2. SHOW ALL WORK According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (5.4%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%.

(a) Journalize the entry to record the accrual of payroll. If required, round your answers to the nearest cent.

(b) Journalize the entry to record the accrual of payroll taxes. If required, round your answers to the nearest cent.

Using the data and equilibrium income seen below (with expansionary fiscal and monetary policy), calculate the budget surplus (deficit)

AD=Y=200+0.8(Y-.0.25Y+1000)+500-25i+2000+1000

Y=0.5Y-25i+4500

0.5Y=4500-25i

Y=9000-50i

Ms=L

4000=0.5Y-75i

Y=8000+150i

8000+150i=9000-50i

150i=1000-50i

200i=1000

i=5

Y=8000+150(5)

Y=8750

Z means PAE in our model:

Z=Cp+Ip+G

Cp=c0+c1(Y-T)

T=Tbar

Ip=Ibar

G=Gbar

a. derive the income-expenditure multipliers with respect to Ip, G and T

b. Given that c0=100, c1=0.8, Ip=500, G=200, T=200, what will be the equilibrum level of income and the values of the multipliers of part (a) above?

c. Consider the effect on income of an increase in private investment of 100. what would be the effect on the government's budget balance and why?

23-Two stocks each pay a $1 dividend that is growing annually at 4 percent. Stock A's beta = 1.3; stock B's beta = 0.8.

a. Which stock is more volatile?

b. If Treasury bills yield 2 percent and you expect the market to rise by 8 percent, what is your risk-adjusted required return for each stock?

c. Using the dividend-growth model, what is the maximum price you would be willing to pay for each stock?

d. Why are their valuations different?

A statistical program is recommended.

Suppose that the magnitude of earthquakes recorded in a region of North America can be modeled as having a gamma distribution with α = 0.8 and β = 2.6.

(b) What is the probability that the magnitude of an earthquake striking the region will exceed 5 on the Richter scale? (Round your answer to four decimal places.)

(c) Using an exponential distribution with mean 2.6 to model the magnitude of an earthquake striking the region, the probability an earthquake will exceed a magnitude of 5 is 0.1462. Is this probability larger or smaller than the probability found in (b)? Explain.

Suppose that the price of gold at close of trading yesterday was $600 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $605. Moreover, the price of silver at the close of trading yesterday was $16, its volatility was estimated as 1.5% per day, and its correlation with gold was estimated as 0.8. The price of sliver at the close of trading today is unchanged at $16. a. Update the volatilities for gold and silver using the EWMA model with λ = 0.94. b. Update the correlation between gold and sliver using the EWMA model with λ = 0.94.

A machine is producing metal pieces that are cylindrical in shape. A sample of 12 pieces is taken and the diameters are: 1.01, 0.97, 1.03, 1.04, 0.8, 0.78, 1.06, 0.95, 0.87,1.0,0.88 and 0.90 centimeters.

a. Find 98% confidence interval for the true average diameter of metal pieces produced by the machine.

We would like to test whether the true average diameter of metal pieces produced by the machine is less than 1 centimeter.

b. Assuming the population distribution is approximately normal and using level of significance ? = 0.05, carry out a hypothesis test.

The summary of the payroll for the monthly pay period ending December 15 indicated the following

Journalize the entries to record (a) the payroll and (b) the employer's payroll tax expense for the month. The state unemployment tax rate is 3.1%, and the federal unemployment tax rate is 0.8%. Only $30,000 of salaries are subject to unemployment taxes.

This is to be done in Excel.

Thanks!! :)

8.

A sample of 400 observations will be taken from an infinite population. The population proportion equals 0.8. The probability that the sample proportion will be greater than 0.83 is

Select one:

a. 0.4332

b. 0.0668

c. 0.9332

d. 0.5668

9.

Four hundred people were asked whether gun laws should be more stringent. Three hundred said "yes," and 100 said "no". The point estimate of the proportion in the population who will respond "yes" is

Select one:

a. 300

b. approximately 300

c. 0.75

d. 0.25

The number of hits to a website follows a Poisson process. Hits occur at the rate of 0.8 per minute between​ 7:00 P.M. and 9​:00 P.M. Given below are three scenarios for the number of hits to the website. Compute the probability of each scenario between 8:39 P.M. and 8​:47 P.M. Interpret each result.

​(a) exactly seven P(7)=

(Round to four decimal places as​ needed.)

​(b) fewer than seven

​(c) at least seven

​

​(Round to four decimal places as​ needed.)