The marketing division of Family FunTime Mini Golf is wanting to gather information about the spending habits of its visitors. It polls visitors as they leave and gathers information about the amount of money spent at the course. A sample with 40 families and the amounts they spent can be found in the Excel table I have provided below. Please answer all questions using complete sentences.

1. Using Excel’s PivotTable feature, organize the data into a frequency distribution, using 7 classes and 15 as the lower limit of the first class. Copy your table below. (You can do a straight copy/paste from Excel, it will transfer the table over.) What class interval did you need to select? Explain.
2. Where do the data tend to cluster? Describe the distribution in the context of the problem.
3. Determine the relative frequency distribution using your PivotTable in Excel. Copy your table below.
4. Determine the cumulative percent frequency distribution using your PivotTable in Excel. Copy your table below.

Would you favor spending more federal tax money on the arts? Of a random sample of n₁ = 92 politically conservative voters, r₁ = 20 responded yes. Another random sample of n₂ = 79 politically moderate voters showed that r₂ = 21 responded yes. Does this information indicate that the population proportion of conservative voters inclined to spend more federal tax money on funding the arts is less than the proportion of moderate voters so inclined? Use α = 0.05.

What is the value of the sample test statistic? ______

Find (or estimate) the P-value: ______

Do you prefer paintings in which the people are fully clothed? This question was asked by a professional survey group on behalf of a national arts organization. A random sample of n₁ = 56 people who are conservative voters showed that r₁ = 40 said yes. Another random sample of n₂ = 65 people who are liberal voters showed that r₂ = 35 said yes. Does this indicate that the population proportion of conservative voters who prefer art with fully clothed people is higher? Use α = 0.05.

Find (or estimate) the P-value: _____

Would you favor spending more federal tax money on the arts? Of a random sample of n₁ = 214 women, r₁ = 68 responded yes. Another random sample of n₂ = 199 men showed that r₂ = 58 responded yes. Does this information indicate a difference (either way) between the population proportion of women and the population proportion of men who favor spending more federal tax dollars on the arts? Use α = 0.01. Solve the problem using both the traditional method and the P-value method. (Test the difference p₁ − p₂. Round the test statistic and critical value to two decimal places. Round the P-value to four decimal places.)

Critical value: _____

P-value: _______

In the Focus Problem at the beginning of this chapter, a study was described comparing the hatch ratios of wood duck nesting boxes. Group I nesting boxes were well separated from each other and well hidden by available brush. There were a total of 477 eggs in group I boxes, of which a field count showed about 278 hatched. Group II nesting boxes were placed in highly visible locations and grouped closely together. There were a total of 784 eggs in group II boxes, of which a field count showed about 260 hatched.

Find a 90% confidence interval for p₁.

Lower limit: ___

Upper limit: ____

Find a 90% confidence interval for p₁ − p₂.

Lower limit: _____

Upper limit: _____

sometimes in order to simulate more cunsumer and business spending, the federal government will compel banks to relax lending standards for a time to entice individuals and business organizations to take out more loans than they would do under more restrictive standards

is the relaxing of lending standards a wise government policy to implement from time to time, or is the risk to the overall economy too great to make use of such a policy?

explain in detail why or why not

Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax lending standards for a time to entice more people and more business organizations to take out more loans than they would normally do under more restrictive standards.

Is the relaxing of lending standards a wise policy to implement from time-to-time, or is the risk to the overall economy too great to make use of such a policy? Explain in detail why or why not, and also keep in mind that such a relaxed standards policy played a significant role in the economic troubles the country endured primarily in 2007-2008.

1. How would you characterize the two biggest differences in the pattern of spending between the three pairs of countries (the US vs South Korea, the US vs Finland, and Finland vs South Korea)?

2. Can you think of differences in the countries and their histories that might account for these differences? You will need to do some research to support your claims.

USA spends about 54% of its total federal budget on the Military. Military spending in the USA is far greater than any nation in the world. (USA spends more on military than the next 10 highest spenders combined, 4 times China who is second on the list etc) Why does USA need to spend so much more on its military than other countries (cause), and what is/are the results of all this spending (effect)?

The essays should not be a simple list of causes or effects, but an essay that takes a position on why a condition exists and or argues the results of this condition. Some writers may even be able to create a strong focused thesis by suggesting a solution or arguing for some clear change of policy. The goal is to create an essay that allows you to develop a position or argument in a cause and effect essay. A strong thesis statement is very important and students should underline it in the final draft of their essay. Essay should be 4 pages long, double spaced , and it must have a minimum of 3 academic sources—no Wikipedia, encyclopedias, dictionaries etc. Use the library resources to find legitimate, academic sources

4. a) Real GDP is currently $4,500 billion, and potential GDP is $4,600 billion. If government spending increases by $35 billion, what does the multiplier equal to? Show the effect the change will have on macroeconomic equilibrium. b) By how much does taxes have to change to create the same effect?

[9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is:

A) less than the equilibrium level of output, and will increase.

B) less than the equilibrium level of output, and will decrease.

C) greater than the equilibrium level of output, and will increase.

D) greater than the equilibrium level of output, and will decrease.

[11] A primary assumption of new classical economics is:

A) wages and prices are not flexible.

B) an upward sloping aggregate demand curve.

C) over the long run the economy will operate at the natural rate of unemployment.

D) all of these answers are correct.

Bombardier, after spending $250,000 on a feasibility study, has determined that its customers will be willing to pay more money for the C Series model if Bombardier invests in a manufacturing technology upgrade that can enhance the safety of the engine. Bombardier realizes that the delays in the C Series program are likely costing them potential sales of the C Series jets. The feasibility study allowed management to better understand the implementation costs of the new technology as well as the potential payoff. Thus, they see the opportunity to make a short-term investment in the engine technology that will affect the next eight years of production in order to improve their overall offering to their customers.

Because the C Series production facilities are already covered in original cost estimates, no additional costs for production facilities are required. However, the required new machinery will cost $2,100,000 and will be subject to capital cost allowance depreciation (Asset Class 8, 20% CCA Rate). When the C Series program expires after year eight, Bombardier executives figure there will be $396,361.73 in salvage on the equipment. Sales across the eight years of the C Series program are projected to be 19 units, 23 units, 30 units, 44 units, 55 units, 35 units, 37 units, and 40 units.

Bombardier expects that the price to their customers will start at an additional $125,000 with 3.5 per cent increases per year, as they wish to keep their prices competitive. Material costs of production are expected to be $67,500 per unit, growing at four per cent a year. Fixed costs per annum will amount to $670,000. The corporate tax rate Bombardier is subject to is 26.4 per cent.

Finally, Bombardier requires a maintained investment in working capital of $365,000 at the beginning of the project. This will stay at 14 per cent of sales at the end of each year, and reduces to 0 by the project's end; therefore, the investment in working capital is fully recovered by the project's end. As the company will be purchasing raw materials prior to production and sales delivery, they must create an investment in inventory as well as

maintaining some cash as a buffer against unforeseen expenses. If the firm has negative taxable income from the project in a given year, please assume that the firm has positive income from other projects, so that the loss can be written off (as a tax benefit) against this other project income in the same year.

Questions

1. What is the Internal Rate of Return on the project?

2. What is the Net Present Value of the project if the required rate of return (Weighted

   Average Cost of Capital) is equal to 3.90 per cent?

3. By how much would the Net Present Value of the project change if unit sales were 25

   per cent less than expected (round down toward zero the number of units; the WACC is still 3.90%)?

Imagine an economic situation, where people are increasingly borrowing more and spending more at a low interest rate. Assets' values are also growing at a faster rate. However, the productivity of the businesses is growing at a fixed rate that is lower than the interest rate. Do you think this situation is sustainable? In the long run, how the lenders, borrowers, and businesses would be affected by such an economy?