Donald Trump proposed steep tariffs on imports to the US. He described trade promotion authority and the Trans-Pacific Partnership as “bad, bad deal[s] for American businesses, for workers, for taxpayers.” Discuss how in a large capital abundant country (such as the US) levying a tariff on the labour-intensive imports affects:
(a) Domestic (US) real wages and domestic real return to capital.
(b) The US wellbeing (welfare) as a whole.
(c) The US job market.
In: Economics
The business of selling insurance is based on probability and
the law of large numbers. Consumers buy insurance because we all
face risks that are unlikely but carry high cost. Think of a fire
destroying your home. So we form a group to share the risk: we all
pay a small amount, and the insurance policy pays a large amount to
those few of us whose homes burn down. The insurance company sells
many policies, so it can rely on the law of large numbers.
In fact, the insurance company sees that in the entire population
of homeowners, the mean loss from fire is μ = $300 and the
standard deviation of the loss is σ = $400.What are the
mean and standard deviation of the average loss for 8 policies?
(Losses on separate policies are independent. Round your standard
deviation to two decimal places.)
| μX = | $ |
| σX = | $ |
What are the mean and standard deviation of the average loss for 15
policies? (Round your standard deviation to two decimal
places.)
| μX = | $ |
| σX = | $ |
In: Statistics and Probability
The business of selling insurance is based on probability and
the law of large numbers. Consumers buy insurance because we all
face risks that are unlikely but carry high cost. Think of a fire
destroying your home. So we form a group to share the risk: we all
pay a small amount, and the insurance policy pays a large amount to
those few of us whose homes burn down. The insurance company sells
many policies, so it can rely on the law of large numbers.
In fact, the insurance company sees that in the entire population
of homeowners, the mean loss from fire is μ = $300 and the
standard deviation of the loss is σ = $400.What are the
mean and standard deviation of the average loss for 6 policies?
(Losses on separate policies are independent. Round your standard
deviation to two decimal places.)
| μX = | $ |
| σX = | $ |
What are the mean and standard deviation of the average loss for 13
policies? (Round your standard deviation to two decimal
places.)
| μX = | $ |
| σX = | $ |
In: Statistics and Probability
Shroff Company has a defined benefit pension plan. The following data relate to the operation of the plan for 2019.
A. Prepare a pension worksheet and the journal entry to record the pension expense for 2019.
Plan assets (fair value), 1/1 $29,000
Projected benefit obligation, 1/1 35,000
Prior service cost, 1/1 2,600
unrecognized net gain/loss (debit), 1/1 4,800
Service cost 2,500
Actual gain on plan assets 1,500
Amortization of prior service cost 300
Annual contributions 3,400
Benefits paid 2,700
Settlement rate 5%
Expected rate of return 6%
Average service life of employees 10 yrs
B. Suppose plan assets of Shroff Company make about $5,000 more than expected in both 2020 and 2021. How would this affect Shroff’s net income in 2020 and 2021 and why? From this example, what do you think is the main role of the AOCI in the current US pension accounting?
In: Accounting
A company is considering a new project. The project costs $430,000 and has a 5-year life. During the Year 1, it will produce a cash flow of $114,000, which is expected to grow at 6.70% per annum from Year 2 to 5. The appropriate discount rate is 13.60% per annum. Please answer the following questions:
(a) Work out the Year 2 to 5 cash flows from this investment (with no added terminal value) (1 mark).
(b) Use a financial function to work out the Net Present Value (NPV) and the Internal Rate of Return (IRR) of the project (1 mark).
(c) Use a logical function to indicate whether the NPV and IRR suggest that this project should proceed (1 mark).
(d) Add a Data Table that displays how the net present value changes as the discount rate and growth rate vary between 12%-17% and 6%-11% respectively, as shown in the table below (2 marks - no marks for entering individual formulae into the table).
In: Finance
Redline Publishers, Inc. produces various manuals ranging from computer software instructional booklets to manuals explaining the installation and use of large pieces of industrial equipment. At the end of 2021, the company’s balance sheet reported total assets of $62 million and total liabilities of $40 million. The income statement for 2021 reported net income of $1.1 million, which represents an approximate 3% increase from the prior year.
The company’s effective income tax rate is 30%. Near the end of 2021, a variety of expenditures were made to overhaul the company’s manufacturing equipment. None of these expenditures exceeded $750, the materiality threshold the company has set for the capitalization of any such expenditure. Even though the overhauls extended the service life of the equipment, the expenditures were expensed, not capitalized.
John Henderson, the company’s controller, is worried about the treatment of the overhaul expenditures. Even though no individual expenditure exceeded the $750 materiality threshold, total expenditures were $70,000.
Required:
Should the overhaul expenditures be capitalized or expensed?
In: Accounting
6. A company has 48 sales representatives, one for each state in the contiguous United States.
Each state is divided into four regions. Each state sales representative only reports the average sales from the state he or she covers each week. The average reported is calculated from one individual data point per region. Before the New National Sales Manager was hired, the average sales reported per state each week was $95,000 with a standard deviation of $12,000.
The National Sales Manager claims that under her leadership, sales have increased despite the weakening economy. A sample was taken when the manager’s annual review was being written and average sales were $105,100.
a) Based on an a=.02, can the National Sales Manager make her claim?
Use and show the 5-Step Process.
Use Z or t Values as demonstrated in class, not p-values
b) What is the cutoff point of sales that allows or would allow the National Sales Manager to make the claim?
In: Statistics and Probability
Review these Skill Builders (and all of the other Course Materials): -Evaluating p-values -Statistical Power Identify the scenario you are evaluating and name the population. Estimate the size of that population. Example: the population of scenario 1 seems to be students at a State University so you could estimate the number of students at a typical State University. The University of South Florida up the road from me has about 40,000 students Identify the independent variable (IV) and the dependent variable (DV). Sometimes this is stated by the researchers and sometimes you have to ferret it out. In scenario 2, the IV and DV are given as Race and Education, respectively. Write a null hypothesis. If the null hypothesis is not provided in the scenario, write a null hypothesis based on the information that is provided in the scenario. Each scenario addresses differences in an interval or ratio DV among a Nominal or Ordinal IV made up of 2 or more groups. So write the null hypothesis this way: There is no difference in Education based on Race among (state/name the population). Critically evaluate the sample size. This is tricky because the scenarios do not provide us with the right information to calculate an appropriate sample size. And you want to avoid stating that a sample size ‘seems’ to be the right size (very amateurish). What to do? Go to this sample size calculator: https://www.surveysystem.com/sscalc.htm. Use the box labeled Calculate Sample Size, Enter .95 for the confidence level, your estimate of the population, 5 for the confidence interval and see what pops up for the ideal sample size. Compare that number to the sample size in the scenario and critically evaluate the sample size in terms of making a Type I or Type II error. For example, if the sample size is smaller than the ideal sample size, does the probability of making a Type I error increase or decrease. Do the same drill with a Type II error. Critically evaluate the scenario for meaningfulness. Follow the guidance I provided in the Announcement Week 5 Discussion: How To Critically Evaluate The Discussion Scenario. Note: we can often relate meaningfulness to social change. That is, if the research is meaningful then it may have implications for social change. Try evaluating meaningfulness and social change in the same paragraph. But first, define meaningfulness and define social change. Cite, cite, cite. Critically evaluate the statements for statistical significance. Compare the researcher reported p-value for the hypothesis test they conducted (either a t-test or an ANOVA) to the confidence level (usually .05). If the reported p-value is greater than .05, then the researcher should fail to reject the null hypothesis and state that there is no statistical significance. If the reported p-value is less than .05, then the researcher should reject the null hypothesis and state that there is statistical significance. I know this is counter-intuitive. Just do it. Add this for grins, “There is no such decision as ‘rapidly approaching significance.’ This is statistics, not a hurricane watch.” Select 1 response to the following multiple choice question: What scenario would you find to be the least fun?Having a root canal performed by an experienced dentist. Having 4 root canals performed by an unsupervised novice dentist. Having 21 root canals performed by a trained Capuchin monkey. Trying to statistically determine differences in patient post-root canal pain levels based on the dentist’s training.
In: Math
Which of the following statements is false regarding pension funds companies?
| a. |
Under defined-contribution plan, amount of sponsor’s (employer’s) contribution is fixed but benefits vary |
|
| b. |
Under defined-benefit plan, amount of sponsor’s (employer’s) contribution varies but benefits are fixed |
|
| c. |
Collect small insurance premiums from employees and make payments to those employees who suffer irregular losses |
|
| d. |
Accumulate funds to provide retirement payments to the company employees |
In: Finance
Fair and adequate compensation is critical for attracting the most qualified employees and retaining and motivating staff. When determining compensation, consideration should be given to fair and equitable compensation among all workers in the same company (internal equity) and fair and equitable compensation relative to the external market (external equity).
Consider the following scenario:
You have two medical assistants (MAs) who earn $15 per hour at your medical practice. When you hire a new MA, you discover that the current market pays $16 per hour for medical assistants.
Respond to the following discussion points in relation to equity conflicts and compensation:
Performance evaluations can be stressful for both employers and employees. Nevertheless, performance appraisals have a number of benefits for both employers and staff.
Respond to the following questions in relation to performance evaluation:
HR departments play an essential role in developing an agency's staffing strategy and handling employee-centered activities of an organization. The presence of an HR department, however, does not absolve individual managers within the agency of human resources responsibilities.
Respond to the following questions in relation to HR issues:
In: Nursing