Suppose, in a country, the government decides to start redistributing income from rich households to poor households. The government considers two policy options:

1. Incentivize rich households to donate to the charity of their choosing — for example, the government could match each dollar the household donates to their charity.

2. Enact an income tax on high income households and directly redistribute the tax revenue to poor households.

Considering both efficiency and equity, provide a reason that (a) would be preferable to (b). Provide a reason that (b) would be preferable to (a). Explain.

The following are quality control data for a manufacturing process at Kensport Chemical Company. The data show the temperature in degrees centigrade at five points in time during a manufacturing cycle.

The company is interested in using control charts to monitor the temperature of its manufacturing process. Compute the upper and lower control limits for the R chart. (Round your answers to three decimal places.)

UCL=___

LCL=___

Construct the R chart.

12

3 4

Compute the upper and lower control limits for the x chart. (Round your answers to three decimal places.)

UCL=___

LCL=___

Construct the x chart.

12

3 4

What conclusions can be made about the quality of the process?

The R chart indicates that the process variability is  in control/out of control .  - No samples fall/One sample falls/Two samples fall/More than two samples fall...outside the R chart control limits. The x chart indicates that the process mean is  in control/out of control .  No samples fall/One sample falls/Two samples fall/More than two samples fall....outside the x chart control limits.

A scientist is conducting a statistical study on the relationship between the ages versus seat-belt usage. The result is illustrated as the following table.

According to the above two-way contingency table, do we have enough evidence to conclude that ages is not related to seat-belt usage at 10% significance level?

Consider the following two income redistribution proposals. Discuss the issues to be considered when thinking about adopting these proposals from the Utilitarian and Rawlsian viewpoints.

A) The plan ends of taking $5.6 milllion from the highest 10% income households and $400,000 from the lowest 50% income households and ends up giving $5.5 milllion to the remaining households in the economy.

B) The plan takes $7 million from the highest 20% income households and ends up giving $2 million to the lowest 20% households.

1. Your company just paid a dividend of $4.0 per share. The company will increase its dividend by 5% next year and will then increase its dividend growth rate by 2% points per year ( from 5% to 7% to 9% to 11%) until it reaches the industry average of 11% dividend growth, after which the company will keep a constant growth rate forever. The required return on your company’s stock is 13.08%. What will a share of stock sell for today? ____(44)_____. What will a share of stock sell for in one year?_____(45)____.

Consider the following regular expression meta operators:

( ) [ ] { } . * + ? ^ $ | \

For each of the following, give one example of strings which the regular expression would match.

Describe (colloquially, in a manner that a non-technical person would understand) the set of strings that the pattern is designed to match.

Each regular expression is enclosed in the pair of '/' characters below.

[2 marks each]

(a) /^[a-z][0-9]*\.$/

(b) /([0-9]+)\s\w+\s\1/

A fund manager has a portfolio worth $50 million with a beta of 0.80. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures contracts on the S&P 500 to hedge the risk. The current level of the S&P 500 index is 1250, the risk-free rate is 6% per annum, and the dividend yield on the index is 3% per annum. The current 3-month S&P 500 index futures price is 1259, and one contract is on 250 times the index.

(a) What position should the fund manager take to eliminate all risk exposure to the market over the next two months? (β* =0) How many three-month S&P 500 futures contracts should the fund manager buy or sell now? (Rounding to the nearest whole number.)

(b) Calculate the effect of your strategy on the fund manager’s returns if the level of the market index in two months is 1,000. Assume that the one-month futures price is 0.25% higher than the market index level in two months. What would be the expected value of the fund manager’s hedged portfolio (including the spot and futures positions) in two months?

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Car Age (years) Selling price

1 9 11.6

2 5 10.0

3 12 3.2

4 15 3.7

5 7 7.0

6 6 12.5

7 8 7.8

8 13 8.4

9 12 8.4

10 15 4.8

11 4 9.2

12    4 7.3

a) Determine regression equation?

a=   

b=

b) Estimate the selling price for 8 years old car

c) Interpret the regression equation

There is way to find in excel formula to find the regression equation please help me on that

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Car Age (years) Selling price

1 9 11.6

2 5 10.0

3 12 3.2

4 15 3.7

5 7 7.0

6 6 12.5

7 8 7.8

8 13 8.4

9 12 8.4

10 15 4.8

11 4 9.2

12    4 7.3

a) Determine regression equation?

a=   

b=

b) Estimate the selling price for 8 years old car

c) Interpret the regression equation

There is way to find in excel formula to find the regression equation please help me on that