Question 7

Acid rain is an environmental challenge in many places around the world. It refers to rain or any other form of precipitation that is unusually acidic, i.e. rainwater having elevated levels of hydrogen ions (low pH). The measure of pH is a measure of the acidity or basicity of a solution and has a scale ranging from 0 to 14. Distilled water, with carbon dioxide removed, has a neutral pH level of 7. Liquids with a pH less than 7 are acidic. However, even unpolluted rainwater is slightly acidic with pH varying between 5.2 to 6.0 due to the fact that carbon dioxide and water in the air react together to form carbonic acid. Thus, rainwater is only considered acidic if the pH level is less than 5.2..

In a remote region of Algonquin Park, a biologist measured the pH levels of rainwater and obtained the following data for 16 rainwater samples on 16 different lakes:

Is there reason to believe that the is considered acidic (less than 5.20)?

Use the Sign Test to test the claim at 95% confidence that the rainwater from this region has a median pH level less than 5.20.

a) State the Hypotheses (1)

b) State the decision rule (1)

c) Determine the test statistic (1)

d) State your decision and interpretation. (1,1)

HR Slugger is a professional baseball player in a Major League Baseball league. He is a well-known player and is very popular throughout the league, but especially with the local fans. Much of his population is based on his hitting ability, specifically regarding home runs. The issue emerges from the following facts, similar to an actual situation you may have heard of.

• After days of intense anticipation by sports fans and winters throughout the league, Slugger hits a home run that brakes the record for total home runs during a regular season. The record broken had been in place for 45 years. This is a major event in MLB.

• The homerun ball was hit out of the ball park. It was actually caught outside the playing field by a 14-year-old girl who is, along with her parents, a big fan of HR Slugger and the team.

• League policy is that in such a situation, the ball belongs to the person that obtains the ball.

• Given the circumstances (a long-term home run record broken), the subject ball is immediately very valuable. Estimated value could be $5000,000-$1,000,000, possibly more.

• The girl and her parents are very proud of the catch and plan to add the ball their sports memorabilia to be treasured for years to come. As it happens, the parents are clients of yours, and they come to you for advice.

Issue: Does the event described result in any kind of tax issue?

What is your advice to them?

Include factual/legal analysis, including authority for a conclusion.

On a late May afternoon in 1984, a fire broke out in the “Haunted Castle” attraction at the Great Adventure Park in Jackson Township, New Jersey (Figure 4-1). Eight teenagers became trapped in the haunted house and subsequently died in the blaze. The maze-like “building” was actually a set of 17 interconnected truck trailers; guests walked from one trailer into the next. The dark walk-through haunted house included a variety of fright-provoking scenes, live actors, and a “strobe room.” Plastic polyurethane foam was used in decorations in various areas of the attraction. Plywood partitions were also present throughout. The structure did not have a fire alarm system or a fire sprinkler system. There were no specific regulations for “haunted houses” in the building and fire codes of New Jersey or the rest of the nation at the time of the fire. In the wake of this incident, action on the part of the state of New Jersey was swift. The state’s building and fire codes were changed to include fire alarm systems and sprinklers. These regulations were quickly adopted nationally. Today, these “special amusement” buildings require a fire alarm and detection system, full sprinkler protection, a public address system, low-level exit signs, and a Class A rating for all interior finishes. 1. Why does it often take a tragedy to change our building and fire codes? 2. What are some other fires in the past that have led to changes in our fire safety regulations?

Jessica Smith is the vice president of new drug development at Generic Phama, Inc, a pharmaceutical research company in Boston, Massachusetts. One year ago, she filed an application with the Food and Drug Administration (FDA) to obtain approval of a new drug for treating cancer. Smith met Joe Spencer at a convention three months ago and invited him to her room at the hotel. The two parted ways. Spencer worked as the director for approval of new drugs at the FDA. Two weeks later, Spencer wrote Smith a letter on FDA letterhead stating, “It was nice to see your name cross my desk on our company’s application for approval of the new cancer drug. I’d really like to see you again. Why don’t you come visit me in Washington this weekend?”

Smith considered requesting that the petition be referred to another director at the FDA. However, she is concerned that the transfer would delay the approval process for at least a year. Smith’s chief scientist advised her that a key competitor plans to introduce a similar drug on the market in three months.

Are there any legal or ethical barriers to relationships between corporate officers and members of administrative agencies involved in reviewing or regulating corporate activity?

What should she do?   

What would you advise her to do if you were head of human resources or legal counsel for Generic Pharma, Inc.

Instructions: Work on the following questions/problems. Be sure to answer all questions (and sub questions within a problem).

• USE this as you answer sheet (adjust spacing as necessary). Show solutions.
• This worksheet can be handwritten BUT be sure it is legible
• Upload work to the designated link in Canvas

1. (15 points) Suppose John, the owner-manager of a local hotel projects the following demand for his rooms:

                        Price ($)          Qty. Demanded

                        90                    100

                        110                  90

                        130                  70

1. Calculate the price elasticity of demand between $90 and $110 using the midpoint formula
2. Is the price elasticity of demand elastic, inelastic, or unit elastic at this price range (re: a)? Interpret the actual number you calculated.
3. Is it a good idea for John to raise his price from $90 to $110? Explain in 2 sentences.
4. Calculate John’s total revenue when price is $110 vs. when price is $130.
5. Based on your answers in (d), is demand elastic, unit elastic or inelastic at that price range (re: d)?

2. Consider the two products – laundry soap and Tide washer soap. Which product will have the more inelastic demand? Explain in 2-3 sentences. (5 points)

3. TRUE or FALSE. Suppose the market for crude oil experiences a decrease in demand. Assuming a relatively inelastic supply for crude oil, this market shock leads to a relatively smaller decrease in equilibrium price. Include a graph to illustrate and explain in 2-3 sentences (5 points).

Step 1- Choose one of the following scenarios:

Stage collapse at an outdoor concert (No deaths, 50 in hospital with minor injuries

An awards event happened at a local hotel and 5 people are in hospital with food poisoning

Theft by an employee at a non-profit

4. Drunk driving charge by a politician

5. COVID-19 outbreak at a hospital (we will downplay this from the current situation)

Step 2 – Complete each of the following items based on the scenario that you have chosen

You are the public relations director for one of the above scenarios and you know that within days negative headlines and TV news stories will appear throughout the local news.

a. What do you do first?

b. What public are you most concerned with?

c. How will you respond to the media?

d. Why is it important that you respond?

1. Pretend you are holding a press conference to provide information to the media and public in room 246 at TCC on April 13th at 10 am.

1. Write a media advisory to encourage the media to cover your press conference

2. Anticipate questions that you would receive from the media at the press conference

1. Write down potential questions from the media and prepare the answers applying the readings you reviewed in this module to your responses.

3. Develop 2-3 key message points and a sound bit to provide to the reporter

4. Write a press release that would be sent out to your media contacts after the press conference.

CASE 4.2

The Home Improvement Project

Lukas Nelson and his wife, Anne, and their three daughters had been living in their house for over five years when they decided it was time to make some modest improvements. One area they both agreed needed an upgrade was the bathtub. Their current house had one standard shower bathtub combination. Lukas was 6 feet four, and could barely squeeze into it. In fact, he had taken only one bath since they moved in. He and Anne both missed soaking in the older, deep bathtubs they enjoyed when they lived back East.

Fortunately, the previous owners that built the house had plumbed the corner of a large exercise room in the basement for a hot tub. They contacted a trusted remodeling contractor who assured them it would be relatively easy to install a new bathtub and it shouldn’t cost more than $1,500. They decided to go ahead with the project.

First the Nelsons went to the local plumbing retailer to pick out a tub. They soon realized that for a few hundred dollars more they could buy a big tub with water jets (a Jacuzzi). With old age on the horizon a Jacuzzi seemed like a luxury that was worth the extra money.

Originally the plan was to install the tub using the simple plastic frame the bath came with and install a splash guard around the tub. Once Anne saw the tub, frame, and splashguard in the room she balked. She did not like how it looked with the cedar paneling in the exercise room. After significant debate, Ann won out, and the Nelsons agreed to pay extra to have a cedar frame built for the tub and use attractive tile instead of the plastic splashguard. Lukas rationalized the changes would pay for themselves when they tried to sell the house.

Page 127The next hiccup occurred when it came time to address the flooring issue. The exercise room was carpeted, which wasn’t ideal when getting out of a bathtub. The original idea was to install relatively cheap laminated flooring in the drying and undressing area adjacent to the tub. However, the Nelsons couldn’t agree on the pattern to use. One of Anne’s friends said it would be a shame to put such cheap flooring in such a nice room. She felt they should consider using tile. The contractor agreed and said he knew a tile installer who needed work and would give them a good deal.

Lukas reluctantly agreed that the laminated options just didn’t fit the style or quality of the exercise room. Unlike the laminated floor debate both Anne and Lukas immediately liked a tile pattern that matched the tile used around the tub. Anxious not to delay the project, they agreed to pay for the tile flooring.

Once the tub was installed and the framing was almost completed, Anne realized that something had to be done about the lighting. One of her favorite things to do was to read while soaking in the tub. The existing lights didn’t provide sufficient illumination for doing so. Lukas knew this was “non-negotiable” and they hired an electrician to install additional lighting over the bathtub.

While the lighting was being installed and the tile was being laid, another issue came up. The original plan was to tile only the exercise room and use remnant rugs to cover the area away from the tub where the Nelsons did their exercises. The Nelsons were very happy with how the tile looked and fit with the overall room. However, it clashed with the laminated flooring in the adjacent bathroom. Lukas agreed with Ann, that it really made the adjacent bathroom look cheap and ugly. He also felt the bathroom was so small it wouldn’t cost much more.

After a week the work was completed. Both Lukas and Anne were quite pleased with how everything turned out. It cost much more than they had planned, but they planned to live in the house until the girls graduated from college so they felt it was a good long-term investment.

Anne had the first turn using the bathtub followed by their three girls. Everyone enjoyed the Jacuzzi. It was 10:00 p.m. when Lukas began running water for his first bath. At first the water was steaming hot, but by the time he was about to get in, it was lukewarm at best. Lukas groaned, “After paying all of that money I still can’t enjoy a bath.”

The Nelsons rationed bathing for a couple weeks, until they decided to find out what if anything could be done about the hot water problem. They asked a reputable heating contractor to assess the situation. The contractor reported that the hot water tank was insufficient to service a family of five. This had not been discovered before because baths were rarely taken in the past. The contractor said it would cost $2,200 to replace the existing water heater with a larger one that would meet their needs. The heating contractor also said if they wanted to do it right they should replace the existing furnace with a more energy efficient one. A new furnace would not only heat the house but also indirectly heat the water tank. Such a furnace would cost $7,500, but with the improved efficiency and savings in the gas bill, the furnace would pay for itself in 10 years. Besides, the Nelsons would likely receive tax credits for the more fuel-efficient furnace.

Three weeks later, after the new furnace was installed, Lukas settled into the new bathtub. He looked around the room at all the changes that had been made and muttered to himself, “And to think that all I wanted was to soak in a nice, hot bath.”

Questions:

1. What factors and forces contributed to scope creep in this case?

2. Is this an example of good or bad scope creep? Explain.

3. How could scope creep have been better managed by the Nelsons?

Question 1: In class, you have seen how to calculate the maximum speed for a car to go around a flat curve (with friction), and for a banked curve (without friction). Here, you will consider the general case. (For each question part below, include a free-body diagram.) a) (3 points) Explain briefly why the car can go around the banked curve safely even without friction, and why that is not the case for the flat curve. b) (5 points) Now consider a curve that is banked so that a car can safely take it at a speed of 85 km/h, even if there were no friction. Assuming the radius of the curve is 68 m, calculate the angle at which it has been built. c) (6 points) For the banked curve, calculate the maximum speed that a car can have to safely go through it if the coefficient of static friction is 0.3. What will happen if the car is faster? d) (6 points) For the same curve, calculate the minimum speed the car must have to safely make it through. What will happen if the car is slower?