1. Discuss the general purposes of taxes? Give examples.

2. How politically popular is it for government to reduce spending and/or to raise taxes? Explain.

A botanist measures the sepal widths (in cm) of 150 iris flowers, 50 of type iris setosa, 50 of type iris virginica, and 50 of type iris versicolor. The data is noted below. Of interest is whether sepal width differs, on average, among the three iris types. You may assume that, for each iris type, the sample may be treated as a simple random sample.

a. What are the null and alternative hypotheses?

b. What is the value of the test statistic?

c. What is the approximate p-value?

d. State and verify (using plots or descriptive statistics) the additional two assumptions required for the p-value in c) to be valid.

e.

Sepal Width   Class
3.5 Iris-setosa
3 Iris-setosa
3.2 Iris-setosa
3.1 Iris-setosa
3.6 Iris-setosa
3.9 Iris-setosa
3.4 Iris-setosa
3.4 Iris-setosa
2.9 Iris-setosa
3.1 Iris-setosa
3.7 Iris-setosa
3.4 Iris-setosa
3 Iris-setosa
3 Iris-setosa
4 Iris-setosa
4.4 Iris-setosa
3.9 Iris-setosa
3.5 Iris-setosa
3.8 Iris-setosa
3.8 Iris-setosa
3.4 Iris-setosa
3.7 Iris-setosa
3.6 Iris-setosa
3.3 Iris-setosa
3.4 Iris-setosa
3 Iris-setosa
3.4 Iris-setosa
3.5 Iris-setosa
3.4 Iris-setosa
3.2 Iris-setosa
3.1 Iris-setosa
3.4 Iris-setosa
4.1 Iris-setosa
4.2 Iris-setosa
3.1 Iris-setosa
3.2 Iris-setosa
3.5 Iris-setosa
3.1 Iris-setosa
3 Iris-setosa
3.4 Iris-setosa
3.5 Iris-setosa
2.3 Iris-setosa
3.2 Iris-setosa
3.5 Iris-setosa
3.8 Iris-setosa
3 Iris-setosa
3.8 Iris-setosa
3.2 Iris-setosa
3.7 Iris-setosa
3.3 Iris-setosa
3.2 Iris-versicolor
3.2 Iris-versicolor
3.1 Iris-versicolor
2.3 Iris-versicolor
2.8 Iris-versicolor
2.8 Iris-versicolor
3.3 Iris-versicolor
2.4 Iris-versicolor
2.9 Iris-versicolor
2.7 Iris-versicolor
2 Iris-versicolor
3 Iris-versicolor
2.2 Iris-versicolor
2.9 Iris-versicolor
2.9 Iris-versicolor
3.1 Iris-versicolor
3 Iris-versicolor
2.7 Iris-versicolor
2.2 Iris-versicolor
2.5 Iris-versicolor
3.2 Iris-versicolor
2.8 Iris-versicolor
2.5 Iris-versicolor
2.8 Iris-versicolor
2.9 Iris-versicolor
3 Iris-versicolor
2.8 Iris-versicolor
3 Iris-versicolor
2.9 Iris-versicolor
2.6 Iris-versicolor
2.4 Iris-versicolor
2.4 Iris-versicolor
2.7 Iris-versicolor
2.7 Iris-versicolor
3 Iris-versicolor
3.4 Iris-versicolor
3.1 Iris-versicolor
2.3 Iris-versicolor
3 Iris-versicolor
2.5 Iris-versicolor
2.6 Iris-versicolor
3 Iris-versicolor
2.6 Iris-versicolor
2.3 Iris-versicolor
2.7 Iris-versicolor
3 Iris-versicolor
2.9 Iris-versicolor
2.9 Iris-versicolor
2.5 Iris-versicolor
2.8 Iris-versicolor
3.3 Iris-virginica
2.7 Iris-virginica
3 Iris-virginica
2.9 Iris-virginica
3 Iris-virginica
3 Iris-virginica
2.5 Iris-virginica
2.9 Iris-virginica
2.5 Iris-virginica
3.6 Iris-virginica
3.2 Iris-virginica
2.7 Iris-virginica
3 Iris-virginica
2.5 Iris-virginica
2.8 Iris-virginica
3.2 Iris-virginica
3 Iris-virginica
3.8 Iris-virginica
2.6 Iris-virginica
2.2 Iris-virginica
3.2 Iris-virginica
2.8 Iris-virginica
2.8 Iris-virginica
2.7 Iris-virginica
3.3 Iris-virginica
3.2 Iris-virginica
2.8 Iris-virginica
3 Iris-virginica
2.8 Iris-virginica
3 Iris-virginica
2.8 Iris-virginica
3.8 Iris-virginica
2.8 Iris-virginica
2.8 Iris-virginica
2.6 Iris-virginica
3 Iris-virginica
3.4 Iris-virginica
3.1 Iris-virginica
3 Iris-virginica
3.1 Iris-virginica
3.1 Iris-virginica
3.1 Iris-virginica
2.7 Iris-virginica
3.2 Iris-virginica
3.3 Iris-virginica
3 Iris-virginica
2.5 Iris-virginica
3 Iris-virginica
3.4 Iris-virginica
3 Iris-virginica

Using a significance level of = 0.05, state your conclusions in the language of the problem.

A botanist measures the sepal widths (in cm) of 150 iris flowers, 50 of type iris setosa, 50 of type iris virginica, and 50 of type iris versicolor. The data is noted below. Of interest is whether sepal width differs, on average, among the three iris types. You may assume that, for each iris type, the sample may be treated as a simple random sample.

a. What are the null and alternative hypotheses?

b. What is the value of the test statistic?

c. What is the approximate p-value?

d. State and verify (using plots or descriptive statistics) the additional two assumptions required for the p-value in c) to be valid.

e. Using a significance level of = 0.05, state your conclusions in the language of the problem.

Sepal Width and Class = 3.5 Iris-setosa 3 Iris-setosa 3.2 Iris-setosa 3.1 Iris-setosa 3.6 Iris-setosa 3.9 Iris-setosa 3.4 Iris-setosa 3.4 Iris-setosa 2.9 Iris-setosa 3.1 Iris-setosa 3.7 Iris-setosa 3.4 Iris-setosa 3 Iris-setosa 3 Iris-setosa 4 Iris-setosa 4.4 Iris-setosa 3.9 Iris-setosa 3.5 Iris-setosa 3.8 Iris-setosa 3.8 Iris-setosa 3.4 Iris-setosa 3.7 Iris-setosa 3.6 Iris-setosa 3.3 Iris-setosa 3.4 Iris-setosa 3 Iris-setosa 3.4 Iris-setosa 3.5 Iris-setosa 3.4 Iris-setosa 3.2 Iris-setosa 3.1 Iris-setosa 3.4 Iris-setosa 4.1 Iris-setosa 4.2 Iris-setosa 3.1 Iris-setosa 3.2 Iris-setosa 3.5 Iris-setosa 3.1 Iris-setosa 3 Iris-setosa 3.4 Iris-setosa 3.5 Iris-setosa 2.3 Iris-setosa 3.2 Iris-setosa 3.5 Iris-setosa 3.8 Iris-setosa 3 Iris-setosa 3.8 Iris-setosa 3.2 Iris-setosa 3.7 Iris-setosa 3.3 Iris-setosa 3.2 Iris-versicolor 3.2 Iris-versicolor 3.1 Iris-versicolor 2.3 Iris-versicolor 2.8 Iris-versicolor 2.8 Iris-versicolor 3.3 Iris-versicolor 2.4 Iris-versicolor 2.9 Iris-versicolor 2.7 Iris-versicolor 2 Iris-versicolor 3 Iris-versicolor 2.2 Iris-versicolor 2.9 Iris-versicolor 2.9 Iris-versicolor 3.1 Iris-versicolor 3 Iris-versicolor 2.7 Iris-versicolor 2.2 Iris-versicolor 2.5 Iris-versicolor 3.2 Iris-versicolor 2.8 Iris-versicolor 2.5 Iris-versicolor 2.8 Iris-versicolor 2.9 Iris-versicolor 3 Iris-versicolor 2.8 Iris-versicolor 3 Iris-versicolor 2.9 Iris-versicolor 2.6 Iris-versicolor 2.4 Iris-versicolor 2.4 Iris-versicolor 2.7 Iris-versicolor 2.7 Iris-versicolor 3 Iris-versicolor 3.4 Iris-versicolor 3.1 Iris-versicolor 2.3 Iris-versicolor 3 Iris-versicolor 2.5 Iris-versicolor 2.6 Iris-versicolor 3 Iris-versicolor 2.6 Iris-versicolor 2.3 Iris-versicolor 2.7 Iris-versicolor 3 Iris-versicolor 2.9 Iris-versicolor 2.9 Iris-versicolor 2.5 Iris-versicolor 2.8 Iris-versicolor 3.3 Iris-virginica 2.7 Iris-virginica 3 Iris-virginica 2.9 Iris-virginica 3 Iris-virginica 3 Iris-virginica 2.5 Iris-virginica 2.9 Iris-virginica 2.5 Iris-virginica 3.6 Iris-virginica 3.2 Iris-virginica 2.7 Iris-virginica 3 Iris-virginica 2.5 Iris-virginica 2.8 Iris-virginica 3.2 Iris-virginica 3 Iris-virginica 3.8 Iris-virginica 2.6 Iris-virginica 2.2 Iris-virginica 3.2 Iris-virginica 2.8 Iris-virginica 2.8 Iris-virginica 2.7 Iris-virginica 3.3 Iris-virginica 3.2 Iris-virginica 2.8 Iris-virginica 3 Iris-virginica 2.8 Iris-virginica 3 Iris-virginica 2.8 Iris-virginica 3.8 Iris-virginica 2.8 Iris-virginica 2.8 Iris-virginica 2.6 Iris-virginica 3 Iris-virginica 3.4 Iris-virginica 3.1 Iris-virginica 3 Iris-virginica 3.1 Iris-virginica 3.1 Iris-virginica 3.1 Iris-virginica 2.7 Iris-virginica 3.2 Iris-virginica 3.3 Iris-virginica 3 Iris-virginica 2.5 Iris-virginica 3 Iris-virginica 3.4 Iris-virginica 3 Iris-virginica

AUDITING

(a). Discuss the first stage of the audit sampling process, namely ' designing the sample'.

(b) Discuss the audit procedures to follow to audit capital expenditures.

(c) Discuss the analytical review procedures for wages paid.

(d) Discuss the essential elements to a good physical control over stock

(e) Discuss the audit enquiry and tests for:

 Raw materials;

 Production; and

 finished goods.

The following information is available for Harold Company:

Beginning inventory                500 units at $5

First purchase                         900 units at $6

Second purchase                    600 units at $7

Assume that Harold uses a periodic inventory system and that there are 750 units left at the end of the month.

Instructions

Compute the cost of goods sold under the

LIFO

FIFO

Average Cost

Enter calculation and answer below.

The following information is available for Harold Company:

Beginning inventory                500 units at $5

First purchase                         900 units at $6

Second purchase                    600 units at $7

Assume that Harold uses a periodic inventory system and that there are 750 units left at the end of the month.

Instructions

Compute the cost of goods sold under the

LIFO

FIFO

Average Cost

Enter calculation and answer below.

Training Opportunities for Prison Populations (TOPP) runs a job-training program where persons exiting
the prison system learn skills to transition to employment and self-sufficiency. Here, they learn carpentry
skills and the organization sells their work in a retail store. Those involved earn money from the sales, and
the organization supports its mission as well. Among the statements below, which ones are true?
I. Not-for-profit organizations are exempt from most forms of taxation at the various levels of a country.
II. Resource inflows of a not-for-profit organization may come from donations, grants, contracts for service,
and the sale of goods and services.
III. Most of the resource outflows fund operations and capital improvements.
IV. Not-for-profit organizations are NOT allowed to earn profits.
A. I.
B. I. II.
C. I. II. III.
D. III. IV
E. I. II. III. IV

1. What are the three main categories of things which affect economic growth in the long run?

2. Which of the above probably explains most of world economic growth over the last 200 years?

3. Which of the above probably explains most of the difference in output between North Korea and South Korea?

4. If an economy grows at 5% per year, how long will it take for per capita real GDP to double

5. If nominal GDP (the dollar value of goods and services produced in a country) grows by 10%, the population grows by 3% and the price level grows by 5%, what is the rate of economic growth?

6. If real GDP goes from 24,000 to 28,000 what is the percentage change in real GDP?

7. Name one institution which fosters economic growth.

8. According to Adam Smith, the division of labour is limited by the extent of what?

1. One of the most commonly used measures of inflation is the

Select one:

1. consumer price index.
2. inflation factor.
3. fiscal policy.
4. gross domestic product.

2. The means by which the Canadian government imposes taxes on individuals and corporations and the way it spends tax revenues is the

Select one:

1. bank policy.
2. budget policy.
3. taxation policy.
4. fiscal policy.

3. If you were a supplier of a company selling goods on 30-day terms, you would be most concerned with ratios measuring

Select one:

1. financial leverage.
2. liquidity.
3. profitability.
4. efficiency.

4. Callable bonds are issued when interest rates are expected to

Select one:

1. stay the same.
2. convert.
3. rise.
4. decline.

5. The best way to ensure that you will receive dividends is to

Select one:

1. purchase preferred stock.
2. purchase common stock.
3. purchase bonds.
4. day trade.