Question 2: Problem solving

Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by a factor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil because of competition. His alternatives are shown in the following table:

For example, if Ken purchases a Sub 100 and if there is a favorable market, he will realize a profit of $300,000. On the other hand, if the market is unfavorable, Ken will suffer a loss of $200,000. But Ken has always been a very pessimistic decision maker.

If information about the probability of each outcome becomes available to Ken then:

Questions:

4. Find the best decision using the adequate technique.

5. How much Ken should pay to know the perfect information about the market condition?

6. Is it reasonable for Ken to purchase the perfect information about the market outcomes for $20,000? Explain why. (1 Mark)

1. The balance sheet for Gotbucks Bank (GBI) is presented below: ( $ MM ):

                 Assets                                              Lib & Equity

    Cash                           30                   Core deposits                 20

     Loans (floating)       125                   EURO CDs                  180

     Loans Fixed               65                   Equity                            20

     Total assets              220                 TE + TL                        220  

Notes: the floating rare is LIBOR + 4%

            Current LIBOR = 11%

            Fixed rate loans 5 yr maturity   priced at par   coupon = 12%

           Core deposits   fixed rate at 8% paid annually

            Euros yields 9%

1. What is the duration of the fixed rate loan portfolio of Gotbucks Bank?
2. If the duration of the floating rate loans is 0.3 year, what is the duration of GBI assets?
3. What is the duration of the core deposits if they are priced at par?
4. If the duration of the Euro CDs is 0.401 year, what is the duration of GBI’s liabilities?
5. What is GBI’s duration gap? What is its interest rate risk exposure?
6. What is the impact on the market value of equity if the relative change in all market interest rate is an increase of 1%?
7. What is the impact on the market value of equity if the relative change in all interest rates is a decrease of 0.5%?
8. What variables are available to GBI to immunize the bank? How much would each variable need to change to get DGAP to equal to zero?

Input price and input efficiency variances

The budgeted and actual data for direct materials and labor are as follows:

Actual sales volume is 100 units. Budgeted sales volume is 80 units.

Compute the input price and input efficiency variances for DM and DL.
As a preliminary step, compute actual input quantity (total pounds or hours we actually used) and flexible budget input quantity (total pounds or hours we should have used for actual output):
    actual input quantity for DM = ___________pounds
    flexible budget input quantity for DM = ________ pounds
    actual input quantity for DL = __________ hours
    flexible budget input quantity for DL = __________ hours
Next, compute the variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U.
    input price variance for DM = $ ___________
    input efficiency variance for DM = $ ____________
    input price variance for DL = $ __________
    input efficiency variance for DL = $ ____________

Research Scenario: Does distraction and/or amount of details affect the ability of people to make good decisions? In this fictitious scenario, researchers used a mixed design. Thirty participants were split into two groups – No Distraction or Distraction (n=15 per group). All participants were given TWO scenarios based on amount of details (4 or 12), and were asked to make an objective decision at the end of each scenario. Objective decision was the dependent variable and was quantified numerically using an interval scale of measurement.

Assume the data is parametric. Select and conduct the most appropriate statistical test to determine whether distraction and/or amount of details affect people’s ability to make good decisions.

Can someone interpret these results especially the test statistic, degree(s) of freedom, p-value, effect size, confidence interval, F statistic and R squared

Note: I have been sending in questions with the same data and no one has been answering.

Model Summary (General Linear Model)

Coefficient Summary Table

Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.

a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

Consider the following numerical example using the Solow growth model.

Suppose that F(K, N) = K^(4/13)N^(9/13), Y = zF(K.N).

Furthermore, assume that the capital depreciation rate is d = 0.04, the savings rate is s = 0.3, the population growth rate is n = 0.035, and the productivity is z = 1.75. Suppose K0 = 200 and N0 = 100.

1. Compute the values k1, y1, and c1 of the per-worker capital, output and consumption in period one. Find the steady state per-capita capital stock (k*), output per capita (y*), and consumption per capita (c*).

2. Assume the economy is in the steady state of Question 2, compute the percentage change in z that is needed to increase the long run per capita capital by 5%.

3. Assume the economy is in the steady state of Question 2 and suddenly, z decreases by 10%, calculate the percentage change in s that is needed to keep the long run per capita output unchanged.

4. Assume the economy is in the steady state of Question 2 and n goes down by 5% while z increases by 5% and s increases by 5%. Using the Taylor approximation, evaluate the contribution of each variable to the total change in the steady state consumption c*.

Abstract ‘In the present study, we report an efficient invitro propagation system. Shoot apices of six weeks old in vitro grown G. scabra plants were used as explants for the in vitro propagation. Induction of multiple shoots (9.1/explant) was achieved on the culture of shoot apices on half strength Murashige and Skoog’s basal medium (MSBM) containing 2.0 mg/L−1 6-benzylaminopurine (BA), 3% sucrose and 0.9% Difco agar. In vitro shoots induced profuse rooting on half strength of MSBM supplemented with 0.1 mg/L−1 1-naphthaleneacetic acid (NAA), 3% sucrose and 0.3% gelrite. A two-stage ventilation closure procedure during the in vitro culture, and transparent sachet technique enhanced the survival rate of G. scabra plantlets to 96% in the greenhouse. Tissue culture plants flowered after 5 months of transfer to pots.A simple and an efficient in vitro propagation protocol of Gentiana scabra Bunge by optimizing the medium composition and ventilation closure treatments has been developed. The protocol can be very useful in germplasm conservation and commercial cultivation of G. scabra plants’’.

i. Based on your scientific understanding write the aim and objective for the given abstract and should be written with proper citations(APA format). (one paragraph/maximum 100 words)

1. An airport limousine can accommodate up to 4 passengers on any one trip. The company will accept a maximum of 6 reservations for a trip, and a passenger must have a reservation. From previous records, 20% of all those making reservations do not show up for the trip. Answer the following questions assuming independence wherever appropriate.

   A) Assume that six reservations are made. Let X = the number of customers who have made a reservation and show up for the trip. Find the probability distribution function of X in table form.
2. B)Assume that six reservations are made. What is the probability that at least one individual with a reservation shows cannot be accommodated on the trip?
3. C)Assume that six reservations are made. What is the expected number of available places when the limousine departs?
4. Suppose that the probability distribution of the number of reservations made is given by the accompanying table. Let Y denote the number of passengers on a randomly selected trip.
5. D) Obtain the probability distribution function of Y in table form.The possible values for Y are 0, 1, 2, 3, 4. You are still assuming that 20% of passengers who have made a reservation do not show up.
6. E) Find the expected value of Y.

Exercises

1. A 25 kVA single-phase transformer has the primary and secondary number of turns of 200 and 400, respectively. The transformer is connected to a 220 V, 50 Hz source. Calculate the (i) turns ratio, and (ii) mutual flux in the core.

2. A 25 kVA, 2200/220 V, 50 Hz single-phase transformer’s low voltage side is short-circuited and the test data recorded from the high voltage side are P=150 W, I1 = 5A and V1 = 40 V. Determine the (i) equivalent resistance, reactance and impedance referred to primary, (ii) equivalent resistance, reactance and impedance referred to secondary.

3. A 30 kVA transformer has the iron loss and full load copper loss of 350 and 650 W, respectively. Determine the (i) full load efficiency, (ii) output kVA corresponding to maximum efficiency, and (iii) maximum efficiency. Consider that the power factor of the load is 0.6 lagging. (97.74%, 13.2 kW, 94.96%).

4. A 2.5 kVA, 200 V/40 V single-phase transformer has the primary resistance and reactance of 3 and 12 Ω, respectively. On the secondary side, these values are 0.3 and 0.1 Ω, respectively. Find the equivalent impedance referred to the primary and the secondary. (17.9ohms, 0.72ohms).