From the section above, you should have found that dSres = - dUsys/Tsys This expression relates the
change in entropy of the system to the change in internal energy of the system, and the
temperature shared by system and reservoir.

B. Recall the relationship between entropy and multiplicity, S = k ln Ω.

Use this to describe the quantity dSuniv in terms of multiplicities.

Use the relationship between entropy and multiplicity to derive an expression for the ratio Ωf/Ωi for such an energy transfer.

If the energy of the system increases, what happens to the entropy of the reservoir?

If the energy of the system increases, what happens to the multiplicity of the reservoir?

1. Waiting time for checkout line at two stores of a supermarket chain were measured for a random sample of customers at each store. The chain wants to use this data to test the research (alternative) hypothesis that the mean waiting time for checkout at Store 1 is lower than that of Store 2. (12 points)

1. What are the null and alternative hypothesis for this research?
2. What are the sample mean waiting time for checkout line and the sample standard deviation for the two stores?
3. Compute the test statistic t used to test the hypothesis. Note that the population standard deviations are not known and therefore you cannot use the formula in Section 10.1. Use the one in Section 10.2 instead.
4. Compute the degree of freedom for the test statistic t.
5. Can the chain conclude that the mean waiting time for checkout at Store 1 is lower than that of Store 2? Use the critical-value approach and α = 0.05 to conduct the hypothesis test.
6. Construct a 95% confidence interval for the difference of mean waiting time for checkout line at the two stores.

PART B

1. Waiting time for checkout line at two stores of a supermarket chain were measured for a random sample of customers at each store. The chain wants to use this data to test the research (alternative) hypothesis that the mean waiting time for checkout at Store 1 is lower than that of Store 2. (12 points)

1. What are the null and alternative hypothesis for this research?
2. What are the sample mean waiting time for checkout line and the sample

standard deviation for the two stores?

3. Compute the test statistic t used to test the hypothesis. Note that the population standard deviations are not known and therefore you cannot use the formula in Section 10.1. Use the one in Section 10.2 instead.
4. Compute the degree of freedom for the test statistic t.
5. Can the chain conclude that the mean waiting time for checkout at Store 1 is lower than that of Store 2? Use the critical-value approach and α = 0.05 to conduct the hypothesis test.
6.    Construct a 95% confidence interval for the difference of mean waiting

time for checkout line at the two stores.

1. Waiting time for checkout line at two stores of a supermarket chain were measured for a random sample of customers at each store. The chain wants to use this data to test the research (alternative) hypothesis that the mean waiting time for checkout at Store 1 is lower than that of Store 2. (12 points)

1. What are the null and alternative hypothesis for this research?
2. What are the sample mean waiting time for checkout line and the sample standard deviation for the two stores?
3. Compute the test statistic t used to test the hypothesis. Note that the population standard deviations are not known and therefore you cannot use the formula in Section 10.1. Use the one in Section 10.2 instead.
4. Compute the degree of freedom for the test statistic t.
5. Can the chain conclude that the mean waiting time for checkout at Store 1 is lower than that of Store 2? Use the critical-value approach and α = 0.05 to conduct the hypothesis test.
6. Construct a 95% confidence interval for the difference of mean waiting time for checkout line at the two stores.
   

Sickle cell anemia is inherited as an autosomal, recessive disorder. Individuals who inherit the mutated gene from both parents will show symptoms of sickle cell, including a stiffening of the red blood cells when the individual is under conditions with low oxygen levels in the air (e.g. on top of a mountain). This can lead to low red blood cell count (anemia), shortness of breath, fatigue, jaundice, and joint pain. Most critically, the stiffened red blood cells can clog small blood vessels, blocking blood flow to critical organs (e.g. brain, lungs, liver, etc.) that can lead to death. Curiously, heterozygous carriers have a certain amount of resistance to malaria. The malaria parasite must invade red blood cells in order to develop and apparently the cell surface is altered in heterozygous individuals, thereby limiting the ability of the malaria parasite to enter the red blood cells. Recall that the rules for autosomal recessive diseases are that only the homozygous recessive individuals experience the symptoms of sickle cell anemia.

C.    Determine the results of a mating between two parents that are both heterozygous for sickle cell anemia.

1. Provide the Punnett square and the potential offspring phenotypes and genotypes.
2. What percentage of children from this mating will develop sickle cell anemia?
3. What percentage of children from this mating will carry at least one sickle cell allele?

(a) It is commonly accepted that there are gains from adding securities to an
investment portfolio. Explain what is meant by this statement. (Your answer
should include a discussion and example regarding systematic and
non‐systematic risk as well as an indication of the optimal number of assets to be
included within a portfolio in theory and in practice.)

Click or tap here to enter text.

(b) The following table provides monthly percentage price changes for two well
known market indexes.

Month Russell
2000

Nikkei
1 0.04 0.04
2 0.10 ‐0.02
3 ‐0.04 0.07
4 0.03 0.02
5 0.11 0.02
6 ‐0.08 0.06

Answer the following:
(i) What have you assumed about the distribution of data (that is,
have you assumed the data is a sample or a population).

Click or tap here to enter text.

(ii) Calculate the expected monthly rate of return and standard deviation for
each market index. (Hint: Use your calculator as no marks will be
provided for working in this particular question.)

Click or tap here to enter text.

(iii) Calculate the correlation coefficient for Russell 2000 – Nikkei. (Hint: Use
your calculator as no marks will be provided for working in this particular
question.)

  Python-“Ship Dice” Ship Dice: Ship Dice is a game that you will be creating. The rules of the game are fairly simple. The game is normally played with 2-6 people, but our version will only be one player who is playing. The rules are simple, player rolls 3 dice randomly (Red, Green, and Blue), and the player has couple of options to choose from to win: 1- 3 chances to roll the dice randomly and get all dices 6 2- 3 chances to roll the dice randomly and get at least one dice equal 5 3- 3 chances to roll the dice randomly and get Red dice to be 6, Green dice to be 5, Blue dice to be 4 Dices will be selected randomly (random number between 1 – 6, as dice has six faces). If the program reaches any of the above options in less than 3 chances then the program will announce that the player won, otherwise player lost. Program Requirements:  Ask the player to choose an option.  In case user chooses option 1 : o 3 dices will be randomly rolled (Red, Green, and Blue). o After each roll, output the values of the dices and announce either “Player won” or “No matching”. (rule 1: all dice equal 6) o Player has 3 chances.  In case user chooses option 2 : o 3 dices will be randomly rolled (Red, Green, and Blue). o After each roll, output the values of the dices and announce either “Player won” or “No matching”. (rule 2: at least one dice equal 5) o Player has 3 chances.  In case user chooses option 3 : o 3 dices will be randomly rolled (Red, Green, and Blue). o After each roll, output the values of the dices and announce either “Player won” or “No matching”. (rule 3: Red dice to be 6, Green dice to be 5, Blue dice to be 4) o Player has 3 chances.  We have 3 options in the menu, so need to validate player input, make sure player not entering invalid number.  Once player knows if he/she won or not, you will need to ask the player if he/she wants to play again o If Yes/yes, then display the menu again and ask player to choose from the options and play the game. o If No/no, then display a message to the player and exit “Good Game!”  Output sample: Welcome to Ship Dice You have 3 chances to win! Here are game rules: 1- 3 chances for all dices are 6 2- 3 chances for at least one dice equal 5 3- 3 chances for Red dice is 6, Green dice is 5, Blue dice is 4 Enter your choice 5 Invalid input, please choose an option from the above menu Enter your choice 4 Invalid input, please choose an option from the above menu Enter your choice 1 Trial: 1 red 6 green 3 blue 1 No matching! Trial: 2 red 3 green 5 blue

1. Willis and Adams, CPAs uses the template shown below in the "Audit Planning Memorandum" to prepare the planning memo. Some portions have already been completed or begun. Brief descriptions of what will be included in these sections of the planning memo are included for instructional purposes. For each of the memo topics that remain to be completed (suppliers and competition), you should address at least two key points about EarthWear Clothiers or the mail order clothing industry. Keep in mind that the points you identify should have important implications for the audit. Address each topic using information from the EarthWear and Willis & Adams websites, the textbook, the work papers provided in this workbook, and prior mini-cases.

EARTHWEAR CLOTHIERS
Audit Planning Memorandum
December 31, 2016

ENGAGEMENT OBJECTIVES, DELIVERABLES, AND KEY DATEs

Typically, in this section the auditors will discuss the scope of the upcoming audit. The auditor will list the deliverables that will result from their work (e.g., debt covenant letters, quaterly reviews, etc..). Lastly, the auditor will typically list or attach a schedule of when each of those deliverables will be completed.

UNDERSTANDING THE BUSINESS

A short histroy of the company is typically given in this section. Some detail pertaining to the location(s) of the business will be provided, along with an organizational chart of the company and its entities, An overview of the company's strategy may be provided as well. Related parties will be listed and an industry overview is also typically included, along with any regulatory developments which have taken/are taking place in relation to the company or industry. From a financial standpoint,preliminary analytics will be performed to provide a high-level perspective of the company's development over time and relation to the industry as a whole. Finally, this section may conclude with an initial assessment of the company as a going concern.

BACKGROUND INFORMATION

· Business Strategy and Target Customers

EarthWear Clothiers generates revenue mainly through the sale of high quality clothing for outdoor sports, such as hiking, skiing, fly-fishing, and white-water kayaking. The company’s product lines also include casual clothes, accessories, shoes, and soft luggage. The company’s key customers are the 18.8 million persons on its mailing list, approximately 6.8 million of whom are viewed as “current customers” because they have purchased from the company in the last 24 months. Market research as of January 2015 indicates that approximately 50 percent of customers are in the 35-54 age group and had a median income of $62,000. Almost two-thirds are in professional or managerial positions.

_______________________________________________________________________________________________

·  Suppliers

Address at least two key points about issues relating to EarthWear clothiers'suppliers. Keep in mind that the points you identity should have important implications for understanding EarthWear as an audit client.

·  Competition

Address at least two key points about EarthWear clothiers'competitors or the mail order clothing industry. Keep in mind that the points you identity should have important implications for understanding EarthWear as an audit client.

___________________________________________________________________________________________

·  Social Factors

The company’s results can be affected by changing fashion trends.

·  Analytical Procedures

*Days Outstanding in Accounts Receivable is 3.09 and the industry average is 14.10. This ratio indicates that EarthWear collects on sales much more quickly than the rest of the industry. It also represents a significant improvement relative to prior years for EarthWear and is better than expected for this year. This ratio is consistent with a relatively low allowance for doubtful accounts. Controller explains that fast collection rate is a result of increased focus on collection activities and newly implemented incentives for early payment. We will corroborate the client's explanation as a part of our testing in the sales & collection cycle.

INTERNAL CONTROL ENVIRONMENT

In this section, the auditors will discuss the control environment, including company-level controls. Prior audit results pertaining to the control environment may also be reported, in addition to the amount of control reliance expected throughout the audit.

AUDIT SCOPE CONSIDERATIONS

Typically, in this section the auditors will discuss the scope of the procedures to be preformed. Materiality for the audit and tolerable misstatement for accounts or business processes will be established. These scoping decisions will affect audit program preparation at a more detailed level. For example,tolerable misstatement will affect sample sizes involved in tests of details, with lower levels of tolerable misstatement leading to larger sample sizes.

·  Materiality

Materiality for the 2016 audit is calculated on work paper 3-7.

COMMUNICATION AND COORDINATION

With regards to communication and coordination, the auditor will discuss how specialists/experts will be used throughout the audit. In addition, the auditor may list the locations that will be visited so that the audit may be more efficiently coordinated. Lastly, the auditor may create a review schedule so the entire audit team knows the timetable for the audit and the work that needs to be performed.

SUMMARY OF AUDIT PLAN

In this section, a summary of all the previously addresed issues will be provided key issues,such as the scope of the audit,the main risks which need to be addressed, and the schedule of the audit will all be reviewed and included.

AUDIT PLANNING MEMORANDUM APPROVALS

The audit partners and managers will sign off on the planning memo as evidence that they are in agreement as to the documented understanding of the client and its risks, as well as the scope and plan of the audit, as presented in this memorandum.

________________________________________________________________________________________________

2. In addition to the analytical procedures already listed in the memo, analyze an additional four that are useful in the planning process for the EarthWear audit. Discuss the meaning of the analytical procedures included and how they may affect your audit plan/procedures. Work Paper 3-6 and the Common Size Balance Sheet and Income Statement for EarthWear have been provided to assist you.

Analyze 4 additional analytical procedures that were completed in the planning process.

_______________________________________________________________________

EarthWear's Quick Ratio is 0.73 and the industry average is 0.80

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

_______________________________________________________________________

EarthWear's Inventory Turnover is 3.88 and the industry average is 6.20

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

_______________________________________________________________________

EarthWear's Gross Profit Percentage is 43.90% and the industry average is 38.80%

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

_______________________________________________________________________

EarthWear's Debt to Equity ratio is 0.50 and the industry average is 0.84

Discuss the meaning of the analytical procedure and how it may affect risks relating to the EarthWear audit or your planned audit procedures.

What is meant by the term significance? How is significance level related to what you learned in previous chapters about probability? Please provide an example using significance in your work or life.

What is the main use of a one sample Z-Test? Please provide an example.