. Table 1 below reports the present values (in £ million) of different investment projects at different interest rates in the future.

Table 1. Project NPVs

		Future interest rate
Project	3.0%	3.5%	4.0%	4.5%	5.0%	5.5%	6.0%
A	76.21	72.26	68.61	65.23	62.09	59.18	56.48
B	78.81	74.2	69.98	66.12	62.57	59.31	56.31
C	80.36	75.41	70.9	66.78	63.03	59.59	56.44
D	78.81	74.33	70.22	66.44	62.97	59.76	56.81
E	84.24	77.18	71.01	65.58	60.79	56.55	52.78
probability	0.1	0.15	0.2	0.2	0.15	0.1	0.1

Calculate the expected present value of each project. Which project maximises the expected value? Why would you choose to proceed with this one?

Calculate the maximin and the maximax criteria.

Calculate the minimax regret criterion. When would this criterion be applied?

Calculate the expected value of perfect information. What does it describe?

You are studying the reaction of iodine with a ketone to produce iodoketone with the following equation:

            I₂ + ketone → iodoketone + H⁺ + I^-

Data for initial rates and concentrations are given in the table below:

-d[I₂]/dt                        [I₂]                   [ketone]                        [H⁺]

mol^-1 L s^-1                     M                     M                                 M

7 x 10^-5                         5 x 10^-4             0.2                               1.0 x 10^-2

7 x 10^-5                         3 x 10^-4             0.2                               1.0 x 10^-2

1.7 x 10^-5                      5 x 10^-4             0.5                               1.0 x 10^-2

5.4 x 10^-5                      5 x 10^-4             0.5                               3.2 x 10^-2

A. 0, 1, 0
B.0, 1, 1
C.1, 1, 1
D.1, 2, 0

Calculate the average rate coefficient in te above question.

A.0.003
B.0.013
C.0.025
D.0.034

Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data:

					Cost Driver Volume
Activity	Cost Driver	Cost			Pencils	Pens
Setting up	Number of setups	$	102,000		22	29
Inspecting	Number of parts		26,100		3	6
Packing and shipping	Number of boxes shipped		50,000		50,000	75,000
Total overhead		$	178,100

Required:

a. Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)

b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.2 for pencils and 0.2 for pens and that 50,000 boxes of pencils and 75,000 boxes of pens were produced during the period. (Do not round intermediate calculations.)

A new nail salon business just opened, in their first week of business they decided that thy would conduct a promotion in which a customer's bill can be randomly selected to receive a discount. When a customer's bill is printed, a program in the cash register randomly determines whether the customer will receive a discount on the bill. The program was written to generate a discount with a probability of 0.2, that is, giving a discount to 20 percent of the bills in the long run. However, the owner is concerned that the program has a mistake that results in the program not generating the intended long-run proportion of 0.2.

(a) The owner selected a random sample of 100 bills and found that only 16 percent of them received discounts. The conditions for inference are met. Using the sample data collected by the owner, calculate a 95% confidence interval for the true proportion of bills that will receive a discount in the long run.

(b) Observing the value that you received in part a. Do you believe that the confidence interval provide convincing statistical evidence to indicate that the program is not working as intended?

1- Use Heun’s method without iteration to solve

?2???2−0.5?+?=0

y(0) = 2 and y’(0) = 0 solve from x = 0 to 3 using h = 0.2 (step size) present y values as a table versus x values (50p)

Instructions about question 1: considering step size and interval for x it will not be reasonable to proceed through hand calculations. You may want to use excel or other software but you need to write down first 3 steps of the calculations (obtain y(0.2), y(0.4) and y(0.6) ) in detail showing all calculations. Rest of the y values can be calculated using a software and tabulated (this is valid for hand calculations too provide calculations for first 3 steps and present the values as a table). You need to provide the code or excel file for the software that you used for calculation.......please sir (with explanation,step by step and calculation)please sir must

This question is based on Heckscher-Ohlin (HO) Model.

Suppose two countries, Farmland and Techland, use only capital and labor to produce two goods, Grain (G) and Cars (C). Farmland has 2,050 units of capital and 916 units of labor, and Techland has 816 units of capital and 270 units of labor. In Techland, there are 366 units of capital and 135 units of labor employed in the Grain industry. In Farmland, there are 926 units of capital and 618 units of labor employed in the Grain industry.

A.     Which country is labor-abundant? Which country is capital-abundant? In Techland which industry is labor-intensive and why?

B.      Suppose that Farmland and Techland do not engage in international trade. Assuming the countries have identical preferences, which country would have the cheaper relative price of Grain?

C.      Now suppose the two countries trade with one another. What will happen to the relative price of Grain in Farmland? What is the effect of free trade on labor and capital owners in Farmland?

D.     Now suppose, Cars use 4 units of capital for each worker (KC /LC = 4 or KC = 4LC) whereas Grains use 0.2 units of capital for each worker (KG /LG = 0.2 or KG = 0.2 LG). There are 200 workers and 200 units of capital in the economy. Solve for labor and capital in each industry. (hint: KC + KG = 200 and LC + LG = 200. First solve for or LC and LG using these two equations and then for KC and KS.)

E.      Next, suppose number of workers increase to 250 because of immigration, keeping total capital fixed at 200. Solve for labor and capital used in each industry. Which theorem is consistent with this result? Why and why not?

This question is based on Heckscher-Ohlin (HO) Model.

Suppose two countries, Farmland and Techland, use only capital and labor to produce two goods, Grain (G) and Cars (C). Farmland has 2,050 units of capital and 916 units of labor, and Techland has 816 units of capital and 270 units of labor. In Techland, there are 366 units of capital and 135 units of labor employed in the Grain industry. In Farmland, there are 926 units of capital and 618 units of labor employed in the Grain industry.

A.     Which country is labor-abundant? Which country is capital-abundant? In Techland which industry is labor-intensive and why?

B.      Suppose that Farmland and Techland do not engage in international trade. Assuming the countries have identical preferences, which country would have the cheaper relative price of Grain?

C.      Now suppose the two countries trade with one another. What will happen to the relative price of Grain in Farmland? What is the effect of free trade on labor and capital owners in Farmland?

D.     Now suppose, Cars use 4 units of capital for each worker (KC /LC = 4 or KC = 4LC) whereas Grains use 0.2 units of capital for each worker (KG /LG = 0.2 or KG = 0.2 LG). There are 200 workers and 200 units of capital in the economy. Solve for labor and capital in each industry. (hint: KC + KG = 200 and LC + LG = 200. First solve for or LC and LG using these two equations and then for KC and KS.)

E.      Next, suppose number of workers increase to 250 because of immigration, keeping total capital fixed at 200. Solve for labor and capital used in each industry. Which theorem is consistent with this result? Why and why not?

MANAGERIAL CHALLENGE Why Charge $35 per Bag on Airline Flights? American Airlines (AA) announced that it would immediately begin charging $35 per bag on all AA flights, not for extra luggage but for the first bag! Crude oil had crushed from $54 to $20 per barrel in the previous 3 months. AA’s new baggage policy applied to all ticketed passengers except first class and business class. On top of incremental airline charges for sandwiches and snacks introduced the previous year, this new announcement stunned the travel public. Previously, only a few deep discount U.S. carriers with very limited route structures such as People Express had charged separately for both food and baggage service. Since American Airlines and many other major carriers had belittled that policy as part of their overall marketing campaign against deep discounters, AA executives faced a dilemma. DEMAND AND SUPPLY: A REVIEW Demand and supply simultaneously determine equilibrium market price (Peq). Peq equates the desired rate of purchase Qd/t with the planned rate of sale Qs/t. Both concepts address intentions—that is, purchase intentions and supply intentions. Demand is therefore a potential concept often distinguished from the transactional event of “units sold.” In that sense, demand is more like the potential sales concept of customer traffic than it is the accounting receivables concept of revenue from completing an actual sale. Analogously, supply is more like scenario planning for operations than it is like actual Jet fuel surcharges had recovered the year-over-year average variable cost increase for jet fuel expenses, but incremental variable costs (the marginal cost) remained uncovered. A quick back-of-the-envelope calculation outlines the problem. If total variable costs for a 500-mile flight on a 180-seat 737-800 rise from $22,000 in 2007 Q2 to $36,000 in 2008 Q2 because of $14,000 of additional fuel costs, then competitively priced carriers would seek to recover $14,000/180 = $78 per seat in jet fuel surcharges. The average variable cost rise of $78 would be added to the price for each fare class. For example, the $188 Super Saver airfare restricted to 14-day advance purchase and Saturday night stay

overs would go up to $266. Class M airfares requiring 7-day advance purchase but no Saturday stay overs would rise from $289 to $367. Full coach economy airfares without purchase restrictions would rise from $419 to $497, and so on. The problem was that by 2008 Q2, the marginal cost for jet fuel had risen to approximately $1 for each pound transported 500 miles. Carrying an additional 170-pound passenger in 2007 had resulted in $45 of additional fuel costs. By May 2008, the marginal fuel cost was $170 – $45 = $125 higher! So, although the $78 fuel surcharge was offsetting the accounting expense increase when one averaged in cheaper earlier fuel purchases, additional current purchases were much more expensive. It was this much higher $170 marginal cost that managers realized they should focus upon in deciding upon incremental seat sales and deeply discounted prices. And similarly, this marginal $1 per pound for 500 miles became the focus of attention in analyzing baggage cost. A first suitcase was traveling free under the prior baggage policy as long as it weighed less than 42 pounds. But that maximum allowed suitcase imposed $42 of marginal cost in May 2008. Therefore, in mid-2008, American Airlines (and now other major carriers) announced a $35 baggage fee for the first bag in order to cover the marginal cost of the representative suitcase on AA, which weighs 25.4 pounds.

Discussion Questions:

a. How should the airline respond when presented with an overweight bag (more than 42 pounds)?

b. Make a list of some of the issues that will need to be resolved if American Airlines decides to routinely charge different prices to customers in the same class of service?

c. What would you do if you were the CEO of AA? Define and justify your Pricing strategy.

Question 1

A worksheet is composed of multiple workbooks.

True

False

Question 2

A1 contains 3 and A2 contains 4. Cell B2 contains = $A$1 ^ $A$1.

What value will cell C2 display if you copy the formula from cell B2 to cell C2?

0

27

12

16

Question 3

Which of the following cannot be a cell reference?

cell1

B3

$C5

$F$3

none of the above is correct

Question 4

What are the 3 most common types of data that are used in a worksheet cell?

Group of answer choices

text, numbers, and formulas

text, numbers, and values

text, sheets, and formulas

names, values, and formulas

none of the above is correct

Question 5

If cell A1 has a 2 in it, cell B5 has a 1 in it, cell C2 has a 5 in it, and cell D1 has =C2 - B5 + A1 in it, what is displayed in cell D1?

3

4

6

7

this formula has a syntax error in it

Question 6

If cell A1 has a 2 in it, cell B5 has a 1 in it, cell C2 has a 5 in it, and cell D1 has =2 * C2 -( B5 + A1) in it, what is displayed in cell D1?

2

4

7

11

none of the above is correct

Question 7

If cell A1 has a 2 in it, cell B5 has a 1 in it, cell C2 has a 5 in it, and cell D1 has = 2 * (C2 - B5) + A1 in it, what is displayed in cell D1?

4

5

10

11

none of the above is correct

Question 8

If cell A1 has a 2 in it, cell B5 has a 1 in it, cell C2 has a 5 in it, and cell D1 has = 2 * C2 - B5 + A1 in it, what is displayed in cell D1?

5

6

11

none of the above is correct

Question 9

In the formula below, which operator will a worksheet evaluate first?

=A2+B2*(2-5/C3)

=

+

*

-

/

Flag this Question

Question 10

In the formula below, which operation will a worksheet perform first?

=A2+B2*2-5/C3

=

+

*

-

/

Question 11

If cell A1 has 3 in it, cell B2 has 2 in it, what is the value displayed in cell B3 if it contains the following formula?

= 2*A1^B2+1

216

37

19

3

none of the above

Question 12

Which of the choices below is the correct way to express the mathematical value π in a worksheet?

p

pi

=pi

=PI

=PI()

Question 13

If A1 has 3 in it and A2 has 5 in it, what is the value in cell B3 if it contains the following formula?

=SQRT( A1 + 3 * A2 - 2 )

1.73...

2.236...

2.828...

3.46...

4

Question 14

Which formula below is a correct implementation of the square root of the sum of the squares of B2 and C3?

Group of answer choices

=SQRT( B2 + C3 )

=SQRT( B2 ^ 2 + C3 ^ 2)

=SQRT( B2 + C3 ) ^ 2

=SQRT( B2 ^ 2 ) + SQRT( C3 ^ 2 )

none of the above

Question 15

Which is the correct formula in a spreadsheet program to calculate x in the equation 10^x = 27?

=LOG10( 27 )

=SIN( 27 )

=LOG( 10, 27 )

=LN ( 20 )

none of the above

Question 16

Which of the following is NOT an acceptable range in a worksheet?

F2:G4

G, H

A1:A3

B3:B1

Question 17 1 pts

The formula below is in cell C5. If the formula is copied and pasted into D6, how will it appear?

= A1^(2-B2)

Group of answer choices

= B2^(2-C3)

= A1*(2-B2)

= C5^(2-D6)

= A1^(2-B2)

none of the above

Question 18

Which formula below has a syntax error in it?

= A2 + A3 - EXP( A4 )

= A2 + A3 - SQRT( A3 - A4 )

= LOG10(A2 + A3 - LOG10( A4 )

= A2 + 3 * A3 - PI()

= LN( SQRT( A2 + A3 - A4) )

Question 19

A spreadsheet has -2 in cell A3 and 4 in cell B7. Exactly what will be displayed in cell C5 if it contains exactly the following (be careful!):

B7/A3

Group of answer choices

0

-2

2

B7/A3

Question 20

In a worksheet, cell A1 contains 5 and A2 contains miles. What is displayed in cell B4 if it contains the formula

=A1 + A2?

5miles

5 miles

A1 + A2

error message

5

Short Answer Writing Assignment All answers should be complete sentences.

In the Week 2 Lab, you found the mean and the standard deviation for the SLEEP variable for both males and females. Use those values for follow these directions to calculate the numbers again.

(From Week 2 Lab: Calculate descriptive statistics for the variable Sleep by Gender. Sort the data by gender by clicking on Data and then Sort. Copy the Sleep of the males from the data file into the Descriptive Statistics worksheet of the Week 1 Excel file. [Write down the mean and standard deviation.] These are sample data. Then, copy and paste the female data into the Descriptive Statistics workbook and do the same. Keep three decimal places.)

7	M
7	F
5	F
7	F
6	F
8	F
7	F
8	F
5	M
8	M
8	F
4	F
8	F
8	M
6	M
8	M
8	M
8	M
7	F
10	M
6	F
7	M
8	F
5	F
8	F
7	F
7	M
4	M
9	M
8	M
7	F
7	M
8	M
8	M
10	M

You will also need the number of males and the number of females in the dataset. You can actually count these in the dataset. Then use the Week 5 spreadsheet to calculate the following confidence intervals. The male confidence interval would be one calculation in the spreadsheet and the females would be a second calculation.

1. Give and interpret the 95% confidence intervals for males and a second 95% confidence interval for females on the SLEEP variable. Which is wider and why?

2. Give and interpret the 99% confidence intervals for males and a second 99% confidence interval for females on the SLEEP variable. Which is wider and why? We need to find the confidence interval for the SHOE SIZE variable. To do this, we need to find the mean and standard deviation with the Week 1 spreadsheet. Then we can the Week 5 spreadsheet to find the confidence interval. This does not need to be separated by males and females, rather one interval for the entire data set. First, find the mean and standard deviation by copying the SHOE SIZE variable and pasting it into the Week 1 spreadsheet. Write down the mean and the sample standard deviation as well as the count. Open the Week 5 spreadsheet and type in the values needed in the green cells at the top to find the confidence interval.

3. Give and interpret the 95% confidence interval for the size of students’ shoes. Change the confidence level to 99% to find the 99% confidence interval for the SHOE SIZE variable.

4. Give and interpret the 99% confidence interval for the size of students’ shoes.

5. Compare the 95% and 99% confidence intervals for the size of students’ shoes. Explain the difference between these intervals and why this difference occurs.

6. Find the mean and standard deviation of the DRIVE variable by copying that variable into the Week 1 spreadsheet. Use the Week 4 spreadsheet to determine the percentage of data points from that data set that we would expect to be less than 25. To find the actual percentage in the dataset, sort the DRIVE variable and count how many of the data points are less than 25 out of the total 35 data points. That is the actual percentage. How does this compare with your prediction? Mean: ______________ Standard deviation: ____________________ Predicted percentage: Actual percentage: Comparison ___________________________________________________ ______________________________________________________________

7. What percentage of data would you predict would be between 25 and 50 and what percentage would you predict would be more than 50 miles? Use the Week 4 spreadsheet again to find the percentage of the data set we expect to have values between 25 and 50 as well as for more than 50. Now determine the percentage of data points in the dataset that fall within each of these ranges, using same strategy as above for counting data points in the data set. How do each of these compare with your prediction and why is there a difference? Predicted percentage between 25 and 50: ______________________________ Actual percentage: Predicted percentage more than 50 miles: Actual percentage: ___________________________________________ Comparison ____________________________________________________ _______________________________________________________________ Why? __________________________________________________________ ________________________________________________________________