The data presented in worksheet 4 is the results of a 4-year study conducted to assess how age, weight, and gender influence the risk of diabetes. Risk is interpreted as the probability (times 100) that the patient will have diabetes over the next 4-year period.

a) What predictive model you suggest to relate risk of diabetes to the person’s age, weight and the gender. Why? b)Develop an estimated multiple regression model that relates risk of diabetes to the person’s age, weight, gender and life style. Present the regression formula as a mathematical equation. Interpret the coefficients of the regression and comment on the strength of the regression.

c) What is the risk percentage of diabetes over the next 4 years for a 52-year-old woman living in a small town with 80 kg weight?

1. Han Industries Inc. constructed a building and acquired five assets during the current year.

Construction of Building: Han constructed a building on land that it purchased last year at a cost of $240,000. Construction began on March 1 and was completed on October 1. The payments to the contractor were as follows.

Date          Payment

March 1 $360,000

July 1        275,000

October 1 325,000

Han obtained a $700,000, 8% construction loan on March 1. Han repaid the loan on October 1. Han had $400,000 of other outstanding debt during the year at a borrowing rate of 9%.

Asset 1: Han acquired office furniture by making a $7,500 down payment and issuing a $10,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $5,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $16,200.

Asset 2: Han acquired manufacturing equipment by trading in used manufacturing equipment. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows.

Cost of equipment traded in                    $52,000

Accumulated depreciation on equipment

Asset 3: Four computers were acquired by issuing 500 shares of $1 par value common stock. The stock had a market price of $12 per share.

Assets 4 and 5: Han purchased these assets together for a lump sum of $230,000 cash. The following information was gathered.

Initial Cost onDepreciation to Date onBook Value on

DescriptionSeller's Books            Seller's Books            Seller's BooksAppraised Value

Instructions

Record the acquisition of each of these assets.

Joan’s Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations:

A) Prepare journal entries to record the transactions.

1a. To record purchase of inventory on account

1b. To record payment to supplier

2a. To record payment to staff

2b. To record employer's liabilities

2c. To record payment to government

3a. To record warranty expense

3b. To record warranty payments

4.

B) Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year.

You collect the following information on a sample of 100 adults:

• Y=LOTTERY= percentage of income the person spends on lottery tickets (in %)
• EDUC= amount of education the individual has (in years)
• AGE = age of the individual (in years),
• CHILDREN = number of children the person has (in number of children)
• INC1000= annual income of the individual (in 1,000s of dollars)

The data set can be found in Mod9-1Data. Run the multiple regression in Minitab. Assume a level of significance of 5%.

null hypothesis for the test on the slope/coefficient on AGE-

alternative hypothesis=

computed test statistic=

table test statistic=

p-value=

statistical conclusion=

Predicted percentage of income spent of lottery tickets for a person with 12 years of education; 20 years old; 0 children; and an income of $25,000.=

null hypothesis for valid regression test=

alternative hypothesis for valid regression=

computed test statistic for the useful regression test=

table test statistic for the valid regression test=

p-value for the valid regression test=

statistical conclusion for the valid regression test=

Recall from Activities 16-1 and 16-3 that the Kaiser Family Foundation commissioned an extensive survey in 2004 that investigated the degree to which American youths aged 8–18 have access to various forms of media. Of the 1036 girls in the sample, 64% had a television in their bedrooms, compared to 72% of the 996 boys in the sample.

a. Suppose you want to use these sample results to produce a 95% confidence interval for πg - πb. Describe in words what πg - πb represents.

b. Calculate this interval, and interpret what it reveals. Be sure to mention whether the interval contains all negative values, all positive values, or some of each.

c. Calculate a 99% confidence interval for πg - πb. Comment on how its midpoint and width compare to the 95% interval

note: TT= pi

On January 4, 2016, Spandella Company purchased 168,000 shares of Filington Company directly from one of the founders for a price of $27 per share. Filington has 560,000 shares outstanding, including the shares acquired by Spandella Company. On July 2, 2016, Filington paid $717,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $963,000 for the year. Spandella uses the equity method in accounting for its investment in Filington.

Required:

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