1. A company faces a choice between using straight line or accelerated depreciation in preparing the capital budget for a major expansion project. The project will last four years and require a $1.7 million investment in new equipment. Under the straight-line method, this expense would be spread evenly over the four-year life of the project. Applicable MACRS depreciation rates are 33.33%, 44.45%, 14.8%, and 7.41%. The company’s WACC is 10% and the tax rate is 40%.

1. What is the depreciation expense for each year under the two methods?

2. What is the NPV of the project under each method?

3. How would managers prefer to account for expenses if their bonus plan uses EPS to calculate bonus payouts?

1. The ultimate goal of HCI design is about usability. Describe what usability is and identify 5 factors to measure usability?
2. What is cognitive aide and what is the theory behind this? Give three examples to describe how cognitive aides are used in user interface design?
3. Design of an HCI element typically follows Norman’s seven stages of action. With an example. Briefly explain Norman’s seven stages action.
4. Metaphors are powerful designs if done properly. Explain the idea of a metaphor and give two examples of using metaphors in user interface design. What are the 3 advantages and 3 disadvantages of using metaphors?
5. Heuristic evaluation and cognitive walk through are commonly used for HCI design. Briefly explain how to conduct a heuristic evaluation and how to conduct cognitive walk through?

You are a famous archaeologist/treasure hunter ́a la Indiana Jones. After following a treasure map you find yourself deep inside a Babylonian temple. As you reach the end of a long corridor you find it splits into two paths. Above the first path you make out some text carved into the rock. Shining your torch you manage to make out the following two inscriptions on the wall:

1. L1 ∧ T2
2. (L1 ∧T2)∨(L2 ∧T1)

Knowing that the Babylonians were great mathematicians, you’re not surprised to see that they had developed such a refined system of propositional logic centuries before it should have been. The historians of mathematics will surely want to hear of this discovery when you’re done!

Having no idea what these variables could mean however, you look down at your map to see if there are any hints. You notice scrawled in the margins of the map “L1: First Path Leads to Being Lost Forever”, “L2: Second Path Leads to Being Lost Forever”, “T1: First Path Leads To Treasure” and “T2: Second Path Leads To Treasure”.

Reading the first inscription you quickly translate the treasure is down the second path. However, as you’re about to step into the tunnel you remember something the map seller said as you were leaving his shop: “One tells the truth and the other is a lie!” You had thought that was cryptic nonsense at the time but thank goodness you remembered! He seemed like a trustworthy guy so you’ll assume that his statement was true and that one inscription is lying and the other is telling the truth.

Q: (20 points) Assuming the lying inscription is true and the truthful inscription is false leads to a contradiction. Prove this using the laws of propositional logic. First, combine the two statements into a single boolean expression (adding a ¬ to the expression that you’re assuming is false). Then proceed using the laws of propositional logic to arrive at “False”. You must show each step and identify which law you are applying. You must use the distributive law at least once; we are looking for you to demonstrate mastery over several laws rather than a quick solution.

Each player throws both dice once per turn. The player only scores when the player throws doubles. Double-6 scores 25 points. A double-3 cancels out a player’s score and puts the score back to zero. Any double other than a 3 or 6 scores 5 points. Scores are recorded and the first player to obtain a total score of fifty points wins the game.

Write a MATLAB program to simulate the FIFTY dice game that can:

1. Play the FIFTY dice game automatically for one player using two dice.

2. Add your name, purpose, and copyright your program.

3. Clear command window and clear all variables.

4. Randomize the pseudorandom number generator with the MATLAB built-in rng function and provide ‘shuffle’ as the function input.

5. Create a variable that will keep the game score. Set the value of this variable to 0.

6. Create another variable that will count the round number. Set the value of this variable to 1.

7. Welcome the player and briefly explain how to play the game when the program starts.

8. Print the current round number in the command window.

9. Print the current game score in the command window.

10. Generate two random integers between 1 and 6 to represent the face values of two dice.

11. Print the two dice values in the command window.

12. If the value of the 1 st die and the 2nd die are not equivalent with each other: a. No action required. We can optionally display a message that no point will be added to the game score.

13. Else a. If the value of the first die is equivalent with 3: i. Display a message about rolling a double 3 causes the game score to set back to 0. ii. Set the game score to 0. b. Elseif the value of the first die is equivalent with 6: i. Display a message about rolling a double 6 adds 25 points to the game score. ii. Set the game score to game score plus 25. c. Else: i. Print a message about rolling the double dice adds 5 points to the game score. ii. Set the game score to game score plus 5. d. End.

14. End.

15. Increment the round number by 1.

16. The game should keep playing while the player’s game score is less than 50 points. Insert a while loop to wrap around the code generated from step 8 through step 15. Make the existing code generated from steps 8 through 15 the code block of this new while loop.

17. Congratulate the player and show the player’s final game score in the command window.

Twenty-seven high-school seniors decided to take part in an investigation of the special “exam preparation” books that purportedly help one get ready for college entrance examinations. The group divided itself into three groups on a purely random basis. Two of the groups used the books, each group selecting a different book. The third group did not use the books. Listed below are the obtained entrance exam scores. Perform the ANOVA using the 5% level of significance and interpret your results.

BOOK I: 532 455 440 620 560 522 517 520 510

BOOK II: 540 570 520 620 660 605 602 590

NO BOOK: 380 470 441 487 420 390 450 510 430 560

Twenty-seven high-school seniors decided to take part in an investigation of the special “exam preparation” books that purportedly help one get ready for college entrance examinations. The group divided itself into three groups on a purely random basis. Two of the groups used the books, each group selecting a different book. The third group did not use the books. Listed below are the obtained entrance exam scores. Perform the ANOVA using the 5% level of significance and interpret your results.

BOOK I: 532 455 440 620 560 522 517 520 510

BOOK II: 540 570 520 620 660 605 602 590

NO BOOK: 380 470 441 487 420 390 450 510 430 560

1. The following table gives the bushels of corn per acre, y resulting from the use of the various amounts of fertilizer in pounds per acre, x, produced on a farm in each of 10 years from 1971 to 1980.  

1. What is the simple linear regression population model?

2. What is the estimated simple linear regression model in notation form?

3. What are the estimated intercept and slope? Interpret the estimated intercept and slope.

4. Write the estimated simple linear regression model using the estimated intercept and slope?

5. If  18 pounds of fertilizer is used, what are:

1. the actual bushel of corn per acre yielded,

2. the fitted value of the regression line, and

3. the value of the residual.  Does the residual lie above or below the regression line?  Please explain.

6. Calculate the SST, SSE, and SSR of the model.

7. Calculate the estimated variances and the standard errors of and .

8. Calculate the R² term of the estimated model and interpret the R² term.

1. Load the regression data in the le called wagedata.csv and answer the following questions:
(a) Create an interaction between Ability and PhD
(b) Run a regression with the interaction a constant Ability and PhD. Write down you estimators
and the t-statistics
(c) Compute the di erence-in-di erence estimate and write down you answer.
(d) Test if the di erence is signi cant by showing relevant steps, and write down the conclusion to
the test.
2. Which of these photos shows evidence of heteroskedasticity?
0 20 40 60 80 100 120
0 100 200 300 400 500 600
x1
y1
−6 −4 −2 0 2 4 6
−10 0 10 20 30
x
y
−6 −4 −2 0 2 4 6
−10 −5 0 5 10
x
y
−6 −4 −2 0 2 4 6
−10 −5 0 5 10 15
x
y
3. Load the dataset called ec122a.csv and decide the appropriate regression to run. Write down what
transformations, corrections, etc... you make and why.

Data

15. Which of the following divides quantitative measurements into classes and graphs the frequency, relative frequency, or percentage frequency for each class?

Multiple Choice

• histogram

• dot plot

• stem-and-leaf display

• scatter plot

16. The number of items rejected daily by a manufacturer because of defects for the last 30 days are:

20, 21, 8, 17, 22, 19, 18, 19, 14, 17, 11, 6, 21, 25, 4, 19, 9, 12, 16, 16, 10, 28, 24, 6, 21, 20, 25, 5, 17, 8

How many classes should be used in constructing a histogram?

Multiple Choice

• 6

• 5

• 7

• 4

18. When developing a frequency distribution, the class (group) intervals must be ________.

Multiple Choice

• large

• small

• integer

• nonoverlapping

• equal

19. Which of the following graphical tools is not used to study the shapes of distributions?

Multiple Choice

• stem-and-leaf display

• scatter plot

• histogram

• dot plot

21. Which one of the following graphical tools is used with quantitative data?

Multiple Choice

• bar chart

• histogram

• pie chart

• Pareto chart

22. An example of manipulating a graphical display to distort reality is ________.

Multiple Choice

• starting the axes at zero

• making the bars in a histogram equal widths

• stretching the axes

• adding an unbiased caption

23. A ________ shows the relationship between two variables.

Multiple Choice

• stem-and-leaf

• bar chart

• histogram

• scatter plot

• pie chart

25. As a general rule, when creating a stem-and-leaf display, there should be ______ stem values.

Multiple Choice

• between 3 and 10

• between 1 and 100

• no fewer than 20

• between 5 and 20

Consider the following two scenarios
Original Scenario:
T = 80 hours
Wage = $20
Payroll tax = 20%
Under this original scenario, the worker maximizes their utility by choosing to leisure 30 hours a week (i.e. work 50 hours).

The government then proposes a new plan where everyone is given $300 each week as a supplement to their income. However, to pay for this $300 cash grant they increase the payroll tax to 50%. Thus...
Negative Income Tax Scenario:
T = 80 hours

Wage = $20

Payroll tax = 50%

Cash Grant = $300

(a) Graph the workers two scenarios on ONE graph. You will need to solve for and include the following values in your graph:

• Cmax under the original scenario AND the negative income tax scenario

• The true slope of the budget line in both the original AND negative income tax scenarios.

• In BOTH scenarios: The value of C if the worker leisures for 30 hours

• Finally, since you are TOLD that the optimal C-L bundle under the original scenario occurs at leisure =

  30 hours, correctly draw the indifference curve at that point.