Problem 15-05 (Algorithmic)

Consider the following time series data.

1. Develop a three-week moving average for this time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.

   Week	Time Series Value	Forecast
   1	16
   2	13
   3	18
   4	11
   5	15
   6	14

   
   MSE:
   
   The forecast for week 7:
   
2. Use  = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.

   Week	Time Series Value	Forecast
   1	16
   2	13
   3	18
   4	11
   5	15
   6	14

   
   MSE:
   
   The forecast for week 7:
3. Use trial and error to find a value of the exponential smoothing coefficient alpha that results in a smaller MSE than what you calculated for alpha = 0.2. Find a value of alpha for the smallest MSE. Round your answer to three decimal places.
   
   Alpha = ________

Please solve for part C! Thank you !

On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.)

Lucy and Henry each have $6516. Each knows that with 0.1 probability, they will lose 85% of their wealth. They both have the option of buying α units of insurance, with each unit costing $0.1. Each unit of insurance pays out $1 in the event the loss occurs. The cost of the insurance policy is paid regardless of whether the loss is incurred. Lucy's utility is given by ??(?)=?, Henry's utility is given by ??(?)= sqrt(x)

Answer the following:

(If rounding is needed, only round at the end and write your answer to three decimal places.)

a) (0.5 marks) Without insurance, what is the expected value of the loss?  

b) (0.5 marks) For Henry, facing the "lottery " above without any insurance is as bad as losing how many dollars for sure?

c) (1 mark) Find Lucy's utility maximising choice of α. If more than 1 exist, enter the largest α.

d) (1 mark) Now suppose insurance costs $0.2. Find Lucy's utility maximising choice of α. If more than 1 exist, enter the largest α.

e) (1 mark) What is Henry's utility maximising choice of α with the new price of 0.2? If more than 1 exist, enter the largest α.

1. An increase in revenue always:
   1. increases stockholders' equity.
   2. increases assets.
   3. decreases stockholders' equity.
   4. decreases assets.

2. Which of the following journal entries would decrease stockholders' equity?
   1. Debit Prepaid Insurance and credit Cash.
   2. Debit Deferred Revenue and credit Service Revenue.
   3. Debit Supplies and credit Accounts Payable.
   4. Debit Insurance Expense and credit Cash.

3. In April, the Surf and Sand Hotel books and accepts a cash payment for $25,600 for vacation services to be provided during in July. The journal entry recorded in April will include a debit to:
   1. Cash and a credit to Deferred Revenue.
   2. Accounts Payable and a credit to Service Revenue.
   3. Accounts Receivable and a credit to Service Revenue.
   4. Prepaid Expenses and a credit to Service Revenue.

discuss at least one pro and con of putting a price on a specific environmental good of your choosing. Using a specific resource or environmental amenity, discuss:

• What characteristics of the good restrict market valuation?
• In what instances would we want to put a price on the good?
• In what cases can a price actually harm the resource in question rather than help it?
• What estimation techniques did the researchers use in this National Park study and is this tool the best tool for estimating the value of your chosen amenity? Why or why not?
• In your response to a classmate's post, offer an alternative valuation method and briefly explain why it would be an acceptable tool for the amenity discussed.

200-400 Words

A New York City daily newspaper called "Manhattan Today" charges an annual subscription fee of $108. Customers prepay their subscriptions and receive 270 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $110 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $100 per hour. The company estimates that approximately 30% of the coupons will be redeemed.

Required:

Prepare the journal entry to recognize the sale of 10 new subscriptions, clearly identifying the revenue or unearned revenue associated with each performance obligation.

Define economics. explain briefly how the economic way of thinking-interms of rational, self interested people responding to incentives- relates to each of the following situations.

a. A student deciding whether to purchase a textbook for a particular class.

b. Government officials seeking more funding for mass transit through higher taxes.

c. A muncipality taxing hotel guests to obtain funding for a new sports stadium.

1-2. Some people claim the "economic way of thinking" does not apply to issues such as health care. Explain how economics does apply to both a low-income household and a middle-income household? Can the same phrase be applied to very high-income household?

Consider the following situations and determine whether they exhibit simultaneous consumption, network effects, x-inefficiency or rent-seeking behavior. Assume the businesses referenced function as monopolies.

(a) A pharmaceutical company discovers a vaccine for the common cold. The company puts a significant effort into tests to get it FDA-approved and into hiring lawyers to obtain a patent.

(b) An Internet service provider adds thousands of new customers.

(c) The head of a family-owned, major hotel chain decides to hire his wild, socialite niece to work as an executive of the company after her reality TV career ends.

(d) An online profile company helps college and high school students from across the country to connect with each other.

2. Given a 28-acre watershed with the following land use mix: 8 acres of SFR (38% impervious) on HSG-B soils, 5 acres of SFR (30% impervious) on HSG-C soils, and 15 acres of open space (park and playground) in fair condition on HSG-C soils. Watershed time of concentration is 21 minutes. The design return period 24-hour rainfall depth is 5.25 inches.

1. The runoff-weighted average curve number (CN) =                             
2. The area-weighted unit hydrograph peak rate factor (PRF) =                                                                 

c)    The runoff volume from a rainfall of 3.25 inches (watershed inches) =                             

d)   The runoff volume from a rainfall of 0.47 inches (watershed inches) =