Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 17 years to maturity. (Do not round your intermediate calculations.) Requirement 1: (a) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? (b) If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? Requirement 2: (a) If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? (b) If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then?

Suppose retailers would like to forecast the percentage of customers who plan to purchase gift cards during the upcoming holiday season. The following data show this percentage from 2002 to 2009. The data is as follows:

Perform the following:

1. Using a 3-period simple moving average, forecast the percentage of holiday shoppers who will purchase a gift card in 2010.

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2. Calculate the MAD for the forecast in part a.

3. Using a 3-period weighted moving average with the weights 5, 3, and 1, forecast the percentage of holiday shoppers who will purchase a gift card in 2010.

4. Calculate the MAD for the forecast in part c.

5. In which forecast do you have the most confidence?

Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 18 years to maturity. (Do not round your intermediate calculations.) Requirement 1: (a) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Sam? (b) If interest rates suddenly rise by 3 percent, what is the percentage change in the price of Bond Dave? Requirement 2: (a) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Sam be then? (b) If rates were to suddenly fall by 3 percent instead, what would the percentage change in the price of Bond Dave be then?

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data:

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Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Assume that the distribution of differences is approximately normal, mound-shaped and symmetric. Use a 5% level of significance. What is the alternate hypothesis?

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What percentage of hospitals provide at least some charity care? Based on a random sample of hospital reports from eastern states, the following information is obtained (units in percentage of hospitals providing at least some charity care):

57.2 56.1 53.1 65.8 59.0 64.7 70.1 64.7 53.5 78.2

Assume that the population of x values has an approximately normal distribution.

(a) Use a calculator with mean and sample standard deviation keys to find the sample mean percentage x and the sample standard deviation s. (Round your answers to one decimal place.)

x = %

s = %

(b) Find a 90% confidence interval for the population average μ of the percentage of hospitals providing at least some charity care. (Round your answers to one decimal place.)

lower limit %

upper limit %

Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 2 years to maturity, whereas Bond Dave has 12 years to maturity. (Do not round your intermediate calculations.)

Requirement 1: (a) If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Sam?

(b) If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave?

Requirement 2: (a) If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Sam be then?

(b) If rates were to suddenly fall by 5 percent instead, what would the percentage change in the price of Bond Dave be then?

26. A sample of 1100 computer chips revealed that 62% of the chips fail in the first 1000 hours of their use. The company's promotional literature states that 60% of the chips fail in the first 1000 hours of their use. The quality control manager wants to test the claim that the actual percentage that fail is different from the stated percentage. State the null and alternative hypotheses.

H0:

Ha:

27. A sample of 1100 computer chips revealed that 62% of the chips fail in the first 1000 hours of their use. The company's promotional literature states that 60% of the chips fail in the first 1000 hours of their use. The quality control manager wants to test the claim that the actual percentage that fail is different from the stated percentage. Make the decision to reject or fail to reject the null hypothesis at the 0.10 level.

1. Write a program in C++ to keep statistics for a basketball team consisting of 10 players using parallel arrays. The stats for each player should include the total points, shots attempted, shots made, free throw attempts, free throws made, rebounds, assists, and turnovers. Use functions to perform the following:
   1. Calculate the shooting percentage
   2. Calculate free throw percentage
   3. Print the player's names, shooting percentage, free throw percentage, rebounds, assists, and turnovers. After each player, use "endl" to skip to a new line.

Perform multiple sorts of printing in between sorts. Print a list of player names and total points, sorted from highest to lowest. Next, print a list of player names and rebounds, sorted from highest to lowest.

Calculate selling prices, using alternative approaches to costing and pricing..

and to think about the circumstances where each approach might be appropriate. This will illustrate the impact that different ways of measuring ‘cost’ can have on decision-making.

The relevant cost, however, often depends on the timescale involved. In the short term, fixed costs may be unavoidable regardless of the course of action taken, in which case only the variable costs are relevant to the decision. In the longer term the level of most costs can be adjusted (and hence become avoidable) and so, for decisions with longer-term implications, fixed costs become relevant also. A long-standing controversy in setting selling prices based on cost, is which cost figure should be used: full cost, including fixed costs (absorption costing) or variable cost (marginal costing)? The case of Peter Smith requires you to focus on these alternative approaches and their implications.

Peter Smith Banjo strings

Peter Smith produces three different types of guitar strings, which sell in packs of six strings. Monthly cost and output figures for each string type are as follows:

Table Product cost and output data

* Total fixed cost is apportioned among the three products on a ‘units basis’, that is, according to the number of units (packs of strings) of each product produced.

Currently the company uses a full cost plus approach to setting selling prices, adding a 30% profit mark-up to full cost. The Chief Executive, however, is very worried about the low level of sales and the resulting unused production capacity (the company is only operating at about 70% of capacity). It has been suggested to her by the company’s accountant that an alternative approach to pricing, based on marginal costing, be adopted. The justification provided by the accountant was that it was necessary to reduce price in order to generate more sales and any price that exceeds the variable cost would produce a positive contribution towards fixed costs which would be incurred anyway, regardless of the level of sales.

Task

Calculate the selling price per pack for each product, using, firstly, the current absorption costing approach and then, the proposed marginal costing approach. Remember that the difference between the two approaches is simply that with absorption costing a fixed cost per unit (pack) must be calculated and then the variable cost per unit added in order to arrive at a full cost figure. Once you have calculated the cost per pack, simply add the specified percentage of the cost figure as the profit mark-up. With the marginal cost approach, the logic, in this case, would be to consider any price significantly in excess of the variable cost as potentially acceptable. With the current absorption costing approach, a fixed, customary percentage is added to full cost as the profit mark-up.

If your calculations are correct, you should have noticed just how much difference the different costing approaches can make to the selling price charged to customers!

Comment on the difference in cost and price: is it significant? In what circumstances would each approach be appropriate?

Record your results, spreadsheets and comments in a simple report with the title: Comparing absorption and marginal costing. Also add any description to help me the student understand the answers you give. (idiots guide, assuming a basic knowlege of cash accounting already exists)

1. The EPA is considering an application from the state of Colorado for a large dam project on the Colorado River. The basic costs and benefits of the project (in inflation-adjusted dollar values) are as follows:

1. Do a formal Cost-Benefit Analysis (CBA) using the quantifiable factors listed above. Assume that the operating lifespan of the dam is 30 years. Assume construction begins in year 1. All other impacts start when the dam is completed (at the beginning of Year 4) and continue for 30 years, which implies the full lifespan for the project is 33 years.
2. Using the same parameters and results from part (a.), adjust the interest rate to determine the level of discounting necessary to just break even. (Hint: I would start by changing the interest rate in 1% increments and then refine the changes as you get close to the break-even point.) What does this increase or decrease in interest rate imply about the relationship between costs and benefits over time?
3. Finally, holding constant the analysis you did in part (c.) what happens when you increase the acre-foot price of irrigation water from $700 to $1500 and/or the price per kilowatt hour of electricity from $0.125 to $0.15?