Sara is a 60-year-old Anglo female in reasonably good health. She wants to take out a $50,000 term (that is, straight death benefit) life insurance policy until she is 65. The policy will expire on her 65th birthday. The probability of death in a given year is provided by the Vital Statistics Section of the Statistical Abstract of the United States (116th Edition).

Sara is applying to Big Rock Insurance Company for her term insurance policy.

(a) What is the probability that Sara will die in her 60th year? (Use 5 decimal places.)


Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance?
$

(b) Repeat part (a) for ages 61, 62, 63, and 64.

What would be the total expected cost to Big Rock Insurance over the years 60 through 64?
$

(c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Sara's death, how much should it charge for the policy?
$

(d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make?
$

Sara is a 60-year-old Anglo female in reasonably good health. She wants to take out a $50,000 term (that is, straight death benefit) life insurance policy until she is 65. The policy will expire on her 65th birthday. The probability of death in a given year is provided by the Vital Statistics Section of the Statistical Abstract of the United States (116th Edition). x = age 60 61 62 63 64 P(death at this age) 0.00559 0.00959 0.00917 0.00900 0.01123 Sara is applying to Big Rock Insurance Company for her term insurance policy.

(a) What is the probability that Sara will die in her 60th year? (Use 5 decimal places.)

Using this probability and the $50,000 death benefit, what is the expected cost to Big Rock Insurance?
$  

(b) Repeat part (a) for ages 61, 62, 63, and 64.

61

62

63

64

What would be the total expected cost to Big Rock Insurance over the years 60 through 64?
$  

(c) If Big Rock Insurance wants to make a profit of $700 above the expected total cost paid out for Sara's death, how much should it charge for the policy?

(d) If Big Rock Insurance Company charges $5000 for the policy, how much profit does the company expect to make?

The following items are a simplified version of very recent balance sheet data relating to the Federal Reserve Bank of the United States of America:

Currency at issue $1,650bn

Accounts due to foreign central banks and others $83bn

Loans to private banks $130bn

Government securities $3,850bn

Government balance $407bn

Exchange settlement account balances $1,867bn

Net foreign currency reserves (and gold) $37bn

Other assets $30bn

1. Classify each of the above individually as either an asset or a liability of the Federal Reserve. .

2. Draw up a balance sheet for the Federal Reserve Bank, using the above data, recording Assets on the left, and Liabilities and Equity Capital on the right. Assume all the assets and liabilities of the Fed have been included in the above list. .

3. Calculate the equity capital of the Federal Reserve Bank. (1 mark).

4. Suppose the Federal Reserve makes a loan of $10bn to the Bank of New York Mellon, which is a private bank. How does this affect the balance sheet of the Federal Reserve? Which item or items change, and by how much? .

5. Suppose the Federal Reserve Bank pays a dividend of $20bn to the U.S. Federal Government. How does this affect the balance sheet of the Federal Reserve? Which item or items change, and by how much? .

6. Can the Federal Reserve Bank go bankrupt? If so, how could this happen? If not, why not? (1 mark).

Assignment 1
Instructions
A. You have 2500 words to utilize
B. No more than 10% above the maximum nor 10% below the maximum word count
C. Use the Harvard referencing system
D. The deadline in the 20/09/2018 NO EXTENSIONS AVAILABLE
E. Submissions are to be made via the portal and no email submissions will be accepted
The Federal Reserve System is the central bank of the United States. It performs five general
functions to promote the effective operation of the U.S. economy and, more generally, the public
interest. The Federal Reserve
• conducts the nation’s monetary policy to promote maximum employment, stable prices, and
moderate long-term interest rates in the U.S. economy;
• promotes the stability of the financial system and seeks to minimize and contain systemic
risks through active monitoring and engagement in the U.S. and abroad.
Similarly our central bank BOZ is the equivalent of the FED. The Bank of Zambia (BoZ) is the
Central Bank of the Republic of Zambia and derives its functions and powers from the Bank of
Zambia Act, no,43 of 1996 and the Banking and Financial Services Act, Chapter 387 of the Laws of
Zambia. The Mission Statement of the Bank is to achieve and maintain price and financial system
stability to foster sustainable economic development.
As you can see both appear to be on the same track, critically assess the two banks by carrying out
an in-depth evaluation of their functions and highlight areas of improvement thats could be
recommended to both.

How do you reply to a discussion post below from a classmate? Please provide an answer or additional comments to the discussion. Thank you in advance!

Bonds are securities that are issued or sold to the public by corporations and governments and are a vital source of income. The value of a bond depends on the present value of its coupons and the present value of the face amount. You can determine the price of the bond and the yield by applying the discounted cash flow formulas. Bonds are typically interest only loans and the features are listed in the indenture. The bond’s value is determined by the bond’s maturity periods, face value, coupon, and market interest rates for similar bonds. Bond values largely depend on interest rates because bond prices and interest rates always move in opposite directions.

Most bonds are traded over the counter with little transparency. This makes it difficult to obtain updated prices on bonds. Bonds are quoted at the clean price, with accrued interest removed. One will actually pay the dirty price. Inflation affects interest rates, yields, and returns. Bonds are rated by Moody’s and Standard & Poor’s (S&P). These companies rate according to the creditworthiness of the corporation or government entity. I remember some years ago when the United States rating had declined from AAA to AA+. At the time, I knew their credit had taken a hit, but now I understand in greater detail.

A researcher new to the Tucson area was shocked when she received her first summer electric bill. She believes that energy bills vary dramatically depending on where you live in the United States and sets out to test her claim. She samples 36 people from the Northeast, 100 people from the Southeast, 81 people from the Midwest, and 200 people from the West. She finds the following average annual energy bills from each region: Northeast: $1,159.26 Southeast: $1,202.51 Midwest: $1,300.04 West: $1,199.99

She conducts an ANOVA test in Excel which returns a p-value of 0.0005 with an MSE = 94.12. She rejects the null hypothesis and concludes that there is some difference in the average annual electric bill based on the region.

Calculate a 95% Fisher’s confidence interval between the West and Northeast. Let the West be population 1 and the Northeast be population 2 in the formula. Round your answer to 2 decimals.

Calculate a 95% Fisher’s confidence interval between the West and Southeast. Let the West be population 1 and the Southeast be population 2 in the formula. Round your answer to 2 decimals.

Calculate a 95% Fisher’s confidence interval between the West and Midwest. Let the West be population 1 and the Midwest be population 2 in the formula. Round your answer to 2 decimals.

Happely is a global online marketplace that connects designers with companies who need graphic design work for their projects. Companies often need a custom design that is high quality and don’t want to go to a high-end creative agency to get their needs met. Companies join the platform to hire graphic designers, and graphic designers join the platform to be hired for projects. A company writes a design brief explaining the help that it needs and the specific deliverable needed. Happely provides a search tool to search for designers by their skill sets (e.g., logo design vs. T-shirt design).

Companies like Happely have contributed to the rise of the “gig economy”— an existing market system in which companies hire independent contract workers for short-term projects. To attract business, artists and designers post examples of their work on the platform. Which of the following is an example of an externality relevant to the gig economy?

a. When browsing other artists’ profiles, Angela (another graphic designer) sees Juanita’s designs for socks and misappropriates them for work she is doing on gloves.

b. Due to the rise of popularity for Happely in India, a majority of students at the College of Art in New Delhi start to join the Happely network.

c. Revenue per company increases in the United States over the next year.

d. There is a rise in the number of workers who have sufficient work experience.

Is a movie's earnings related to its ratings? Data on the top ten grossing movies in the United States for the weekend of July 13, 2007, were extracted from the Internet Movie Database (IMDB). These data included the weekend earnings and the average rating from users of IMDB. The rating system used by IMDB is a 10-star rating system. The following table shows the data. Using these data, determine whether there is a relation between a movie's earnings and its ratings.

• Conduct the six-steps of hypothesis testing to determine if there is a relationship between the rating of a film and its gross box office earnings.
• Calculate the expected gross earnings for a movie with a rating of 9.5 and a movie with a rating of 4.8. You will need to solve for the intercept (B) by using the X and Y of any movie and the formula Y= Mx + B. Remember, M = r(Sy / Sx) where M (also called a in the slides) is the slope, r = correlation coefficient, Sy = standard deviation of Y, Sx standard deviation of X).

How do you draw the ATC curve and the MC curve for this Scenario?

THE RESILIENTARMOUR Corporation is an American company that manufactures cost-effective protective covers for automobiles made out of innovative composite material, which currently are being sold only in the United States. ResilientArmour currently produces and sells 100,000 protective covers a month and operates its one factory at 60 percent capacity. At that output, the average total cost (ATC) of manufacturing a protective cover is $19.00. Experience has shown that the ATC decreases as output is expanded beyond 100,000 units per month but rises again if output is increased above 125,000 units per month.

THE RESILIENTARMOUR Corporation normally sells its protective covers domestically for $24.00 each. It recently received an order for an additional 10,000 protective covers per month from a buyer in a foreign country where THE RESILIENTARMOUR Corporation would like to do business. This buyer specified that it would pay no more than $14.00 per protective cover. The firm’s accountants estimate that at 110,000 units a month, the ATC of producing a protective cover would be $18.00. THE RESILIENTARMOUR executives want to accept the order.

ASSIGNMENT INSTRUCTIONS:

Draw the firm’s ATC curve and fit the MC curve to it. Then estimate MC at Q = 110,000. Use the profit-maximizing rules (assume P = MR for this paper) to answer the following questions:

1a. The following statement demonstrates which type of statistics: “On average, students in my urban studies class are twenty-one years old.”

a.Inferential Statistics

b.Descriptive Statistics

c.Both of the above

d.None of the above

1b.) A researcher wants to study the number of job interviews of graduating seniors in the United States. What would be the key variable for the researcher?

a.Number of graduating seniors

b.Average GPA for the student body

c.How long it took the average senior to find a job

d.Number of job interviews each respondent had

1c.) Identify the sampling technique used (cluster, convenience, simple random, stratified, systematic). “Take a sample of five zip codes from the Cleveland metropolitan region and use every elementary school from each of the zip code regions. Determine the number of students enrolled in first grade in each of the schools selected.”

a.Simple

b.Systematic

c.Cluster

d.Stratified

e.convenience

1d.) Identify the sampling technique used (cluster, convenience, simple random, stratified, systematic). “Split Internet users into different age groups and then select a random sample from each age group to determine the amount of time they are online each month.”

a.Simple

b.Systematic

c.Cluster

d.Stratified

e.convenience

1e.) Identify the sampling technique used (cluster, convenience, simple random, stratified, systematic). “Ask five friends for their opinions about the student cafeteria.”

a.Simple

b.Systematic

c.Cluster

d.Stratified

e.convenience