Questions
[7 – 3] In terms of acting, Betty White is known for starring on 3 different...

  1. [7 – 3] In terms of acting, Betty White is known for starring on 3 different long running television shows (The Mary Tyler Moore Show, The Golden Girls and Hot In Cleveland). Those three shows averaged 23.7 shows per season. However, it seems that shows are producing few episodes per season, and Betty decides to put that to the test. She takes a random sample of long running television programs and determined the number of episodes in their most recent season below:

13, 26, 23, 18, 24, 18, 19, 13, 13, 15, 16, 21, 20, 16, 26

You may assume that the data comes from a normal distribution.

  1. Construct a 95% confidence interval for the average number of episodes per season for a television program

  1. Based on your answer to (a), can we say that the average number of episodes per season is lower than the value 23.7, the average number of episodes for the shows that Betty starred in? Explain.

  1. [5] Between 2006 and 2009, Betty appeared in 23 episodes of The Bold and The Beautiful. The work was quite different from her time on sitcoms. This led her to think about the following hypotheses:

H0: Soap opera acting is the same difficulty as sitcom acting

Ha: Soap opera acting is harder than sitcom acting

Describe what a Type I error would look like in the context of this scenario.

  1. [10] While playing the role of Catherine Piper on Boston Legal, Betty White “killed” the character of Bernard Ferrion (played by Leslie Jordan). Catherine ended being found not guilty, but it led Betty to wonder: are men and women treated differently when convicted of murder? As a result, Betty took two random samples of convicted murderers, given below, and determined how long the sentences were.

Men: 25, 30, 50, 25, 20, 30, 40, 25, 30, 25, 75, 25, 15

Women: 25, 15, 20, 15, 20, 25, 15, 30, 25, 40

You may assume the data comes from normal distributions. At the .05 level of significance, is there evidence to show that men get longer sentences for murder than women?

  1. [10] Betty is a common diminutive of the name Elizabeth. As a result, many people think Betty White’s real first name is Elizabeth – but how large a proportion? Betty took a random sample of 265 people and found that 147 of them believe that Betty White’s real first name is Elizabeth. At the .05 level of significance, is there evidence that a majority (more than 50%) of all people think Betty White’s real first name is Elizabeth?

(Side note: Betty White’s real first name is… Betty – she says that it isn’t “short” for anything)

  1. [10] In 1995, Betty White received a star on the Hollywood Walk of Fame – and her star is right near the star of her late husband, Allen Ludden. There are many couples that both have stars on the Hollywood Walk of Fame. This led Betty to wonder – is there a difference in the age between the husband and wife when they get their Hollywood star? As a result, Betty took a random sample of heterosexual couples that both have stars on the Hollywood Walk of Fame and recorded the age at which they received their star, given below.

Husband

62

67

51

62

73

47

55

60

80

76

42

Wife

55

68

56

54

60

50

49

58

75

74

49

At the .05 level of significance, is there evidence that there is a difference in the ages when husbands and wives get their Hollywood Walk of Fame star?

  1. [10] For 19 years, Betty was hostess of the Tournament of Roses Parade (which is every year before the Rose Bowl). Of all the parades on television that exist, which is the favorite? A random sample of people was taken, with the results summarized below:

Men

Women

Total

Rose Parade

42

55

97

Thanksgiving Parade

75

162

237

Parades? Who cares!

218

182

400

Total

335

399

734

At the .05 level of significance, is there an association between gender and favorite parade on television?

  1. [7 – 3] Betty starred on a great number of game shows – and perhaps my favorite was Match Game. While Betty was a great player, did she do better with some contestants than others? Betty took a random sample of Match Game episodes and found that she matched the male contestants 264 out of 385 times and matched the female contestants 294 out of 377 times.

  1. Construct a 95% confidence interval for the difference in the proportion of the time Betty would match male contestants and the proportion of the time Betty would match female contestants.

  1. Based on your answer to (a), can we conclude that Betty matched one group of contestants better than the other?
  1. [12] There is a Facebook group devoted to The Golden Girls. On a regular basis, the group poses the question: Which Golden Girl was your favorite? A recent random sample of members of the Facebook group answered the question, given in the table below.

GG Character

Rose

Sophia

Dorothy

Blanche

I can’t decide!

Frequency

42

73

38

64

53

At the .05 level of significance, is there evidence to show that the distribution of favorite Golden Girls character is not uniform? (meaning, not an equal distribution)

  1. [3 – 5 – 3 – 2 – 2] 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

  1. Draw a scatterplot for this set of data

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

  1. Find the line of best fit.

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

  1. Find the residual for x = 40.

  1. [5] Suppose that it can be shown that there is evidence of the following: There is a strong association between Betty White being a star on a show and Professor Simpson watching that show religiously.

Claim: By having Betty White star on a television show will guarantee Professor Simpson watches the show religiously.

What is the issue with this claim?

  1. [6] While on Hot In Cleveland, Betty White was part of 2 live episodes. Not surprisingly, this increased her stress level. What about other actors? Stress scores follow a normal distribution with a mean of 3 and a standard deviation of 1.15. If a sample of 25 actors are taken, what is the probability that their average stress score is above 3.1?

In: Statistics and Probability

1)In one month, Andrea can produce 80 apples or 80 bananas, while Tom can produce 60...

1)In one month, Andrea can produce 80 apples or 80 bananas, while Tom can produce 60 apples or 100 bananas. Currently, Andrea is producing 40 apples and 40 bananas per month while Tom is making 30 apples and 50 bananas. If from now on, Andrea starts making nothing but apples and Tom makes nothing but bananas, and the two trade 35 apples for 45 bananas every month, what will be each person’s gain from trade?

a. 10 bananas and 10 apples.

b. 15 bananas and 15 apples.

c. 5 bananas and 5 apples.

d. 5 bananas and 10 apples.

e. 10 bananas and 5 apples.

2)Suppose that two brothers, Adam and Ben, share work around the house. In particular, each week they spend one hour cleaning bathrooms and washing the dishes. Suppose it takes Adam 10 minutes to clean a bathroom and 5 minutes to wash a dish, while it takes Ben 15 minutes to clean a bathroom and 15 minutes to wash a dish.

From this information, we can conclude that Adam’s opportunity cost of washing a dish is ____ ; Ben’s opportunity cost of washing a dish is ____ ; and that _____ has the comparative advantage in washing dishes and that _____ has the comparative advantage in cleaning bathrooms.

Select one:

a. 1 bathroom; 1/2 a bathroom; Ben; Adam

b. 1/2 a bathroom; 1 bathroom; Ben; Adam

c. 1 bathroom; 1/2 a bathroom; Adam; Ben.

d. 1/2 a bathroom; 1 bathroom; Adam; Ben

e. 1 bathroom; 2 bathrooms; Adam; Adam

3)

Suppose the price of sugar (a complement to cereal) rises. At the same time, suppose the price of wheat (which is used to make cereal) falls. Given these changes, in the market for cereal you should expect to see:

Select one:

a. A decrease in the equilibrium quantity of cereal, but it’s hard to say what will happen to the equilibrium price.

b. An increase in the equilibrium quantity of cereal, but it’s hard to say what will happen to the equilibrium price.

c. An increase in both the equilibrium price and quantity of cereal.

d. A decrease in both the equilibrium price and quantity of cereal

e. None of these answers are correct.

4)

If the cross-price elasticity of demand between Good A and Good B is > 0, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a ________ change in the quantity demanded for Good A.

Select one:

a. positive, zero

b. positive, small

c. negative, infinite

d. negative, one-for-one

e.  positive, large

5)

Consider two labor markets. In the first, the elasticity of supply is relatively elastic, while it is relatively inelastic in the latter. Imposing a minimum wage in each market would result in ________ unemployment in the first market and ________ unemployment in the second.

Select one:

a. lower; lower

b. higher; higher

c. unchanged; unchanged

d. lower; higher

e. higher; lower

6)

Producers will lose no producer surplus due to a tax if supply in their market is perfectly elastic because:

Select one:

a. consumers can effortlessly change their behaviour in response to the tax.

b. firms will decide not to pay the tax to the government

c. consumers will not bear the cost of the tax

d. the amount of the tax is relatively low.

e. producers can effortlessly change their behaviour in response to the tax.

7)

Suppose the demand for ham is relatively elastic and the supply of ham is relatively inelastic, while the demand for beer is relatively inelastic and the supply of beer is relatively elastic. If a tax is levied on the sellers of both of these commodities, we would expect that the burden of:

Select one:

a. both taxes would fall more heavily on the buyers than on the sellers.

b. both taxes would fall more heavily on the sellers than on the buyers.

c. the ham tax would fall more heavily on the buyers than on the sellers, and the burden of the beer tax would fall more heavily on the sellers than on the buyers.

d. the ham tax would fall more heavily on the sellers than on the buyers, and the burden of the beer tax would fall more heavily on the buyers than on the sellers.

e. there is not enough information to answer the question

8)

What is the incentive to create a black market when a binding price floor exists?

Select one:

a. A black market emerges because buyers are frustrated with shortages of the product.

b. A black market emerges because sellers have an incentive to charge a higher price on the illegal market.

c. A black market emerges because sellers want a market where they can sell higher-quality products.

d. A black market does not emerge; the price will eventually fall to the equilibrium price.

e. A black market emerges because sellers need a way to dispose of surplus product.

9)

Lila shares a house with two other people. She is a concert pianist and often practices at home. One roommate enjoys listening to her practice, but the other does not. For the roommate who enjoys listening to Lila play, this is an example of ________; for the other roommate, it is an example of ________.

Select one:

a. the tragedy of the commons; the third-party problem

b. a positive externality; a negative externality

c. a positive externality; the free-rider problem

d. the free-rider problem; the tragedy of the commons

e. a negative externality; a positive externality

In: Economics

1.If Consolidated Power is priced at $50.00 with dividend, and its price falls to $46.50 when...

1.If Consolidated Power is priced at $50.00 with dividend, and its price falls to $46.50 when a dividend of $5.00 is paid, what is the implied marginal rate of personal taxes for its stockholders? Assume that the tax on capital gains is 40% of the personal income tax.

2. You are comparing the dividend policies of three dividend-paying utilities. You have collected the following information on the ex-dividend behavior of these firms. NE Gas SE Bell Western Electric Price before 50 70 100 Price after 48 67 95 Dividends/share 4 4 5 If you were a tax-exempt investor, which company would you use to make “dividend arbitrage” profits? How would you go about doing so?

3. Southern Rail has just declared a dividend of $1. The average investor in Southern Rail faces an ordinary tax rate of 50%. Although the capital gains rate is also 50%, it is believed that the investor gets the advantage of deferring this tax until future years (the effective capital gains rate will therefore be 50% discounted back to the present). If the price of the stock before the ex-dividend day is $10 and it drops to $9.20 by the end of the ex-dividend day, how many years is the average investor deferring capital gains taxes? (Assume that the opportunity cost used by the investor in evaluating future cash flows is 10%.)

4. LMN Corporation, a real estate company, is planning to pay a dividend of $0.50 per share. Most of the investors in LMN are other corporations that pay 40% of their ordinary income and 28% of their capital gains as taxes. However, they are allowed to exempt 85% of the dividends they receive from taxes. If the shares are selling at $10 per share, how much would you expect the stock price to drop on the ex-dividend day?

9. WeeMart, a retailer of children’s clothes, announces a cut in dividends following a year in which both revenues and earnings dropped significantly. How would you expect its stock price to react? Explain.

Chapter 11: End of chapter problems 3, 4, 5, 12, 13

  1. Lube Oil, a chain of automobile service stations, reports net income of $100 million after depreciation of $50 million. The firm has capital expenditures of $80 million, and the noncash working capital increased from $25 to $40 million. Estimate the firm’s FCFE, assuming that the firm is all equity financed.
  1. Lube Oil, in Question 3, paid a dividend of $20 million and bought back $25 million in stock. Estimate how much the cash balance of the firm changed during the year.

How would your answers to the last two questions change if you were told that Lube Oil started the year with $120 million in debt and ended the year with $135 million?

GL Corporation, a retail firm, is making a decision on how much it should pay out to its stockholders. It has $100 million in investible funds. The following information is provided about the firm: •It has 100 million shares outstanding, each share selling for $15. The beta of the stock is 1.25 and the risk-free rate is 8%. The expected return on the market is 16%. •The firm has $500 million of debt outstanding. The marginal interest rate on the debt is 12%. •The corporate tax rate is 50%. •The firm has the following investment projects: Project Investment Requirement ($) After-Tax Return on Capital (%) A 15 million 27 B 10 million 20 C 25 million 16 D 20 million 14 E 30 million 12 The firm plans to finance all its investment needs at its current debt ratio. a. Should the company return money to its stockholders? b. If so, how much should be returned to stockholders?

13. InTech, a computer software firm that has never paid dividends before, is considering whether it should start doing so. This firm has a cost of equity of 22% and a cost of debt of 10% (the tax rate is 40%). The firm has $100 million in debt outstanding and 50 million shares outstanding, selling for $10 per share. The firm currently has net income of $90 million and depreciation charges of $10 million. It also has the following projects available: Project Initial Investment ($) Annual EBIT ($) Salvage ($) Lifetime (year) Depreciation ($) 1 10 million 1 million 5 million 5 2.5 million 2 40 million 5 million 1 million 10 10 million 3 50 million 5 million 1 million 10 10 million The firm plans to finances its future capital investment needs using a 20% debt to capital ratio. a. Which of these projects should the firm accept? b. How much (if any) should the firm pay out as dividends?

In: Finance

1. The US Department of Education was established as a new cabinet department in 1982. College...

1. The US Department of Education was established as a new cabinet department in 1982. College costs (tuition, room, board, books, expenses), after adjustment for inflation, have gone up from $8,000 in 1980 to more than $20,000 today. Is this a coincidence? Discuss how the government may be helping colleges raise total costs through collusive behavior and first-degree price discrimination.

2.     Drug firms engage in third-degree price discrimination when they sell their products overseas for a lower price than in the US. Why do drug firms choose to serve markets in which the price is controlled, such as Canada? How did they get the US FDA to help them keep the two markets separate (high demanders in the US, low demanders in Canada)?

3.        Concert promoters are monopolists, yet they often choose not to charge the profit-maximizing price for their concerts. Explain and illustrate with one or more diagrams how they set ticket prices, the impact their decision has on the size of the crowd, and the opportunity this situation creates for ticket scalpers.

4.     Chicago teachers and sumo wrestlers were shown by Levitt and Dubner to have engaged in cheating when faced with powerful incentives. For one of these groups, describe the incentives they faced, their actions that were detected by our authors, and the results of this cheating. You might wish to use a force field analysis to illustrate the incentives and decision making by the participants (potential cheaters).

In: Economics

Read inputs from console and store in Structure Given a structure of type “struct book” (shown...

Read inputs from console and store in Structure Given a structure of type “struct book” (shown below), read input into struct book from a console. struct book { char name[50]; char author[50] ; float price; }; Write a function: struct book solution() that reads name, author and price into “struct book”. A function return structure variable. Input C Programming: A Modern Approach K.N.King 50.45 where, First line of input represents book name. Second line of input represents book author. Third line of input represents book price. Output Name: C Programming: A Modern Approach Author: K.N.King Price: 50.45 Assume that, “struct book” is already declared. Please do not use the Get function. When used and compiled there is an error stating that it is dangerous to use and that it shouldn't be used. It won't complete the output in our system bc of the error. Thank you.

Given code:

#include<stdio.h>
#include<stdlib.h>
#include<string.h>
#define BUFFERSIZE 2
struct book
{
char name[50];
char author[50] ;
float price;
};

struct book solution()
{
//Write your code here
}

int main()
{
struct book b;
b = solution();
printf("Name=%s\nAuthor=%s\nPrice=%.2f",b.name,b.author,b.price);
return 0;
}

In: Computer Science

3. The economic student association at the University X is hiring students to make banners “I...

3. The economic student association at the University X is hiring students to make banners “I love economics” for the coming conference. Complete the following table and plot the production function and the cost function for producing banners. (Marks 10)
Number of
Students
Hired Output Marginal
Product of
Labour Cost of
Equipment Cost of
Students
Hired Total Cost
0 0 100 0
1 100 100 20
2 80 100 140
3 240 100 60
4 40 100 180
5 300 100 100

In: Economics

Exercise 4-7 Write journal entries LO 6 The transactions relating to the formation of Blue Co....

Exercise 4-7 Write journal entries LO 6 The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,700. b. The firm borrowed $5,500 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,800 were purchased for cash. The original list price of the equipment was $1,980, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,450 was paid for the first month's rent. e. Inventory of $14,200 was purchased; $8,200 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $4,900 was sold for $5,600 cash. g. A newspaper ad costing $110 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,400 was purchased; cash of $1,150 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $15,000, of which $9,800 was sold on account. The cost of the goods sold totaled $8,300. j. Employee wages for the month totaled $1,800; these will be paid during the first week of the next month. k. The firm collected a total of $3,200 from the sales on account recorded in transaction i. l. The firm paid a total of $4,750 of the amount owed to suppliers from transaction e. Required: Prepare the journal entries for each of these transactions.

In: Accounting

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s...

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

Variable costs per unit:
Manufacturing:
Direct materials $29
Direct labor $15
Variable manufacturing overhead $6
Variable selling and administrative $1
Fixed costs per year:
Fixed manufacturing overhead $580,000
Fixed selling and administrative expenses $120,000

During its first year of operations, O’Brien produced 92,000 units and sold 74,000 units. During its second year of operations, it produced 77,000 units and sold 90,000 units. In its third year, O’Brien produced 89,000 units and sold 84,000 units. The selling price of the company’s product is $79 per unit.

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

Unit Product Cost
Year 1
Year 2
Year 3

b. Prepare an income statement for Year 1, Year 2, and Year 3.

O’Brien Company
Variable Costing Income Statement
Year 1 Year 2 Year 3
Variable expenses:
Total variable expenses 0 0 0
0 0 0
Fixed expenses:
Total fixed expenses 0 0 0
$0 $0 $0

In: Accounting

Circle the correct answer symbol 1. installment sales for 2018 is $600,000 and cost of goods...

Circle the correct answer symbol

1. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using installment sales method compute gross profit rate for two years sales?

a.

2018 is 50% and 2019 is 20%.

b.

2018 is 20% and 2019 is 50%.

c.

2018 is 50% and 2019 is 50%.

d.

2018 is 20% and2019 is 20%.

2. Imar Construction company signed a contract to build new bridge at a contract price of $5,000,000 and total estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to,complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and fourth year is $0, based on above question and using Cost recover method, what is the gross profit recognized in second year?

a.

$226,190.

b.

$476,190.

c.

$250,000.

d.

0

3. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute gross profit realized in 2018?

a.

$100,000.

b.

$300,000.

c.

$150,000.

d.

$200,000.

4. estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to, complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and fourth year is $0, based on above question and using percentage of completion method, what is the required journal entry in first year?

a.

Debit Construction Expense $3,0000,000, debit construction in process $1,000,000, credit construction revenue $5,000,000.

b.

Debit Construction Expense $1,0000,000, debit Unralized GP $250,000, credit construction revenue $1,250,000.

c.

Debit Construction Expense $1,0000,000, debit construction in process $250,000, credit construction revenue $1,250,000.

d.

Debit Construction Expense $3,0000,000, debit construction in process $900,000, credit construction revenue $5,000,000.

5. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000,cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019,cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute unrealized gross profit in 2019?

a.

$150,000.

b.

$200,000.

c.

$300,000.

d.

$100,

In: Accounting

Price Supports and Price Caps (Controls) Reading Assignment: Textbook, Microeconomics, Chapter 3 We-don’t-like-equilibrium policies: price floors...

Price Supports and Price Caps (Controls)

Reading Assignment: Textbook, Microeconomics, Chapter 3

  1. We-don’t-like-equilibrium policies: price floors and price ceilings. The fundamental problem that each tries to address

  1. Price floors – What they are, why they are enacted. And their inevitable consequences.

  1. Price ceilings – What they are, why they are enacted, and their inevitable consequences

Income elasticity and Cross Elasticity

Reading Assignment: Textbook, Microeconomics, Chapter 5

  1. What Income elasticity measures. Inferior, Normal, and Superiorproducts. Examples. What happens to each over the business cycle?

  1. What cross elasticity measures. Substitutes and Complements.

  1. How are cross elasticities used in antitrust cases? Examples.

  1. Why firms often look for strong complements.  

In: Economics