Company A desires a variable-rate loan but currently has a better deal from the fixed-rate market at a rate of .13. If Company A borrows from the variable-rate market, the cost would be LIBOR+.02. In contrast, Company B, which prefers a fixed-rate loan, has a better deal from the variable-rate market at LIBOR+.03. If Company B borrows from the fixed-rate market, the cost would be .16. Knowing both companies’ needs, Bank C designed a swap deal. The deal is outlined in the following:

1) Company A obtains a fixed-rate loan at .13.

2) Company B obtains a variable-rate loan at LIBOR+.03.

3) Company A pays Bank C a variable rate of LIBOR+.01 and receives a fixed rate of .133 from the bank.

4) Company B pays Bank C a fixed rate of .145 and receives a variable rate of LIBOR+.02 from the bank.

How much is the cost saving to Company B and how much is the total gain to the bank?

Select one: a. Cost savings for B: 0.5%, and the gain for bank: 0.2%

b. Cost savings for B: 0.4%, and the gain for bank: 0.4%

c. Cost savings for B: 0.7%, and the gain for bank: 0.2%

d. Cost savings for B: 0.6%, and the gain for bank: 0.3%

e. Cost savings for B:1%, and the gain for bank: 0.3%

In a four person community, we have elicited each individual’s willingness to pay to build an additional mile of a bike lane. Whatever amount is constructed, the community will split the cost evenly.

1. Suppose bike lanes can be built for 52 $ . mi

(a) (1 point) What is the efficient amount of bike lanes to build?

(b) (1 point) Will the majority vote accept this proposal?

2. Suppose the bike lanes can be built for 84 $ . mi

(a) (1 point) What is the efficient amount of bike lanes to build?

(b) (1 point) Will the majority vote accept this proposal?

Heat treating is often used to carburize metal parts, such as gears. The thickness of the carburized layer is considered a crucial feature of the gear and contributes to the overall reliability of the part. Because of the critical nature of this feature, two different lab tests are performed on each furnace load. One test is run on a sample pin that accompanies each load. The other test is a destructive test, where an actual part is cross-sectioned. This test involves running a carbon analysis on the surface of both the gear pitch (top of the gear tooth) and the gear root (between the gear teeth). Table 12-6 shows the results of the pitch carbon analysis test for 32 parts.

1. Fit a regression model using all five regressors. Write out the equation. Summarize this analysis by providing the equation, ?², and list the standard errors.    What does the analysis of variance indicate?
2. Check for multicollinearity. Explain your findings.
3. Describe what you notice about the p values for the regressors. Construct a t-test on each regression coefficient. What can you conclude about the variables in this model? Use an alpha = 0.05.
4. Prepare a normal probability plot of the residuals and check the adequacy of the model.

On a beautiful day you decide to go for a bicycle ride. First you ride for 10 miles at 30 degrees south of east and then for 8.0 miles at 60 degrees north of west. What is the magnitude of your displacement?  

options:

One gallon of gasoline in an automobile's engine produces on the average 9.5 kg of carbon dioxide, which is a greenhouse gas, that is, it promotes the warming of Earth's atmosphere. Calculate the annual production of carbon dioxide in kilograms if there are 40 million cars in the United States and each car covers a distance of 5300 miles at a consumption rate of 21 miles per gallon.

In a random sample of eleven ​people, the mean driving distance to work was 23.3 miles and the standard deviation was 5.4 miles. Assume the population is normally distributed and use the​ t-distribution to find the margin of error and construct a 95​% confidence interval for the population mean μ. Interpret the results. Identify the margin of error.

(round to one decimal place)

. In a random sample of five people, the mean driving distance to work was 25.4 miles and the standard deviation was 5.2 miles. Assume the random variable is normally distributed and use a tdistribution to find the margin of error and construct confidence intervals for the population mean at the following confidence levels: (4 points each) a. 85% b. 90% c. 99%

Suppose one gallon of gasoline produces 1.19×10⁸ J of energy, and this energy is sufficient to operate a car for 21.1 miles. An aspirin tablet has a mass of 324 mg. If the aspirin could be converted completely into thermal energy, how many miles could the car go on a single tablet? Please explain units needed in each equation!

A car rental agency is considering a modification in its oil change procedure. currently, it uses a type X filter, which cost $4.25 and must be changed every 9,000 miles along with oil (4 quarts.) Between each oil change , one quart of oil must be added after each 500 miles. The proposed filter (typeY) has to be replaced every 4,000 miles (along with 4 quarts of oil) but does not require any additional oil between filter changes. If the oil costs $1.14 per quart, what is the maximum acceptable price for the Type Y filter?

A. $7.97

B. $15.94

C. $17.93

D. 58.87

A Toyota Prius is a full hybrid electric automobile that costs $30,000 with 55 mpg. A Toyota Yaris is a normal car that runs on gasoline, and costs $15,000 with 35 mpg. After 100,000 miles, the Prius requires a battery replacement that costs $3,000. Suppose you drive 10 miles per day and 1 gallon of gas costs $4. How much would you have to spend on gas for each car after 10 years? Which car would cost you more money after 10 years? How much different are the gas prices between the Prius and the Yaris (10 miles per day x 10 years)?