1. A donor, Jill Brown, puts an entry into her last will and testament to leave Miss University in Mississippi $15,000,000 on October 10, 2018 to be used to pay for a new classroom building named after her late husband, Billy Brown. The university was immediately informed of this bequest by the donor's attorney on October 21, 2018. The donor dies on January 2, 2019. The university receives the check for the bequest on May 4, 2019. The classroom building planning and construction began December 3, 2019 and was placed into operation in January 2, 2021. When should the $15,000,000 bequest be recognized by Miss University?

A. October 21, 2018.

B. January 2, 2019.

C. May 4, 2019.

D. January 2, 2021.

2. A donor pledges $100,000 on December 15, 2018 to be paid in one amount to Columbia University. No donor restrictions were applied. The contribution is to be received four years from the pledge. If the present value of $1 at 3 percent is 0.8885, the journal entry to record the pledge would include: A. Debiting contributions receivable, $88,850. B. Crediting contributions—with donor restrictions, $100,000. C. Crediting discount of pledges, $11,150. D. Debiting net assets—without donor restrictions, $100,000 3. Cathleen Hallmark, president of the save-the-professor foundation, a non-for-profit, spends 80 percent of her time on presidential and board-related duties, which half of that time is also spent fundraising. She spends the remaining 20 percent of her time working on mission-oriented activities. On the statement of activities, Cathleen Hallmark's salary and benefits:

A. Should all be recognized as management and general expenses.

B. Should be subdivided as half in fundraising and half in management and general expenses.

C. Should be subdivided as 20 percent in program expenses, 40 percent in management and general, with the remainder in fundraising expenses.

D. Should never be allocated to program expenses.

3. Cathleen Hallmark, president of the save-the-professor foundation, a non-for-profit, spends 80 percent

of her time on presidential and board-related duties, which half of that time is also spent fundraising. She

spends the remaining 20 percent of her time working on mission-oriented activities. On the statement of

activities, Cathleen Hallmark's salary and benefits:

A. Should all be recognized as management and general expenses.

B. Should be subdivided as half in fundraising and half in management and general expenses.

C. Should be subdivided as 20 percent in program expenses, 40 percent in management and general, with

the remainder in fundraising expenses.

D. Should never be allocated to program expenses.

In 2019, what is the earned income credit allowed Don Andersen, a head of household taxpayer, assuming he has adjusted gross income of $9,500 (consisting of interest income of $3,500 and earned income of $6,000? He maintains his household with his daughter.

What is your interpretation of “muddling through” as a process of public budgeting strategy? What are the pros and cons of using this process? Do you think “muddling through” is a feasible method in today’s fiscal climate? Why or why not?

The Science of Muddling Through By CHARLES E. LINDBLOM Associate Professor of Economics Yale University SUPPOSE an administrator is given respon- sibility for formulating policy with re- spect to inflation. He might start by try- ing to list all related values in order of importance, e.g., full employment, reasonable business profit, protection of small savings, prevention of a stock market crash. Then all possible policy outcomes could be rated as more or less efficient in attaining a maximum of these values. This would of course require a prodigious inquiry into values held by members of society and an equally prodigious set of calculations on how much of each value is equal to how much of each other value. He could then proceed to outline all possible policy alternatives. In a third step, he would undertake systematic comparison of his multi- tude of alternatives to determine which at- tains the greatest amount of values. In comparing policies, he would take ad- vantage of any theory available that general- ized about classes of policies. In considering inflation, for example, he would compare all policies in the light of the theory of prices. Since no alternatives are beyond his investi- gation, he would consider strict central con- trol and the abolition of all prices and mar- kets on the one hand and elimination of all public controls with reliance completely on the free market on the other, both in the light of whatever theoretical generalizations he could find on such hypothetical economies. Finally, he would try to make the choice that would in fact maximize his values. An alternative line of attack would be to set as his principal objective, either explicitly or without conscious thought, the relatively simple goal of keeping prices level. This ob- jective might be compromised or complicated by only a few other goals, such as full em- > Short courses, books, and articles exhort admin- istrators to make decisions more methodically, but there has been little analysis of the decision-making process now used by public administrators. The usual process is investigated here-and generally de- fended against proposals for more "scientific" meth- ods. Decisions of individual administrators, of course, must be integrated with decisions of others to form the mosaic of public policy. This integration of individual decisions has become the major con- cern of organization theory, and the way individuals make decisions necessarily affects the way those de- cisions are best meshed with others'. In addition, decision-making method relates to allocation of de- cision-making responsibility-who should make what decision. More "scientific" decision-making also is dis- cussed in this issue: "Tools for Decision-Making in Resources Planning

Women have head circumferences that are normally distributed with a mean given by mu equals 22.14 in​., and a standard deviation given by sigma equals 0.8 in. Complete parts a through c below. a. If a hat company produces​ women's hats so that they fit head circumferences between 21.4 in. and 22.4 ​in., what is the probability that a randomly selected woman will be able to fit into one of these​ hats?

The probability is . ​(Round to four decimal places as​ needed.)

b. If the company wants to produce hats to fit all women except for those with the smallest 1.5​% and the largest 1.5​% head​ circumferences, what head circumferences should be​ accommodated?

The minimum head circumference accommodated should be

The maximum head circumference accommodated should be . ​(Round to two decimal places as​ needed.)

c. If 19 women are randomly​ selected, what is the probability that their mean head circumference is between 21.4 in. and 22.4 ​in.? If this probability is​ high, does it suggest that an order of 19 hats will very likely fit each of 19 randomly selected​ women? Why or why​ not? (Assume that the hat company produces​ women's hats so that they fit head circumferences between 21.4 in. and 22.4 ​in.)

The probability is . ​(Round to four decimal places as​ needed.)

If this probability is​ high, does it suggest that an order of 19 hats will very likely fit each of 19 randomly selected​ women? Why or why​ not?

A. ​Yes, the order of 19 hats will very likely fit each of 19 randomly selected women because both 21.4 in. and 22.4 in. lie inside the range found in part​ (b).

B. ​No, the hats must fit individual​ women, not the mean from 19 women. If all hats are made to fit head circumferences between 21.4 in. and 22.4 ​in., the hats​ won't fit about 7.78​% of those women.

C. ​No, the hats must fit individual​ women, not the mean from 19 women. If all hats are made to fit head circumferences between 21.4 in. and 22.4 ​in., the hats​ won't fit about half of those women.

D. ​Yes, the probability that an order of 19 hats will very likely fit each of 19 randomly selected women is 0.9222.

PLEASE SHOW WORK USING A TI-84 Calculator AND By HAND

Question 4: Suppose the current exchange rate for the Japanese Yen against the dollar is $1 = 120 yen. Answer the following questions using the long run model of the exchange rate developed in class.

a.           If you expect Japanese monetary growth to be a total of 25% larger than the US monetary growth rate over the next ten years, what is your best guess as to the exchange rate ten years from now? Be as precise as possible. What theory underlies your prediction given you have no other information?

b.           In addition to the higher money growth rate in Japan mentioned above, you are now told that output growth will be higher in Japan as compared to the US by 30% over the next ten years. What is your best guess as to the exchange rate ten years from now?

c.           Given the information in a. and b. where do expect inflation to be higher, the US or Japan?   Where do you expect interest rates to be higher? Where do you expect real interest rates to be higher? Be as precise as possible and explain the assumptions that you make at each step.

Use the following information for questions 11-20: The average cholesterol level in the general US population is 189 mg/dL. A researcher wants to see if the average cholesterol for men in the US is different from 189 mg/dL. She takes a sample of 81 American males and finds a sample mean of 194 mg/dL and a sample standard deviation of 10.4. Create a 99.8% confidence interval for the true average cholesterol level of the general US male population.

11.What is the 99.8% confidence interval?

12.What is the correct interpretation of the confidence interval from question 11?

13.Are the assumptions met? Explain. Conduct a hypothesis test at the 0.01 significance level to test the researcher’s question.

14.What are the hypotheses?

15.What is the significance level? A. 0.01 B. 0.04 C. 0.05 D. 0.10

16.What is the value of the test statistic?

17.What is the p-value?

18.What is the correct decision? A. Reject the Null Hypothesis B. Fail to Reject the Null Hypothesis C. Accept the Null Hypothesis D. Accept the Alternative Hypothesis

19.What is the appropriate conclusion/interpretation?

20.Are the assumptions met? Explain.

1. A fixed exchange rate regime

A. forces a country to give up free international flows of capital.

B. forces a country to abandon independent monetary policy

C. can eliminate exchange rate uncertainty

D. is the model used by the U.S. Federal Reserve.

2. An asset management firm generated the following annual returns in their U.S. large cap equity portfolio:

The 2012 return needed to achieve a trailing five year geometric mean annualized return of

5.0% when calculated at the end of 2012 is closest to:

A. 17.9%

B. 27.6%

C. 35.2%

3. If the exchange rate between the Australian dollar and the US dollar is expressed in direct quotation from an Australian perspective, then a rise in the exchange rate implies

A. appreciation of the US dollar.

B. depreciation of the US dollar.

C. appreciation of the Australian dollar.

D. B. and C.

4. If the AUD/USD exchange rate declines from 1.2500 to 1.2430, then the fall is equal to

A. 70 points.

B. 7000 pips.

C. 700 points.

D. 70 pips

Assume you are managing a company division in a country where bribes and kickbacks are “customary.”

• If your company has a code of conduct that prohibits this, how would you deal with locals who “expect” it.
• Note that not following custom puts your company at a disadvantage

For e-textbooks, B&N uses the agency model. How much revenue would it record for each sale? The full price of the textbook, or the commission earned on the sale? (Review the Revenue Recognition footnote below.)

Revenue Recognition

Revenue from sales of the Company’s products is recognized at the time of sale or shipment, other than those with multiple elements and Free On Board (FOB) destination point shipping terms. The Company accrues for estimated sales returns in the period in which the related revenue is recognized based on historical experience. ECommerce revenue from sales of products ordered through the Company’s websites is recognized upon estimated delivery and receipt of the shipment by its customers. Freight costs are included within the Company’s cost of sales and occupancy. Sales taxes collected from retail customers are excluded from reported revenues. All of the Company’s sales are recognized as revenue on a “net” basis, including sales in connection with any periodic promotions offered to customers. The Company does not treat any promotional offers as expenses In accordance with ASC 605-25, Revenue Recognition, Multiple-Element Arrangements, and Accounting Standards Updates (ASU) 2009-13 and 2009-14, for multiple-element arrangements that involve tangible products that contain software that is essential to the tangible product’s functionality, undelivered software elements that relate to the tangible product’s essential software and other separable elements, the Company allocates revenue to all deliverables using the relative selling-price method. Under this method, revenue is allocated at the time of sale to all deliverables based on their relative selling price using a specific hierarchy. The hierarchy is as follows: vendor specific objective evidence, third-party evidence of selling price, or best estimate of selling price. NOOK® device revenue is recognized at the segment point of sale. The Company includes post-service customer support (PCS) in the form of software updates and potential increased functionality on a when-and-if-available basis with the purchase of a NOOK® from the Company. Using the relative selling-price method described above, the Company allocates revenue based on the best estimate of selling price for the deliverables as no vendor-specific objective evidence or third-party evidence exists for any of the elements. Revenue allocated to NOOK® and the software essential to its functionality is recognized at the time of sale, provided all other conditions for revenue recognition are met. Revenue allocated to the PCS is deferred and recognized on a straight-line basis over the 2-year estimated life of a NOOK® device. The average percentage of a NOOK®’s sales price that is deferred for undelivered items and recognized over its 2-year estimated life ranges between 0% and 5%, depending on the type of device sold. The amount of NOOK®-related deferred revenue as of April 29, 2017 and April 30, 2016 was $226 and $160, respectively. These amounts are classified on the Company’s balance sheet in accrued liabilities for the portion that is subject to deferral for one year or less and other long-term liabilities for the portion that is subject to deferral for more than one year. The Company also pays certain vendors who distributed NOOK® a commission on the content sales sold through that device. The Company accounted for these transactions as a reduction in the sales price of the NOOK® based on historical trends of content sales and a liability was established for the estimated commission expected to be paid over the life of the product. The Company recognizes revenue of the content at the point of sale of the content. The Company records revenue from sales of digital content, sales of third-party extended warranties, service contracts and other products, for which the Company is not obligated to perform, and for which the Company does not meet the criteria for gross revenue recognition under ASC 605-45-45, Reporting Revenue Gross as a Principal versus Net as an Agent, on a net basis. All other revenue is recognized on a gross basis. The Company rents physical textbooks. Revenue from the rental of physical textbooks is deferred and recognized over the rental period commencing at point of sale. The Company offers a buyout option to allow the purchase of a rented book at the end of the semester. The Company records the buyout purchase when the customer exercises and pays the buyout option price. In these instances, the Company would accelerate any remaining deferred rental revenue at the point of sale. NOOK acquires the rights to distribute digital content from publishers and distributes the content on www.barnesandnoble.com, NOOK® devices and other eBookstore platforms. Certain digital content is distributed under an agency pricing model, in which the publishers set prices for eBooks and NOOK receives a commission on content sold through the eBookstore. The majority of the Company’s eBooks are sold under the agency model. The Barnes & Noble Member Program offers members greater discounts and other benefits for products and services, as well as exclusive offers and promotions via e-mail or direct mail, for an annual fee of $25.00, which is nonrefundable after the first 30 days. Revenue is recognized over the 12-month period based upon historical spending patterns for Barnes & Noble Members.

1. Public health officials (PHO) noted an increased incidence of acute lymphocytic leukemia (ALL) among children aged 3-15, many whom seek services in a public health clinic in a neighborhood exposed to chemical waste from a nearby factory. The PHO believe the chemical waste is causing the leukemia and plan a study to determine if this is true. Which of the following subjects are the PHO most likely to use as a control group?

a. Children exposed to the chemical waste who do not suffer from ALL      

b. Children from the public health clinic who do not suffer from ALL

c. Children not exposed to the chemical waste who suffer from ALL

d. Children who suffered from ALL but were cured