An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use α = 0.05.

a) Find the value of the test statistic for method of loading and unloading.

Find the p-value for method of loading and unloading. (Round your answer to three decimal places.)

p-value =

b) Find the value of the test statistic for type of ride.

Find the p-value for type of ride. (Round your answer to three decimal places.)

p-value =

c) Find the value of the test statistic for interaction between method of loading and unloading and type of ride.

Find the p-value for interaction between method of loading and unloading and type of ride. (Round your answer to three decimal places.)

p-value =

FastTrack​ Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $198,100 per year. Once in​ production, the bike is expected to make $301,477 per year for 10 years. The cash inflows begin at the end of year 7.

For parts​ a-c, assume the cost of capital is 9.9%.

a. Calculate the NPV of this investment opportunity. Should the company make the​ investment?

b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

c. How long must development last to change the​ decision?

For parts​ d-f, assume the cost of capital is 14.6%.

d. Calculate the NPV of this investment opportunity. Should the company make the​ investment?

e. How much must this cost of capital estimate deviate to change the​ decision?

f. How long must development last to change the​ decision?

a. Calculate the NPV of this investment opportunity.

If the cost of capital is 9.9%​, the NPV is $ ___ . (Round to the nearest​ dollar.)

Should the company make this​ investment?  ​(Select the best choice​ below.)

A. Accept the investment because the NPV is equal to or less than zero​ ($0).

B. Reject the investment because the NPV is less than zero ($0).

C. Accept the investment because the NPV is equal to or greater than zero ($0).

D. Reject the investment because the NPV is equal to or greater than zero​ ($0).

b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

The IRR is ___ ​%. (Round to two decimal​ places.)

If the cost of capital is 9.9%​, the maximum deviation is ___ ​%. (Round to two decimal​ places.)

c. How long must development last to change the​ decision?

For the decision to​ change, development must last ___ years, or longer. ​ (Round to two decimal​ places.)

d. Calculate the NPV of this investment opportunity. Should the company make the​ investment?

If the cost of capital is 14.6%​, the NPV is $ ___ . (Round to the nearest​ dollar.)

Should the company make the​ investment?  ​(Select the best choice​ below.)

A. Accept the investment because the NPV is equal to or greater than zero ($0)

B. Accept the investment because the NPV is equal to or less than zero​ ($0).

C. Reject the investment because the NPV is less than zero ($0).

D. Reject the investment because the NPV is equal to or greater than zero​ ($0).

e. How much must this cost of capital estimate deviate to change the​ decision?

The maximum deviation is __ ​%. (Round to two decimal​ places.)

f. How long must development last to change the​ decision?

For the decision to​ change, development must last no longer than __ years

General Meters is considering two mergers. The first is with Firm A in its own volatile industry, the auto speedometer industry, while the second is a merger with Firm B in an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation). General Meters Merger with Firm A General Meters Merger with Firm B Possible Earnings ($ in millions) Probability Possible Earnings ($ in millions) Probability $ 20 .20 $ 20 .15 65 .40 65 .50 110 .40 110 .35 a. Compute the mean, standard deviation, and coefficient of variation for both investments. (Do not round intermediate calculations. Enter your answers in millions. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places.) b. Assuming investors are risk-averse, which alternative can be expected to bring the higher valuation?

The confidence interval for the difference in means

Cyclops Software has 10 million shares trading at $20/share and the only debt it has is a ten-
year convertible bond with face value of $50 million, a market value of 80 million and a coupon rate of 4%. The unlevered beta for software companies is 1.20 and the bond rating for the
company is Ba3 (with a default spread of 4%). The company paid out 10% of its taxable income as taxes last year but the marginal tax rate is 40%. If the risk free rate is 2% and the equity risk
premium is 6%, estimate the cost of capital for the firm.

: The Rocky Mountain district sales manager of Rath Publishing Inc., a college textbook publishing company, claims that the sales representatives make an average of 50 sales calls per week on professors. Several reps say that this estimate is too low. To investigate, a random sample of 28 sales representatives reveals that the mean number of calls made last week was 51. The standard deviation of the sample is 1 calls. Using the 0.05 significance level, can we conclude that the mean number of calls per salesperson per week is more than 40?

Two children must split a pie. They are gluttons and each prefers to eat as much of the pie as they can. The parent tells one child to cut the pie into two pieces and then allows the other child to choose which pie to eat. The first child can divide the pie into any multiple of tenths (for example, splitting it into pieces that are 1/10 and 9/10 of the pie, or 2/10 and 8/10, and so forth). Show that there is a unique backward induction solution to this game.

A researcher wishes to see whether there is any difference in the average starting salary for a
college graduate's first job after graduating with the degrees shown. She randomly sampled graduates in
each degree and the results are listed. At cr = .10, can we conclude that there is a difference in the average
starting salaries of these graduates?

Economics Medicine History Xl=
42 69 35 Xo =
53 54 40 Xz=
49 5B 53 v- Lfrt
-

44 64 42
54 56

LXt-242; IXz-301; ZXz-L7}; s12: I sz2: : s3z:
a) What are the null and alternative hypotheses?
b) What is the critical value for F at u= .10?

c) What is the test value for F?

d) What is the decision?

e) Summary statement:

Huggins Co. was formed on January 1, 2017 at Mars Kingdom as a wholly owned foreign subsidiary of a U.S. corporation. Huggins' functional currency was the currency at Mars (FCU). The following transactions and events occurred during 2017:

      Jan 1  Huggins issued common stock for 1,000,000 FCU.

        June 30  Huggins paid dividends of 20,000 FCU.

        Dec 31  Huggins reported net income of 80,000 FCU for the year.

Exchange rates for 2017 were:

Jan 1       $1 = .46 FCU

June 30       $1 = .44 FCU

Dec 31        $1 = .40 FCU

           Weighted average rate for the year   $1 = .42 FCU

What exchange rate should have been used in translating Huggins' revenues and expenses for 2017?

A. $1 = .46 FCU.
B. $1 = .42 FCU.
C. $1 = .44 FCU.
D. $1 = .40 FCU.
E. $1 = .43 FCU.