Assume that there two investments of different risk. A return of 0.05 is required on one investment: on the other a return of 0.10 is required. Compare the present values obtained for each investment for expected cash flows of $1 billion 1 year, 20 years, and 50 years from now at the required rates of return.

Our class has 50 students. Assuming that no students are born on leap days (February 29), what is the probability that no two students share the same birthday? What is the probability that at least one of the students has the same birthday as another student in the class? Please provide your answers in the form of a fraction.

Is HDTV ownership related to quantity of purchases of other electronics? A Best Buy retail outlet collected the following data for a random sample of its recent customers. At α = 0.10, is the frequency of in-store purchases independent of the number of large-screen HDTVs owned (defined as 50 inches or more)?

(b) Calculate the chi-square test statistic, degrees of freedom, and the p-value. (Round your test statistic value to 2 decimal places and the p-value to 4 decimal places.)

(c) Find the critical value for chi-Square. Refer to the chi-square Appendix E table. (Round your answer to 2 decimal places.)

Critical value            

2)

Oxnard Kortholt, Ltd., employs 50 workers. Research question: At α = .05, do Oxnard employees differ significantly from the national percent distribution?

) Calculate the chi-square test statistic, degrees of freedom and the p-value. (Round your test statistic value to 3 decimal places and the p-value to 4 decimal places.)

If a citizen of Ireland is selected at random, the probability they have red hair is 0.11. If several citizens are selected, assume it is done one at a time with replacement and consecutive selections are independent of each other. n=6 citizens will be randomly selected.

14a) What is the probability all six citizens will have red hair?

14b) What is the probability at least one will have red hair?

14c) What is the probability the first four randomly selected citizens will have red hair and the last two will not?

14d) What is the probability exactly 4 of the 6 citizens will have red hair? Hints:
What is the difference between this question and the last one? How many different ways can 4 “reds” and 2 “not-reds” be ordered?

A pure-breeding Rat strain displays two distinct rare traits. When a male from this pure breeding mutant strain is
crossed to a wild type female all the female F1 display both traits and the male F1 look wild type.
A] What is the mode of inheritance for these traits?
B] The F1 mice described above are inter-crossed to produce an F2 generation. 40% of the male F2 generation show
both traits, 40% are wild type and the remaining 20% are split between displaying one trait or the other. What fraction
of the female F2 progeny are expected to show both of the rare traits?
C] What is the map distance (in m.u.) between the two genes specifying these rare traits?

Consider an individual who must drive to his place of work. Assume that there are 16 available hours in the day, that his wage rate is $20 per hour, and that he has nonlabour income of $100 per day. The commute takes one hour each day and it costs $40 in expenses for the round trip. Using a work-eisure diagram, depict his labour supply choice, including his reservation wage. Analyze the impact of an increase in commuting costs on his participation and hours decision. Analyze the impact, first of an increase in commuting time from two to four hours per day, and, second, of an increase in driving expenses from $40 to $60 per round trip, keeing commuting time at two hours.

    Records of 40 used passenger cars and 40 used pickup trucks were randomly sampled to investigate

          whether there was any significant difference in the mean time in years that they were kept by the original

          owner before being sold.  For the sampled cars, the mean was 5.3 years with a standard deviation of 2.2

          years.  For the sampled pickup trucks, the mean was 7.1 years with a standard deviation of 3.0 years.  

          (Assume that the two samples are independent.)

a)  Construct and interpret the 90% confidence interval estimate of the difference between the mean time for all passenger cars and the mean time for all pickup trucks.

b)  Does there appear to be a significant difference between the two population means?  Is one higher than

               the other?  If so, who keeps their vehicles longer?

Warren Plastic, LLC complete these transactions in year 1 and year 2. Give general journal entries for them.

date yr
2/20 1 Purchased equipment for 40,000, signed an 8-month note, 7%.

2/28 1 Recorded the month's sales of 200,000, one-eighth cash, seven-eighths credit.
Sales tax rate is 5.25%

3/20 1 Sent Feb. sales tax to the state.

4/30 1 Borrowed $255,000 on a long-term note, 7% note payable
Annual interest is to be paid each year on 4-30, starting yr. 2.

10/20 1 paid off the note dated 2-20-yr 1

11/30 1 bought inventory at a cost of 12,500. Signed a 3 month 3.25% note.

12/31 1 Accrued warranty expense, estimated at 2% of 2,400,000 of sales

12/31 1 Accrued Interest on ALL outstanding notes.

2/28 2 Paid off the inventory note at maturity, including interest.

4/30 2 Paid the annual interest on the 255,000 note.

Brandon Lang is a creative entrepreneur who has developed a novelty soap item called Jackpot to target consumers with a gambling habit. Inside each bar of Jackpot shower soap is a single rolled-up bill of U.S. currency. The currency (rolled up and sealed in shrinkwrap) is appropriately inserted into the soap mixture prior to the cutting and stamping procedure. The distribution of paper currency (per 1000 bars of soap) is given in the following table. Distribution of Paper Currency Prizes Bill Denomination Number of Bills $1 470 $5 240 $10 160 $20 90 $50 39 $100 1 Total 1,000

(a) What is the expected amount of money in a single bar of Jackpot soap? If required, round your answer to two decimal places. Expected value =

(b) What is the standard deviation of the money in a single bar of Jackpot soap? If required, round your answer to two decimal places. Standard deviation =

(c) How many bars of soap would a customer have to buy so that, on average, he or she has purchased four bars containing a $50 or $20 bill? If required, round up your answer to the next whole number. Number of bars of soap =

(d) If a customer buys 7 bars of soap, what is the probability that at least one of these bars contains a bill of $20 or larger? If required, round your answer to four decimal places. Probability =

Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the U.S. economy $300 billion in medical expenses and lost productivity. Despite the enormous potential market, many biotech companies have shied away from funding research and development (R&D) initiatives to find a cure for drug and alcohol addiction. Your firm – Drug Abuse Sciences (DAS) – is a notable exception. It has spent $190 million to date working on a cure, but is now at a crossroads. It can either abandon its program or invest another $55 million today. Unfortunately, the firm’s opportunity cost of funds is 9 percent and it will take another five years before final approval from the Federal Drug Administration is achieved and the product is actually sold. Expected (year-end) profits from selling the drug are presented in the accompanying table.

What is the net present value of the project?

Instruction: Enter your response rounded to the nearest penny (two decimal places). Use a negative sign (-) where appropriate.

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