In japan, honda's export price is yen 3million. spot rate is yen100/$ suppose suddenly the rate changes to yen90/$. Assuming 60% exchange rate pass-thru, what should be the price of Honda in U.S. in $? Show work please.

A)$33,000

B)$33,333

C) $31,999

D) $31,333

E) Need more information

What conflicts, political differences, philosophies, and ethical dilemmas come into play as people talk about the ACA and America’s health care needs? What is different or similar about those discussions today compared to when they were first raised during the Obama administration? Who benefits and loses from changes to health care?

The Sept. 11 terrorist attacks accounted for the largest insured loss in the history of the world. The insurance companies providing commercial crime, commercial property, commercial general liability, and business income coverage were required to pay in most cases because the event was not legally considered an "act of war" or "catastrophe", which would have excluded it from coverage (see page 330). Very soon after that, every insurance policy added "act of terrorism" to excluded losses, leaving every business on its own to deal with the risk of a massive loss caused by an act of terrorism. Congress addressed that problem with the Terrorism Risk Insurance Act of 2002. The act expired in 2014 and was renewed a week later for an additional six years.

In a nutshell, TRIA allows insurers to exclude losses due to acts of terrorism from standard commercial package policies, but it also requires the insurers to offer terrorism coverage in a separate policy and provides some federal assistance paying for losses caused by terrorism. But a business has the option whether to buy the terrorism coverage and it's very expensive.

Imagine all of you together (due to your advanced understanding of risk management) make up the committee at MGM Resorts that will decide whether the company should buy any terrorism insurance and if so how much. Each of you researches TRIA a little further on your own first and then begin by stating whether you should or shouldn't buy it and why/why not.  

Need assistance responding to this discussion post in personal opinion.

You’ll find that managers are also the shareholder or the owner of a company. In these cases, the shareholders interests line up with the goal of the firm. Technically, what benefits the company would also benefit the shareholder. You’ll also see that when the shareholder or owner is not playing the manager role, there’s a disconnect between both the shareholder and manager’s interest (Stout, 2002). The manager usually would make decisions based off of what will benefit him instead of the firm’s success. An example of this would be when a manager is spending the corporate credit card to buy non-business uses of an event. This lack of connect between the shareholder and manager’s interest is called agency problem. The unnecessary use of non-business purpose on the company’s credit card or expense can decrease the profitability of that firm. Poor performing companies have been built to take extensive defense against takeovers. When a takeover defense is made, this action triggers the defenses. When a takeover takes places, management are usually first to exit their roles in the firm. What usually increases the agency problem is putting in place a takeover defense that are not related to managerial packages. For example, continuance of underperforming will not be resulting in job loss or security. Therefore, managers are more than likely to put themselves first in this type of companies. These managers in takeover defense firms would have to put in the extra work for lower pay and also avoid such actions that can be damaging to the company.

Part 1: Discuss the purpose and implications (higher vs. lower premiums) of each of the 8 major rating factors for determining private passenger auto insurance premiums.

Part 2: Select ONE of the following scenarios. Discuss at least 4 of the 8 factors and how they would impact that type of risk. Explain your answer and offer suggestions for how a policyholder in a similar situation might be able to lower their premiums.

1. 16-year old single male driver living with his parents in Chicago, Illinois, who maintains a 2.5 GPA at his high school. He just obtained his driver’s license after successfully completing driver’s education classes and is driving a 2002 Ford Taurus sedan to and from a private school in the suburbs.

2. 45-year old married female living in Wichita, Kansas, with an insurance score of 559. She and her spouse own a new Chevrolet Suburban full-size SUV, a Toyota Tundra pickup truck for hauling feed for their horses, and a 1965 Chevrolet Corvette. She has had no accidents or citations in the past 5 years.

3. 85-year old widowed male living in Kalona, Iowa, with an insurance score of 750. He drives a 2013 Honda Civic under 10,000 miles per year. In the past 3 years, he has been ticketed twice for speeding and had one fender-bender in the grocery store parking lot.

Background: Based on the National Center of Health Statistics, the proportion of babies born at low birth weight (below 2,500 grams) in the United States is roughly .078, or 7.8% (based on all the births in the United States in the year 2002). A study was done in order to check whether smoking by pregnant women increases the risk of low birth weight. In other words, the researchers wanted to check whether the proportion of babies born at low birth weight among women who smoked during their pregnancy is higher than the proportion in the general population. The researchers followed a sample of 400 women who had smoked during their pregnancy and recorded the birth weight of the newborns. Based on the data, the p-value was found to be .119.

Write down the null and alternative hypotheses (H_oand H_a) that are being tested here.

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LicenseQuestion 14. Points possible: 3
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Based on the p-value, what is your conclusion (use .05 significance level)?

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LicenseQuestion 15. Points possible: 3
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Can we conclude that the results of this study provide evidence that second-hand smoking does not increase the risk of low birth weight? Why or why not?

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LicenseQuestion 16. Points possible: 5
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Need assistance responding to this discussion post in personal opinion.

You’ll find that managers are also the shareholder or the owner of a company. In these cases, the shareholders interests line up with the goal of the firm. Technically, what benefits the company would also benefit the shareholder. You’ll also see that when the shareholder or owner is not playing the manager role, there’s a disconnect between both the shareholder and manager’s interest (Stout, 2002). The manager usually would make decisions based off of what will benefit him instead of the firm’s success. An example of this would be when a manager is spending the corporate credit card to buy non-business uses of an event. This lack of connect between the shareholder and manager’s interest is called agency problem. The unnecessary use of non-business purpose on the company’s credit card or expense can decrease the profitability of that firm.

Poor performing companies have been built to take extensive defense against takeovers. When a takeover defense is made, this action triggers the defenses. When a takeover takes places, management are usually first to exit their roles in the firm. What usually increases the agency problem is putting in place a takeover defense that are not related to managerial packages. For example, continuance of underperforming will not be resulting in job loss or security. Therefore, managers are more than likely to put themselves first in this type of companies. These managers in takeover defense firms would have to put in the extra work for lower pay and also avoid such actions that can be damaging to the company.

For Hypothesis testing and Decision making problems, please do the following:

1. State the null and alternate hypothesis.

2. Write down the proper test statistic.

3. Show all calculations.

4. Show the critical value.

5. State your conclusions.

2. Some people seem to believe that you can fix anything with duct tape. Even so, many were skeptical when researchers announced that duct tape may be a more effective and less painful alternative to the more traditional technique of using liquid nitrogen to freeze warts. The article “What a Fix-it: Duct Tape Can Remove Warts” (San Luis Obispo Tribune, October 15, 2002) described a study conducted at Madigan Army Medical Center. Patients with warts were randomly assigned to either the duct tape treatment or the more traditional freezing treatment. Those in the duct tape group wore duct tape over the wart for 6 days, then removed the tape, soaked the area in water, and used an emery board to scrape the area. This process was repeated for 2 months or until the wart was gone. Data consistent with values in the article are summarized in the following table:

2a. Test whether there is an association between the type of treatment and whether wart removal was successful.

Treatment

Liquid Nitrogen Freezing Duct Tape Total

Wart Yes 60 88

Removed?   No 40 12

------------- -----------

100 100 200

2b. If the sample size didn’t satisfy size criteria, what statistical test would need to be employed?

Researchers investigated whether providing a fancy, foil-wrapped piece of chocolate with the dinner bill would lead to higher tips than not providing such a treat (Strohmetz et al., 2002). Ninety-two dinner parties at a restaurant in Ithaca, New York, were randomly assigned to receive such a piece of chocolate or not with their dinner bill. Of the 46 parties who received the chocolate, the average tip (as a percentage of the bill) was 17.84%, with a standard deviation of 3.06%. Of the 46 parties who did not receive the chocolate, the average tip (as a percentage of the bill) was 15.06%, with a standard deviation of 1.89%.

a. Identify the explanatory and response variables.

b. Explain why, in this case, looking at the percentage of the bill is a more useful measure than looking at the exact tip amount (as the waitress in Activity 22-4 did).

c. Is this an observational study or an experiment? Explain.
d.   Do you have enough information to check whether the technical conditions for the two-sample t-test and confidence interval are satisfied? Explain.
e.   Conduct the appropriate test of the researchers’ conjecture. Report all aspects of the test, including your test decision at the α ? 0.05 level, and summarize your conclusion.
f.   Produce and interpret a 95% confidence interval for estimating how much the chocolate adds to the tip percentage on average.
g.   Summarize your conclusions. Be sure to address issues of generalizability and causation.
h.   Describe what Type I error and Type II error mean in the context of this study. Also describe a potential consequence of each type of error for the restaurant manager and wait staff.

Data on petrol prices was collected for the Royal Automobile Club of Queensland by FuelTrac Pty Ltd. The data was collected in Toowoomba, Queensland over a nine month period from September 2002 to May 2003 with the aim of investigating complaints about excessive price differences between lead replacement petrol and unleaded petrol.

The data are monthly average fuel prices. There are nine observations on three variables.

Month The month

Unleaded The monthly average price of unleaded petrol (in cents per litre)

LRP The monthly average price of lead replacement petrol (LRP) (in cents per litre)

For each month the difference in prices is calculated and the values are shown in the table below:

Month Diff

Sep 3.4

Oct 3.6

Nov 3.7

Dec 3.8

Jan 3.9

Feb 3.7

Mar 3.8

Apr 4

May 4

You may assume that the differences in prices is normally distributed. Some computer output appears below:

One Variable Summary. Unleaded LRP Dif

Mean 85.278 89.044 3.7667
Std. Dev. 4.845 4.893 0.1936
Count 9 9 9

a) Is the lead replacement petrol more expensive than unleaded petrol? Explain why or why not? Your answer should be in the form of a hypothesis test. Justify any assumptions that need to be made in order for your results to be reliable.

b) Construct a 95% confidence interval for the average price difference between lead replacement petrol and unleaded petrol.