Mussel settlment patterns on algae. Mussel larvae are in great abundance in the drift material that washes up on Ninety Mile Beach in New Zealand. These larvae tend to settle on algae. Environmentalists at the University of Auckland investigated the impact of algae type on the abundance of mussel larvae in drift material (Malacologia, February 8, 2002). Drift material from three different wash-up events on Ninety Mile Beach were collected;for each wash-up,the algae was separated into four strata: coarse-branching, medium-branching, fine-branching, and hydroid algae. Two samples were randomly selected for each of the3×4=12event/strata combinations, and the mussel density (percent per square centimeter) was measured for each. The data was analyzed as a complete 3×4 factorial design. The ANOVA summary table is shown below. (a) Identify the factors (and levels) in this experiment. (b) How many treatments are included in the experiment? (c) How many replications are included in the experiment? (d) What is the total sample size for the experiment? (e) What is the response variable measured? (f) Which ANOVA F-test should be conducted first? Conduct this test(atα = .05)and interpret the results. (g) If appropriate, conduct the F-tests (at α = .05)for the main effects .Interpret the results.

A second course in statistics Regression Analysis 7th addition

If you don’t repay a loan, and a lot of time passes, the debt can grow to unmanageable proportions, as happened to an unfortunate borrower in Melbourne. A grandmother has been forced to put her house up for sale after she ended up owing a massive $83 000 —on a $15 000 loan. Andrea lane, 57, borrowed the money in 2002 to pay for her father’s funeral and to buy a new oven for her Clayton home. But she could not meet the cost of the loan and 18 years later, the amount she owed had grown to $83 000 … Andrea said: ‘I borrowed the money when I was grieving for my father. I just signed the papers.’

a) Based on original loan of $15000, calculate the monthly repayments to be repaid over 5 years. Assume an interest rate of 25% p.a.

Andrea can afford to pay $600 per month into the loan, and she has been able to negotiate a new interest rate of 8% p.a.

b) How long would it take Andrea to repay the loan?

c) If she cannot afford to increase her current repayments, and is unable to negotiate a better interest rate, recommend a strategy to reduce the total length of time to repay the loan? Based on this strategy, how much interest would she save?

The management of Kiboko Ltd. want to establish the amount of financial needs for the next two years. The balance sheet of the firm as at 31 December 2001 is as follows:

For the year ended 31 December 2001, sales amounted to Sh.240, 000,000. The firm projects that the sales will increase by 15% in year 2002 and 20% in year 2003.

The after tax profit on sales has been 11% but the management is pessimistic about future operating costs and intends to use an after-tax profit on sales rate of 8% per annum.

The firm intends to maintain its dividend payout ratio of 80%. Assets are expected to vary directly with sales while trade creditors and accrued expenses form the spontaneous sources of financing. Any external financing will be affected through the use of commercial paper.

(a)        Determine the amount of external financial requirements for the next two years.   

(b)        (i)         A proforma balance sheet as at 31 December 2003.

(ii)        State the fundamental assumption made in your computations in (a) and b(i) above.

A company’s auditor believes the per diem cost in Darwin rose significantly between 2005 and 2012. To test this belief, the auditor sampled 51 business trips from the company’s records for 2005; the sample average was $190 per day, with a population standard devi- ation of $18.50. The auditor selected a second random sample of 47 business trips from the company’s records for 2012; the sample average was $198 per day, with a population standard deviation of $15.60. If he uses a risk of committing a Type I error of 0.01, does the auditor find that the per diem average expense in Darwin has gone up significantly?

1. H_o: mu2005 - mu2012 (= ; <= ; >=)  0

H_a: mu2005 - mu2012 (< > ; > ; <) 0

2. Statistical test: (z / t)  test for 2 populations

3. Level of significance (be careful as to one-tailed or two-tailed)

4. Set up critical values (Write the value in the box, include "-" sign if negative, if two values, just write the positive one)

5. Gather sample data: xbar2005 =  ; n2005 = 51 ; sigma2005 = 18.5; xbar2012 = 198; n2012 = 47; sigma2012 =

6. Calculate test statistic (write your answer correct to 2 decimal places)

7. Make statistical conclusion: (Reject / Do not reject)  the null hypothesis. There is (sufficient/insufficient)   evidence that the per diem expense has rose significantly from 2002 to 2009 at 1% level of significance.

{Exercise 4.19 (Algorithmic)} The National Sporting Goods Association conducted a survey of persons 7 years of age or older about participation in sports activities (Statistical Abstract of the United States: 2002). The total population in this age group was reported at 248.5 million, with 120.9 million male and 127.6 million female. The number of participants for the top five sports activities appears here. Participants (millions)             Activity                                     Male                                     Female             Bicycle riding                                     20.7                                     22.5             Camping                                     24.1                                     25.8             Exercise walking                                     30.2                                     59.2             Exercising with equipment                                           18.9                                     25.9             Swimming                                     24.9                                     32.9                                     For a randomly selected female, estimate the probability of participation in each of the sports activities (to 2 decimals). Note that the probabilities do not sum to 1 because of participation in more than one sports activity. Bicycle riding Camping Exercise walking Exercising with equipment Swimming For a randomly selected male, estimate the probability of participation in each of the sports activities (to 2 decimals). Note that the probabilities do not sum to 1 because of participation in more than one sports activity. Bicycle riding Camping Exercise walking Exercising with equipment Swimming For a randomly selected person, what is the probability the person participates in exercise walking (to 2 decimals)? Suppose you just happen to see an exercise walker going by. What is the probability the walker is a woman (to 2 decimals)? What is the probability the walker is a man (to 2 decimals)?

The following table repeats the annual total returns on the MSCI Germany Index previously given and also gives the annual total returns on the JP Morgan Germany five- to seven-year government bond index (JPM 5–7 Year GBI, for short). During the period given in the table, the International Monetary Fund Germany Money Market Index (IMF Germany MMI, for short) had a mean annual total return of 4.33 percent. Use that information and the information in the table to answer the following questions.

a) Using the IMF Germany MMI as a proxy for the risk-free return, calculate the Sharpe ratio for:

(i) the 60/40 equity/bond portfolio described in Problem 12.

(ii) the MSCI Germany Index.

(iii) the JPM Germany 5–7 Year GBI.

b) Contrast the risk-adjusted performance of the 60/40 equity/bond portfolio, the MSCI Germany Index, and the JPM Germany 5–7 Year GBI, as measured by the Sharpe ratio.

1) The Code of Professional Ethics prohibits CFEs from expressing opinions regarding the guilt or innocence of any person or party. This means that a CFE who serves as an expert witness may NOT answer questions about whether the defendant committed the offense.

True

False

2) Anything that is perceptible by the five senses legally presented at trial to prove a contention and induce a belief in the mind of the jury is called:

3) Black, a Certified Fraud Examiner, obtained a document in 2001 in connection with a fraud examination. In 2002, the document was introduced at trial. The defense objected because Black had not dated or initialed the document when it was obtained. The defense is objecting on the basis of:

4) When testifying in court, the use of notes by expert witnesses should be limited as much as possible so that the witness can maintain eye contact with the jury.

True

False

5)

The notes and materials of an expert, hired to testify on behalf of a client, are generally privileged from discovery.

True

False

6)

Able, a Certified Fraud Examiner, has just finished testifying on direct examination. During cross-examination, the opposing counsel tries to imply that Able has examined only one area of the case and that his investigation was limited in extent or scope. The technique that the opposing counsel is using is called:

Case Study

The Department of Social Services represent a large portion of your country’s budget and total number of employees. The job of an eligible technician s to be responsible for all clients’ contact, policy interpretation and financial decisions related to several forms of public aid (e.g. food stamps, aid to families with dependent children). Eligibility technicians must read a large number of memos and announcements of new and revised policies and procedures. The company has decided to computerize the system and responses were no longer to be hand written but should be type written. Eligibility technicians were complaining they had difficulty in performing basic computer skills. The country decided to send employees to a week computer program costing $1000 per person. The country has 20 Eligibility technicians. Preliminary evaluation of the computer program was that trainees like it. Two months after training was conducted, managers found that almost half of the technicians still input data by hand while others seem to be comfortable in using their computers. When asked why they do not use their computers they claimed that they understood when in training but once they left the training and returned to their jobs they couldn’t perform skills learnt during training. Wilmer (2002).

Based on the above definition, what are the different levels at which training need analysis process should have been done at the Department of social Services?

Firm Values. Referring back to the General Motors example used at the beginning of the chapter, note that we suggested that General Motors’ stockholders probably didn’t suffer as a result of the reported loss. What do you think was the basis for our conclusion?

General Motors example:

A WRITE-OFF BY A COMPANY frequently means that the value of the company’s assets has declined. In November 2007, for example, General Motors (GM) announced that it would take a write-off of about $39 billion, meaning that it was reducing net income for the third quarter of the year by that amount. GM took the charge because of deferred tax credits that the company was not going to be able to use. What made GM’s write-off so unusual is that the total value of the company’s stock at the time was slightly less than $20 billion. In other words, the writeoff was about twice the value of the company’s stock! GM’s write-off was a big one, but not a record. Possibly the largest write-offs in history were done by the media company Time Warner, which took a charge of $45.5 billion in the fourth quarter of 2002. This enormous write-off followed an earlier, even larger, charge of $54 billion. So did stockholders in General Motors lose $39 billion because of the loss of the tax credits? The answer is probably not. Understanding why ultimately leads us to the main subject of this chapter: that all important substance known as cash flow.


  

1, When Bretton Woods ended, what happened to the price of gold?

Select one:

a. The price of gold decreased in dollars.

b. The price of gold increased in dollars.

2,

Following the demise of the Bretton Woods system, the IMF

a. The IMF became the central bank of the United Nations.

b. The IMF created a new role for itself, providing loans to countries facing balance-of-payments and exchange rate difficulties.

c. The IMF ceased to exist, since the era of fixed exchange rates had ended.

d. The IMF became the sole agent responsible for maintaining fixed exchange rates.

3,

Once the changeover to the euro was completed by July 1, 2002, the legal-tender status of national currencies in the euro zone

a. was tied to gold.

b. was affirmed at the fixed exchange rate at that time.

c. was canceled, leaving the euro as the sole legal tender in the euro zone countries.

4, In the United States, managers are legally bound by the "duty of loyalty" to

a. the employees.

b. the government.

c. A fiduciary loyalty is owed to all the stakeholders.

d. the shareholders.

e. the bondholders.

5,

The difference between a broker and a dealer is

a. Brokers bring together buyers and sellers, but carry no inventory; dealers stand ready to buy and sell from their inventory.

b. Brokers transact in stocks and bonds; currency is bought and sold through dealers.

c. Brokers have their firm's money at risk.