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Part 4A:(In 200 words) (Using an American publicly traded company as an example) Using the straight-line method for amortizing a discount or premium, provide an example of the entry to issue a bond at par and the entry for the first 6 month interest payment. For each 6 month interest payment, explain why the interest expense amount is different (or the same) from the interest payment amount

Part 4B:(In another 200 words) Using an American publicly traded company as an example describe what the graph would look like for the Straight-line depreciation method. Explain why the graph would visually represent the Straight-line depreciation method.

Which of the following statements is false?

A survey conducted by the American Automobile Association showed that a family of four spends an average of $215.60 per day while on vacation. Suppose a sample of 64 families of four vacationing at Niagara Falls resulted in a sample mean of $252.45 per day and a sample standard deviation of $74.50.

a. Develop a 95% confidence interval estimate of the mean amount spent per day by a family of four visiting Niagara Falls (to 2 decimals).

( , )

b. Based on the confidence interval from part (a), does it appear that the population mean amount spent per day by families visiting Niagara Falls differs from the mean reported by the American Automobile Association?
Select Yes / No

“But newcomers (it was feared) had beliefs and loyalties and customs that seemed ‘un-American’ and might pose a threat to democracy. What if immigrants did not embrace American life and culture? Can any nation safely harbor millions of people who do not share its basic ideals? These were sobering questions for many Americans by the end of the nineteenth century.” (p. 139-40)

What continuities and what discontinuities (similarities and differences) can you see between this nineteenth century apprehension about immigrants and the attitudes of many people towards immigrants today? Is there anything you think we can or should have learned from the nineteenth century immigrant experience?

As we have seen this week, one of the more controversial issues with the representation of American Indians is the use of the terms "Indian" and Indian-related names with high school, college, and professional sports teams. Is this an issue that needs to be addressed, or is it something that people should just move past and ignore? Do you think these names should be kept to keep the tradition and merchandise relevant today, and/or that the names actual honor American Indians? If so, how? Conversely, if you feel these names are offensive and need to be changed, explain why. Also, if "Indian" related mascots should be changed, should other racial and ethnically-related team names, (such as Notre Dame's "Fightin' Irish") be changed as well?

Suppose that in a year, an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers. we can describe the production possibilities of the Americans and the Chinese in a table:

1.Now allow American and China to trade with each other. Find a mutually agreeable trade that makes each country better off than it was before it specialized. What is the range of TOT at which trade can occur?

2. List the determinants of the terms of trade. What do factors affect the level of the terms of trade?

Dorothy is a junior at State College. To offset the cost of attending college full-time, Dorothy has a part-time job. During the tax year, Dorothy earned $8,200. Her parents also provide some support for her and claim her on their tax return. During the tax year, Dorothy paid $2,690 of her tuition bill and her parents paid $2,690. Dorothy also paid for her own books, which cost $540. Her parents helped her by paying part of her rent and grocery bill. After reading about refundable tax credits, Dorothy realized that she, or her parents, were eligible to claim the American Opportunity Credit.

A) What is Dorothy’s filing status, standard deduction amount, and taxable income for the year? Remember that she is claimed on her parents’ tax return. (Round answers to 0 decimal place, e.g. 5275.)

Dorothy’s filing status is single.

Standard deduction amount is $ _________?

Taxable income for the year is $ _________?

B) How much tax will be assessed to Dorothy based on her taxable income calculated in the previous question? (Round answers to 0 decimal place, e.g. 5275.)

Based on her taxable income, the amount of tax payable is $_________?

C) If Dorothy were to be able to claim the American Opportunity Credit, how much would the refundable and non refundable portions of the credit total? Can Dorothy claim the American Opportunity Credit? (Round answers to 0 decimal place, e.g. 5275.)

Refundable portion of credit total is $ ________?

Non-refundable portion of credit total is $ ________?

Dorothy cannot claim the American Opportunity Credit.

Major health studies try very hard to select a sample that is representative of the various ethnic groups making up the U.S. population. Here is the breakdown, by ethnicity, of subjects enrolled in a major study of sleep apnea: White- 4821 Hispanic-277 African American- 510 Asian/Pacific- 88 Native American- 598 Total- 6294 The known ethnic distribution in the United States, according to census data, is as follows: White-0.756 Hispanic- 0.091 African American- 0.108 Asian/Pacific- 0.038 Native American-0.007 Total-1

We want to know if the data from the sleep apnea study support the claim that the ethnicity of the subjects fits the ethnic composition of the U.S. population. What does the null hypothesis for this test state? a. All five counts are equal. b. All five sample proportions are equal. c. All five population proportions are equal. d. All five population proportions are equal to their respective U.S. census proportions. 

What is the expected count of Hispanics under the null hypothesis (show calculation)? a. 277 b. 25.207 c. 572.754 d. 152.72 software gives a chi-square statistic χ2 = 7256.21 for these data. What is the P-value for this test? a. Greater than 0.05 b. Less than 0.05 but greater than 0.01 c. Less than 0.01 but greater than 0.001 d. Less than 0.001

at significance level alpha = 1%, what should you conclude? a. composition of the U.S. population. b. The data are consistent with a uniform distribution of ethnicities. c. The data prove that the population studied matches the ethnic composition of the U.S. population. d. We are unable to conclude anything because the test assumptions are not met.

You’re working for the DOJ as an economist in the Economic Analysis Group (EAG) group. You’ve been asked by Nancy Rose, the chief economist at the DOJ and airline-industry expert, to review the American Airlines – US Airways merger. Given the recent consolidation in the airline industry prior to this proposed merger, she along with other regulators are very concerned about the approval of further mergers.

1. American and US Air have claimed that there will be substantial variable costs savings when they merge (as is often the case with proposed mergers).   Suppose in a representative market, there are 4 firms: American, US Air, Southwest, and Delta. Further, suppose that demand is of a constant elasticity form, Q=p^-E.
   1. What is a reasonable value for E based on academic or government research?
   2. Suppose further that the marginal costs for American, US Air and Delta equal $5, and marginal costs for Southwest equal $4, while fixed costs are zero. Take your value you suggest for E above, and calculate the Cournot equilibrium before any merger takes place.   What are the equilibrium quantities and market price?
   3. Suppose the proposed merger is permitted, what happens to equilibrium quantities and the market price? Does this seem like a reasonable prediction? Why or why not?
   4. What would costs need to fall to for the merged entity to do no harm to consumers?

Given your modeling efforts, what would you recommend regarding the unconditional approval of the merger? Are there conditions under which you would let the firms merge? Think big in terms of requests to both airlines and airports that would make you comfortable with the merger being ap

5. According to a Pew Research Center nationwide telephone survey of American adults conducted by phone between March 15 and April 24, 2011, 75% of adults said that college education has become too expensive for most people and they cannot afford it (Time, May 30, 2011). Suppose that this result is true for the 2011 population of American adults. In a recent poll of 1600 American adults, 1160 said that college education has become too expensive for most people and they cannot afford it. Using a 1% significance level, perform a test of hypothesis to determine whether the current percentage of American adults who will say that college education has become too expensive for most people and they cannot afford it is lower than 75%.

a. Identify the claim and state the H0 and H1.  
b. Find the critical value.
c. Calculate the test statistic.
d. Make a decision to reject or fail to reject the H0.
e. Interpret the decision in the context of the original claim.



6. A food company is planning to market a new type of frozen yogurt. However, before marketing this yogurt, the company wants to find what percentage of the people like it. The company’s management has decided that it will market this yogurt only if at least 35% of the people like it. The company’s research department selected a random sample of 400 persons and asked them to taste this yogurt. Of these 400 persons, 112 said they liked it. Can you conclude that the company should market this yogurt? Use α=0.025.

a. Identify the claim and state the H0 and H1.  
b. Find the critical value.
c. Calculate the test statistic.
d. e. Make a decision to reject or fail to reject the HInterpret the decision in the context of the original claim0.