Question 20

A regressive tax:

Question 21

The two sources that contribute roughly 80 percent together of total tax revenues are:

Question 22

The marginal tax rate refers to the tax rate charged on the:

Question 23

A payroll tax is a tax on the:

Question 24

FICA, the tax that supports Medicare and Social Security, is generally:

Under which two situations can a firm utilize the percentage completion method to recognize revenue as the asset for sale is being constructed?

Suppose the following data show the percentage of 17- to 24-year-olds who are attending college in several metropolitan statistical areas in four geographic regions of the United States.

Use α = 0.05 to test whether the mean percentage of 17- to 24-year-olds who are attending college is the same for the four geographic regions.

State the null and alternative hypotheses.

H₀: μ_N ≠ μ_M ≠ μ_S ≠ μ_W
H_a: μ_N = μ_M = μ_S = μ_WH₀: μ_N = μ_M = μ_S = μ_W
H_a: μ_N ≠ μ_M ≠ μ_S ≠ μ_W     H₀: Not all the population means are equal.
H_a: μ_N = μ_M = μ_S = μ_WH₀: μ_N = μ_M = μ_S = μ_W
H_a: Not all the population means are equal.H₀: At least two of the population means are equal.
H_a: At least two of the population means are different.

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Reject H₀. There is not sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.Reject H₀. There is sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.     Do not reject H₀. There is sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.Do not reject H₀. There is not sufficient evidence to conclude that the percentage of 17- to 24-year-olds who are attending college is not the same for the four geographic regions.

A study claims 32% of U.S. adults eat chocolate daily. A researcher suspects the actual percentage is greater than this. The researcher randomly selects 88 people and finds 39 of them eat chocolate daily. Perform a hypothesis test using ∝ = 0.05. Step #1: State the null and alternative hypothesis. Identify the claim.Step#2: Find the test value.Which test is needed?Right,left, or two tailed Step #3: Find the p-value. Do not reject or reject the null hypothesis?

a) Define the following terms:

i) Calorific Value

ii) Volumetric Percentage with respect to air composition

iii) Gravimetric percentage with respect to air composition

iv) Stoichiometric Ratio

b) In combustion chemistry, state why the usage of excess oxygen is often desirable.

c) Consider the combustion of pentane. Determine:

i) The stoichiometric air to fuel ratio

ii) The excess air supplied, if 8% CO2 (by vol) is found in the dry product. ( Take air to be 21% Oxygen,and 79% Nitrogen)

The National Highway Traffic Safety Administration reports the percentage of traffic accidents occurring each day of the week. Assume that a sample of 420 accidents provided the following date.

Conduct a hypothesis test to determine whether the proportion of traffic accidents is the same for each day of the week. Using a .05 level of significance, what is your conclusion?

1. Which is the correct statement of the null hypothesis?

a. H0: psun = pmon = ptue = pwed = pthu = pfri = psat is not = .143

b. H0: psun = pmon = ptue = pwed = pthu = pfri = psat is = .143

c. H0: psun not = pmon not = ptue not = pwed not = pthu not = .143

d. Ha: psun = pmon = ptue = pwed = pthu = pfri = psat is = .143

2. What is the correct statement of the null hypothesis?

a. Ha: psun = pmon = ptue = pwed = pthu = pfri = psat is not = .143

b. Ha: psun = pmon = ptue = pwed = pthu = pfri = psat is = .143

c. Ha: the population proportions are not equal to .143

d. H0: psun = pmon = ptue = pwed = pthu = pfri = psat is = .143

3. How many categories

4. What is the calculated test statistic? (4 decimals)

5. How many degrees of freedom?

6. What is the critical value? (3 decimal places)

7. What is the confident coefficient? (2 decimal places)

8. What is the alpha error? (2 decimal places)

9. What is the p-value? (4 decimal places)

10. What is the conclusion?

a. reject the null hypothesis all proportions of accidents are not different

b. do not reject the null hypothesis the proportions of accidents are different

c. do not reject the null hypothesis all proportions of accidents are not different

d. reject the null hypothesis some of the proportions of accidents are different

2. When circuit boards used in the manufacture of compact disc players are tested, the long-run percentage of defectives is 5%. Let ? = the number of defective boards in a random sample of size ? = 25.

   a. Determine ? (? = 2) (Using the formula of the pmf) b. Determine ? (1 ≤ ? ≤ 4) (Using the table). c. Calculate the expected value d. Calculate variance and standard deviation of ?.

A health insurance company wants to know the percentage of its policyholders, who
have tried alternative (e.g. herbal) treatments. A random sample of 25 of the company’s policyholders
were asked whether or not (Yes or No) they have ever tried such treatment. Below are their responses:

Yes Yes No Yes Yes Yes Yes No Yes Yes Yes No No No No No No Yes
No No Yes Yes No Yes No

a. What is the point estimate of the corresponding population proportion?
b. Construct a 96% confidence interval for the percentages of this company’s policyholders who
have tried alternative treatments.
c. Interpret the confidence interval.

The following table summarizes prices of various default-free zerocoupon bonds (expressed as a percentage of face value):

3.1 Compute the yield to maturity (YTM) for each of the five zero-coupon bonds and plot the zero-coupon yield curve (for the first five years). For a typical coupon bond, what are the two conditions that have to be met for the computed or promised YTM to be realized? If these two conditions or assumptions are not met, what kind of risk would you have? (15 %)

3.2 Based on your answer in 3.1, compute, under the pure expectations theory, the two-year forward rate three years from now. What can you conclude about forward rates when the yield curve is flat? (5 %)

3.3 Suppose you wanted to lock in an interest rate for an investment that begins in one year and matures in five years. Under the pure expectations theory, what rate would you obtain if there are no arbitrage opportunities? Show your calculations. (3 %)

3.4 There are three main theories for the term structure of interest rates: (1) Pure expectations (unbiased); (2) Liquidity preference (term premium); and (3) Market segmentation. According to the pure expectations theory, the term structure is determined solely by the market’s expectations regarding future interest rates. Discuss how the other two theories differ from the pure expectations theory and provide empirical evidence for each of these three theories.