You are trying to price two bonds that have the same maturity and par value but different coupon rates and different required rates of return. Both bonds mature in 3 years and have par values of $1000. One bond has a coupon rate of 7% and a required rate of return of 7%. The other bond has a coupon rate of 5% and a required rate of return of 5%. What is the absolute value of the difference between the price of these two bonds?
$

You should set your calculator for at least four decimal places of accuracy.
Place your answer in dollars and cents.

Do not include a dollar sign or comma in your answer.

The following table contains observed frequencies for a sample of 200.

Test for independence of the row and column variables using a= .05

Compute the value of the  test statistic (to 2 decimals).

Breakin Away Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:

For the current pay period, the computer programmer worked 60 hours and the administrator worked 50 hours. The federal income tax withheld for all three employees, who are single, can be determined by adding $356.90 to 28% of the difference between the employee's amount subject to withholding and $1,796.00. Assume further that the social security tax rate was 6%, the Medicare tax rate was 1.5%, and one withholding allowance is $70.

Determine the The total earnings of an employee for a payroll period.gross pay and the Gross pay less payroll deductions; the amount the employer is obligated to pay the employee.net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.

An electronics firm manufactures two types of personal computers (PC), a desktop model and a laptop model. The production of a desktop computer requires a capital expenditure of $400 and 40 hours of labor. The production of a laptop computer requires a capital expenditure of $250 and 30 hours of labor. The firm has $20,000 capital and 2,160 labor-hours available for production of desktop and laptop computers. Each desktop computer contributes a profit of $320 and each laptop computer contributes a profit of $220.

What are the corner points of the feasible region if we want to maximize the profit?

(a) (50, 0),(30, 32),(0, 72) ;

(b) (50, 0),(54, 0),(30, 32) ;

(c) (0, 80),(0, 72),(30, 32) ;

(d) (0, 0),(50, 0),(30, 32),(0, 72) ;

(e) (0, 0),(50, 0),(0, 72) ;

What are the decision variables if we want to maximize the profit?

(a) x1, x2 and x3 ;

(b) number of desktop and number of laptop to be made ;

(c) x and y ;

(d) x, y and z ;

(e) x1 and x

Use SPSS for this Application Exercise:
A pharmaceutical company tested three formulations of a pain relief medicine for migraine headache sufferers. Volunteers were selected and randomly assigned to one of the three drug formulations. The volunteers were instructed to take the drug during their next migraine headache episode and to report their pain on a scale of 1 to 10 (10 being most pain). The data are below. What can be concluded with ? = 0.05?

a) What is the appropriate test statistic?
---Select--- na one-way ANOVA within-subjects ANOVA two-way ANOVA

b) Compute the appropriate test statistic(s) to make a decision about H₀.
p-value =  ; Decision:  ---Select--- Reject H0 Fail to reject H0

c) Using the SPSS results, compute the corresponding effect size(s) and indicate magnitude(s).
?² =  ;  ---Select--- na trivial effect small effect medium effect large effect

d) Make an interpretation based on the results.

At least one of the formulations differ on pain.None of the formulations differ on pain.   

We assume that our wages will increase as we gain experience and become more valuable to our employers. Wages also increase because of inflation. By examining a sample of employees at a given point in time, we can look at part of the picture. How does length of service (LOS) relate to wages? The data here (data336.dat) is the LOS in months and wages for 60 women who work in Indiana banks. Wages are yearly total income divided by the number of weeks worked. We have multiplied wages by a constant for reasons of confidentiality.

(a) Plot wages versus LOS. Consider the relationship and whether or not linear regression might be appropriate. (Do this on paper. Your instructor may ask you to turn in this graph.)

(b) Find the least-squares line. Summarize the significance test for the slope. What do you conclude?

(c) State carefully what the slope tells you about the relationship between wages and length of service.

This answer has not been graded yet.

(d) Give a 95% confidence interval for the slope.
(  ,  )

worker  wages   los     size
1       44.898  39      Large
2       85.8585 122     Small
3       37.6708 100     Small
4       44.1095 168     Small
5       47.756  25      Large
6       40.8481 22      Small
7       50.5179 27      Large
8       63.4659 70      Large
9       37.2126 86      Large
10      66.0707 95      Small
11      53.5897 56      Large
12      42.5586 18      Small
13      50.3493 129     Small
14      60.3041 75      Large
15      46.2348 93      Large
16      56.1494 23      Large
17      45.4136 15      Large
18      40.9541 44      Small
19      55.3183 26      Large
20      50.7934 58      Large
21      41.2603 79      Large
22      37.3516 19      Small
23      42.1137 30      Large
24      60.4141 88      Small
25      51.9331 119     Large
26      49.6191 20      Small
27      53.1292 116     Small
28      60.8961 62      Large
29      51.3743 31      Large
30      52.4964 42      Large
31      47.748  102     Small
32      47.1194 90      Large
33      60.6775 99      Large
34      70.5214 21      Small
35      39.4673 164     Large
36      50.4703 83      Large
37      66.2801 100     Large
38      62.3078 185     Small
39      43.79   18      Large
40      54.1258 56      Small
41      39.0053 174     Small
42      52.4289 59      Small
43      57.6612 89      Large
44      51.6591 17      Small
45      50.383  73      Large
46      38.2104 40      Small
47      52.421  78      Large
48      45.5227 55      Large
49      62.5477 53      Small
50      43.9493 58      Large
51      76.2546 87      Large
52      56.4322 110     Large
53      37.8525 64      Large
54      37.132  47      Small
55      50.4954 84      Small
56      49.1702 54      Large
57      41.8979 16      Small
58      45.3906 40      Large
59      57.8986 41      Small
60      40.3537 34      Large

Suppose your research assistant screwed up and lost the information that linked the person’s identity across the two weight loss periods. This makes it impossible to run a paired t-test. Rather than start over:

a) Compute the mean and standard deviation of the two samples (2-pts)

b) Compute the two sample t-statistic (2pts)

c) How many degrees of freedom do you have(3pts)?

d) compute the P-value (4pts)

e) How does this P-value compare to the one you just computed using the paired ttest? (3pts))

Two Sample t-test (16pts):

Suppose you are interested in deciding if the 1990 Toyota Four Runner has been equally reliable as the 1990 Honda Passport. You go out a randomly sample of 5 people who own a 1990 Toyota and 5 other people who own a 1990 Honda and you ask them how often they have to take their vehicles in for maintenance. Here are your data (in thousands of miles):

Toyota: 30 35 32 34 30

Honda: 29 33 28 31 27

a) State the null and alternative hypotheses (2pts)

b) Compute the means and standard deviations of the two samples (2-pts)

c) Compute the two sample t-statistic (2 pts)

c) How many degrees of freedom do you have? (3pts)

d) Compute the P-value (4pts)

e) At an alpha = 0.05 would you accept or reject the null hypothesis? (3pts)

Please show work! thank you!

There are 23 families living in the Willbrook Farms Development. Of these families, 10 prepared their own federal income taxes for last year, 5 had their taxes prepared by a local professional, and the remaining 8 by H&R Block.

1. What is the probability of selecting a family that prepared their own taxes? (Round your answer to 2 decimal places.)

2. What is the probability of selecting two families, both of which prepared their own taxes? (Round your answer to 4 decimal places.)

3. What is the probability of selecting three families, all of which prepared their own taxes? (Round your answer to 4 decimal places.)

4. What is the probability of selecting two families, neither of which had their taxes prepared by H&R Block? (Round your answer to 4 decimal places.)

Suppose an individual invests $10,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.80 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 8 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual fund over the two-year investment period

(Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Make sure the answer you provide is right please

A pharmaceutical company developed a new revolutionary diet pill, “fat buster,” which is believed to greatly help people with losing weights. They conducted an experimental study to assess its relative effectiveness, comparing it with a currently popular diet pill in the market. A random sample of 28 participants were split into two groups: People in Group A used this company’s “fat buster” and those in Group B used a competing diet pill, “fat killer.” After taking the pills for 6 months while otherwise being treated the same way, participants had their weights measured. On average, participants in Group A lost 11.39 pounds while those in Group B lost 6.71 pounds. The results of t-test (non-directional), however, were not significant (a = .01, t_crit = 2.779): t (26) = 2.509. Anxious and desperate, the company now wants to consult you as the new expert on statistics. What recommendations would you make to help them obtain significant results? Provide at least two recommendations. Any additional (and valid) suggestions or recommendations you provide will be given 2 extra points for each.