# Reading the data into R:

my.datafile <- tempfile()
cat(file=my.datafile, "
 71 15 
 74 19 
 70 11 
 71 15 
 69 12 
 73 17 
 72 15 
 75 19 
 72 16 
 74 18 
 71 13 
 72 15 
 73 17 
 72 16 
 71 15 
 75 20 
 71 15 
 75 19 
 78 22 
 79 23 
 72 16 
 75 20 
 76 21 
 74 19 
 70 13 
", sep=" ")

options(scipen=999) # suppressing scientific notation

simpbasketball <- read.table(my.datafile, header=FALSE, col.names=c("height", "goals")) 

COMPUTER CALCULATIONS:

I need to know how to code in R for the solutions, not by hand.

2. Look at the data in Table 7.18 on page 368 of the textbook. These data are also

given in the SAS code labeled “SAS_basketball_goal_data” and R code labeled basketball goal data .

The dependent variable is goals and the independent variable is height of basketball players.

Complete a SAS /R program and answer the following questions about the data set:

(a) Does a scatter plot indicate a linear relationship between the two variables?

Is there anything disconcerting about the scatter plot? Explain.

(b) Fit the least-squares regression line (using SAS / R) and interpret the estimated slope

in the context of this data set. Does it make sense to interpret the estimated intercept? Explain.

(c) For these data, what is the unbiased estimate of the error variance? (Give a number.)

(d) Using the SAS / R output, test the hypothesis that the true slope of the regression line

is zero (as opposed to nonzero). State the appropriate null and alternative hypotheses,

give the value of the test statistic and give the appropriate P-value. (Use significance

level of 0.05.) Explain what this means in terms of the relationship between the two

variables.

(e) Using SAS / R, find a 95% confidence interval for the mean basketball goal for

a player with a height of 77 inches. In addition find a 95% prediction interval for

basketball goal for a player with a height of 77 inches.

Refer to Situation 4-1. Because price controls were in effect at the time the embargo occurred, an economist would have most likely predicted that

a)the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would increase sharply.

b)the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would decline sharply.

c)long waiting lines and black markets would appear.

d)a surplus of gasoline would result.

Read Case 2.2, “The Ethics of Human Resource Management” by Elizabeth D. Scott (pages 74–87), in Strategic Human Resources Management.

Hiring managers and recruiters sometimes face ethical dilemmas when selecting final candidates for an open position. At times, conflicts of interest can arise where friends, relatives, neighbors, alma mater graduates, and so on become applicants for a position a hiring manager or recruiter is filling.

With this in mind, post a response of at least 150 words to the following question:

• How has your organization guarded against these conflicts? Do you feel various politics enter into the selection decisions of final candidates?

12,Western Electric has 29,500 shares of common stock outstanding at a price per share of $74 and a rate of return of 13.25 percent. The firm has 7,050 shares of 7.30 percent preferred stock outstanding at a price of $92.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $389,000 and currently sells for 108.5 percent of face. The yield to maturity on the debt is 7.93 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent?

100 kg/hr of aqueous mixture containing 74 %wt of sucrose is cooled from 60 ˚C to 20 ˚C. Due to the decrease in temperature, some of the sugar precipitates out from the mixture as crystals and are subsequently removed via a separator unit.  In the separation of the crystals, for every 1 kg of crystals removed, 0.05 kg of the aqueous mixture will be removed together with the crystals.  Calculate the mass flow rate of the remaining saturated aqueous solution (in kg/hr).

Assume that the solubility of sucrose as a function of temperature in ˚C is given by the equation: %wt sucrose = 63.2 + 0.146T + 0.0006T2

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $

Problem 8-2 Calculating Project NPV

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 11 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $