are Who and Rose each taxed on the distribution?

How would Who and Rose each be taxed if instead they received $50,000 distribution each?

2- Amy owns 500 shares of Dalek Corporation with a stock basis of $50,000. Total outstanding shares of Dalek Corporation are 1,000. Of the remaining 500 shares, 50 shares are owned by River (her daughter), and the remaining 450 shares of Dalek Corporation are owned by an unrelated shareholder. Dalek Corporation has E&P of $640,000.

What are the tax consequences to Amy if in a stock redemption; Dalek redeems 100 shares from Amy for $30,000?

What are the tax consequences to Amy if in a stock redemption; Dalek Corporation redeems 400 shares from Amy for $80,000?

What are the tax consequences to Amy if in a complete termination of her 500 shares; Dalek distributes $140,000 to Amy?

If you were advising Amy between the scenarios listed in part a-c above, which scenario would you advise Amy to proceed with? Amy wishes to pay the least amount of tax and has $150,000 of capital loss from other investments.

3- In a liquidating distribution, Harkness Corporation distributes land to its shareholders. Harkness Corporation acquired the land 3 years ago in a §351 transfer. Harkness Corporation distributes land with FMV of $1,800,000, adjusted basis of $400,000 pro-rata to its two individual shareholders Donna and Rory. Donna and Rory do not get along and are not related to each other. Donna (80%) owner has stock basis of $87,000. Rory (20%) owner has stock basis of $20,000.

What is the tax result to Harkness Corporation on the distribution?

What is the tax result (including basis of the property received) to Donna?

What is the tax result (including basis of the property received) to Rory?

1. What is enterprise leadership?
2. What is its difference with people's leadership?
3. Who are enterprise leaders and what are their roles?
4. Who is really in-charge of strategic alignment in a company?

Use the macroeconomic data in the table below for the US economy for 2017 and 2018 to answer the questions followed.

2017 2018*

19,390.6 17,096.2 - ? - 4.4 245.12 -

19,956.8 17,379.7 ? ? ? 3.9 250.5 ?

* Estimated data from 2017 data, but very close. Sources: www.bea.gov and www.bls.gov 5a. Estimate the values and fill out the boxes with Questions marks. 5 pts

5b. Based on your estimated values from Q5a, briefly analyze the state of the US economy from year 2017 to 2018 and make a quick forecast for 2019 and 2020.

For students who first enrolled in two year public instituitons in a recent semester, the proportion who earned a bachelor's degree within six years was 0.388. The president of a certain college believes that the proportion of students who enroll in her institution have a higher completion rate.

A.) Determine the null & alternative hypotheses.

B.) Explain what it would mean to make a Type I error.

C.) Explain what it would mean to make a Type II error.

A.) State the hypotheses.

H0: _______

H1: _______

(Type integers or decimals. Do not round.).

B.) Which of the following is a Type I error?

1.) The president rejects the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is greater than 0.388.

2.) The president rejects the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is 0.388.

3.) The president fails to reject the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is 0.388

4.) The president fails to reject the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is greater than 0.388

C.) Which of the following Type II error

1.) The president rejects the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is 0.388.

2.) The president fails to reject the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is 0.388.

3.) The president rejects the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is greater than 0.388.

4.) The president fails to reject the hypothesis that the proportion of students who earn a bachelor's degree within six years is 0.388, when, in fact, the proportion is greater than 0.388

After rigorous field survey, the insurance company finds that the probability to have cancer is 10% on average. The company offers a fixed rate policy where the premium is $1,000. Reimbursement is $9,000, which is the amount of medical expense you must pay if you get cancer. Suppose there are two types of customers: heavy smoker, who has a probability of 15% of getting cancer. Nonsmoker, who has a probability of 5% of getting cancer.

A) Assuming utility function is ?? = ?? , where x is the amount of money. Calculate utilities for both heavy smoker and nonsmoker. Who will be buying the insurance?

B) What is the expected profit for the insurance company?

Sue T. is a nurse manager for medical-surgical units at a hospital. She is enrolled in a nursing master's degree program at the local university. As part of the requirements for a Nursing Management course, Sue proposes to conduct a study linking nursing interventions with nursing outcomes. She returns to her unit at night for two weeks to audit patient charts and collect the data she needs. She makes copies of the records that are particularly helpful and takes them home to write the final paper. As Sue is developing her paper, she realizes that the information she has collected may be helpful in completing her nursing staff performance evaluations. She decides to collect further patient outcome data for individual nurses to monitor their performance. Has Sue violated ethical principles by collecting data for a college assignment? Why or why not? Has she violated ethical principles by collecting patient data for employee performance evaluations? why or why not? What, if anything, should Sue have done differently in completing her assignment? What, if anything, should Sue have done differently in completing her employee performance evaluations?

Consider the University Database with the following relations:

Professors (pid, pname, dept, ext) Students (sid, sname, major-dept, year)

Courses (cid, cname, dept, credithours)Enrollment (sem-year, sid, cid, grade)

Teaches (pid, cid, sem-year, class-size),

Professors: All professors have professor id (pid), name (pname), department that they work (dept), and a phone number extension for their office (ext). Students: All students have id (sid), name (sname), department for their major (major-dept), and a year (yeari.e, freshman, sophomore, junior, etc). Courses: All courses have a course id (cid), course name (cname), department (dept), and total credit hours(credithours). Enrollment: has a semester year (sem-year), enrolled student id (sid), course id (cid), and grade that student earns (grade). Teaches: has a professor id (pid), course id (cid), semester year (sem-year), and class size (class-size). Attributes “dept” in relations Professors and Courses, and attribute “major-dept” in relation Students have the same domain, and have values like “CDS”, “EE”, “CE”, etc. Attribute “sem-year” has values like “Spring2016”, “Fall2015”, etc. Assume that cids are unique, i.e. if there are multiple sections of a course, each section has a unique cid.

Express the queries below using Relational Algebra.

1.Find sids, names and major-dept of students who enrolled in a course that is taught by professor James. (10 pts)

2.Find pid and names of professors who teach no courses in “Fall2015”. (10 pts)

3.Find cid and cname of courses that are offered by “CDS” department that are taught by professors who are from another department in “Fall2015". (20 pts)

4.Find pid and names of professors who teach only courses offered by “CDS” department. (20 pts)

5.Find pnames and pids of professors who teach every course offered by “CDS” dept. (20 pts)

6.Find sids of students who enroll in “Fall2015” every 3 credit hour course offered by “CDS” department. (20 pts)

7.Find cids and names of courses in which every student majoring in “CDS” enrolled in “Fall2015”. (Bonus question: 10 pts)

Consider the University Database with the following relations:

Professors (pid, pname, dept, ext) Students (sid, sname, major-dept, year)

Courses (cid, cname, dept, credithours) Enrollment (sem-year, sid, cid, grade)

Teaches (pid, cid, sem-year, class-size)

where,

Professors: All professors have professor id (pid), name (pname), department that they work (dept), and a phone number extension for their office (ext).

Students: All students have id (sid), name (sname), department for their major (major-dept), and a year (year i.e, freshman, sophomore, junior, etc).

Courses: All courses have a course id (cid), course name (cname), department (dept), and total credit hours (credithours).

Enrollment: has a semester year (sem-year), enrolled student id (sid), course id (cid), and grade that student earns (grade).

Teaches: has a professor id (pid), course id (cid), semester year (sem-year), and class size (class-size).

Attributes “dept” in relations Professors and Courses, and attribute “major-dept” in relation Students have the same domain, and have values like “CDS”, “EE”, “CE”, etc. Attribute “sem-year” has values like “Spring2016”, “Fall2015”, etc. Assume that cids are unique, i.e. if there are multiple sections of a course, each section has a unique cid. (Please ask for clarifications if you have questions about the relations and/or the semantics of the following queries!).

Express the queries below using Relational Algebra.

1. Find cids and names of courses in which every student majoring in “CDS” enrolled in “Fall2015”.

2. Find sids, names and major-dept of students who enrolled in a course that is taught by professor James. (10 pts)

3. Find pid and names of professors who teach no courses in “Fall2015”. (10 pts)

4. Find cid and cname of courses that are offered by “CDS” department that are taught by professors who are from another department in “Fall2015". (20 pts)

5. Find pid and names of professors who teach only courses offered by “CDS” department. (20 pts)

6. Find pnames and pids of professors who teach every course offered by “CDS” dept. (20 pts)

7. Find sids of students who enroll in “Fall2015” every 3 credit hour course offered by “CDS” department. (20 pts)