Two major automobile manufacturers have produced compact cars with the same size engines. We are interested in determining whether or not there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles. A random sample of eight cars from each manufacturer is selected, and eight drivers are selected to drive each automobile for a specified distance. The following data show the results of the test and if the variance of MPG is the same, Driver Manufacturer A Manufacturer B 1 32 28 2 27 22 3 26 27 4 26 24 5 25 24 6 29 25 7 31 28 8 27 27 Refer to Exhibit 6. The test statistic and the p-value at 99% confidence level are

what is the average age in the class? what is the average feeling? what is the average city?

Using basic demographic information (age, household income, marital status, etc.), you collect a random sample size 190 customers who accepted a special balance transfer offer from a major credit card company six months ago. The company wants to determine if there is evidence that it would profit by offering the deal to the population of customers with those same demographic characteristics. The sample mean balance transfer amount is 1,935 with a sample standard deviation of 424. Based on the information above, if the company were to perform a hypothesis test at α = 0.05, what is the largest value it could specify in the null hypothesis and still fail to reject the null hypothesis? Hint: Think about the relationship between hypothesis tests and intervals. Specifically, think about how a test done at alpha equals 0.05 would relate to a 95% confidence interval?

A researcher is interested to learn if there is a relationship between the level of interaction a women in her 20s has with her mother and her life satisfaction ranking. Below is a list of women who fit into each of four level of interaction. Conduct a One-Way ANOVA on the data to determine if a relationship exists.

A highway department is studying the relationship between traffic flow and speed. The following model has been hypothesized:

y = β₀ + β₁x + ε where

• y = traffic flow in vehicles per hour
• x = vehicle speed in miles per hour.

The following data were collected during rush hour for six highways leading out of the city.

In working further with this problem, statisticians suggested the use of the following curvilinear estimated regression equation.

ŷ = b₀ + b₁x + b₂x²

(a) Develop an estimated regression equation for the data of the form ŷ = b₀ + b₁x + b₂x² (Round b₀ to the nearest integer and b₁ to two decimal places and b₂ to three decimal places.)

ŷ =

Find the value of the test statistic. (Round your answer to two decimal places.)

Base on the model predict the traffic flow in vehicles per hour at a speed of 38 miles per hour. (Round your answer to two decimal places.)

vehicles per hour

A study of emergency service facilities investigated the relationship between the number of facilities and the average distance traveled to provide the emergency service. The following table gives the data collected.

Develop an estimated regression equation for the data corresponding to a second-order model with one predictor variable. (Round your numerical values to four decimal places.)

Multiple Choice 1

Data differ from information in which way?

a.   Data are facts about a sale

b.   Information is data organized to provide meaning

c.   Data are meaningful bits of information

d.   There is no difference

Multiple Choice 2

Which of the following is not a characteristic that makes information useful?

a.   It is reliable

b.   It is timely

c.   It is inexpensive

d.   It is relevant

Multiple Choice 3

What information needs are generally associated with the acquire inventory business process?

a.   Market Analysis

b.   Vendor Performance

c.   Inventory status reports

d.   All of the above

Multiple Choice 4

Which transaction cycle includes interactions between an organization and its suppliers?

a.   Revenue cycle

b.   Expenditure cycle

c.   Human resources/payroll cycle

d.   General ledger and reporting system

Multiple Choice 5

In which cycle does a company ship goods to customers?

a.   Production cycle

b.   Financing cycle

c.   Revenue cycle

d.   Expenditure cycle

Multiple Choice 6

Which of the following is a function of an AIS?

a.   Reducing the need to identify a strategy and strategic position.

b.   Transforming data into useful information.

c.   Allocating organizational resources.

d.   Automating all decision making.

Multiple Choice 7

An AIS provides value by:

a.   improving products or services through information that increases quality and reduces costs

b.   providing timely and reliable information to decision makers

c.   creating new products

d.   both A and B

Multiple Choice 8

The value chain concept is composed of the following two types of activities:

Primary and secondary

Primary and support

Support and value

Technology and support

Multiple Choice 9

Which of the following is a primary activity in the value chain?

a.   Purchasing

b.   Accounting

c.   Post-sales service

d.   Human resource management

Multiple Choice 10

Which of the following is a support activity in the value chain?

a.   Purchasing

b.   Manufacturing

c.   Post-sales service

d.   Receiving materials

Background Information

Newcastle Airlines Limited has been an audit client of Sydney Accountants since 2015.

You are an audit partner in Sydney Accountants involved in the planning of the 2019 audit of Newcastle Airlines.

The following circumstances relevant to the current financial year have come to your attention:

➢ The impact of fuel prices and intense competition in the airline industry.

➢ Along with new entrants like the budget airlines in the markets and an increased passenger capacity, airline companies have been lowering their airfares to capture more customers.

➢ Airlines will end up accepting very low prices while operating with very high costs.

➢ Take Emirates for instance. Emirates operates with a young fleet, meaning more fuel efficiency, lower maintenance costs, and the ability to fit more into each plane (which lowers the marginal costs of each passenger). Being based in Dubai means there are low taxes, no unions to battle with, and an abundance of cheap labour from nearby countries. Emirates’ competitive advantage is also in their reputation for excellence in service which Emirates can charge high prices for.

You reviewed Newcastle’s significant accounting policies and found that revenue and depreciation costs are material income statement accounts. Extract of the accounting policies for Revenue and Depreciation costs, together with additional relevant information, are included below:

Item 1: Revenue recognition policy

Passenger, freight, and tours and travel sales are credited to revenue received in advance and subsequently transferred to revenue in the income statement, when passengers or freight are uplifted or when tours and travel air tickets and land contentare utilised.

Your review of the prior year’s financial statements indicates revenue from passengers represents 80% of total revenue. Newcastle’s latest financial information shows a 6% fall in revenue from passengers and an 11% decrease in revenue from passengers in advance.

Item 2: Aircraft maintenance costs policy

The standard cost of major airframe and engine maintenance checks is capitalised and depreciated over the shorter of the scheduled usage period to the next major inspection or the remaining life of the aircraft.

Newcastle’s latest financial figures show the aircraft and engines at cost (including major maintenance costs) to be at a similar level as last year while depreciation costs have decreased by 5%.

You have read articles in the financial press which suggest an increased incidence of fraud due to the competitive environment, and that the majority of these frauds are committed by company directors and senior managers. In your study of corporate governance you realised that Newcastle Airline may be facing similar problems.

Required:

a) Explain why the revenue from passenger accounts in the income statement is at significant risk of fraudulent financial reporting by management.

b) Describe a relevant and practical internal control to address the fraud risk described in (a) above. Explain how the internal control will minimise the risk of fraud.

c) With reference to Item 1 and Item 2 in the Background Information, explain why each of the two income statement accounts Revenue and Depreciation costs may represent a significant risk of material misstatement

A commercial farm uses a machine that packages carrots in twenty-two ounce portions. A sample of 74 packages of carrots has a standard deviation of 0.38. Construct the 98% confidence interval to estimate the standard deviation of the weights of the packages prepared by the machine. Round your answers to two decimal places.

Calculate the CO2 emission reduction in short tons/year that would result from increasing the efficiency of a 1,000 MW coal fired power plant from 33%-39%. The coal is 74% C and has a heat content of 9,800 Btu/lb. One short ton = 2,000 lb.