The information below will be needed to answer all questions.

] In 2010, Betty White (at age 88!) hosted an episode of Saturday Night Live, becoming the oldest host the show has ever had. Most people know that she was the oldest. However, what about the second oldest? Do people have an idea how old the second oldest guest host was? A random sample of people was taken; these people were asked two questions: what is your age (x) and what do you believe is the age of the second oldest SNL host? Note: the second oldest SNL guest host was Miskel Spillman at age 80 (in 1977) who won a contest and is the only non-celebrity to host the show.

X 25 29 32 37 40 45 47 50 53 60 65

Y 65 72 70 80 75 70 72 73 79 82 80

(a) Draw a scatterplot for this set of data

(b) Find the linear correlation coefficient. Based on that value, is there evidence of a linear relationship between the variables? Explain.

(c) Find the line of best fit. (d) Predict the value of y given the value of x = 40

(e) Find the residual for x = 40.

In February of 2010 the SEC announced a new time line calling for publicly traded companies to switch from GAAP to a different set of accounting standards, called IFRS, by 2015. Now that it is 2017, do some research on the impact this switch will have on US companies. Based on your research, what are the key advantages and major challenges associated with making the proposed switch?

Required: 2 paragraphs outlining the advantages and disadvantages.

For the year 2010, 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return. The mean amount of deductions for this population of taxpayers was $16,642. Assume that the standard deviation is σ = $2,220. If required, round your answer to two decimal places.

jimmy identified his ‘dream’ retirement home at the end of 2010. The property is currently (end 2010) valued at $850,000 and is likely to appreciate in value over the next 15 years (his anticipated retirement date from now) as follows:
-Years 1 to 5 by 8% p.a.,
-Years 6 to 10 by 10% p.a.,
and -Years 11 to 15 by 15% p.a.
he can earn a net 14% p.a. rate of return on any investment funds he puts aside to pay for his ‘dream’ retirement home over the 15 year term. Moreover, as a result of an inheritance from his grandfather, he also anticipates that he will be able to add a lump sum of $300,000 to these investment funds (used to pay for his retirement home) in 3 years from now.

a)Given the information provided above, approximately what amount must Jack invest on an annual basis in order to be able to buy his dream home at retirement?
i)At the end of each of the next 15 years?
ii)At the beginning of each of the next 15 years?  

The Affordable Care Act was signed into law by President Barack Obama in March 2010. Many of the provisions of the law directly affect health care providers. Review the following topic materials: Key Features of the Affordable Care Act Health Care Transformation: the Affordable Care Act and More What are the most important elements of the Affordable Care Act in relation to community and public health? What is the role of the nurse in implementing this law?

In 2010, an online security firm estimated that 64% of computer users don't change their passwords very often. Because this estimate may be outdated, suppose that you want to carry out a new survey to estimate the proportion of students at your school who do not change their password. You would like to determine the sample size required to estimate this proportion with a margin of error of 0.05.

(a) Using 0.64 as a preliminary estimate, what is the required sample size if you want to estimate this proportion with a margin of error of 0.05? (Round your answer up to the nearest integer.)

(b) How does the sample size in part (a) compare to the sample size that would result from using the conservative value of 0.5? (Round your answer up to the nearest integer.)

The sample size in part (a) smaller than the sample size of: computed using the conservative estimate

(c) What sample size would you recommend? Justify your answer. (Round your sample size up to the nearest integer.)

The sample size of: should be used for this study because it will guarantee a margin of error of no greater than 0.05. The other sample size computed will only guarantee a margin of error no greater than 0.05 if p >: or if p < : .

1. In 2010, Betty White (at age 88!) hosted an episode of Saturday Night Live, becoming the oldest host the show has ever had. Most people know that she was the oldest. However, what about the second oldest? Do people have an idea how old the second oldest guest host was? A random sample of people was taken; these people were asked two questions: what is your age (x) and what do you believe is the age of the second oldest SNL host?

Note: the second oldest SNL guest host was Miskel Spillman at age 80 (in 1977) who won a contest and is the only non-celebrity to host the show.

1. Draw a scatterplot for this set of data

2. Find the linear correlation coefficient. Based on that value, is there evidence of a linear relationship between the variables? Explain.

3. Find the line of best fit.

4. Predict the value of y given the value of x = 40

5. Find the residual for x = 40.

1. An important development during the Great Recession of 2007–2010 was that

   	A.	more than 70 percent of all unemployed workers exited unemployment within 5 weeks; however, most of this movement was due to the unemployed becoming discouraged and exiting the labor force rather than finding a job.
   	B.	the amount of frictional and seasonal unemployment increased dramatically while the amount of structural unemployment decreased substantially.
   	C.	the unemployment rate increased dramatically, but the average unemployment spell remained constant at about 8 weeks of unemployment.
   	D.	most unemployment spells lasted 13 to 26 weeks.
   	E.	more than 35 percent of all unemployed workers remained unemployed for more than 26 months.

2 points   

QUESTION 2

1. For two substitutes in production, if the substitution effect dominates

   	A.	then the inputs are complements.
   	B.	then the inputs are substitutes.
   	C.	then the inputs could be either complements or substitutes.
   	D.	then the inputs can not be used at the same time.

2 points   

QUESTION 3

1. The price elasticity of demand for the final product affects the elasticity of demand for labor by affecting the magnitude of:

   	A.	the substitution effect that occurs in the labor market
   	B.	the scale effect that occurs in the labor market.
   	C.	both the substitution and scale effects.
   	D.	neither the substitution nor the scale effects.

2 points   

QUESTION 4

1. Which of the following is best considered an implicit contract?

   	A.	A union contract that specifies hourly wages and fringe benefits.
   	B.	A historical agreement between a firm and its employees that the firm pays workers based on a combination of age, experience, and education.
   	C.	A union contract that specifies how overtime wages will be calculated.
   	D.	An informal agreement between a firm and its employees to reduce hours of work for everyone a little bit during an economic contraction in order to prevent firing anyone.
   	E.	A firm offering health insurance to all of its workers in order to abide by the Affordable Care Act.

2 points   

QUESTION 5

1. A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As a result, firm profits increase and there is a pool of involuntarily unemployed workers. In this model, if the firm's cost of monitoring effort falls,

   	A.	the firm will increase its number of factory managers.
   	B.	the number of shirking workers will fall.
   	C.	the efficiency wage will fall.
   	D.	firm profits will fall.
   	E.	the pool of involuntarily unemployed workers will increase.

Case Study 1
Quick Biotech
It is late in September 2010, and Michelle Chang, a doctoral student at the National
University of Singapore (NUS), is to meet her colleagues Henry Tan and Mike
Hammer from the Institute of Molecular Biology again in a few days to discuss the
course of action to be pursued for the establishment of Quick Biotech. Henry Tan
and Mike Hammer both hold doctorates in biology and work at NUS as senior
assistants. A few months before, they patented a process for the production of multi
protein complexes, which they had already put to successful use, and about which
they had received favourable feedback. Now, the three colleagues want to set-up a
company called Quick Biotech in order to apply the new technology to a wider field.
Background
The human body is exposed to numerous external influences and internal genetic
defects, which cause the proteins in our cells to malfunction. Proteins constitute the
basis of all biological processes. If proteins no longer fulfill their function adequately
owing to defects, this often results in life-threatening illnesses, such as cancer. This
is why almost all drugs have effect on proteins. Consequently, most research and
development work for drugs and therapies need protein, which is why both academic
research institutions and the pharmaceutical companies use proteins as a basis to
their research activities.
Recently, progress in fundamental research revealed the total of the proteins in a
cell, which in the case of human being amounts to more than 40,000 proteins. It
became obvious that the proteins in a cell do not work individually; rather, they
combine to act as protein complexes that are made up of numerous protein
components. In addition, virtually all biological processes in cells are executed by
such protein complexes. This has crucial consequences for research; in order to
understand how proteins work, protein machines must be explored as a whole, and
not only their individual protein components.
Nonetheless, academic institutes and the pharmaceutical industry have almost
exclusively focused on individual, isolated proteins. The primary reason for this was
that human protein machines are very difficult to produce in a pure form. Although
the development of modern, recombinant methods now enables the production of
individual protein components, there is still a demand for a technology that is able to
provide sufficient volumes of entire protein machine, which form the basis of
biological functions. This is also Michelle’s, Henry’s and Mike’s experience in their
research at NUS. They realize that no suitable technology for the production of
protein machines exists. This is why they developed their own technology: the
MultiBac technology.
The technology
The MultiBac technology uses a modified, yet greatly improved version of the so
called “baculovirus gene transfer vector” to produce any combination of proteins in
great volumes and of high quality. The genes of a great number of proteins, such as
human ones, can be placed on this gene transfer vector. This process can be carried
out in an ordinary molecular biology laboratory. The MultiBca gene transfer vector
multiplies in cell cultures and constitutes no danger to human beings. Therefore, no
special health and safety regulations are required to work with this system.
The gene transfer vector of the MultiBac system was developed to provide it with a
unique feature namely, that is particularly careful in the production of the desired
protein machines. For customers, this is a guarantee of the unsurpassed quality of
the protein complex produced with the MultiBac technology. In comparison with
conventional processes, the simplified MultiBac technology additionally saves a
substantial amount of time for the production of the desired protein product: it only
takes weeks rather than months. Also, the technology offers the possibility to build
numerous different protein complexes from the same protein components on a
modular basis and, thus, of supplying individual solution to customers’ problems.
Laboratories of renowned research institutes already use MultiBac, which NUS has
made available as trial specimens. This shows that the technology works, is mature
and has a selling potential. The process was patented last year by NUS, and since
then it was developed in the context of employment at the university. However, the
rights can be assigned to a start up, for instance, in the form of an exclusive license.
The next steps to launch the venture
In autumn 2010, Michelle is in the final stages of her doctoral thesis, which she
wants to complete by the year. After that, she needs to work full time for the new
company. In contrast, Henry and Mike want to retain their jobs at NUS and spend
less time on the company. As such, they would not be involved in the company’s
operative daily business but will assume an advisory function. They will receive
shares in the start-up but will not be on the company payroll.
One of the key roles of Henry and Mike will be to guarantee long term access to the
latest findings in scientific research. This model, whereby some of the founders
remain at the university, has already proved successful in a number of other
biotechnology start ups. Research in the field of biotechnology is very costly; both in
terms of time and money, so only by retaining close links with a research institution
will the company ensure that it will always work with the latest technologies and,
thus, remain competitive.
One of the greatest challenges currently perceived by the team is to secure funding
for the new company. Although the founders are able to invest S$200, 000 of their
personal savings into the enterprise and, thus, realize a small scale start up, present
plans are based on the assumption that at least S$500 000 of external capital will be
needed for the first two years.
These funds will primarily serve to finance Michelle’s position and a small team of lab
assistants in charge of producing the protein complex for the clients. The product will
be sold via a network of sales agents, and other functions, such as accounting and
finance, will be outsourced to a professional accountant.
Answer all questions.
1. Should Michelle consider debt or equity to finance QuickBiotech? Explain your
answer.

2. Would you consider any alternative sources or finance? Which one? Why?

3. Analyse other issues to be addressed before QuickBiotech is launched.

Please write all your answers in essay format. Do not answer in point-form unless
the questions mention “List” or “State”. It is not necessary to precede each answer
with an introduction and end with a summary. Proceed directly with the answer