Students are classified according to religious preference (Buddhist, Jewish,

Protestant, Roman Catholic, or Other) and political affiliation (Democrat, Republican,

Independent, or Other).

RELIGIOUS PREFERENCE AND POLITICAL AFFILIATION

RELIGIOUS PREFERENCE

POLITICAL

AFFILIATION BUDDHIST JEWISH PROTESTANT ROM. CATH. OTHER TOTAL

Democrat 30 30 40 60 40 200

Republican 10 10 40 20 20 100

Independent 10 10 20 20 40 100

Other 0 0 0 0 100 100

Total 50 50 100 100 200 500

(a) Is anything suspicious about these observed frequencies?

(b) Using the .05 level of significance, test the null hypothesis that these two variables

are independent.

(c) If appropriate, estimate the effect size

France and England both produce wine and cloth with constant opportunity costs. France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. England can produce 50 barrels of wine if it produces no cloth or 150 bolts of cloth if it produces no wine. When international trade takes place, each country specializes completely in the production of the good in which it has a comparative advantage: 1 barrel of wine exchanges for 1 bolt of cloth and France exports 50 units of wine. We can conclude that France produces _____ units of wine and _____ units of cloth and that France consumes _____ units of wine and _____ units of cloth.

150; 0; 100; 50

150; 0; 50; 50

150; 100; 100; 100

0; 100; 50; 50

JAVA

What is the output? Explain how you obtain this answer by hand, not using a computer. String alphabet = "ABCDEFGHIJKLMNOPQRSTUVWXYZ"; for(int i = 1; i <= 26; i *= 2) { System.out.print(alphabet.charAt(i - 1)); }

What is the output? Explain how you obtain this answer by hand, not using a computer. int n = 500; int count = 0; while (n > 1) { if (n % 2 == 0) { n /= 3; } else { n /= 2; } count++; } System.out.println(count);

A Java Swing application contains this paintComponent method for a panel. Sketch what is drawn by this method. public void paintComponent(Graphics g) { super.paintComponent(g); g.setColor(Color.black); g.fillRect(100, 100, 200, 100); g.fillRect(300, 200, 200, 100); g.fillRect(500, 100, 200, 100); }

7. Price discrimination and welfare

Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Barefeet faces, as well as its marginal cost (MC), which is constant at $40 per pair of Ooh boots. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Barefeet's marginal cost is constant, means that its marginal cost curve is also equal to the average total cost (ATC) curve.

First, suppose that Barefeet cannot price discriminate. That is, it must charge each consumer the same price for Ooh boots regardless of the consumer's willingness and ability to pay.

On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade the deadweight loss in this market without price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette.)

Monopoly OutcomeConsumer SurplusProfitDeadweight Loss0204060801001201401601802001009080706050403020100PRICE (Dollars per pair of Ooh boots)QUANTITY (Pairs of boots)DemandMC = ATCMR

Now, suppose that Barefeet can practice perfect price discrimination—that is, it knows each consumer's willingness to pay for each pair of Ooh boots and is able to charge each consumer that amount.

On the following graph, use the black point (plus symbol) to indicate the profit-maximizing quantity sold and the lowest price at which the firm sells its boots. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade the deadweight loss in this market with perfect price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette.)

Monopoly OutcomeProfitConsumer SurplusDeadweight Loss0204060801001201401601802001009080706050403020100PRICE (Dollars per pair of Ooh boots)QUANTITY (Pairs of boots)DemandMC = ATC

Consider the welfare effects when the industry operates under a monopoly and cannot price discriminate versus when it can price discriminate.

Complete the following table by indicating under which market conditions each of the statements is true. (Note: If the statement isn't true for either single-price monopolies or perfect price discrimination, leave the entire row unchecked.) Check all that apply.

A research conducted a study of consumer behavior in wine drinkers. She manipulated several factors between-subjects in a multi-factor design. First, she had participants sample three different wines, ranging in cost from low ($5) to medium ($10) to high ($20). Second, she labeled them as costing $6 or $90. So, for example, a person might receive a cheap wine labeled as costing $6 or a cheap wine labeled as costing $90. Third, she recruited casual wine drinkers and expert wine drinkers. The main dependent variable was how much participants reported liking the wine they had tasted. After conducting a multi-factor ANOVA, she found that people gave significantly more positive ratings to the wine labeled $90 than the wine labeled $6. She found no significant effect of the actual retail price of the wine. She also found no effect of wine-drinking experience: casual drinker vs. expert. However, the effect of labeled price was significantly greater in casual drinkers than in expert wine drinkers.

A) Which main effects were revealed by the ANOVA?

a) actual retail price of the wine

b) None

c) wine-drinking experience (casual vs. expert)

d) Labeled price of the wine & wine-drinking experience (casual vs. expert)

e) Labeled price of the wine & actual retail price of the wine

f) Labeled price of the wine

B) What interaction effect occurred in the wine-drinking study?

a) actual retail price of the wine & wine-drinking experience (casual vs. expert)

b) Labeled price of the wine & wine-drinking experience (casual vs. expert)

c) no interaction occurred

d) Labeled price of the wine & actual retail price of the wine

C) What type of research design was used in the wine-drinking study?

a) 3 X 2 X 2 factorial design

b) Survey

c) 2 X 2 X 2 factorial design

d) correlational study

D) What conclusions can you draw from the wine-drinking study?

a) experts are no better at judging wines than are casual drinkers

b) wines do not taste good

c) better quality wines also taste better

d) People's perception of wine price are simply irrelevant

e) better quality wines are rated more highly, especially by casual wine drinkers

f) People enjoy wines more if they believe the wine is expensive, especially for casual wine drinkers

E) There are ___ degrees of freedom for the "labelled price" factor and ____ degrees of freedom for the "actual retail price" variable.

Program in Java using Inheritence

The purpose of this assignment is to practice OOP programming covering Inheritance.

Core Level Requirements (up to 6 marks)

The scenario for this assignment is to design an online shopping system for a local supermarket (e.g., Europa Foods Supermarket or Wang Long Oriental Supermarket). The assignment is mostly concentrated on the product registration system. Design and draw a UML diagram, and write the code for the following classes: The first product category is a fresh product, it contains the following attributes. - ID: The identification number must start with 1 and follows with 6 numbers, e.g., “1123456”. - Description, e.g. “Banana” - Recommended Price per unit, e.g. 5.54. Note that this is the suggested price, it is not the actual price in the online shopping system. - Unit (by default is 1) - Weight (in gram) - Unit Type, e.g. “Each, Kilogram, Bunch, Box and Pack” - The packing or baking date (it should include the date, month, year and time), this information is not required for some product, hence, it default may be set to 1/1/1900. - The expiry date is (it should include the date, month, year) The purpose of this class is to maintain the general information of fresh or daily product such as meat, seafood, bread, milk and vegetable. The second product category is a packaged product such as can, source, snack, etc. It contains the following attributes. - ID: The identification number must start with 2 and follows with 6 numbers, e.g., “2123456”. - Description, e.g. “Corn cream can” - Recommended Price per unit, e.g. 5.54. - Unit (by default is 1) - Weight (in gram) - The dimension of the package (including height, width, deep). If a product doesn’t provide this information, then it set to (0, 0, 0) as a default value. CSIT121 Spring 2019 - Nutrition Information o Quantity per 100 g or 100 ml o Energy/kilojoules o Protein o Fat o Sugars(mg) o Sodium/salt(mg) - Unit Type for this class is limited to only “Box, Bottle and Pack” - Packing or manufacturing date (it should include the date, month, year and time), this information is not required for some product, hence, it default may be set to 1/1/1900. - Expire date is (it should include the date, month, year), its default may be set to 1/1/3000 for the product that doesn’t have an expiry date. The purpose of this class is to maintain the general information of package product such as can, sauce, instant noodle, flour and snack. Noted that all classes should override and implement the toString methods to transform the information of the object into the string variable. Ensure that your classes are well designed with practical attributes (either primitive type, class object or Enumerated Data type) and have proper methods to handle all tasks (Encapsulation). Students are allowed to add any classes to the design, it is necessary to perfect the design. Task 1: Class design (Code and UML). 1. Design and write the java code for the above two categories. 2. Design 2 subclass with 2 additional attributes for each category. Task 2: Your classes should be able to provide methods allowing one to 1. (verifyUnitType) Check whether the input arguments (a unit type) passed to the method matches with the user type stored in the object or not. 2. (getAttributeDescriptionForSavingTofile) output the description of all attributes to a String format that can be used to save it to a CVS format file directly, e.g. “ID, Description, …. , Expire date”. 3. (getInformationForSavingToFile) Take all attributes in the object and output them to a String format that can be used to save it to a CVS format file directly, e.g. “1222344, Corn Cream,…. , 20/11/2019”. (0.5 marks for each feature) Choose the appropriate input or/and output type for each method. Test Code: write the test code (a separate class/file called “TestCode” with the Main method in it), create the object of each class, and create an ArrayList to keep all the above classes. For each object, call methods in Task 2 to check whether the method works properly. Display the output of the methods to the console. Finally, display information of all the object in the ArrayList to the console. (0.5 marks)

Question 2

Orange Inc. is considering two mutually exclusive projects (i.e., can choose either one but not both), Alpha in Country A, and Beta in Country B. Project Alpha requests an initial investment of $300,000 and has projected annual cash flows of $20,000, $50,000, $50,000 and $350,000 over 4 years. Project Beta requests an initial investment of $88,000 and has projected cash flows of $12,000 for the first year, and then the cash flows are projected to grow at a constant rate of 5 percent per year forever. Based on the project characteristics, the company requires an 15 percent return for Project Alpha but requires an 17 percent for Project Beta.

You require a 15 percent return on your investment and a payback period of 3 years.

1. If the company requires a maximum payback period of 4 years, which investment will you choose according to the payback criterion? Why?
2. If you apply the NPV criterion, which investment will you choose? Why?
3. Name three disadvantages of the payback period
4. Based on your answer in (a) and (b), which project will you finally choose? Why?

Question 3

Parker & Stone, Inc., is considering a new project that requires an initial fixed asset investment of 1.2 million. The project also requires an initial investment in net working capital of $250,000. The project is expected to generate $950,000 in sales and cost $400,000 every year for three years. The fixed asset follows a straight-line depreciation. After three years, the fixed asset has a zero book value but is estimated to have a market value of $200,000, and the net working capital will fully recovery. The corporate tax rate is 35%.

1. What are the operating cash flows in each year?
2. What are the cash flows from net working capital and the net capital spending in year 3?
3. What are the CFFA in each year?
4. If the required return is 10% for a similar risk level of project, should the company implement this project?

Question 4

At year beginning, you observed that the price of stock Apple was $100 and the price of Stock Orange was $900. To understand the relation between risk and return, you keep watching on the performance of the stock and the bond over the next three years. The information you observed is as follows:

1. What is the stock Apple’s dividend yield in year 2? What is the Stock Orange’s capital gains yield in year 3?
2. During the 3-year observation period, what are the average annual total return of Apple and Orange?
3. Based on the lessons learned from the capital market history, discuss your interpretation of “higher risk and higher expected return”.

Question 5

Consider the following stock information about Tencent and HSBC

1. What’re the expected return on each stock?
2. What’re the standard deviation on each stock?
3. The risk free rate is 1.5%. Based on the CAPM, If Tencent’s market beta is 1.5, what’s the beta of HSBC?
4. If you invested 65 percent in Tencent and 35 percent in HSBC, what is your portfolio expected return? The standard deviation? .
5. Given the portfolio information in (d) and beta information in (c), what is the portfolio’s market beta? .

Question 6

SmartCar Corporation has 1 million shares of common stock outstanding, 20,000 shares of preferred stock outstanding, and 40,000 corporate bonds outstanding. The common stocks sell for $25, with a market beta of 1.5. The corporate bonds sell for $950 and the current YTM is 5%. The preferred stock currently sells for $100, with an annual dividend payment of $8 per share. The risk-free rate is 2% and the market expected return is 8%. SmarCar’s corporate tax rate is 35%. What is SmartCar’s cost of capital?

1. Vinnie is looking for an apartment in Dayton, Ohio. In Dayton, 75% of the two bedroom, one bath apartments are $800 a month and 25% are $400. The marginal cost of his search is $15 per search, i.e., the marginal cost of looking at the first apartment is $15, the marginal cost of looking at the second apartment is $30, and so on. Suppose that Vinnie discovers that the distribution of high price - low price apartments is not 75% and 25% but 60% and 40%. He will now be willing to look at a maximum of __________ apartments.

a. 8

b. 6

c. 4

d. 10

2.

Suppose Erie Textiles can dispose of its waste “for free” by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant gains (thousands of dollar) and losses for the three parties are listed below:

With filter Without filter

Erie textiles: 275 400

Fishermen 170 130

Aviarist 130 25

The daily cost (in thousands of dollars) of the filter to Erie Textiles is:

a. 400

b. 100

c. 125

d. 300

3. Suppose Erie Textiles can dispose of its waste “for free” by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant gains (thousands of dollar) and losses for the three parties are listed below:

With filter Without filter

Erie textiles: 275 400

Fishermen 170 130

Aviarist 130 25

The daily benefit (in thousands of dollars) of the filter to the fishermen and aviarist is

a. 400

b. 310

c. 145

d. 200

4.

Suppose Erie Textiles can dispose of its waste “for free” by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant gains (thousands of dollar) and losses for the three parties are listed below:

With filter Without filter

Erie textiles: 275 400

Fishermen 170 130

Aviarist 130 25

What is the minimum amount that needs to be paid to Erie textiles so that he agrees to install a filter?

a. 126

b. 276

c. 100

d. 400

5.

Suppose Erie Textiles can dispose of its waste “for free” by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant gains (thousands of dollar) and losses for the three parties are listed below:

With filter Without filter

Erie textiles: 300 400

Fishermen 170 130

Aviarist 130 25

What is the maximum amount that the fishermen and the aviarist can give to Erie textiles so that he agrees to install a filter?

a. 145

b. 100

c. 125

d. 200

6.

Suppose Erie Textiles can dispose of its waste “for free” by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant gains (thousands of dollar) and losses for the three parties are listed below:

With filter Without filter

Erie textiles: 275 400

Fishermen 170 130

Aviarist 130 25

If Erie Textiles does not install the filter that will cause a net social _____ of _____ (in thousands of dollars).

a. Loss; 25

b. Loss; 40

c. Gain; 100

d. Gain; 35

ABC produces high-tech storage systems. The company is in its fifth year of operations and is preparing to build its master budget for the coming year (2017). The master budget will be based upon the following information:

Fourth quarter sales for 2016 were 50,000 units.

Budget unit sales by quarter (for 2017) are as follows:

First Quarter                      48,000

Second Quarter                                50,000

Third Quarter                     47,000

Fourth Quarter                 51,000

The selling price is $320 per unit. All sales are credit sales. ABC collects 70% of credit sales in the same quarter the sales are made and the remaining 30% is collected in the following quarter.   There are no bad debts.

ABC’s finished goods ending inventory policy is to have 25% of next quarter’s sales on hand at the end of each quarter. This policy was met on January 1, 2017. First quarter sales projections for 2018 are 44,000 units.

Each finished unit uses two pieces of plastic. Each piece of plastic costs $60. At the end of each quarter ABC plans to have 30% of the direct materials needed for the next quarter’s production (production for the first quarter of 2018 is expected to be 48,000 finished units). This policy was met on January 1, 2017. ABC buys direct materials on account. Eighty percent of the purchases are paid for in the quarter of acquisition and the remaining twenty percent are paid for in the following quarter.

Each unit uses two hours of direct labor to finish. Direct laborers are paid $20 per hour and all wages are paid in the same quarter as incurred.

Fixed overhead costs total $1,000,000 each quarter. Of this total, $300,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate (base is units) is computed by dividing the year’s total fixed overhead by the year’s expected actual units produced when computing the cost of a finished unit for ending finished goods inventory. Round the overhead rate to the nearest two decimal points. Remember that depreciation is not paid for.

Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred.

Fixed selling and administration expenses are budgeted at $500,000 per quarter, including $200,000 of depreciation. Remember again that depreciation is not paid for. The fixed selling and administration expenses other than depreciation are paid in the quarter incurred.

Variable selling and administration expenses are budgeted at $7 per unit sold. Also, for each quarter there is a $100 expense in which you entitle “your name expense.” For example, for each quarter I would show a Shadbolt expense of $100 on a line separate from other variable selling and administration expense. All selling and administrative expenses are paid in the quarter incurred.

The balance sheet as of December 31, 2016, is as follows:

                                                                                       Assets

                                                Cash                                                 $2,300,000

                                                Direct Materials Inventory          1,440,000

                                                Accounts Receivable                    2,880,000

                                                Finished Goods Inventory           2,700,000

                                                Plant and Equipment, net          21,500,000

                                                                Total                                 $30,820,000

                                                                                Liabilities

                                                Accounts Payable                       $2,160,000¹

                                                Capital Stock                                 15,400,000

                                                Retained Earnings                        13,260,000

                                                                Total                                $30,820,000

                                ¹For purchase of direct materials only.

ABC will pay quarterly dividends of $200,000. Each quarter ABC will purchase $700,000 of equipment – depreciation on these purchase is already included in the above noted costs.

Required:

Using Excel, prepare the following budgets for ABC for 2017. Prepare the following at the end of the calendar year only:

Ending Finished goods inventory budget (remember that this is the year-end inventory, not each quarter’s ending inventory summed) need to compute cost of goods sold.

Cost of Goods Sold budget (there is no work in process inventory).

Budgeted income statement using absorption costing.

Budgeted Balance Sheet.