Part II. Researchers are testing the effects of a new diet program on n = 10 healthy participants. One topic that researchers are interested in are overall attitudes towards dieting. They are interested in knowing if the new diet program will change the participants attitudes towards dieting. Participants rated their attitude about diets before and after the diet program.

1. The first thing you must do is determine which t – test you need to run. Once you have made that decision, you can proceed to answer b-d

2. Using symbols, state the null and alternative hypothesis

c) Is there significant difference between the two groups? Calculate Cohens D and report the value (this calculation will be done manually) Is the effect size that you calculated small, medium, or large?

4. Report the confidence interval from the SPSS output. Interpret the confidence interval. You may use the slides from last lecture as a reference.

d. Create a figure

The Millenium Villages Project (MVP) and the controversy around the measurement of its impacts. This question will explore that more thoroughly as a way of getting you to think more deeply about the causal inference methods.

(a.) The MVP aims to tackle all the root causes of poverty at once by implementing multi- faceted assistance: medical centers, education initiatives, support for improved agricul- tural productivity, etc. Describe one advantage and one disadvantage of an evaluation of the package as a whole compared with an evaluation of the individual component interventions.

(.b) Putting that critique aside, suppose that we are interested in measuring the effect of being a Millenium Development Village (the “treatment” variable, D) on the incidence of mortality for children under 5 years (child mortality). Using both notation and a short description, describe the

i. true causal effect for village i
ii. average counterfactual outcome for villages that never get MVP support

iii. average causal effect for villages with MVP support

(c.) Suppose that a researcher decides to do a “before-after” comparison of the mortality rate in 2009 in MVP villages with the mortality rate in 2006 in the same villages. Write down the assumption needed for the before-after comparison to represent the true causal effect of MVP support. Is this assumption likely to be satisfied?

Pacific Jewel Airlines is a U.S.-based air freight firm with a wholly owned subsidiary in Hong Kong. The subsidiary, Jewel Hong Kong, has just completed a long-term planning report for the parent company, in which it has estimated the following expected earnings and payout rates for 2014.

Earnings before interest and taxes $10,000

Less interest expense $1,000

Earnings before taxes $9,000

The current Hong Kong corporate tax rate on this category of income is 16.5 percent. Hong Kong imposes no withholding taxes on dividends remitted to U.S. investors (per the Hong Kong-United States bilateral tax treaty). The U.S. corporate income tax rate is 35 percent. The parent wants to repatriate 75 percent of net income as dividends.

1)Calculate the net income available for distribution by the Hong Kong subsidiary in 2014.

2)What is the expected amount of the dividend to be remitted to the U.S. parent next year?

3)After estimating the theoretical U.S. tax liability on the expected dividend (what is often terms gross-up in the U.S.), what is the total dividend after tax, including all Hong Kong and U.S. taxes, expected next year?

4)What is the effective tax rate on this foreign-sourced income next year?

Pacific Jewel Airlines is a U.S.-based air freight firm with a wholly owned subsidiary in Hong Kong. The subsidiary, Jewel Hong Kong, has just completed a long-term planning report for the parent company, in which it has estimated the following expected earnings and payout rates for 2014.

Earnings before interest and taxes           $10,000

Less interest expense                                    $1,000

Earnings before taxes                                   $9,000

The current Hong Kong corporate tax rate on this category of income is 16.5 percent. Hong Kong imposes no withholding taxes on dividends remitted to U.S. investors (per the Hong Kong-United States bilateral tax treaty). The U.S. corporate income tax rate is 35 percent. The parent wants to repatriate 75 percent of net income as dividends.

1. Calculate the net income available for distribution by the Hong Kong subsidiary in 2014.
2. What is the expected amount of the dividend to be remitted to the U.S. parent next year?
3. After estimating the theoretical U.S. tax liability on the expected dividend (what is often terms gross-up in the U.S.), what is the total dividend after tax, including all Hong Kong and U.S. taxes, expected next year?
4. What is the effective tax rate on this foreign-sourced income next year?

Refi Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s debt-equity ratio is expected to rise from 40 percent to 50 percent. The firm currently has $3.8 million worth of debt outstanding. The cost of this debt is 7 percent per year. The firm expects to have an EBIT of $1.37 million per year in perpetuity and pays no taxes.

a. What is the market value of the firm before and after the repurchase announcement? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)

b. What is the expected return on the firm’s equity before the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

c. What is the expected return on the equity of an otherwise identical all-equity firm? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

d. What is the expected return on the firm’s equity after the announcement of the stock repurchase plan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

1-

A machine fills cereal boxes. A random sample of 6 boxes had a mean of 20.25 oz. The distribution is assumed to be NORMAL with KNOWN standard deviation of 0.21 oz.

Find a 99% Confidence Interval UPPER LIMIT?

Note: Enter X.XX AT LEAST ONE DIGIT BEFORE THE DECIMAL, TWO AFTER and round up. Thus, 27 is entered as 27.00, 3.5 is entered as 3.50, 0.3750 is entered as 0.38

2-

A machine fills cereal boxes. A random sample of 6 boxes had a mean of 20.25 oz. The distribution is assumed to be NORMAL with KNOWN standard deviation of 0.21 oz.

Find a 80% Confidence Interval UPPER LIMIT?

Note: Enter X.XX AT LEAST ONE DIGIT BEFORE THE DECIMAL, TWO AFTER and round up. Thus, 27 is entered as 27.00, 3.5 is entered as 3.50, 0.3750 is entered as 0.38

3-

A machine fills cereal boxes. A random sample of 6 boxes had a mean of 20.25 oz. The distribution is assumed to be NORMAL with KNOWN standard deviation of 0.21 oz.

Find the SAMPLE SIZE required to obtain a 0.1 Margin of Error for a 95% confidence interval.

Note: Enter X INTEGER with NO DECIMAL and round up. Thus, 7 is entered as 7, 3.5 is entered as 4, and 0.375 is entered as 0

A company is thinking about changing its credit policy to attract customers away from competitors. The present policy calls for a 1.37/10, net 30 cash discount. The new policy would call for a 3.48/10, net 50 cash discount. Currently, 21% of its customers are taking the discount, and it is anticipated that this number would go up to 60% with the new discount policy. It is further anticipated that annual sales would increase from a level of $427k to $686k as a result of the change in the cash discount policy. The average inventory carried by the firm is based on an EOQ. Assume sales increase from 16k to 21.3k units. The ordering cost for each order is $200 and the carrying cost per unit is $1.82 – these values will not change with the discount. Each unit in inventory has an average cost of $11. Cost of goods sold equates to 69% of net sales, general and administrative expenses are 16% of net sales, and interest payments of 14% will only be necessary for the increase in the accounts receivable and inventory balances*(see information below). Taxes will be 36% of before-tax income. Note: The term “k” is used to represent thousands (× $1,000).

Required: Calculate the percentage in earnings after taxes (EAT) between the current policy (before the discount) and the new policy (after the discount).

• Research the Child Care and Early Year Act (CCEYA, 2014) for regulations pertaining to school-age care as well as the Bill 242 for extended care for kindergarten children. Links are provided in the Required Readings on SLATE.
• Based on the information researched, answer the following questions:

According to the CCEYA, what is the age group that school-age care programs serve? Please list all age groups.

According to the CCEYA, what are the staff/child ratio and maximum group size for different school-age care programs?

Based on Bill242, what are the staff/child ratio and maximum group size for kindergarten classrooms, and for extended care before and after school hours?

What is the staff qualification or training required to work in school-age care programs, or in kindergarten classrooms, or the extended care programs?

Are there different requirements for outdoor play areas for school-age children, or kindergarten children? Should the outdoor playground be fenced for the kindergarten children?

According to the CCEYA, what are the requirements for curriculum planning as well as indoor and outdoor schedules for school-age or kindergarten children during before and after school hours, PA days or March Break? Is the outdoor play time required for kindergarten and school-age children during PA days or March Break?

Multiple myeloma, or plasma cancer, is characterized by increase blood vessel formulation (angiogenesis) in the bone marrow that is a predictive factor in survival. One treatment approach used for multiple myeloma is stem cell transplantation with the patient’s own stem cells.

The data is listed bellow:

a) At alpha 0.05 level of significance, is there evidence that the mean bone marrow microvessel density is higher before the stem cell transplant than after the stem cell transplant?

Use the Excel output to answer the questions below:

a) What is the null hypothesis?

b) What is the correct t-statistic?

c) What is the correct decision rule?

d) What is the correct conclusion?

e) Using only the p-value, what is the conclusion?

Cigarettes are proven to lead to serious negative health effects for both smokers and those exposed to the second-hand smoke. In an effort to reduce smoking, the government requires the suppliers of cigarettes to pay a per-unit tax on each pack of cigarettes sold. Which of the following statement below is true regarding who would be most against this tax policy? Assume that the degree of opposition to the tax corresponds exactly to the increase in price paid by the buyers or the decrease in price received by the sellers for cigarettes, so you should consider how the tax changes those prices when selecting your answer. The correct answer depends on the price elasticity of demand, so explicitly state whether demand for cigarettes is price elastic or price inelastic and provide your reasoning. Support your answer with an illustration on a supply and demand graph and fully explain. Illustrate with a price elastic or price inelastic demand curve based on the reasoning provided, show the supply curve before and after the tax, and show how the incidence of the tax is shared between buyers and sellers of cigarettes (i.e the tax paid by consumers and received by sellers before and after the tax).

1. Cigarette manufacturers will be more opposed to this tax.
2. Cigarette smokers will be more opposed to this tax.
3. Both cigarette manufacturers and smokers will be equally opposed to this tax.