High school graduates: The National Center for Educational Statistics reported that 82% of freshmen entering public high schools in the U.S. in 2009 graduated with their class in 2013. A random sample of 135 freshmen is chosen.

Anny, Betty, Cindy and Dolly were all friends at school. Subsequently each of the 6 pairs meet up; at each of the 6 meetings the pair involved quarrel with some fixed probability p, or become firm friends with probability q=1-p. Quarrels take place independently of each other. In future, if any of the 4 hears a rumour, then she tells it to her firm friends only. If Anny hears a rumour, what is the probability that

(a) Dolly hears it if Anny and Betty have quarrelled?

(b) Dolly hears it if Betty and Cindy have quarrelled?

Express your answer in terms of q.

John was a high school teacher earning $ 80,000 per year. He quit his job to start his own business in pizza catering. In order to learn how to run the pizza catering business, John enrolled in a TAFE to acquire catering skills. John’s course was for 3 months. John had to pay $2,000 as tuition for the 3 months.

After the training, John withdrew $110,000 from his savings account. He had been earning 5 percent interest per year for this account. He also borrowed $50,000.00 from his friend whom he pays 6 percent interest per year. Further, to start the business John used his own premises. He was receiving $12,000 from rent per year. Finally, to start the business John uses $50,000 he had been given by his father to go on holiday to USA.

John’s first year of business can be summarised as follows:

Based on your calculated accounting profit and economic profit, would you advise John to return to his teaching job? Show your work                       

P5-7 The Mainor School District is about to establish a 30-machine computer lab. It is considering six alternative means of acquiring and financing the machines:
1. Buy the machines outright; cost will be $60,000.
2. Buy the machines and finance them with a $60,000, three-year, 10 percent interest term note. The district will repay the note and pay the entire interest with a single payment of $79,860 when the note matures.
3. Buy the machines and finance them with a $60,000, three-year, 10 percent interest, installment note. The district will repay the note (plus interest) in three endof-year installments of $24,127 each.
4. Lease the equipment under a standard operating lease. The district will make three end-of-year lease payments of $24,127 each.
5. Lease the equipment under an operating lease, but pre-pay the entire rent ($60,000) in advance.
6. Lease the equipment, but structure the lease so that it satisfies the criteria of a capital lease. The district will make three $24,127 end-of-year lease payments. The district estimates that the equipment has a useful life of three years.

a. Prepare a table in which for each alternative you indicate the net expenditure that the district would record in its general fund in the year of purchase and the following two years. Ignore any expenditures that are offset by ‘‘other financing sources.’’ For the fifth option (the operating lease with the rent paid in advance), assume first that the district accounts for prepayments on the purchases basis and then that it accounts for them on the consumption basis.

b. Determine the present value (using a discount rate of 10 percent) of the cash payments under each option.

c. Comment on any incentives that district officials might have either to spread out the payments over the three-year period (either by a lease or borrowing arrangement) or to postpone the full payment until the third year, rather than to pay for the computers entirely in the year of acquisition.

d. Comment on any significant differences in how the six options would be accounted for in government-wide statements instead of governmental fund statements. How would each year’s reported expense be determined?

James is a 67-year-old black male who is a retired high school teacher and is married, with two grown children. He was diagnosed a year ago with group B COPD. He has a 49-pack-year history and, unfortunately, continues to smoke cigarettes. James was admitted 1 week ago with his first COPD exacerbation. He is currently receiving oxygen via nasal cannula at 2 L. It is anticipated that he will be discharged in 2 days. AS a Case Manager, you will assist him in transitioning to the home setting.

What educational topics should you address with this patient?

8.

The executive education (EE) unit at the Business School of Central State University offers both open-enrollment (anyone can sign up) and custom (designed for a specific client) executive education programs. CSU has just received an inquiry from a prospective client about its prices for leadership seminars. The prospective client wants bids for three alternative activity levels: (1) one seminar with 20 participants, (2) four seminars with 20 participants each (80 participants total), or (3) eight seminars with 140 participants in total. EE’s cost analyst has provided the following differential cost estimates.

In addition to the preceding differential costs, EE allocates fixed costs to jobs on a direct-labor-cost basis, at a rate of 75 percent of direct labor costs (excluding setup costs). For example, if direct labor costs are $100, EE would also charge the job $75 for fixed costs. EE charges clients for its costs plus 20 percent. For the purpose of charging customers, costs equal the setup costs plus materials costs plus differential labor costs plus allocated fixed costs. EE has enough excess capacity to handle this job with ease.

Required:

a. Assume EE’s bid equals the total cost, including fixed costs allocated to the job, plus the 20 percent markup on cost. What should EE bid for each of the three levels of activity?

b. Compute the differential cost (including setup costs) and the contribution to profit for each of the three levels of activity. Note that fixed costs are not differential costs.

c. Assume the prospective client gives three options. It is willing to accept either of EE’s bids for the one-seminar or four-seminar activity levels, but the prospective client will pay only 90 percent of the bid price for the eight-seminar package. EE’s director responds, “We can’t make money in this business by shaving our bids! Let’s take the four-seminar option because we make the most profit on it.”

c-1. What would be the contribution to profit for each of the three options?

c-2. Do you agree with the EE’s director?

Ryder Company produces a single product, school backpacks made of a sturdy nylon fabric. The production of these bags requires a relatively large amount of labour time. Overhead cost is applied on the basis of standard direct labour-hours. The company’s condensed flexible budget for manufacturing overhead is given below:

Each backpack requires 2 metres of direct material that has a standard cost of $1.50 per metre. The product requires 1.5 hours of direct labour time. The standard labour rate is $10 per hour.

During the year, the company had planned to operate at a denominator activity level of 15,000 direct labour-hours and to produce 10,000 units of product. Actual activity and costs for the year were as follows:

Required:

1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed components.

2. Do the following:

a. Compute the standard direct labour-hours allowed for the year’s production.

b. Complete the following manufacturing overhead T-account for the year:

Manufacturing Overhead

3. Determine the reason for the underapplied or overapplied overhead from requirement (2) above by computing the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

4. If the company had chosen 18,000 direct labour-hours as the denominator activity rather than 15,000 hours, indicate which of the following variance given below would change.

Scenario 1

In 2017, Joe and Michelle finally finished school and each accepted a job making $75,000 each. They heard it was a great idea to start contributing right away to their 401K and have each put away $12,000 a year. During the next five years, they are enjoying life. They spend a bunch of money on travel both in the U.S. and around the world. They each bought a brand new car, one got a BMW and one got a Acura RDX. They incurred over $30,000 in credit debt and still have student loans of $50,000 each.

In 2022, at the age of 30, they found out they were having a baby girl. They are super excited but realized things were going to change. They decided they want to buy a house. Each of their salaries have increased by 5% per year so that’s been great. They’ve been stacking some money aside and have $80,000 for a down payment. They are feeling good about their 401K, as they have each continued to contribute $12,000 each since they started working 5 years ago. Unfortunately, they still have credit card debt of $30,000, resulting in minimum payments of $850 a month, they have student loan debt with monthly payments of $1,200 a month, and car payments totaling $1,250 a month. They also spend a bunch of money on travel, insurance, and dinners out.

They go talk to a mortgage broker and find out what they need to do to qualify for a new house. They could qualify for a mortgage equal to no more than 28% of their gross monthly income but their total outstanding debt (including mortgage, credit card debt, student loan debt and car payments) cannot exceed 40% of gross monthly income. They could get an interest rate of 5.5% for a 30 year mortgage but they must have a credit score equal to or above 720. If they have a score less than that, the interest rate goes up - up to 6.5% if their credit score is below 720 and to 7.5% if it is below 700. If the credit score is less than 680, they can’t qualify for a house at all.

They were a bit worried because they had paid late on their credit card twice in the past year. They found out their score was a 690. In any case, they were happy they could buy a house but concerned about what they could afford.

The mortgage broker also told them they would need 4% in closing costs, 20% down payment for a 30 year mortgage. They are really hoping to buy that $500,000 house inside the beltline.

How big a house could they afford (i.e. how much of a mortgage will they qualify for)?

Moving on, they did buy a house but struggled with cash flow. As soon as they bought a house, in 2022, they stopped contributing to their 401K and did not contribute again until their kids were grown up – they were 48. They really wanted to retire when they were 60 and were nervous that they would not have enough money to do it. They panicked and started maximizing their 401K contributions again and contributed $12,000 each for the next 12 years. The 401K earned on average, 8% per year on the money invested.

How much will they have for retirement from their 401K if they both retire at 60?

How much would they have had if they contributed just 6,000 a year (combined) while the kids were growing up (instead of nothing)?

How much would they have had if they continued to contribute $24,000 (combined) from the time they were 25 until they reached age 60?

9.1.2

Many high school students take the AP tests in different subject areas. In 2007, of the 144,796 students who took the biology exam 84,199 of them were female. In that same year, of the 211,693 students who took the calculus AB exam 102,598 of them were female ("AP exam scores," 2013). Estimate the difference in the proportion of female students taking the biology exam and female students taking the calculus AB exam using a 90% confidence level.

a.) State the random variables and the parameters in words.

   =

=

=

=

b.)          State and check the assumptions for confidence interval:

c.)           Find the sample statistics and confidence interval

Sample Proportion:

Confidence Interval:

d.)          Statistical Interpretation:

e.)          Real World Interpretation:

Case
Complaint:
Five children from the same school presented with abdominal pain and diarrhea (streaked with blood) over a period of 3 days. Upon investigation it was found that those children had recently been in birthday party. Fecal specimen was collected and sent to microbiology lab. Lab report showed presence of pus cells on direct microscopy and non motile bacteria on motility test.

Clinical History: The children are usually healthy. They take no regular medications

- Identify a virus cause diarrhea with possibility of developing flaccid paralysis?

a) Polioviruses
b) rotavirus

With an explanation of the reason