Bank of America's Consumer Spending Survey collected data on annual credit card charges in seven different categories of expenditures: transportation, groceries, dining out, household expenses, home furnishings, apparel, and entertainment. Using data from a sample of 42 credit card accounts, assume that each account was used to identify the annual credit card charges for groceries (population 1) and the annual credit card charges for dining out (population 2). Using the difference data, the sample mean difference was d= $850, and the sample standard deviation was $1123. a. Formulate the null and alternative hypotheses to test for no difference between the population mean credit card charges for groceries and the population mean credit card charges for dining out. b. Use .05 level of significance. Can you conclude that the population means differ? What is the p -value? (to 6 decimals) c. Which category, groceries or dining out, has a higher population mean annual credit card charge? What is the point estimate of the difference between the population means? Round to the nearest whole number. 850 What is the 95% confidence interval estimate of the difference between the population means? Round to the nearest whole number. (n1,n2)=

Maria Suarez returned to her office afteer spending the afternoon meeting with her firm's investment bankers. Suarez was CFO of MidCo Ind., a mid-sized manufacturing firm, and she was taking a hard look at its capital structure and payment policy. Bonita felt that MedCo was underlevered and potentially not taking full advantage of the tax benefits of debt. Further complicating matters, MidCo's institutional investors had been clamoring for either a repurchase or a special dividend. One possibility floated by her investment bankers was a "leveraged recap", in which MidCO would issue debt and use the proceeds to repurchase shares. MidCo Industries has 20 milion shares outstanding with a markket price of $15 per share and no debt. The firm had consistenly stable earnings and pays a 35% tax rate. MidCo's investment bankers proposed that the fimr borrow $100 million on a permanent basis throulgh leveraged recap in which it would use the borrowed funds to repurchase outstanding shares. As Suarez sat down at her desk, she stared at her notepad. She had written down several questions that she would need to answer befoore making her decision.

1. What are the tax consequences of the recap?

2. Based only on the tax effects and the Valuation Principle, what will be the total value of the firm after the recap?

a. How much of the new value will be euity?

b. How much will be debt?

3. At what price should MidCo be able to repurchase its shares?

4. Who benefits from the recap? Who loses?

5. What other costs or benefits of the additional leverage should MidCo's managers consider?

6. If MidCo's managers decide to issue the debt and distribute the tax shield as a special dividend instead of repurchasing shares, what will the dividend per share be?

Consumer spending (C) is often a leading indicator of future short-run output (Y): It’s a “forward looking” variable.

a. How does Real Business Cycle Theory explain this fact?

b. In this theory, does current C cause Y? If so, how? If not, why not?

c. How does Keynesian Business Cycle Theory explain this fact?

d. In this theory, does current C cause Y? If so, how? If not, why not?

Not sure about question f-j . looking to confirm my answers with someone

Health spending per person from a random sample of 20 countries is shown below.

1. Create a histogram by hand for the frequencies of the per capita health expenditure data.
2. What feature or features of this distribution indicate that the data are likely not from a population having a normal distribution?
3. What features of this distribution make it a good candidate to try a log transformation?
4. Calculate the natural log transformation for each data point of the sample. Create a new histogram with this transformed data, by hand.
5. What is the sample size?
6. What is the mean of the log health expenditure?
7. What is the standard deviation of the mean log health expenditure?
8. Calculate the standard error of the mean log health expenditure.
1. Calculate the 95% confidence interval for the mean log health expenditure and interpret it in full sentences.
10. What are the 95% confidence intervals on the non-log scale? Convert back the two values in your confidence interval.

How do you calcuate the Fixed Overhead (FOH) spending variance and the Fixed Overhead (FOH) production volume variance given the following information:

(budgeted assembly time is 2 hrs per unit of output)

Exercise 9-13 Revenue and Spending Variances [LO9-3]

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.10 per car washed.

The actual operating results for August are as follows:

Required:

Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

"Health Care Reform - Why spending more will get you less" Your submission must contain the following issues: a) the uninsured; b) what is causing the increasing in health care costs; c) health care reform; d) the Moral Hazard problem; e) will extra preventive care cut costs Instructions: 1. You must cite 2 current sources (within 2 years) and your book or any other textbook, Wikipedia, or any other reference material cannot be used as any of the sources. Sources should be cited according to APA

1. In 2009, President Obama with Congressional approval increased government spending and decreased lump-sum taxes in response to the financial crisis.  
   1. Graph and explain what happens in both the ISLM model and the ADAS model (with the upward sloping SRAS curve) in the short run. Be sure to discuss real output, real interest rate and the price level in your answer.
   2. Graph and explain what happens in the long run if the Fed does not change monetary policy. Be sure to discuss real output, real interest rate and the price level in your answer. You may use your graph from part a.
   3. Fill in the table based on your answers to a. and b.