McHuffter Condominiums, Inc., of Pensacola, Florida, recently purchased land near the Gulf of Mexico and is attempting to determine the size of the condominium development it should build. Three sizes of develop-ment are being considered; Small, d1; Medium, d2; and large, d3. At the same time, an uncertain economy makes it difficult to ascertain the demand for the new condominiums. McHuffter's management realizes that a large development followed by a low demand could be very costly to the company. However, if McHuffter makes a conservative small-development decision and then finds a high demand, the firm's profits will be lower than they might have been. With the three levels of demand-low, medium and high. McHuffter's management has prepared the following profit ($000). (20 pts.) payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400 Medium, d2 100 600 600 Large, d3 -300 300 900 -------------------------------------------- a) If nothing is known about the demand probabilities, what are the recommended decision using the Maximax(optimistic), Maximin (pessi- mistic), and Minimax regret approaches? b) If P(low) = 0.20, P(medium) = 0.35, and P(high) = 0.45, What is the recommended decision using the expected value approach? c) What is the expected value of perfect information (EVPI)? You have to use regret table to get EVPI. Suppose that before making a final decision, McHuffter is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report is anticipated to indicate one of two levels of demand: weak(W) or strong(S). The relevant probabilities are as follows: (25 pts) P(W)= 0.3 P(low/W) = 0.50 P(low/S) = 0.10 P(S)= 0.7 P(medium/W)= 0.40 P(medium/S)= 0.25 P(high/W) = 0.10 P(high/S) = 0.65 BDSC 340.001-3 d) Construct a decision tree for this problem and analyze it. e) What is McHuffter’s optimal decision? f) What is the expected value of the survey(sample) information? McHuffter Condominiums, Inc., of Pensacola, Florida, recently purchased land near the Gulf of Mexico and is attempting to determine the size of the condominium development it should build. Three sizes of develop-ment are being considered; Small, d1; Medium, d2; and large, d3. At the same time, an uncertain economy makes it difficult to ascertain the demand for the new condominiums. McHuffter's management realizes that a large development followed by a low demand could be very costly to the company. However, if McHuffter makes a conservative small-development decision and then finds a high demand, the firm's profits will be lower than they might have been. With the three levels of demand-low, medium and high. McHuffter's management has prepared the following profit ($000). (20 pts.) payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400 Medium, d2 100 600 600 Large, d3 -300 300 900 -------------------------------------------- a) If nothing is known about the demand probabilities, what are the recommended decision using the Maximax(optimistic), Maximin (pessi- mistic), and Minimax regret approaches? b) If P(low) = 0.20, P(medium) = 0.35, and P(high) = 0.45, What is the recommended decision using the expected value approach? c) What is the expected value of perfect information (EVPI)? You have to use regret table to get EVPI. Suppose that before making a final decision, McHuffter is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report is anticipated to indicate one of two levels of demand: weak(W) or strong(S). The relevant probabilities are as follows: (25 pts) P(W)= 0.3 P(low/W) = 0.50 P(low/S) = 0.10 P(S)= 0.7 P(medium/W)= 0.40 P(medium/S)= 0.25 P(high/W) = 0.10 P(high/S) = 0.65 BDSC 340.001-3 d) Construct a decision tree for this problem and analyze it. e) What is McHuffter’s optimal decision? f) What is the expected value of the survey(sample) information?

1. Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.

Capital Gains = 125-100 = 25 and Dividend Yield = $2

            Total return percent = (25+2)/100 = 27/100 = 27%

            Capital Gain return = 25/100 = 25%

            Dividend Yield = 2/100 = 2%

2. Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?

Dividend = 4% of 100 = $4. The capital gain = 120-100 = 20

Total return for last year = $24 = 24%

3. CAPM - A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?

CAPM - Expected return of Stock = Rf + beta*(Rm - Rf) = 5 +1.2*(12-5) = 13.4%

4. WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

We*Re + Wd*Rd*(1-T) = 0.8*12 + 0.2*7*(1-0.3) = 10.58%

5. Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

125 million will be raised by issuing both debt and equity so that D/E remains 0.75.

D = 0.75E

E + 0.75E = 125

E = 71.43, D =125- 71.43 = 53.57

Initial cost of the plant will be = 125 + 71.43*0.10 + 53.57*0.04 = 125 + 9.2858 = 134.2858

1. Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.

Capital Gains = 125-100 = 25 and Dividend Yield = $2

            Total return percent = (25+2)/100 = 27/100 = 27%

            Capital Gain return = 25/100 = 25%

            Dividend Yield = 2/100 = 2%

2. Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?

Dividend = 4% of 100 = $4. The capital gain = 120-100 = 20

Total return for last year = $24 = 24%

3. CAPM - A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?

CAPM - Expected return of Stock = Rf + beta*(Rm - Rf) = 5 +1.2*(12-5) = 13.4%

4. WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

We*Re + Wd*Rd*(1-T) = 0.8*12 + 0.2*7*(1-0.3) = 10.58%

5. Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

125 million will be raised by issuing both debt and equity so that D/E remains 0.75.

D = 0.75E

E + 0.75E = 125

E = 71.43, D =125- 71.43 = 53.57

Initial cost of the plant will be = 125 + 71.43*0.10 + 53.57*0.04 = 125 + 9.2858 = 134.2858

Based on the above answers explain how companies make financial decisions

Look over Samantha's Handout of Information you were provided above. Similar to how you wrote about your goals for your own Diet Analysis, use Samantha's information to answer these questions.

• Do you think that Samantha's diet is sufficient enough to satisfy her hunger?
• Suggest FOUR changes in her diet (focus on food groups, nutrients, and other specific categories)
• Explain how she can make each change (i.e., decrease X, increase Y, etc. and by eating specifically which types of foods - please give examples
• What will happen if she stays on the current path and doesn't make the particular change you suggest?

Again, be specific. Do not just say food X has more nutrients - explain which nutrients exactly (in other words, for example, type of carb, type of fat, type of vitamins and/or minerals, etc., etc.). Explain the health effects of each change as you discuss, do not list overall health benefits in a sentence at the end of the suggested three changes.

Remember to use food examples and explain changes rather than saying "she needs to eat healthier, eat better, watch his weight," etc.).  

iProfile / Intake Compared to DRI / Basic View Samantha
Start date: Tue Nov 27 2018 End date: Tue Nov 27 2018
Nutrient My DRI My Intakes
Kilocalories 2592 kcal 2780 kcal
107.2%
Calories from Fat 648 - 907 kcal 714 kcal within recommended range
Fat, Total 72 - 101 g 79 g within recommended range
Saturated Fat < 28.8 g 29.7 g above recommended range
Trans Fatty Acid minimize 0.0 g within recommended range
Monounsaturated Fat not determined 10.4 g n/a
Polyunsaturated Fat not determined 6.1 g n/a
PFA 18:2, Linoleic 16.0 g 5.3 g
33.4%
PFA 18:3, Linolenic 1.6 g 0.5 g
31.3%
Cholesterol not determined 134 mg n/a
Carbohydrate 292 - 421 g 452 g above recommended range
Sugar, Total not determined 292 g n/a
Dietary Fiber, Total 38 g 11 g
28.1%
Soluble Fiber not determined 0 g n/a
Insoluble Fiber not determined 0 g n/a
Protein 65 - 194 g 70 g within recommended range
Protein Based on Body
Weight
64 g 70 g
108.9%
Moisture 3300 g 249 g
7.5%
Vitamin A (RAE) 900 μg 740 μg
82.2%
Vitamin D (ug) 15 μg 7 μg
47.8%
Vitamin E (Alpha-
Tocopherol)
15 mg 2 mg
16.1%
Vitamin K 75 μg 11 μg
14.6%
Thiamin 1.2 mg 1.7 mg
145.0%
Riboflavin 1.3 mg 2.2 mg
166.9%
iProfile 3.1 Copyright © 2018 John Wiley & Sons, Inc. All rights reserved.
2
Nutrient My DRI My Intakes
Niacin 16 mg 24 mg
152.7%
Pantothenic Acid 5.0 mg 2.3 mg
46.2%
Pyridoxine (Vitamin B6) 1.3 mg 2.4 mg
183.8%
Folate (DFE) 400 μg 1405 μg
351.2%
Cobalamin (Vitamin B12) 2.4 μg 7.2 μg
299.2%
Vitamin C 75 mg 28 mg
37.2%
Sodium 1500 - 2300 mg 3269 mg above recommended range
Potassium 4700 mg 1157 mg
24.6%
Calcium 1300 mg 734 mg
56.5%
Magnesium 410 mg 123 mg
30.1%
Iron 11 mg 19 mg
172.7%
Zinc 11 mg 18 mg
159.6%
Alcohol not determined 0 g n/a
Caffeine not determined 347 mg n/a

iProfile / Intake Spreadsheet Samantha
Start date: Tue Nov 27 2018 End date: Tue Nov 27 2018
Item Name Quantity Weight Kilocalories
(kcal)
Calories
from Fat
(kcal)
SNICKERS Candy Bar 1 items 52.7 g 250.0 108.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
9.5 fl.oz 280.6 g 200.0 27.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
9.5 fl.oz 280.6 g 200.0 27.0
MOUNTAIN DEW Soda 12 fl.oz 354.5 g 170.0 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
3 slcs 276.0 g 810.0 351.0
GENERAL MILLS LUCKY CHARMS Cereal 3 cups 108.0 g 440.0 36.0
Milk, Whole 3.3% 8 fl.oz 244.0 g 148.8 71.4
French Fries, Fried in Vegetable Oil, Fast
Food
2.5 oz 70.9 g 221.1 93.9
MOUNTAIN DEW Soda 24 fl.oz 709.0 g 340.0 0.0
Totals 2780 714
Item Name Fat, Total
(g)
Saturated
Fat (g)
Trans Fatty
Acid (g)
Monounsatu
rated Fat (g)
SNICKERS Candy Bar 12.0 4.5 0.0 4.15
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
3.0 2.0 0.0 -
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
3.0 2.0 0.0 -
MOUNTAIN DEW Soda 0.0 0.0 0.0 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
39.0 15.0 0.0 -
GENERAL MILLS LUCKY CHARMS Cereal 4.0 0.0 0.0 0.0
Milk, Whole 3.3% 7.9 4.55 - 1.98
French Fries, Fried in Vegetable Oil, Fast
Food
10.4 1.65 0.04 4.23
MOUNTAIN DEW Soda 0.0 0.0 0.0 0.0
iProfile 3.1 Copyright © 2018 John Wiley & Sons, Inc. All rights reserved.
2
Totals 79 29.7 0.0 10.4
Item Name Polyunsatur
ated Fat (g)
PFA 18:2,
Linoleic (g)
PFA 18:3,
Linolenic (g)
Cholesterol
(mg)
SNICKERS Candy Bar 1.76 1.56 0.02 5.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - 15.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - 15.0
MOUNTAIN DEW Soda 0.0 0.0 0.0 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- - - 75.0
GENERAL MILLS LUCKY CHARMS Cereal 0.0 0.0 0.0 0.0
Milk, Whole 3.3% 0.47 0.29 0.18 24.4
French Fries, Fried in Vegetable Oil, Fast
Food
3.82 3.5 0.3 0.0
MOUNTAIN DEW Soda 0.0 0.0 0.0 0.0
Totals 6.1 5.3 0.5 134
Item Name Carbohydrat
e (g)
Sugar, Total
(g)
Dietary
Fiber, Total
(g)
Soluble
Fiber (g)
SNICKERS Candy Bar 33.0 27.0 1.0 -
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
37.0 32.0 0.0 0.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
37.0 32.0 0.0 0.0
MOUNTAIN DEW Soda 46.0 46.0 0.0 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
78.0 6.0 3.0 -
GENERAL MILLS LUCKY CHARMS Cereal 88.0 44.0 4.0 -
Milk, Whole 3.3% 11.7 12.3 0.0 0.0
French Fries, Fried in Vegetable Oil, Fast
Food
29.4 0.2 2.7 -
MOUNTAIN DEW Soda 92.0 92.0 0.0 0.0
Totals 452 292 11 0
Item Name Insoluble Protein (g) Moisture (g) Vitamin A
iProfile 3.1 Copyright © 2018 John Wiley & Sons, Inc. All rights reserved.
3
Fiber (g) (RAE) (μg)
SNICKERS Candy Bar - 4.0 3.3 24.2
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
0.0 6.0 - 0.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
0.0 6.0 - 0.0
MOUNTAIN DEW Soda 0.0 0.0 - 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- 36.0 - -
GENERAL MILLS LUCKY CHARMS Cereal - 8.0 3.4 603.7
Milk, Whole 3.3% 0.0 7.7 215.0 112.2
French Fries, Fried in Vegetable Oil, Fast
Food
- 2.4 27.3 0.0
MOUNTAIN DEW Soda 0.0 0.0 - 0.0
Totals 0 70 249 740
Item Name Vitamin D
(ug) (μg)
Vitamin E
(Alpha-
Tocopherol)
(mg)
Vitamin K
(μg)
Thiamin
(mg)
SNICKERS Candy Bar 0.0 0.8 1.0 0.03
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - -
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - -
MOUNTAIN DEW Soda - - - -
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- - - -
GENERAL MILLS LUCKY CHARMS Cereal 4.0 0.3 1.3 1.48
Milk, Whole 3.3% 3.2 0.2 0.7 0.11
French Fries, Fried in Vegetable Oil, Fast
Food
0.0 1.2 7.9 0.12
MOUNTAIN DEW Soda - - - -
Totals 7 2 11 1.7
Item Name Riboflavin
(mg)
Niacin (mg) Pantothenic
Acid (mg)
Pyridoxine
(Vitamin B6)
iProfile 3.1 Copyright © 2018 John Wiley & Sons, Inc. All rights reserved.
4
(mg)
SNICKERS Candy Bar 0.06 2.1 0.31 0.05
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - -
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - - -
MOUNTAIN DEW Soda - - - -
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- - - -
GENERAL MILLS LUCKY CHARMS Cereal 1.68 20.0 0.68 2.0
Milk, Whole 3.3% 0.41 0.2 0.91 0.08
French Fries, Fried in Vegetable Oil, Fast
Food
0.02 2.1 0.41 0.26
MOUNTAIN DEW Soda - - - -
Totals 2.2 24 2.3 2.4
Item Name Folate
(DFE) (μg)
Cobalamin
(Vitamin
B12) (μg)
Vitamin C
(mg)
Sodium
(mg)
SNICKERS Candy Bar 18.2 0.09 0.6 120.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - 0.0 100.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- - 0.0 100.0
MOUNTAIN DEW Soda - - 0.0 65.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- - - 1740.0
GENERAL MILLS LUCKY CHARMS Cereal 1353.2 6.0 24.0 760.0
Milk, Whole 3.3% 12.2 1.09 0.0 104.9
French Fries, Fried in Vegetable Oil, Fast
Food
21.3 0.0 3.3 148.8
MOUNTAIN DEW Soda - - 0.0 130.0
Totals 1405 7.2 28 3269
Item Name Potassium
(mg)
Calcium
(mg)
Magnesium
(mg)
Iron (mg)
SNICKERS Candy Bar 189.6 40.0 42.3 0.4
iProfile 3.1 Copyright © 2018 John Wiley & Sons, Inc. All rights reserved.
5
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
20.0 3.0 - 0.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
20.0 3.0 - 0.0
MOUNTAIN DEW Soda 5.0 0.0 - 0.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- - - -
GENERAL MILLS LUCKY CHARMS Cereal 180.0 400.0 32.0 18.0
Milk, Whole 3.3% 322.1 275.7 24.4 0.1
French Fries, Fried in Vegetable Oil, Fast
Food
410.4 12.8 24.8 0.6
MOUNTAIN DEW Soda 10.0 0.0 - 0.0
Totals 1157 734 123 19
Item Name Zinc (mg) Alcohol (g) Caffeine
(mg)
SNICKERS Candy Bar 1.3 0.0 4.7
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- 0.0 90.0
STARBUCKS FRAPPUCCINO Bottled Coffee
Drink, Coffee
- 0.0 90.0
MOUNTAIN DEW Soda - 0.0 54.0
PIZZA HUT Pizza, Ultimate Cheese Lover's,
Pan, Medium, 12 inch
- 0.0 0.0
GENERAL MILLS LUCKY CHARMS Cereal 15.0 0.0 0.0
Milk, Whole 3.3% 0.9 0.0 0.0
French Fries, Fried in Vegetable Oil, Fast
Food
0.3 0.0 0.0
MOUNTAIN DEW Soda - 0.0 108.0
Totals 18 0 347

Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem.

December 31, 2018 To the friendly student tax preparer: Hi, it’s Shady Sam again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Mary. I know that it’s unusual, but I have custody of my son, Shady, Jr. The judge owed me a few favors and I really love the kid. He lives with me full-time and my wife gets him every other weekend. I pay the vast majority of my son’s expenses. I think Mary should have to pay some child support, but she doesn’t have to pay a dime. The judge didn’t owe me that much, I guess. I had to move this year after getting my job at Dr. Cola. We moved on February 3 of this year, and I worked my job at Dr. Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I’m still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions). I’m such a nice guy! I gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn’t like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Dr. Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don’t even miss it, because Dr. Cola takes it right off my paycheck every month . . . $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $19,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,500 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid’s brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Dr. Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I’ve always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter’s school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Oh yea, Dr. Cola has withheld a whopping $30,000 from my paycheck in Federal income taxes. Surely I’ll get some of that back. (Assume Shady lives in Texas where there is no state income tax).

REQUIRED:
(1) Determine Shady’s taxable income for 2018. In your response, list those items that are not deductible and explain why (Shady would want to know).

(2) Determine Shady’s tax liability assuming he is able to file as head of household. Use the 2018 Tax Rate Schedules.

(3) Will Shady get a refund or will he owe some additional Federal income tax?

Assume that a three-year bridge construction project has just concluded resulting in a modern six-lane structure that spans a major river connecting two cities. Each of the two cities resides in a different state. The new bridge replaces a late-1940s steel structure two-lane bridge that was originally dedicated to World War II military veterans. The new bridge was constructed approximately 100 yards upstream from the bridge that it will be replacing. The old bridge is still standing and in operation, but destruction of the old bridge will begin approximately two weeks after the new bridge is dedicated and opened to traffic. The local Chambers of Commerce in each of the two cities connected by the bridge have been pushing for its replacement for the past 20 years. Various politicians at many state and local levels from each state have been actively involved (either in supporting or opposing the push to get the project funded, scheduled, and completed). At least two area historical groups have been vocal, especially in the past four years, about the old bridge's future. Representatives of smaller towns and cities along the major highways leading into the two cities that the new bridge connects have long supported the bridge renovation and have recently hailed it as a great boost to the region's economy. There are multiple newspapers in each of the two cities that the bridge connects, with one dominant newspaper that serves both markets. One of the cities connected by the bridge has four local television stations and the city in the other state has none. Workers from a general contractor and seventeen subcontractors have worked on the new bridge project, as well as employees of the primary Architectural firm and two consulting Architectural firms. Various state and federal government agencies have been directly or indirectly involved in the project as well. As the river spanned by the new bridge is a navigable river downstream from the bridge and also for a much shorter distance upstream from the bridge, the U.S. Army Corps of Engineers has also been actively involved. Various lobbying groups have supported or opposed the bridge project during its life and during the years leading up to the project getting started. These lobbyists have been the voice of many different types of groups that range across many interests from environmental groups to trucking industry groups as examples. As the new bridge has required that new highway approaches be constructed along each side of the river that it spans, various businesses and two very small residential neighborhoods have been impacted by the new bridge's approach roads. Several small businesses on either side of the river from the old bridge fear that life will change dramatically when the old bridge closes. The arts community in the region has successfully sought to provide input into the design of the new bridge and that bridge will feature special lighting to make it aesthetically appealing at night. The project manager for the new bridge and the key project team members have worked diligently for the entire duration of the project to bring the project to completion within one week of the scheduled completion date and slightly under budget. Inspection of the new bridge, to ensure that it meets specifications and is safe for the public, is currently underway and will be completed within the next month. The new bridge project has been completed with a combination of local, federal, and state (from each of the two states) funding. REQUIRED: Prepare a two-to-four page Microsoft Word format document (with one-inch margins all around in a 10 or 12-point Times New Roman or Arial font). Please place an appropriate assignment heading on the document containing the assignment number, the submitting student name, etc. in a format that is the same as students have been instructed to use in previous assignments in this course. In that document, please respond (in full sentences and appropriate paragraph structure) to the following two multi-part questions: 1. What should be done to ensure appropriate closure of this project and why? 2. Should this project have a project audit? Why or why not? If it should have a project audit, then how should that project audit be done and why? (Be sure to address the who, what, when, where, why, and how parts of this last subquestion as well as mentioning the general characteristics of a high-quality project audit effort, should you elect to state that a project audit should be done.)

A study was done to look at the relationship between number of movies people watch at the theater each year and the number of books that they read each year. The results of the survey are shown below.

1. Find the correlation coefficient: r=r=    Round to 2 decimal places.
2. The null and alternative hypotheses for correlation are:
   H0:H0: ? ρ μ r  == 0
   H1:H1: ? μ ρ r   ≠≠ 0
   The p-value is:      Round to 4 decimal places.
   
3. Use a level of significance of α=0.05α=0.05 to state the conclusion of the hypothesis test in the context of the study.
   • There is statistically significant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the regression line is useful.
   • There is statistically significant evidence to conclude that a person who watches more movies will read fewer books than a person who watches fewer movies.
   • There is statistically significant evidence to conclude that a person who watches fewer movies will read fewer books than a person who watches fewer movies.
   • There is statistically insignificant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the use of the regression line is not appropriate.
4. r2r2 =  (Round to two decimal places)
5. Interpret r2r2 :
   • 41% of all people watch about the same number of movies as they read books each year.
   • Given any fixed number of movies watched per year, 41% of the population reads the predicted number of books per year.
   • There is a 41% chance that the regression line will be a good predictor for the number of books people read based on the number of movies they watch each year.
   • There is a large variation in the number books people read each year, but if you only look at people who watch a fixed number of movies each year, this variation on average is reduced by 41%.
6. The equation of the linear regression line is:   
   ˆyy^ =   + xx    (Please show your answers to two decimal places)
   
7. Use the model to predict the number of books read per year for someone who watches 3 movies per year.
   Books per year =  (Please round your answer to the nearest whole number.)
   
8. Interpret the slope of the regression line in the context of the question:
   • As x goes up, y goes down.
   • For every additional movie that people watch each year, there tends to be an average decrease of 0.61 books read.
   • The slope has no practical meaning since people cannot read a negative number of books.
   
   
9. Interpret the y-intercept in the context of the question:
   • If someone watches 0 movies per year, then that person will read 13 books this year.
   • The average number of books read per year is predicted to be 13 books.
   • The y-intercept has no practical meaning for this study.
   • The best prediction for a person who doesn't watch any movies is that they will read 13 books each year.

A study was done to look at the relationship between number of movies people watch at the theater each year and the number of books that they read each year. The results of the survey are shown below. Movies 6 10 1 2 3 1 7 7 6 5 8 Books 6 0 8 7 7 7 2 1 6 7 5 Find the correlation coefficient: r = Round to 2 decimal places. The null and alternative hypotheses for correlation are: H 0 : = 0 H 1 : ≠ 0 The p-value is: Round to 4 decimal places. Use a level of significance of α = 0.05 to state the conclusion of the hypothesis test in the context of the study. There is statistically significant evidence to conclude that a person who watches more movies will read fewer books than a person who watches fewer movies. There is statistically insignificant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the use of the regression line is not appropriate. There is statistically significant evidence to conclude that a person who watches fewer movies will read fewer books than a person who watches fewer movies. There is statistically significant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the regression line is useful. r 2 = (Round to two decimal places) Interpret r 2 : There is a large variation in the number books people read each year, but if you only look at people who watch a fixed number of movies each year, this variation on average is reduced by 66%. Given any fixed number of movies watched per year, 66% of the population reads the predicted number of books per year. 66% of all people watch about the same number of movies as they read books each year. There is a 66% chance that the regression line will be a good predictor for the number of books people read based on the number of movies they watch each year. The equation of the linear regression line is: ˆ y = + x (Please show your answers to two decimal places) Use the model to predict the number of books read per year for someone who watches 8 movies per year. Books per year = (Please round your answer to the nearest whole number.) Interpret the slope of the regression line in the context of the question: As x goes up, y goes down. The slope has no practical meaning since people cannot read a negative number of books. For every additional movie that people watch each year, there tends to be an average decrease of 0.75 books read. Interpret the y-intercept in the context of the question: If someone watches 0 movies per year, then that person will read 9 books this year. The best prediction for a person who doesn't watch any movies is that they will read 9 books each year. The average number of books read per year is predicted to be 9 books. The y-intercept has no practical meaning for this study.

A study was done to look at the relationship between number of movies people watch at the theater each year and the number of books that they read each year. The results of the survey are shown below.

1. Find the correlation coefficient: r= Round to 2 decimal places.
2. The null and alternative hypotheses for correlation are:
   H0: ? r ρ μ   = 0
   H1: ? μ r ρ   ≠ 0
   The p-value is:    Round to 4 decimal places.
   
3. Use a level of significance of α=0.05α=0.05 to state the conclusion of the hypothesis test in the context of the study.
   • There is statistically significant evidence to conclude that a person who watches more movies will read fewer books than a person who watches fewer movies.
   • There is statistically insignificant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the use of the regression line is not appropriate.
   • There is statistically significant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the regression line is useful.
   • There is statistically significant evidence to conclude that a person who watches fewer movies will read fewer books than a person who watches fewer movies.
4. r2 =  (Round to two decimal places)
5. Interpret r2r2 :
   • There is a 78% chance that the regression line will be a good predictor for the number of books people read based on the number of movies they watch each year.
   • Given any fixed number of movies watched per year, 78% of the population reads the predicted number of books per year.
   • There is a large variation in the number books people read each year, but if you only look at people who watch a fixed number of movies each year, this variation on average is reduced by 78%.
   • 78% of all people watch about the same number of movies as they read books each year.
6. The equation of the linear regression line is:   
   ˆyy^ =   +   xx    (Please show your answers to two decimal places)   
   
7. Use the model to predict the number of books read per year for someone who watches 4 movies per year.
   Books per year =  (Please round your answer to the nearest whole number.)   
   
8. Interpret the slope of the regression line in the context of the question:
   • The slope has no practical meaning since people cannot read a negative number of books.
   • For every additional movie that people watch each year, there tends to be an average decrease of 0.77 books read.
   • As x goes up, y goes down.
   
   
9. Interpret the y-intercept in the context of the question:
   • The best prediction for a person who doesn't watch any movies is that they will read 7 books each year.
   • The average number of books read per year is predicted to be 7 books.
   • The y-intercept has no practical meaning for this study.
   • If someone watches 0 movies per year, then that person will read 7 books this year.

**** Can you please type or print clearly. Thank you so much

A study was done to look at the relationship between number of movies people watch at the theater each year and the number of books that they read each year. The results of the survey are shown below.

Find the correlation coefficient: r=______. Round to 2 decimal places.

The null and alternative hypotheses for correlation are:
H0:H0: ? μ r ρ  == 0
H1:H1: ? μ ρ r   ≠≠ 0

The p-value is: ____ Round to 4 decimal places.

1. Use a level of significance of α=0.05α=0.05 to state the conclusion of the hypothesis test in the context of the study.
   • There is statistically significant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the regression line is useful.
   • There is statistically significant evidence to conclude that a person who watches more movies will read fewer books than a person who watches fewer movies.
   • There is statistically significant evidence to conclude that a person who watches fewer movies will read fewer books than a person who watches fewer movies.
   • There is statistically insignificant evidence to conclude that there is a correlation between the number of movies watched per year and the number of books read per year. Thus, the use of the regression line is not appropriate.
2. r2r2 =  (Round to two decimal places)
3. Interpret r2r2 :
   • There is a 72% chance that the regression line will be a good predictor for the number of books people read based on the number of movies they watch each year.
   • There is a large variation in the number books people read each year, but if you only look at people who watch a fixed number of movies each year, this variation on average is reduced by 72%.
   • Given any fixed number of movies watched per year, 72% of the population reads the predicted number of books per year.
   • 72% of all people watch about the same number of movies as they read books each year.
4. The equation of the linear regression line is:   
   ˆyy^ =   + xx    (Please show your answers to two decimal places)
   
   
5. Use the model to predict the number of books read per year for someone who watches 4 movies per year.
   Books per year =  (Please round your answer to the nearest whole number.)
   
   
6. Interpret the slope of the regression line in the context of the question:
   • The slope has no practical meaning since people cannot read a negative number of books.
   • As x goes up, y goes down.
   • For every additional movie that people watch each year, there tends to be an average decrease of 0.71 books read.
7. Interpret the y-intercept in the context of the question:
   • If someone watches 0 movies per year, then that person will read 14 books this year.
   • The y-intercept has no practical meaning for this study.
   • The best prediction for a person who doesn't watch any movies is that they will read 14 books each year.
   • The average number of books read per year is predicted to be 14 books.