One in a thousand people are afflicted with the dreaded zigma disease. A pharmaceutical company develops a test for this disease and brags that only 5% of those with the disease test negative for it and 1% of those who do not have zigma will test positive for it.

What is the probability that a person who tests positive actually has zigma?

1. 9.99%

2. 1.09%

3. 8.68%

4. 5.01%

5. 9.51%

Q1. What role does the accounting department play (or what role should it play) in the budgeting process? In the end, who is ultimately responsible for the budget, anyway? Instead of the president of the company, would it be more effective if the budgeting committee as a whole was responsible for the budget?

Q2. Who should represent the various departments in the budget committee? What are the roles of these individuals?

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Commissions= ___________ + __________________ calls + _______________________miles + ___________________x1x2

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Value of the test statistic ___________________

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

This is STATISTICALLY SIGNIFICANT or NOT SIGNIFICANT (choose), so we conclude that there IS INTERACTION or IS NO INTERACTION (choose).

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

  Click here for the Excel Data File

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

This is (not statistically significant, statistically significant) so we conclude that there (is no interaction, is interaction)

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Value of the test statistic

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

The US and China produce aircrafts (A) and cloths (C), using capital (K) and labor (L). The US is K-abundant relative to China and aircrafts are K-intensive relative cloths. Assume that the two countries have identical demand preferences and technology used in production.(1)Draw PPF for each nation in a single graph with C on the horizontal axis, and indicate both countries’ autarky equilibrium (A China and A US) and autarky price line(P China and P US).

Define uncovered interest parity. What is the relationship among the forward exchange rate, the spot exchange rate, and the interest rate? Suppose the (1-year) interest rate on bank deposits is 2% in Canada and 1.75% in United States. If the (1-year) forward US$–C$ exchange rate is C$1.25 per US$ and the spot rate is C$1.2 per US$, will the C$ depreciation or appreciation against the US$ over one year, and by how much?                                                                    

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Required:
1. Compute cost of goods available for sale and the number of units available for sale.

Beginning inventory

Purchases:

March 5

March 18

March 25

Total-

Compute the number of units in ending inventory.
Ending Inventory _____ units

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

FIFO LIFO Avg Cost Spec ID

Sales

Less: Costs of goods sold

Gross Profit