The percentage of income spent on housing (including mortgage/rent, taxes, utilities) is an important factor loan agents use in approving customers for mortgages. A researched selected a sample of 20 homeowners in Florida and calculated their total housing costs are a percent of their monthly income. The researcher collected this information from the same 20 homeowners 5 years ago and again in 2019. The information collected is in the attached Excel data file. Is it reasonable to conclude the percent is less now than five years ago? Use a two-sample test of hypothesis to determine your answer. Explain and show your work, including the 6 steps for hypothesis testing.
| Homeowner | Five Years Ago | Now |
| Holt | 17 | 10 |
| Pierse | 20 | 39 |
| Merenick | 29 | 37 |
| Lanoue | 43 | 27 |
| Fagan | 36 | 12 |
| Bobko | 43 | 41 |
| Kippert | 45 | 24 |
| San Roman | 19 | 26 |
| Kurimsky | 49 | 28 |
| Davison | 49 | 26 |
| Lozier | 35 | 32 |
| Cieslinski | 16 | 32 |
| Rowatti | 23 | 21 |
| Koppel | 33 | 12 |
| Rumsey | 44 | 40 |
| McGinnis | 44 | 42 |
| Pierce | 28 | 22 |
| Roll | 29 | 19 |
| Lang | 39 | 35 |
| Miller | 22 | 12 |
In: Math
A business owner believed that a higher percentage of females than males bought items from her stores. To test her belief, she conducted a study. What might her research hypothesis be?
A. p = .5
B. p > .5
C. p > .5 (greater than or equal to symbol)
D. not enough information
In: Math
Q6: Calculation of ABC stock's beta. Below are 16 monthly ·percentage returns of ABC stock and of the index.
| Calculation of Beta | Column1 | Column2 |
| Month | ABC stock return | Index return |
| 1 | -13.38 | 2.52 |
| 2 | 16.79 | 5.45 |
| 3 | -1.67 | 0.76 |
| 4 | -3.46 | 2.36 |
| 5 | 10.22 | 8.56 |
| 6 | 7.13 | 8.67 |
| 7 | 6.71 | 10.8 |
| 8 | 7.84 | 3.33 |
| 9 | 2.15 | -5.07 |
| 10 | 7.95 | 7.1 |
| 11 | -8.05 | -11.57 |
| 12 | 7.68 | 4.65 |
| 13 | 4.75 | 14.59 |
| 14 | 7.55 | 2.66 |
| 15 | -2.36 | 3.81 |
| 16 | 4.98 | 7.99 |
a. Calculate the sample variances and sample standard deviations
of the stock and of the index.
b. Calculate the sample covariance of ABC stock returns and the
.index returns.
c. What is the sensitivity of the ABC stock to the index return, or
in other words what is the beta of ABC stock?
d. You are considering a risky investment project whose risk
profile is similar to the risk of ABC stock If the risk free rate
is 2% and risk premium is 6%, what is the discount rate to use for
this investment project?
e. Calculate the residual return of ABC stock by using the
following equation: e(i)=ABC return(i)-beta*index return(i), i=1,2,
... 16. You should use the beta value in the answer to the question
(c). What is the covariance· of the residual return of ABC stock
and the index return?
f. Calculate the R"2 of the regression. What is the coefficient of
correlation between ABC stock and the index?
In: Finance
In 2011-2015, mutual fund manager, Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison.
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Fund | −1.3 | +24.2 | +40.2 | +11.2 | +0.4 |
| Market index | −0.7 | +14.0 | +31.2 | +10.5 | −0.5 |
Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each.
In: Finance
In 2011-2015, mutual fund manager, Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2011 2012 2013 2014 2015 Fund −1.5 +23.7 +41.6 +10.6 +0.6 Market index −0.6 +18.0 +31.1 +11.9 −0.4 Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
In: Finance
Government G levies an income tax with the following rate structure:
Percentage Rate Bracket
6 % Income from –0– to $30,000
10 Income from $30,001 to $70,000
20 Income from $70,001 to $200,000
28 Income in excess of $200,000
Taxpayer A’s taxable income is $190,700. Compute A’s tax and average tax rate. What is A’s marginal tax rate?
Taxpayer B’s taxable income is $762,200. Compute B’s tax and average tax rate. What is B’s marginal tax rate?
In: Accounting
Data suggest that while overall average inventory are declining, the relative percentage being held by manufacturers is increasing. Explain why you think this observation is either true or false.
In: Operations Management
Please visit www.irs.gov and answer the following: 1) What percentage of bankruptcy petitions does the IRS estimate contain some kind of fraud? 2) What are the major goals of the CI division’s bankruptcy fraud program? 3) Read two or three examples of bankruptcy fraud and discuss.
In: Accounting
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5. Bond yields Coupon payments are fixed, but the percentage return that investors receive varies based on market conditions. This percentage return is referred to as the bond’s yield. Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of those assumptions? The bond will not be called. The bond has an early redemption feature. Consider the case of Demed Inc.: Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,040.35. However, Demed Inc. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Demed Inc.’s bonds?
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In: Finance
Market demand is QD= 50-P and the market supply is QS=P. The government imposes a percentage tax of 30%. What is the new equilibrium price and quantity? Select one: a. P*=25; Q*=25 b. P*=20; Q*=30 c. P*=30; Q*=20 d. P*=30; Q*=30 e. None of the above
In: Economics