1. PepsiCo, near the top of Table 2-5 in the chapter, is a company that provides
comprehensive financial statements. Go to finance.yahoo.com. In the box next to
“Get Quotes,” type in its ticker symbol PEP and click.
2. Scroll all the way down to “Financials” and click on “Income Statement.” Compute
the annual percentage change between the three years for the following:
a. Total revenue.
b. Net income applicable to common shares.
3. Now click on “Balance Sheet” and compute the annual percentage change
between the three years for the following:
a. Total assets.
b. Total liabilities.
4. Write a one-paragraph summary of how the company is doing.

As of 2006 Goldemberg gives the estimates the remaining reserves of petroleum as 1.03 trillion barrels and an average consumption of 25.5 billion barrels per year. Put these numbers into Joules and Btu. Given these estimates as of 2006, how long will the reserves of oil last?

Question 2 (1 point)

The owner of a local phone store wanted to determine how much customers are willing to spend on the purchase of a new phone. In a random sample of 15 phones purchased that day, the sample mean was $302.071 and the standard deviation was $27.9396. Calculate a 99% confidence interval to estimate the average price customers are willing to pay per phone.

Question 2 options:

Question 3 (1 point)

You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over the course of a month for 12 customers and find that the average dollar amount spent per transaction per customer is $102.028 with a standard deviation of $15.1769. Create a 99% confidence interval for the true average spent for all customers per transaction.

Question 3 options:

Question 4 (1 point)

The owner of a local golf course wanted to determine the average age (in years) of the golfers that played on the course. In a random sample of 27 golfers that visited his course, the sample mean was 41.1 years old and the standard deviation was 5.19 years. Using this information, the owner calculated the confidence interval of (39, 43.2) with a confidence level of 95% for the average age. Which of the following is an appropriate interpretation of this confidence interval?

Question 4 options:

1. States are increasingly relying on revenue from gambling to generate funds for their financal plans on annual basis . Lotteries , for example , have been on the rise with states providing their own jackpots , and increasing the jack-pots by utilizing multi-state games . Please provide some of the policy rationale for using this revenue source , along with some of the issues that policy makers should focus on in the future

2.Please discuss the three reasons State / Local governments borrow . What are the two primary types of debt issued ( defining them ) , describing some of the differences between the two.

Analyzing Unearned Revenue Changes

Take-Two Interactive Software, Inc. (TTWO) is a developer, marketer, publisher, and distributor of video game software and content to be played on a variety of platforms. There is an increasing demand for the ability to play these games in an online environment, and TTWO has developed this capability in many of its products. In addition, TTWO maintains servers (or arranges for servers) for the online activities of its customers.

TTWO considers that its products have multiple performance obligations. The first performance obligation is to provide software to the customer that enables the customer to play the game offline or online. That performance obligation is fulfilled at the point at which the software is provided to the customer. In addition, TTWO’s customers benefit from “online functionality that is dependent on our online support services and/or additional free content updates.” This second performance obligation is fulfilled over time, and the estimated time period for which an average user plays the software product is judged to be a faithful depiction of the fulfillment of this performance obligation.

At the beginning of the first quarter of fiscal year 2018, TTWO had a deferred net revenue liability of $566,141 thousand. When that quarter ended on June 30, 2018, the deferred net revenue liability was $466,429 thousand. Revenue for the quarter was $387,982 thousand.

a. What would cause the deferred net revenue liability to go down over the quarter?

TTWO must have recognized less in revenue than it sold during the quarter.

TTWO must have recognized the same amount in revenue as it sold during the quarter.

TTWO must have recognized more in revenue than it sold during the quarter.

None of these are correct.

b. What was the amount of online-enabled games purchased by TTWO’s customers in the first quarter ended June 30, 2018?

Answer (in thousands)


Were the purchases greater or less than the revenue recognized in the income statement?

Purchases were less than the revenue recognized in the income statement.

Purchases were greater than the revenue recognized in the income statement.

Purchases were equal to the revenue recognized in the income statement.

Not enough infomation is provided to answer the question.

Analyzing Unearned Revenue Changes Take-Two Interactive Software, Inc. (TTWO) is a developer, marketer, publisher, and distributor of video game software and content to be played on a variety of platforms. There is an increasing demand for the ability to play these games in an online environment, and TTWO has developed this capability in many of its products. In addition, TTWO maintains servers (or arranges for servers) for the online activities of its customers. TTWO considers that its products have multiple performance obligations. The first performance obligation is to provide software to the customer that enables the customer to play the game offline or online. That performance obligation is fulfilled at the point at which the software is provided to the customer. In addition, TTWO’s customers benefit from “online functionality that is dependent on our online support services and/or additional free content updates.” This second performance obligation is fulfilled over time, and the estimated time period for which an average user plays the software product is judged to be a faithful depiction of the fulfillment of this performance obligation. At the beginning of the first quarter of fiscal year 2018, TTWO had a deferred net revenue liability of $509,527 thousand. When that quarter ended on June 30, 2018, the deferred net revenue liability was $419,786 thousand. Revenue for the quarter was $349,184 thousand.

a. What would cause the deferred net revenue liability to go down over the quarter?

-TTWO must have recognized less in revenue than it sold during the quarter.

- TTWO must have recognized the same amount in revenue as it sold during the quarter.

- TTWO must have recognized more in revenue than it sold during the quarter.

- None of these are correct.

b. What was the amount of online-enabled games purchased by TTWO’s customers in the first quarter ended June 30, 2018? Answer (in thousands)

Were the purchases greater or less than the revenue recognized in the income statement?

- Purchases were less than the revenue recognized in the income statement.

- Purchases were greater than the revenue recognized in the income statement.

- Purchases were equal to the revenue recognized in the income statement.

- Not enough information is provided to answer the question.

13. In an imaginary economy, consumers buy only hot dogs and hamburgers. The fixed basket consists of 10 hot dogs and 6 hamburgers. A hot dog cost $3 in 2006 and $5.40 in 2007. A hamburger cost $5 in 2006 and $6 in 2007. Which of the following statements is correct?

a. When 2006 is chosen as the base year, the consumer price index is 90 in 2007.

b. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.

c. When 2007 is chosen as the base year, the consumer price index is 100 in 2006.

d. When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.

14. The CPI was 120 in 2000 and 132 in 2001. Dorgan borrowed money in 2000 and repaid the loan in 2001. If the nominal interest rate on the loan was 12 percent, then the real interest rate was

a. 2 percent.

b. 10 percent.

c. 12 percent.

d. 22 percent

15. By not taking into account the possibility of consumer substitution, the CPI

a. understates the cost of living.

b. overstates the cost of living.

c. may overstate or understate the cost of living, depending on how much prices rise.

d. may overstate or understate the cost of living, regardless of the extent to which prices rise

16. You know that a candy bar cost five cents in 1962. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?

a. five cents × (1962 CPI/ today's CPI)

b. five cents × (1962 CPI/(today's CPI - 1962 CPI))

c. five cents × (today's CPI/1962 CPI)

d. five cents × today's CPI - five cents × 1962 CPI.

17. The nominal interest rate tells you

a.   how fast the number of dollars in your bank account rises over time.

b.   how fast the purchasing power of your bank account rises over time.

c.   the number of dollars in your bank account today.

d.   the purchasing power in your bank account today.

18. Consider two countries. Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000 of whom 1,800 work 6 hours a day to make 270,000 final goods

a.   Country A has higher productivity and higher real GDP per person than country B.

b.   Country A has lower productivity and lower real GDP per person than country B.

c.   Country A has higher productivity, but lower real GDP per person than country B.

d.   Country B has lower productivity, but higher real GDP per person than country B.

19. The Peapod Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

a. The owner's knowledge of how to prepare vegetarian entrees.

b. The money in the owner's account at the bank she borrowed money from.

c. The tables and chairs in the restaurant.

d. The land the restaurant was built on.

20. In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

a. decreased by 1. 7 percent between 1998 and 2008.

b. remained unchanged between 1998 and 2008.

c. increased by 4. 75 percent between 1998 and 2008.

d. increased by 6. 25 percent between 1998 and 2008

Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.

The company reported the following actual results for October:

Customers served 22,000

Revenue $ 73,300

Wages and salaries $ 40,400

Supplies $ 16,100

Insurance $ 5,500

Miscellaneous expense $ 7,400

Required:

Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

AT&T is the second-largest provider of mobile telephony and the largest provider of fixed telephony in the United States, and also provides broadband subscription television services.

The CEO of AT&T wants to know what will affect the Total Monthly Spending at AT&T (y) for a customer. So far, the company has information on customer’s age (X1). We have total 50 observations.

1). Using the knowledge you learned from Chapter 3 to summarize the Total Monthly Spending at AT&T and customer’s age. What are the characteristics of this sample?

2). Determine the simple linear regression equation and interpret the slope

3) What is the goodness of fit of this model? Interpret the statistic.

4). At the 0.05 level, test the slope of the regression model. Write down 4-step. Do you think customer’s age will significantly affect the Total Monthly Spending at AT&T?

5). what is the 95% confidence interval for the slope? How does it tell you about the significance of the slope? Does this conclusion agree with the conclusion from 4)

6). What is the estimated average Total Monthly Spending at AT&T for 25 years old customers?

7). Calculate the prediction interval of the Total Monthly Spending at AT&T for a 25 years old customer (Show your calculation details in Excel). Interpret the results. (α=0.05)

8). Calculate the confidence interval for the mean of the Total Monthly Spending at AT&T for 25 years old customers (Show your calculation details in Excel). Interpret the results. (α=0.05

9). Comparing results from 7) and 8), which one is wider? Why?

10). Calculate SSR, SSE and SST for this model.

Suppose that you are testing the hypotheses H0​: u=74 vs. HA​: u does not equal 74. A sample of size 51 results in a sample mean of 69 and a sample standard deviation of 1.8. ​

a) What is the standard error of the​ mean? ​

b) What is the critical value of​ t* for a 90​% confidence​ interval?

​c) Construct a 90​% confidence interval for mu. ​

d) Based on the confidence​ interval, at a=0.100 can you reject H0​? Explain.