Eric wants to estimate the percentage of elementary school children who have a social media account. He surveys 450 elementary school children and finds that 280 have a social media account.

Identify the values needed to calculate a confidence interval at the 99% confidence level. Then find the confidence interval.

Use the table of common z-scores above.

• Round the final answer to three decimal places.

1. (Do not round intermediate calculations. If the absolute value of your result is less than 1, then put a zero before the decimal point, like 0.16.)

   Farm Family Life Insurance Co. is selling a contract that pays $7,500 monthly to you and your heirs eternally. The contract currently sells for $585,000.
   
   What is the monthly return on this investment vehicle? %  (Enter your answer in percentage rounded to 2 decimal places, e.g., 32.16.)
   
   What is the APR? %   (Enter your answer in percentage rounded to 2 decimal places, e.g., 32.16.)
   
   What is the effective annual return? % (Enter your answer in percentage rounded to 2 decimal places, e.g., 32.16.)

An insurance company reports the following distribution of the claim sizes for an auto insurance policy from a sample of 87 cases.

Claim Size (in $) Number of claims

2000 to 3000    15

3000 to 4000 10

4000 to 5000    20

5000 to 6000 15

6000 to 7000 10

7000 to 8000    10

8000 to 9000    7

( a ) Construct a histogram for the data.

( b ) a frequency polygon for the data.

( c the mean and the standard deviation of the claim size.

( d ) the percentage of claims whose claim size is less than $7000.

( e ) the percentage of claims whose claim size is at least $5000.

( f ) the percentage of claims whose claim size is $8000 or above.

. Samples of 20 products from a production line are selected every hour. Typically, 2% of the products require improvement. Let X denote the number of products in the sample of 25 that require improvement. A production problem is suspected if X exceeds its mean by more than 3 standard deviations. (a) If the percentage of products that require improvement remains at 2%, what is the probability that X exceeds its mean by more than 3 standard deviations? (b) If the improvement percentage increases to 5%, what is the probability that X exceeds 1? (c) If the improvement percentage increases to 5%, what is the probability that X exceeds 1 in at least one of the next five hours of samples?

1.) the price elasticity of demand for margarine is -1.3 and the income elasticity of demand for margarine is -0.2.

a. Based on these figures, is the demand for margarine elastic or inelastic? How can you tell?

b. If the price of margarine falls by 5%, by what percentage will the quantity of margarine demanded change? Will it rise or fall?

c. If the price of margarine falls by 5%, by what percentage will the total revenue from sales of margarine (or total consumer spending on margarine) change? Will it rise or fall?

d. If consumer incomes rise by 10%, would the share of consumer income spent on margarine rise, or would it fall? Calculate an estimate of the percentage change in the share of income spent on margarine as a result of a 10% increase in income.

Consider the following​ bonds:

What is the percentage change in the price of each bond if its yield to maturity falls from

6.1 % to 5.1%​?

like,

a.The price of bond A at 6.1 % YTM per $100 face value is $?

b.The price of bond A at 5.1% YTM per $100 face value is ​$?

c. The percentage change in the price of bond A is $?

same with Bond B, C, D, What is the percentage change in the price of each bond if its yield to maturity falls from

6.1% to 5.1%​?

thank you.

In a study of government financial aid for college​ students, it becomes necessary to estimate the percentage of​ full-time college students who earn a​ bachelor's degree in four years or less. Find the sample size needed to estimate that percentage. Use a 0.05 margin of error and use a confidence level of 99%. Complete parts​ (a) through​ (c) below.

1) Assume that nothing is known about the percentage to be estimated.

n=

2)Assume prior studies have shown that about 45%of​ full-time students earn​ bachelor's degrees in four years or less.

n=

3)Does the added knowledge in part​ (b) have much of an effect on the sample​ size?

Refer to the following information about ABC Bank for the questions 1-3.

The starting average interest rate (on assets and liabilities): 5%

1. If interest rates grow by 1 percentage point, what is the resulting percentage change in assets’ value for ABC Bank?

1. 8.57%
2. -8.57%
3. 5.71%
4. -5.71%
5. None of the above

2. The duration gap adjusted to leverage equals:
   1. -6.6
   2. 6.0
   3. 7.7
   4. 10
   5. None of the above

3. If interest rates grow by 1 percentage point, what is the resulting market value change in the bank's equity?
   1. -6.27
   2. -6.58
   3. 6.58
   4. 7.67
   5. 7.30
   6. None of the above

​Treck Co. expects to pay £350,000 in one month for its imports from Northern Ireland. It also expects to receive £325,000 for its exports to Scotland in one month. Treck Co. estimates the standard deviation of monthly percentage changes of the pound to be 2% percent over the last 3 years. Assume that these percentage changes are normally distributed. Using the value-at-risk (VaR) method based on a 95 percent confidence level, what is the maximum one-month loss in dollars if the expected percentage change of the pound during next month is -2 percent? The current spot rate of the pound (before considering the maximum one-month loss) is $1.38.

Assume Nike is exposed to a currency portfolio weighted 50 percent in Canadian dollars and 50 percent in Mexican pesos. Nike estimates the standard deviation of quarterly percentage changes to be 4 percent for the Canadian dollar and 6 percent for the Mexican peso. Also assume that Nike estimates a correlation coefficient of 0.2 between these two currencies.
a) Calculate the portfolio’s standard deviation.
b) Assuming i) normal distribution of the quarterly percentage changes of each currency (and so the same of the portfolio as well), and ii) an expected percentage change of -1 percent for the currency portfolio, calculate the maximum one-quarter loss of the currency portfolio based on a 95 percent confidence level.