The project to obtain charitable donations is now 40 days into a planned 50-day project. The project is divided into 3 activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 35 days of the project and to bring in $25,600. Even though we are 40 days into the project, we still see that we have only 92% of this activity complete. The second activity relates to company donations and is scheduled to run for 40 days starting on day 5 and extending through day 45. We estimate that even though we should have (35/40) 88% of this activity complete, it is actually only 52% complete. This part of the project was scheduled to bring in $150,600 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $51,200. So far $177,000 has actually been brought in on the project.

Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index.

What is the:

Schedule variance     $

Schedule performance index

Cost variance $

Cost performance index

2. To raise awareness of its capabilities, FedEx developed a sales promotion that was sent to selected offices. To assess the possible benefit of the promotion, FedEx pulled the shipping records for a random sample of 50 offices that received the promotion and another random sample of 75 that did not and collected data on the number of mailings. They want to see if those who received the sales promotions shipped more mailings. The complete set of results is provided below (promotions columns). a. State the null and alternate hypotheses. b. Run the test. Paste the test output and state your decision (minitab - Stat-paired T-Test and CI). c. What is the best estimate for the population difference in means for the number of mailings between offices with the promotion and offices without the promotion? (Be 90% confident in your estimate for the confidence interval). d. Interpret the confidence interval in part c. e. What is the margin of error associated with 90% confidence interval?

Promotion   Mailings
Promotions_NO   15
Promotions_NO   49
Promotions_NO   42
Promotions_NO   22
Promotions_NO   26
Promotions_NO   35
Promotions_NO   38
Promotions_NO   13
Promotions_NO   35
Promotions_NO   14
Promotions_NO   5
Promotions_NO   64
Promotions_NO   27
Promotions_NO   57
Promotions_NO   50
Promotions_NO   43
Promotions_NO   32
Promotions_NO   39
Promotions_NO   13
Promotions_NO   19
Promotions_NO   47
Promotions_NO   45
Promotions_NO   38
Promotions_NO   59
Promotions_NO   35
Promotions_NO   8
Promotions_NO   10
Promotions_NO   58
Promotions_NO   44
Promotions_NO   9
Promotions_NO   10
Promotions_NO   0
Promotions_NO   42
Promotions_NO   37
Promotions_NO   23
Promotions_NO   12
Promotions_NO   54
Promotions_NO   41
Promotions_NO   36
Promotions_NO   43
Promotions_NO   45
Promotions_NO   18
Promotions_NO   65
Promotions_NO   10
Promotions_NO   17
Promotions_NO   59
Promotions_NO   26
Promotions_NO   18
Promotions_NO   8
Promotions_NO   14
Promotions_NO   74
Promotions_NO   29
Promotions_NO   60
Promotions_NO   19
Promotions_NO   30
Promotions_NO   29
Promotions_NO   12
Promotions_NO   0
Promotions_NO   20
Promotions_NO   31
Promotions_NO   13
Promotions_NO   5
Promotions_NO   7
Promotions_NO   42
Promotions_NO   36
Promotions_NO   9
Promotions_NO   23
Promotions_NO   70
Promotions_NO   28
Promotions_NO   25
Promotions_NO   26
Promotions_NO   24
Promotions_NO   50
Promotions_NO   7
Promotions_NO   0
Promotions_YES   38
Promotions_YES   74
Promotions_YES   18
Promotions_YES   65
Promotions_YES   60
Promotions_YES   51
Promotions_YES   71
Promotions_YES   47
Promotions_YES   29
Promotions_YES   39
Promotions_YES   45
Promotions_YES   36
Promotions_YES   57
Promotions_YES   36
Promotions_YES   12
Promotions_YES   20
Promotions_YES   23
Promotions_YES   79
Promotions_YES   16
Promotions_YES   4
Promotions_YES   62
Promotions_YES   37
Promotions_YES   2
Promotions_YES   23
Promotions_YES   6
Promotions_YES   10
Promotions_YES   28
Promotions_YES   65
Promotions_YES   25
Promotions_YES   86
Promotions_YES   27
Promotions_YES   58
Promotions_YES   33
Promotions_YES   54
Promotions_YES   40
Promotions_YES   92
Promotions_YES   71
Promotions_YES   0
Promotions_YES   77
Promotions_YES   60
Promotions_YES   56
Promotions_YES   38
Promotions_YES   16
Promotions_YES   89
Promotions_YES   62
Promotions_YES   9
Promotions_YES   42
Promotions_YES   73
Promotions_YES   49
Promotions_YES   14

1A) Twenty laboratory mice were randomly divided into two groups of 10. Each group was fed according to a prescribed diet. At the end of 3 weeks, the weight gained by each animal was recorded. Do the data in the following table justify the conclusion that the mean weight gained on diet B was greater than the mean weight gained on diet A, at the α = 0.05 level of significance? Assume normality. (Use Diet B - Diet A.)

(a) Find t. (Give your answer correct to two decimal places.)


(b) Find the p-value. (Give your answer correct to four decimal places.)

1B) A bakery is considering buying one of two gas ovens. The bakery requires that the temperature remain constant during a baking operation. A study was conducted to measure the variance in temperature of the ovens during the baking process. The variance in temperature before the thermostat restarted the flame for the Monarch oven was 2.2 for 23 measurements. The variance for the Kraft oven was 3.2 for 21 measurements. Does this information provide sufficient reason to conclude that there is a difference in the variances for the two ovens? Assume measurements are normally distributed and use a 0.02 level of significance.

(a) Find F. (Give your answer correct to two decimal places.)


(b) Find the p-value. (Give your answer correct to four decimal places.)

Assume that the price of real estate is determined by P=PV(all cash flows generated by the real estate).

After you have graduated you work for some years and can save some money. You decide to invest in a house which you want to rent out for a rate of SEK 11,000 per month. Assume that the rental rate will increase with 1.2% per year (which is 0.1% per month). (For the sake of simplicity, also assume that there are no further costs involved e.g. renovating or repair).

1. As the market risk of renting out the house is low, you think that a discount rate of 5.0% (APR with monthly compounding) would be appropriate. What is the price of the house under the assumption that the cash flows from rent will last forever?

Answer: the price of the house under these assumptions is SEK ?????? million. (round to two decimals)

2. If discount rate is 1% lower than 5.0% what is the price of the house?

Answer: the price of the house is SEK ?????? million. (round to two decimals)

3. You want to make the valuation of the house more realistic by assuming that the time horizon for the valuation should be 50 years. Again, you assume that the house will generate SEK 11,000 rental income per month for the next 50 years, and the rental income is assumed to grow by 1.2% per year (or 0.1% per month). What is the value of the house with a discount rate of 5.0% APR with monthly compounding?

Answer: the price of the house is SEK ????? million. (round to two decimals)

4. Make the same assumptions as in (c) but assume a 1% lower discount rate. What is the price of the house?

Answer: the price of the house is SEK ??????? million. (round to two decimals)

Assume that the price of real estate is determined by P=PV(all cash flows generated by the real estate).

After you have graduated you work for some years and can save some money. You decide to invest in a house which you want to rent out for a rate of SEK 11,000 per month. Assume that the rental rate will increase with 1.2% per year (which is 0.1% per month). (For the sake of simplicity, also assume that there are no further costs involved e.g. renovating or repair).

a) As the market risk of renting out the house is low, you think that a discount rate of 5.0% (APR with monthly compounding) would be appropriate. What is the price of the house under the assumption that the cash flows from rent will last forever?

Answer: the price of the house under these assumptions is SEK  million. (round to two decimals)

b) If discount rate is 1% lower than 5.0% what is the price of the house?

Answer: the price of the house is SEK million. (round to two decimals)

c) You want to make the valuation of the house more realistic by assuming that the time horizon for the valuation should be 50 years. Again, you assume that the house will generate SEK 11,000 rental income per month for the next 50 years, and the rental income is assumed to grow by 1.2% per year (or 0.1% per month). What is the value of the house with a discount rate of 5.0% APR with monthly compounding?

Answer: the price of the house is SEK million. (round to two decimals)

d) Make the same assumptions as in (c) but assume a 1% lower discount rate. What is the price of the house?

Answer: the price of the house is SEK million. (round to two decimals)

The table below lists the number of games played in a yearly best-of-seven baseball championship series, along with the expected proportions for the number of games played with teams of equal abilities. Use a 0.05 significance level to test the claim that the actual numbers of games fit the distribution indicated by the expected proportions.

Ho:     A. The observed frequencies agree with two of the expected proportions.

          B. At least one of the observed frequencies do not agree with the expected proportions.

         C. The observed frequencies agree with the expected proportions.

          D. The observed frequencies agree with three of the expected proportions.

Answer Ho: ________

H1:   A. The observed frequencies agree with two of the expected proportions.

          B. At least one of the observed frequencies do not agree with the expected proportions.

         C. The observed frequencies agree with the expected proportions.

          D. The observed frequencies agree with three of the expected proportions.

Answer H1: ________

Calculate the test statistic,?

?2.

?2= _____(Round to three decimal places as needed.)

Calculate the P-value.

P-value=________(Round to four decimal places as needed.)

What is the conclusion for this hypothesis test?

A. Fail to reject H0. There is sufficient evidence to warrant rejection of the claim that the actual numbers of games fit the distribution indicated by the expected proportions..

B. Reject H0. There is sufficient evidence to warrant rejection of the claim that the actual numbers of games fit the distribution indicated by the expected proportions.

C. Fail to reject H0. There is insufficient evidence to warrant rejection of the claim that the actual numbers of games fit the distribution indicated by the expected proportions.

D. Reject H0. There is insufficient evidence to warrant rejection of the claim that the actual numbers of games fit the distribution indicated by the expected proportions.

1. Chloe plans to invest some of her savings into two blue-chip stocks, namely Stock A and Stock B. Suppose that the mean and standard deviation of the annual return of Stock A are 5% and 5%, respectively, and the mean and standard deviation for the annual return of Stock B are 10% and 10%, respectively. In this investment portfolio, Chloe will put 50% of her money into Stock A and 50% of her money into Stock B.

   1. (i) [3 marks] If the correlation coefficient of the two stock returns is -0.2, do you think that this investment portfolio can achieve diversification? (for this one, i think corr is the indicator of diversification, in this question, Corr=-0.2<0, which means achieve diversification. But the answer gives: "V[R]=26.25, cannot achieve portfolio diversification". please help, thx!

   2. (ii) [1 bonus mark] In order to achieve portfolio diversification, what advice will you give Chloe?

1) Which of the statements below is​ FALSE?

A. Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. As long as the profile of Project A is above the profile of Project​ B, Project A will have a higher NPV value for that particular discount rate.

B. Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. As we proceed past the crossover rate to the right on the x−​axis, Project​ B's profile will be above Project​ A's profile.

C.Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. This means that Project A has a lower NPV than Project B when the discount rate is zero.

D. Project A and Project B are mutually exclusive. The two projects intersect in terms of NPV at a discount rate labeled the crossover rate

2) One method a company may use to handle a cash shortfall is to draw cash from savings.

A) True

B) False

3) Harris Electronics bills its clients on the first of the month. For​ example, any sale made in the month of July is billed August 1 and is due September 1. Clients traditionally pay as​ follows: 50% by the end of the first month​ August), 40% by the end of the second month​ (September), 8% by the end of the third month​ (October), and​ 2% default on their bills. What is the dollar value of January billings collected in​ April?

First Quarter Sales -Jan $88,000 Feb $74,000 March $96,000

Second Quarter Sales - April $99,000 May $82,000 June $63,000

A. $29,600

B.$0.00

C.$7,040

D.​$5,920

4) In terms of the​ float, the buyer of a product wants to​ ________ and the seller wants to​ ________.

A. increase the collection​ float; decrease the disbursement float

B. increase the disbursement​ float; decrease the collection float

C. decrease the collection​ float; decrease the disbursement float

D. decrease the disbursement​ float; decrease the collection float

5) Pacific Automotive has a​ $250,000 compensating balance loan with its bank. The terms of the loan call for Pacific to keep​ 10% of the loan as a compensating balance and pay interest at an annual rate of​ 6.50% on the entire amount. If the firm borrows the maximum amount for one​ year, what is the EAR on this​ loan?

A. ​6.50%

B. ​7.39%

C. ​7.22%

D. 6.87%

6) Bestor Bookkeeping has a​ $150,000 compensating balance loan with its bank. The terms of the loan call for Bestor to keep​ 8% of the loan as a compensating balance and pay interest at an annual rate of​ 7.50% on the entire amount. If the firm borrows the maximum amount for one​ year, what is the EAR on this​ loan?

A. ​8.15%

B. ​7.50%

C. ​8.67%

D. 8.35%

7) New York Investments​ (NYI), an investment banking​ firm, has proposed two types of payment plans for the IPO being considered by Albany Exploration. The first is a firm commitment of​ $40,000,000. The second is a best efforts arrangement in which NYI will receive​ $2.00 for every share sold up to a maximum of​ $3,600,000 for the​ 1,800,000 shares being offered. How much money will NYI earn under the firm commitment method if it is able to sell only​ 95% of the offering at a price of​ $25.00 per​ share?

a) $800,000

b) $1,080,000

c) $2,750,000

d) $2,200,000

7) Pacific Motors Inc. plans to issue​ $3,000,000 of commercial paper with a

6−month maturity at​ 98% of par value. What is the​ EAR?

A.​4.08%

B.​4.12%

C.​4.00%

D.2.00%

8) ​Often, in​ bankruptcy, the current managers continue to run the business while it operates under the reorganization​ plan, but the court may also appoint a trustee to oversee the operations and protect the rights of the claimants during this period of time.

True

False