16. The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City.

a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home. (Round your answers to 2 decimal places.)

TaxesˆTaxes^ =  +  Size.

b. Interpret the slope coefficient.

• As Size increases by 1 square foot, the property taxes are predicted to increase by $6.67.

• As Property Taxes increase by 1 dollar, the size of the house increases by 6.67 ft.

c. Predict the property taxes for a 1,600-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal pl

A survey of 500 major U.S. manufacturing plants was completed in order to gain information about water pollution near each plant facility. Data have been collected on the amount of WATER POLLUTANTS (PL) found within ½ mile of each plant. (No plants were within 50 miles of each other). The pollutants were measured as the average parts per million based on each gallon of water sampled for each plant. For each plant, the AMOUNT OF WATER (W) used and the AVERAGE RAINFALL (R) was recorded. Plants were classified to be within one of four TYPES (chemical, paper, consumer durable goods, others) and the plant AGE (under 15 years; 15 years or older) was noted. A scale for LOCAL ENVIRONMENTAL REGULATIONS ENFORCEMENT was made (Strong enforcement; Moderate enforcement; Minimal to No Enforcement). Using these data, (20 points) a. Specify a linear model that would allow you test the effects of the impact of each variable above. b. Interpret each parameter in your model. c. Show how you would test the hypothesis that chemical and paper plant pollution is equal. d. How would you test the impact of local regulation enforcement on plant’s pollution

“I rented a car through price line via the internet. I got a great price for 10 days at 25$ a day. I reserved the car from Vernon NJ and I was scheduled to pick it up at the Ontario California airport. When I arrived to pick it up the Budget attendant said that priceline cancelled the reservation. I said no problem, I am here so reinstate it. They said sure and asked for $89 per day. I immediately called priceline who refused to do anything. I explained that I was stranded 2600 miles from home and rep kept repeating there was nothing she could do, it was budget who cancelled it- I demanded that the budget rep print the cancel order and; low and behold Budget cancelled it but it appears that it was in concert with priceline.” This is an example of: q) everyday low pricing h) dynamic pricing r) uniform delivered pricing i) loss-leader pricing s) bait and switch deceptive pricing j) price lining/pricing points t) price fixing p) cash discounts o) trade discounts l) basing-point pricing k) flexible-price policy

Making Money, Inc. is considering the purchase of a new truck so it can make more money. The truck costs $120,000.

Making Money, Inc. had been renting the truck every week for $500 per week plus $1.20 per mile. On average, the truck is traveling 75 miles per week.

If Making Money, Inc. purchases the truck, it will only have to pay for diesel fuel and maintenance, at about $.50 per mile. Insurance costs for the new truck are $5,000 per year.

The truck will probably be worth $20,000 (in real terms) after six years, when the company would be looking to sell the truck.

Assume a nominal discount rate of 10% and a forecasted inflation rate of 2.5%. The tax code is rapidly changing, so we are going to ignore taxes for now.

WHAT IS THE NPV of BUYING vs RENTING? (round to nearest whole dollar)

Hint: All numbers given in the questions are in real terms. Assume CF at end of year, for simplicity.

Hint #2:

Step 1: list assumptions

Step 2: calc real interest rate

Step 3: Calc cost (NPV) to rent

Step 4: Calc cost (NPV) to buy

Step 5: subtract NPVs

6. The coolest stars are those whose color is

a. blue
b. red
c. yellow
d. white


7. A pulsar is a powerful source of radio (and sometimes light) waves thought to be coming from

a. rapidly spinning white dwarf stars
b. supernovas
c. spinning stars composed primarily of neutrons
d. ordinary stars like our Sun which happen to be more energetic than the average


8. The existence of "black holes" has been

a. verified by actual astronomical observations
b. derived from a theoretical analysis of how large stars evolve and explode
c. disproved by recent astronomical evidence
d. used to explain the formation of our solar system


9. Our Milky-way galaxy has a diameter of approximately

a. 1,000,000 miles
b. 1,000,000,000 km
c. 4 light years
d. 100,000 light years


10. Current theories indicate that our universe is composed of huge galactic cluster of stars. These clusters

a. travel randomly in all directions
b. are all moving in the same direction
c. are approaching one another due to gravitational attractive forces
d. are moving away from one another at very high speeds

The accompanying table shows a portion of a data set that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City.

a. Estimate the sample regression equation that enables us to predict property taxes on the basis of the size of the home. (Round your answers to 2 decimal places.)

TaxesˆTaxes^ =  +  Size.

b. Interpret the slope coefficient.

• As Property Taxes increase by 1 dollar, the size of the house increases by 6.85 ft.

• As Size increases by 1 square foot, the property taxes are predicted to increase by $6.85.

c. Predict the property taxes for a 1,300-square-foot home. (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.)

  TaxesˆTaxes^               

rev: 12_08_2018_QC_CS-150875

1. A new entrepreneur wants to estimate the costs of an offsite team-building event for her 14 employees. She was able to gather the following information on a 3-day program in which she is interested. Use the unit technique to estimate the cost per employee of this event. Assume there will 100% participation in all activities.

Hans is a body-builder who owns and operates a health club in Freedonia, where he teaches body-building, weight-lifting, and strength exercises. In 1995, Hans wrote and obtained a copyright for a body-building manual entitled Pump You Up. In 2019, Hans learned that Franz, who lives and works in Sylvania (a state located 1,500 miles from Freedonia), was selling photocopies of Pump You Up over a website for profit without permission. Franz sold several copies of Pump You Up to Freedonia residents, gross Freedonia sales only $500.00 from 2004 to 2019.

Hans sues Franz in Freedonia court for copyright infringement, claiming that Franz is subject to personal jurisdiction in Freedonia bassed on Freedonia’s long-arm statute, which reads:

“A court may exercise personal jurisdiction over any non-domiciliary, or his executor or administrator, who in person or through an agent, transacts any business within the state or contracts anywhere to supply goods or services in the state.”

Franz has no office, employees, property, or bank accounts in Freedonia.

Does the Freedonia court have personal jurisdiction over Franz, making him subject to the lawsuit?

You have been looking around for a nice car and have found the car you want for the right price. All along, you have told the dealer that you want to purchase the car. It will cost you $45,000 out the door. You will put 25% down and take out a 4-year car loan. The interest rate you got from a local bank is 2.99% for 48 months.

You made the deal and now you need to “finalize” the paperwork with the dealer’s finance officer. He offers you an opportunity to lease the car and save you money every month! What a deal!! Here are the terms:

• Capitalized cost $4,500
• Lease payments $399
• Security deposit = 2 lease payments
• Lease term: 48 months
• Mileage cap: 10,000
• Mileage charge if over the cap: $0.25/mile
• Residual value: $22,500

Your savings account pays you 0.80% per year. You typically drive 13,000 miles per year. You plan on bringing the car back in perfect condition and expect to get your deposit back.

1. Based on pure numbers, should you buy or lease? Why?

Assume there is a certain population of fish in a pond whose growth is described by the logistic equation. It is estimated that the carrying capacity for the pond is 1000 fish. Absent constraints, the population would grow by 240% per year. If the starting population is given by p 0 = 600 , then after one breeding season the population of the pond is given by p 1 = After two breeding seasons the population of the pond is given by p 2 =

A company's sales in Seattle were $410,000 in 2012, while their sales in Portland were $285,000 for the same year. Complete the following statements:

a. Seattle's sales were % larger than Portland's.
b. Portland sales were % smaller than Seattle's.
c. Portland sales were % of Seattle's.

Give answers accurate to at least one decimal place.

Sound travels about 750 miles per hour. If you stand in a canyon and sound a horn, you will hear an echo.

Suppose it takes about 2.5 seconds to hear the echo. How far away is the canyon wall, in feet?
feet

Now let's generalize that result. Suppose it takes n seconds to hear the echo. How far away is the canyon wall, in terms of n?
   feet