Let p be the (unknown) proportion of males in a town of 100, 000 residents. A political scientist takes a simple random sample of 100 residents from this town.

(a) Write down the exact pmf, as well as an approximate pmf, for the number of males in the sample. (They should both depend on p).

(b) If the number of males in the sample is 55 or more, the political scientist will claim that there are more males than females in the town. If the number of males in the sample is less than 55, he/she will claim that the number of males in the town is smaller or equal to that of females. What is approximately the probability that his/her claim will be correct if the true proportion of males in the town, p, is 50%? What if p = 55%?

(c) Report an approximate 68% confidence interval for p if 65 of the 100 residents in the sample are male.

1. A professor in the School of Business wants to investigate the prices of new textbooks in the campus bookstore and the Internet. The professor randomly chooses the required texts for 12 business school courses and compares the prices in the two stores. The results are as follows:

1. At the .01 level of significance, is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the classical method.                                                                

1. Hyps: H₀:

H₁:

2. Test(s):

3. Decision rule:

4. Analysis:

5. Conclusions: (1)

(2)

(3)

(4)

2. What assumptions are necessary to perform this test?                              

3. Find the p-value in (a)? Using the p-value, Is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the p-value method and alpha = 1%.   

1. Hyps: H₀:

H₁:

2. Test(s):

3. Analysis:

p-value:

4. Conclusions: (1)

(2)

(3)

(4)

A professor in the School of Business wants to investigate the prices of new textbooks in the campus bookstore and the Internet. The professor randomly chooses the required texts for 12 business school courses and compares the prices in the two stores. The results are as follows:

1. At the .01 level of significance, is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the classical method.
2. Hyps: H₀:

H₁:

2. Test(s):

3. Decision rule:

4. Analysis:

5. Conclusions: (1)

(2)

(3)

(4)

2. What assumptions are necessary to perform this test?   

3. Find the p-value in (a)? Using the p-value, Is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the p-value method and alpha = 1%.

1. Hyps: H₀:

H₁:

2. Test(s):

3. Analysis:

p-value:

4. Conclusions: (1)

(2)

(3)

(4)

A professor in the School of Business wants to investigate the prices of new textbooks in the campus bookstore and the Internet. The professor randomly chooses the required texts for 12 business school courses and compares the prices in the two stores. The results are as follows:

a)At the .01 level of significance, is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the classical method.

1. Hyps: H₀:  

2. H₁:

3. Test(s):
4. Decision rule:

5. analysis

6. conclusion:(1)

   (2)

   (3)

   (4)

   b) What assumptions are necessary to perform this test?

   c)Find the p-value in (a)? Using the p-value, Is there any evidence of a difference in the average price of business textbooks between the campus store and the Internet? Use Excel and the p-value method and alpha = 1%.

   1. Hyps: H₀: 2. H₁:

7. Test(s):

8. analysis

9. p- value

10. conclusion:(1)

    (2)

    (3)

    (4)

The City of Calgary is considering the construction of a new high school in order to accommodate a growing population. Before they proceed, they would like to conduct a Benefit/Cost analysis using different time horizons and interest rates. An economist for the City has tabulated the following benefits and costs in the table below.

*This value was estimated by a City survey. The survey asked people their willingness to pay for a high school in their neighbourhood.

1. a) Calculate the NPV with interest rates of 3 percent, 5 percent and 8 percent and with time horizons at 30 and 60 years. Comment on how different interest rates and time horizons affect the economic value of this public project.
   (Note: Show your calculation for one NPV. You do not need to show them for each one)

2. b) For someone working on the Calgary School Board, (a Spender) what interest and time horizon would they be promoting?

You purchase a $450,000 town home and you pay 20 percent down. You obtain a 30-year fixed-rate mortgage with an annual interest rate of 6.5 percent. After five years you refinance the mortgage for 25 years at a 5.75 percent annual interest rate. After you refinance, what is the new monthly payment (to the nearest dollar)?

People complained about ‘negative real interest rates’ in the early 1990s, and again since 2009. Can real interest rates be negative? How can that be so?

In the 1990s the demand for personal computers in the home went up with household income. For a given community in the 1990s, the average number of computers in a home could be approximated by

q = 0.3452 ln x − 3.046      10,000 ≤ x ≤ 125,000

where x is mean household income. A certain community had a mean income of $30,000, increasing at a rate of $3,000 per year. How many computers per household were there? (Round your answer to four decimal places.)

_________ computers per household

How fast was the number of computers in a home increasing? (Round your answer to four decimal places.)

_____________computers per household per year