1. Financial institutions in the U.S. economy

Suppose Nick would like to invest $9,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a share of TouchTech stock would give Nick the firm. In the event that TouchTech runs into financial difficulty, will be paid first.

Suppose Nick decides to buy 100 shares of TouchTech stock.

Which of the following statements are correct? Check all that apply.

The price of his shares will rise if TouchTech issues additional shares of stock.

An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.

The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.

Alternatively, Nick could invest by purchasing bonds issued by the U.S. government.

Assuming that everything else is equal, a municipal bond issued by a state most likely pays a   interest rate than a corporate bond issued by an electronics manufacturer.

1. Financial institutions in the U.S. economy

Suppose Van would like to invest $9,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab—a practice known as____finance. Buying a bond issued by NanoSpeck would give Van____the firm. In the event that NanoSpeck runs into financial difficulty,____will be paid first.

Suppose instead Van decides to buy 100 shares of NanoSpeck stock.

Which of the following statements are correct? Check all that apply.

An increase in the perceived profitability of NanoSpeck will likely cause the value of Van's shares to rise.

Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Van's shares to decline.

The price of his shares will rise if NanoSpeck issues additional shares of stock.

Alternatively, Van could invest by purchasing bonds issued by the U.S. government.

Assuming that everything else is equal, a municipal bond issued by a state most likely pays a _____ interest rate than a corporate bond issued by an electronics manufacturer.

(a) Assume that a polynomial-time primality testing algorithm, calledPrimes is available, which takes as input a single numbern >1 and outputs whethernis a primenumber or not. Now consider the following algorithm:

Input: A natural number n > 1

Algorithm Mystery(n)

if ( n mod 2 == 0 ) then

if (n == 2) then

output ‘‘Input is a prime number’’

   else ‘‘Input is not a prime number’’

else

Primes(n)

What is Algorithm Mystery trying to achieve? What is tightest possible lower bound that you can prove for Mystery and why? What is the tightest possible upper bound, assuming Primes(n)runs in quadratic time, that you can prove for Mystery and why? (b) Solve the recurrence T(n) =T(n/2) + 1 with the initial condition T(1) = 1. Show all steps. You may assume that is a power of 2 if it is convenient. Give one example of an algorithm whose time complexity can be expressed by this recurrence. Briefly explain what this algorithm does and how, and also what is its input.

A dairy scientist is testing a new feed additive. She chooses 13 cows at random from a large population. She randomly assigns nold = 8 to the old diet and nnew = 5 to a new diet including the additive. The cows are housed in 13 widely separated pens. After two weeks, she milks each cow and records the milk produced in pounds:

Old Diet: 43, 51, 44, 47, 38, 46, 40, 35 New Diet: 47, 75, 85, 100, 58

Let μnew and μold be the population mean milk productions for the new and old diets, respectively. She wishes to test H0 : μnew − μold = 0 against HA : μnew − μold ̸= 0 using α = 0.05.

(a) Graph the data as you see fit. Why did you choose the graph(s) that you did and what does it (do they) tell you?

(b) Choose a test appropriate for the hypotheses and justify your choice based on your answer to part (a). Then perform the test by computing a p-value, and making a reject or not reject decision. Do this without R and show your work. (Also do it with R, if you wish, to check your work). Finally, state your conclusion in the context of the problem.

A dairy scientist is testing a new feed additive. She chooses 13 cows at random from a large population. She randomly assigns n_old = 8 to the old diet and n_new = 5 to a new diet including the additive. The cows are housed in 13 widely separated pens. After two weeks, she milks each cow and records the milk produced in pounds:

Old Diet: 43, 51, 44, 47, 38, 46, 40, 35 New Diet: 47, 75, 85, 100, 58

Let μnew and μold be the population mean milk productions for the new and old diets, respectively. She wishes to test H0 : μnew − μold = 0 against HA : μnew − μold ̸= 0 using α = 0.05.

(a) Graph the data as you see fit. Why did you choose the graph(s) that you did and what does it (do they) tell you?

(b) Choose a test appropriate for the hypotheses and justify your choice based on your answer to part (a). Then perform the test by computing a p-value, and making a reject or not reject decision. Do this without R and show your work. (Also do it with R, if you wish, to check your work). Finally, state your conclusion in the context of the problem.

Is there a way to make a pivot table from a data set to show the following:

- make gender the columns (one column for male and one for female)
- rows are age increments (18 - 30, 31 - 40, 41 - 50, 51 - 60, 61 - 70)
- information provided within the pivot table is the average salary of everyone within the age increment (for example, I want to find the average salary of a male between the ages of 41 - 50, or the average salary of a female between the ages of 31 - 40). I'm not able to provide a data set because it's too large, but if instructions can be provided, that would be amazing!

MULTIPLE REGRESSION

The date set below was collected from a random sample of 15 households on the following variables: (1) Weekly Income, (2) House Rent, (3) Food Expense, (4) Entertainment Expense, and (5) Weekly Savings.

Sampled    Weekly   House       Food       Entertain/   Weekly
Individual   Income   Rent       Expense   Expense   Savings
Case 1   $250       85       95       25       20
Case 2   $190       75       90       10       0
Case 3   $420       140       120       40       50
Case 4   $340       120       130       0       40
Case 5   $280       110       100       30       15
Case 6   $310       80       125       25       25
Case 7   $520       150       140       55       80
Case 8   $440       175       155       45       0
Case 9   $360       90       85       20       95
Case 10   $385       105       135       35       30
Case 11   $205       80       105       0       5
Case 12   $265       65       95       15       15
Case 13   $195       50       80       10       20
Case 14   $250       90       100       25       0
Case 15   $480       140       160       45       45

A multiple regression was run with WEEKLY SAVINGS as the DEPENDENT VARIABLE and the rest as the INDEPENDENT VARIABLES.

SAVINGS = b + b INCOME + b RENT + b FOOD + b ENTERT

The resulting computer output is on the next page.

COMPUTER OUTPUT PART I

WEEKLY SAVINGS
REGRESSION FUNCTION & ANOVA FOR SAVINGS

SAVINGS = 23.14156 + 0.591446 INCOME - 0.341793 RENT
- 1.119734 FOOD - 0.907868 ENTERT

R-Squared         = 0.917562
Adjusted R-Squared     = 0.870454
Standard error of estimate    = 10.9635
Number of cases used    = 12

Analysis of Variance
                                   p-value
Source SS     df MS     F Value Sig Prob
Regression 9364.86    4    2341.21    19.47795 0.000677
Residual 841.39 7     120.198
Total 10206.250 11

COMPUTER OUTPUT PART II

WEEKLY SAVINGS
REGRESSION COEFFICIENTS FOR SAVINGS

            Two-Sided   p-value
Variable         Coefficient Std Error     t Value    Sig Prob
Constant    23.14156    18.34071     1.26176    0.247451
INCOME    0.59145     0.07388     8.00526    0.000091
RENT    -0.34179     0.19849    -1.72199    0.128743 *
FOOD       -1.11973     0.24633    -4.54565    0.002650
ENTERT      -0.90787     0.32460    -2.79689    0.026643

* indicates that the variable is marked for leaving

Standard error of estimate = 10.9635
Durbin-Watson statistic = 1.683103

Use the above computer output to respond to the following questions:
The Model was:

(a)   The multiple regression model is:
ANSWER

(b)   What is the estimated multiple regression?
ANSWER

(c)   What are the estimated values of b , b , b , b , and b ?
ANSWERS   b = ?
       b = ?
       b = ?
       b = ?
       b = ?

(d)   What relationship exists between (i) SAVINGS and INCOME?, SAVINGS and RENT?, SAVINGS and FOOD expense, SAVINGS and ENTERTAINMENT expense?
ANSWERS

(e)   Which of the four independent (explaining) variables are (is) significant in the multiple regression and which ones are (is) not significant and why? (Use α = 0.05 level of significance). Use α = 0.05 level ANSWERS

The statistically significant explaining variables are (Use α = 0.05 level):

Those that are not significant (Use α = 0.05 level):

(f)   Are the results in line with Maslow’s hierarchy of needs? Explain.

1. ****NEED TO KNOW HOW PROBLEM IS SET UP IN EXCEL***
2. During the period of time that a local university takes phone-in registrations, calls come in at the rate of one every two minutes.
   1. Clearly state what the random variable in this problem is?
   2. What is an appropriate distribution to be used for this problem and why?
   3. What is the expected number of calls in one hour?
   4. What is the probability of receiving three calls in five minutes?
   5. What is the probability of receiving NO calls in a 10-minute period?
   6. What is the probability of receiving more than five calls in a 10-minute period?
   7. What is the probability of receiving less than seven calls in 15-minutes?
   8. What is the probability of receiving at least three but no more than 10 calls in 12 minutes?

In a fairly recent cost analysis study, it was found that Medicaid policy barriers impacted the rates of unintended pregnancies and abortions, which resulted in a public cost of ________ dollars.

Question 2 (1 point)

Chris Jennings, of Jennings Policy Strategies, has worked on health policy under which two presidential administrations?

Question 3 (1 point)

True or false? If the Affordable Care Act is repealed, a financially viable replacement option will be difficult to construct.

True

False

Question 4 (1 point)

True or false? There is a linear relationship between rulemaking and the operating activities involved in implementing and modifying a policy.

True

False

Question 5 (1 point)

________ is the process through which executive branch entities create instructions that guide the implementation process of new policies.

Question 6 (1 point)

The Pharmaceutical Research and Manufacturers of America (PhRMA) believes that policy modification is in order for the expanding ________ program due to market distortions.

Question 7 (1 point)

A strong example of incrementalism in health policy can be seen in which policy/program?

Question 8 (1 point)

One example of an approach to policy analysis and modification is to base assessments on ________ evaluations.

Question 9 (1 point)

Developing a new medication is a lengthy and complex process, taking an average of ________ years.

Question 10 (1 point)

When policymakers review a policy in action, they must evaluate it against the original ________.

A company’s Balance Sheet (in millions)

Assets                                                             Liabilities & Equity

Current                        $  80              

Net Fixed                    $120                            Bonds ($1000 Par)                  130

                                                                        Preferred stocks ($100 Par)   40

Total                           $200                            Common Stock ($1 par)         30

                                                                        Total                                       $200

The company's bonds have 10 years to mature, pay 10% coupon rate semi-annually and comparable bonds' YTM is 14%.

The company’s applicable tax rate is 40%.

The market price of common stock is $10.50 per share.

The common stock is constantly growing at a rate of 6%. The same growth rate is expected to continue for long time in the future. The most recent dividend on the common stock was $1.15.

The flotation cost for new common stocks is 10%.

The market value of the preferred stock is $45 and it pays quarterly dividend of $1.25.

The flotation cost on issuing new preferred stock is 7%

What is the cost of issuing new common stock?