In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.

Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.

1. What is the probability that five fraudulent returns will be uncovered based on 100 IRS audits ? (n=100, p=0.05)
2. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS will uncover at least 15 fraudulent errors? (n=250 and P= 0.05)
3. If a random sample of 250 high net worth tax returns are audited, what is the probability that the IRS would uncover at least 15 fraudulent returns but at most 20 fraudulent returns? (n=250 and P= 0.05)
4. What is the probability that out of the 250 randomly selected high net worth tax returns no fraudulent return is uncovered? (n=250 and P= 0.05)
5. Aside from the ethics of tax fraud and based solely on your answers to questions 1-4, do you think it would be advisable to cheat on your tax return? Do you need more information to decide? What type of information?

The Anxiety Correlation Coefficient is a number that determines the level of anxiety that a person has toward stressful situations. Scores in the range: (5,7.5) are considered normal and do not impede performance on the job among Federation members. Scores below this range indicate possible pathological tendencies, and scores above this range indicate excessive anxiety which may impede job performance and over-all mental health.

The random sample of 10 crew members were given the Anxiety Correlation Coefficient test before their journey to the nebulae and again 2 weeks after they returned from their journey. The following are the results of the two tests:

before:

after

Use the Classical Method, with α= .002, to determine if there is a difference between the pre-and-post test scores.

1. List all computer/calculator steps used in calculations
2. State the conclusion of the experiment. Is there sufficient statistical evidence to support the claim that the difference between pre and post-tests were different?

iii. Find the correlation coefficient, the Least Squares Regression Line, and sketch a scatterplot for the pre and post test scores for the sample of 10 crew members. Describe whether the correlation is weak, moderate, strong, or zero, and if it is negative or positive. Interpret what this correlation tells us about differences in individual reactions to stressful situations before and after the trip to the nebulae?

3. The national mean score of an aptitude test is 50 with a standard deviation of 5. I think students at Ohio University can earn higher scores than people nationally. I survey 30 students at Ohio University and find a mean 57 with a standard deviation of 6.8. Is the mean scores of Ohio University students significantly more than the mean score of the aptitude test nationally? (use  = .05)

a. State the null and alternative hypotheses in symbols. (2 points)

b. Set up the criteria for making a decision. That is, find the critical value(s). (1 point)

c. Compute the appropriate test statistic. Show your work. (3 points)

d. Based on your answers above, evaluate the null hypothesis. (1 point) Reject Fail to reject (circle one)

e. State your conclusion in words. (1 point)

f. Given your decision, what type of error could have been committed? (1 point) Type I error Type II error (circle one)

Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 85 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $18,000 to $61,000, with no amount in the range more likely than any other. The lawsuit was settled in 2018, with Harrington making a payment of $58,000.

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1. Prepare journal entries for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

2. Prepare the entry(ies) that Harrington would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.

Using basic demographic information (age, household income, marital status, etc.), you collect a random sample size 190 customers who accepted a special balance transfer offer from a major credit card company six months ago. The company wants to determine if there is evidence that it would profit by offering the deal to the population of customers with those same demographic characteristics. The sample mean balance transfer amount is 1,935 with a sample standard deviation of 424. Based on the information above, if the company were to perform a hypothesis test at α = 0.05, what is the largest value it could specify in the null hypothesis and still fail to reject the null hypothesis? Hint: Think about the relationship between hypothesis tests and intervals. Specifically, think about how a test done at alpha equals 0.05 would relate to a 95% confidence interval?

RECORD IN JOURNAL ENTRY FORM

1. Record the journal entry for paying off a supplier invoice of $10,000 for raw materials on September 28th:

2. Record the journal entry for receive cash from a new shareholder who gave your company $300,000 in exchange for 3,000 shares of common stock, where the current market price is $100 per share.

3. Your company wants to expand your company to Seattle and lease office space downtown. You find an office building where you want your office to be for new employees, the landlord makes you pay 1 year of rent in advance for discount pricing at total cost of $225,000 for the year. Record the journal entry on day 1 when you sign the lease on 1st of October and pay in cash for the new office in Seattle:

This week has covered various perspectives, orthodox and heterodox, on who gets paid how much and why. Recognizing that income inequality is a fact of modern capitalist economies (as well as any other type of economy), discussions on the topic often focus on whether or not that inequality is morally objectionable; however, in economics we're concerned first and foremost with understanding the causes of that inequality. As you've learned in this module, neoclassical theory tends to relate a person's income to her contribution--her 'productivity'--with the assumption that a profit maximizing firm wouldn't pay someone more than what they contributed to the bottom line. Heterodox economists, on the other hand, often take a more holistic approach, understanding incomes as the result of different classes conflicting and cooperating in various ways that determines the distribution of what the economy produces. Use one (or both) of these perspectives to explain a particular topic or example of your choice concerning the distribution of income. How does that perspective help us understand the underlying causes of 'who gets paid how much and why'? What are the limitations of that perspective in addressing the issue generally?

1) What are the Goals of the World Bank and the IMF? Why are some people upset and protesting about the World Bank and IMF?

2) Give the pros and cons of Flash Trading and Dark Pools. How and should the U.S. government regulate them?

3) If the British pound and Euro are both appreciating relative to the dollar, how does this impact exports and imports, AD and GDP? What should the Fed. due to respond?

4) What happens to the value of the dollar if the European Central Bank (ECB) increases its money supply and lowers interest rates? How will this impact the value of the dollar, exports and imports, AD and GDP?

5) What are 5 financial innovations and deregulations that led to the financial crisis in 2008? What are 5 policy responses by the Federal Reserve and the U.S. Government and Treasury department that helped us to get out of the financial crisis? Who are the winners and losers?

6) Explain the “flight to quality” that happened in Germany due to the Greek Debt crisis in 2010 and explain how this impacts the price and interest rates of German and Greek bonds? Who does this help and hurt?

You want to estimate the difference between the average grades on a certain math exam before the students take the associated math class and after they take the associated math class. You take the random samples of 5 students who have taken the class and 5 students who have not taken the class. You get the following results:

A) Determine the population(s) and parameter(s) being discussed.

B) Determine which tool will help us find what we need (one sample z test, one sample t test, two sample t test, one sample z interval, one sample t interval, two sample t interval).

C) Check if the conditions for this tool hold.

D) Whether or not the conditions hold, use the tool you choose in part B. Use C=95% for all confidence intervals and alpha=5% for all significance tests.

* Be sure that all methods end with a sentence describing the results *