1. In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Suppose that at five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are recorded below.

Does this information indicate that the peak wind gusts are higher in January than in April? Use α = 0.01. Solve the problem using the critical region method of testing. (Let d = January − April. Round your answers to three decimal places.)

Interpret your conclusion in the context of the application.

Reject the null hypothesis, there is sufficient evidence to claim average peak wind gusts are higher in January.

Fail to reject the null hypothesis, there is sufficient evidence to claim average peak wind gusts are higher in January.    

Fail to reject the null hypothesis, there is insufficient evidence to claim average peak wind gusts are higher in January.

Reject the null hypothesis, there is insufficient evidence to claim average peak wind gusts are higher in January.

Compare your conclusion with the conclusion obtained by using the P-value method. Are they the same?

We reject the null hypothesis using the critical region method, but fail to reject using the P-value method.

We reject the null hypothesis using the P-value method, but fail to reject using the critical region method.    

The conclusions obtained by using both methods are the same.

2.

Gentle Ben is a Morgan horse at a Colorado dude ranch. Over the past 8 weeks, a veterinarian took the following glucose readings from this horse (in mg/100 ml).

The sample mean is x ≈ 93.3. Let x be a random variable representing glucose readings taken from Gentle Ben. We may assume that x has a normal distribution, and we know from past experience that σ = 12.5. The mean glucose level for horses should be μ = 85 mg/100 ml.† Do these data indicate that Gentle Ben has an overall average glucose level higher than 85? Use α = 0.05.

(a) What is the level of significance?


State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀: μ > 85; H₁:  μ = 85; right-tailed

H₀: μ = 85; H₁:  μ > 85; right-tailed    

H₀: μ = 85; H₁:  μ ≠ 85; two-tailed

H₀: μ = 85; H₁:  μ < 85; left-tailed

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

The standard normal, since we assume that x has a normal distribution with unknown σ.

The Student's t, since we assume that x has a normal distribution with known σ.    

The standard normal, since we assume that x has a normal distribution with known σ.

The Student's t, since n is large with unknown σ.

What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.

At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.  

   At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) State your conclusion in the context of the application.

There is sufficient evidence at the 0.05 level to conclude that Gentle Ben's glucose is higher than 85 mg/100 ml.

There is insufficient evidence at the 0.05 level to conclude that Gentle Ben's glucose is higher than 85 mg/100 ml.     

• Dan, age 45, is an independent contractor working in pharmaceutical sales, Cheryl, age 42, is a nurse at a local hospital. Dan’s ssn is 400-20-100 and Cheryl’s SSN is 200-40-8000 an they reside at 2033 Palmetto Drive, Atlanta, GA 30304.

• Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan operates his business from his home office.

• During 2018 Dan earned total commission in his business of $125,000.

• Cheryl earned a salary during 2018 of $45,400,1 with the following withholdings: 6,000 federal taxes, 1,800 state taxes, 2,815 OASDI, and $658 Medicare taxes.

• During 2018, Dan and Cheryl had interest income from corporate bonds and bank accounts of $1450 and qualified dividends from stock of %5950. Dan also actively trades stocks and had the following results from 2018:

• LTCG              4,900
• LTCL              (3,200)
• STCG              0
• STCL              (7,800)

• He had no capital loss carryovers from previous years.
• Dan does a considerable amount of travel in connection with his business and uses his own car. During 2018, Dan drove his car a total of 38,000 miles, of whih 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the following travel expenses while away from home during the year

• Hotel                                                                         4200
• Meals                                                                         820
• Entertainment of Customers                                     1080
• Tips                                                                             100
• Laundry and cleaning                                                 150
• Total                                                                            6350

• Dan uses the simplified method to deduct expenses for him office-in-home. His office measures 15feet by 12 feet is size (180 sqft)
• Cheryl incurred several expenses in connection with her nursing job. She paid 450 in professional dues, 200 in professional journals, and 350 for uniforms.

Dan and Cheryl's last name is Taxpayer.

If the Taxpayers have a refund, have the entire amount refunded.

Helpful Hints and Checks

For Schedule D:

• Assume the STCL was from Intel stock originally purchased on 1/4/19 for $10,000 and sold on 3/1/19 for $2,200.
• Assume the LTCG was from the sale of Google, Inc. stock originally purchased on 5/19/14 for $7,100 and sold on 5/1/19 for $12,000.
• Assume the LTCL was from the sale of Yahoo, Inc. stock originally purchased on 8/30/16 for $38,200 and sold on 11/7/19 for $35,000.

Assume the charitable donation of GE stock was to the United Way. It was donated on 3/5/19 and was originally purchased on 4/10/12.

Schedule C:

• Dan uses the cash method.
• Assume one-third of the tax preparation fees are allocable to Dan's business.
• The Taxpayers' house is 3,000 square feet.
• The vehicle was placed in service on 12/31/17.
• Answer "yes" to items 45-47b on page 2.

Use the 2019 tax forms (locate tax forms on www.irs.gov).

General Requirements

For this assignment you will need to submit the following tax forms as a single document:

• Form 1040
• Schedule 1, Form 1040
• Schedule 2, Form 1040
• Schedule 3, Form 1040
• Schedule A, Form 1040
• Schedule B, Form 1040
• Schedule C, Form 1040
• Schedule D, Form 1040
• Form 8949, Form 1040
• Schedule SE, Form 1040
• Form 8283, Form 1040

Refer to the resource, "Tax Rate Schedules 2019 and Other Items," located in the course materials.

Tax Return Check Figures for 2019 Tax Forms - Data Set A

Problem I:7-64

Check Figures for the Various Forms (check figures are not provided for every form):

Form 1040 –

• Line 8b, AGI                                       $138,875
• Line 16, Total tax                               $24,446

Schedule 1 –

• Line 22, Adjustments to income        $11,075

Schedule A –

• Total itemized deductions             $34,400                                    

Schedule C –

• Line 28, Total expenses                $23,950

Schedule D –

• Line 16                                          $(6,100)

Form 8829 (not required) –

• Use simplified method as directed in the problem. Note: You have to determine the amount of square footage for the home office based on the information provided.

Remember to use the tax forms for the year indicated by your instructor. Points will be deducted for incorrect forms and incorrect sequence. In addition, be sure to submit the tax forms in order as required by the IRS. You will notice a Sequence No. on the top right of each tax return form except for the Form 1040. Form 1040 is the first form in the sequence.

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $225,000 including installation. The company estimates that the equipment will have a residual value of $22,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:

Required:

1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
  

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)
  

3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.)
  

For each of these five separate cases, identify the principle(s) of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.

1.Latisha Tally is the company’s computer specialist and oversees its computerized payroll system. Her boss recently asked her to put password protection on all office computers. Latisha has put a password in place that allows only the boss access to the file where pay rates are changed and personnel are added or deleted from the payroll.

2.Marker Theater has a computerized order-taking system for its tickets. The system is active all week and backed up every Friday night.

3.Sutton Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise.

4.The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for ­anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner’s desk in an office that contains company checks and is normally unlocked.

5.Lavina Company is a small business that has separated the duties of cash receipts and cash disbursements. The employee responsible for cash disbursements reconciles the bank account monthly.

13. Consider a market for homogeneous hamburgers produced in a constant cost competitive industry. Suppose there are 600 Type 1 consumers that each have a utility function of ?1(?, ?) = ?^0.1?^0.9 and 400 Type 2 consumers that each have a utility function of ?2(?, ?) = ?^0.2?^0.8, where x is hamburgers and y is a composite commodity representing the rest of the consumer’s consumption (assume ?? = 1). The income for both types of consumers is $210. Each hamburger producer has the following long-run total cost function: ?(?) = ?^3 − 50?^2 + 632?.

a. What is the long-run competitive equilibrium for hamburgers? Specifically find:

i. What is the long-run competitive market equilibrium price?

ii. What is the quantity produced per firm?

iii. What is the demand function for each Type 1 consumer?

iv. What is the demand function for each Type 2 consumer?

v. How much does each Type 1 consumer purchase?

vi. How much does each Type 2 consumer purchase?

vii. What is the market demand function?

viii. What is the market quantity demanded?

ix. How many firms are there in the market?

b. Now, consider the same market during an economic recession where consumer incomes fall to $140. Now what is the long-run competitive equilibrium for hamburgers? Specifically find:

i. What is the long-run competitive market equilibrium price?

ii. What is the quantity produced per firm?

iii. What is the demand function for each Type 1 consumer?

iv. What is the demand function for each Type 2 consumer?

v. How much does each Type 1 consumer purchase?

vi. How much does each Type 2 consumer purchase?

vii. What is the market demand function?

viii. What is the market quantity demanded?

ix. How many firms are there in the market?

c. Above we considered the market just for hamburgers, but now let’s think in terms of general equilibrium. Use a graph of the Production Possibilities Frontier (PPF) and an Edgeworth box to explain the effects of the recession on hamburgers (x) and all other goods (y). How did it affect the amounts of x and y produced? How did it affect the usage rate of labor and capital in the economy? Finally, relate your answers to the recent Great Recession experienced from 2007-2009 (and the slow recovery period after).

Q1 A research laboratory identified a gene X of medicinal value in a plant species. You are given a small fragment of DNA containing gene X and the cloning vector pZoom. Maps of the 4 kb cloning vector pZoom and the 10 kb plant DNA fragment are shown in Figure 1 and 2, respectively. The PCR primer pairs (shown in Figure 1) F1/R1, F2/R2 and F3/R3 amplify fragments of 0.1, 0.6 and 0.8 kb, respectively. The antibiotic resistance gene A and gene B code for chloramphenicol and streptomycin resistance, respectively. The three restriction enzymes that cut this vector are BamHI, XbaI and HindIII represented on the map as enzymes I, II and III, respectively. You are given purified DNA of both the vector and the gene X containing DNA fragment at 0.2 µg/ul. Create a recombinant plasmid containing the complete gene X in the provided cloning vector pZoom. a. Design restriction digestion reactions using appropriate enzymes in such a way that you get a final concentration of 50 ng/µl for the digested vector and for the plant DNA (insert DNA) in the reaction. Your digestion should include all components in a 20 µL reaction. All enzymes are supplied with a concentration of 10 units/µL; you may use 1 µL of the enzyme in each reaction. Buffers for each enzyme are available as 10 times concentrated (10X) stocks. b. Generate three ligation reactions with 1:1, 2:1 and 3:1 molar ratios of the insert and the vector DNA. Your ligation should include all components in a 30 µL reaction. Keep the vector amount fixed at 100 ng per ligation reaction. You are provided with 10 x ligase buffer and DNA ligase (0.5 U/µL) to set up your ligations. c. Develop a strategy to select transformants and a quick method to screen recombinants; show your screening method using a figure. Predict the expected results with an explanation. d. Devise a restriction analysis method to confirm the desired recombinant; use a single most appropriate enzyme. Calculate the expected sizes of the restriction fragments from each, the vector and the desired recombinant. e. Devise a PCR strategy to confirm the desired recombinant. Calculate the expected sizes of the PCR fragments from the desired recombinant in a multiplex PCR including all three primer pairs. How will these sizes differ from the same multiplex PCR if the template is vector DNA instead of the recombinant plasmid?

A pharmacist wants to test whether a new kind of sleeping pill would be effective to increase the hours of sleep for people who take it. A random sample of 10 persons (Group A) was given the new pills and another random sample of 13 persons (Group B) was given the old pills.

Their sleep in hours were recorded as follows:

Mean of group A = 8.9 and Standard Deviation of group A = 0.8

Mean of Group B = 8.5 and standard Deviation of group B = 0.5

Construct a 95% confidence interval for the difference of the average hours of sleep that would be obtained for the people taking the new pills over the people taking the old pills. State the assumptions made.

You are an entrepreneur starting a biotechnology firm. If your research is​ successful, the technology can be sold for $21 million. If your research is​ unsuccessful, it will be worth nothing. To fund your​ research, you need to raise ​$4.8 million. Investors are willing to provide you with ​$4.8 million in initial capital in exchange for 30% of the unlevered equity in the firm.

a. What is the total market value of the firm without​ leverage?

b. Suppose you borrow ​$0.8 million. According to​ MM, what fraction of the​ firm's equity will you need to sell to raise the additional​$4.0 million you​ need?

c. What is the value of your share of the​ firm's equity in cases ​(a​) and ​(b​) above?

Determine the amounts of the solutes necessarry to prepare the indicated solutions.

A) 4L Dialysis Buffer (25mM HEPES, 0.01% (v/v) Triton X-100, 300mM NaCl, 2.5M Urea)

B) 250mL 25x MES running buffer (1x= 50mM MES, 50mM Tris, 0.1% (w/v) SDS, 1mM EDTA)

C) 1:15,000 SYBR Green (25mg/mL0 in 80mL 0.8% agarose

D) What is the final micromolar concentration of SYBR Green in the agarose solution in Part C?

Formula Masses

Tris: 121.14

NaCl: 58.44

HEPES: 238.3

Urea: 60.06

MES: 195.24

EDTA:292.24

SYBR Green: 509.73