You are trying to predict if audit clients will go bankrupt in the next year. Based on the results from a logistic regression, the actual vs predicted numbers for clients is as follows, when using a 50 percent cutoff probability for predicting that a client will go bankrupt:

One of your colleagues, John, suggests that you should use a 70 percent cutoff probability for predicting that a client will go bankrupt.

Another colleague, Mike, suggests that you should use a 30 percent cutoff probability for predicting that a client will go bankrupt.

Answer the following questions:

(a) Who is correct, in this situation? Explain your answer with appropriate logic.

(b) What will happen to the Actual vs Predicted matrix if you use:

(i) 70 percent cutoff probability suggested by John? That is, how would the total numbers in the two columns and two rows change, if at all they change?

(i) 30 percent cutoff probability suggested by Mike? That is, how would the total numbers in the two columns and two rows change, if at all they change?

A one-year, $24,600, 12% note is signed on April 1. If the note is repaid on October 1 of the same year, how much interest expense is incurred? (Do not round intermediate calculations.)

$2,952

$1,476

$1,722

$1,230

The following 12%, $1,000 notes were issued on December 1. Which of the following is the correct method of calculation for the interest accrued as of December 31 of the same year on each of the notes described?

Interest on a 4-month note is calculated as: $1,000 × 12% × 1/12.

Interest on a 3-month note is calculated as: $1,000 × 12% × 1/3.

Interest on a 4-month note is calculated as: $1,000 × 12% × 1/4.

Interest on a 2-year note is calculated as: $1,000 × 12% × 1/24.

In Year 2 a new product is forecast to generate Earnings before Depreciation and Taxes of $30,000. Depreciation Expense associated with the product is $8,000. The company’s tax rate is 30%. Compute the after-tax cash flow for Year 2 using both the Income Statement and Tax Shield methods and show you arrive at the same result.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

(Round your answers to 1 decimal place.)

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Evaluate the company’s performance over the last four months. (Indicate the effect of each trend by selecting "Favorable" or  "Unfavorable" or "None" for no effect (i.e., zero variance).

3-a. (Month 5) Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. (Month 6) Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

(Round your answers to 1 decimal place.)

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The CFO of Rosecurity, is planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data (in millions) for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year (in millions)? Last year's sales = $350, Last year's accounts payable = $40, Sales growth rate = 3%, Last year's notes payable = $50, Last year's total assets = $500, Last year's accruals = $30, Last year's profit margin = 3%, Target payout ratio = 57%

Research Psychologist A has been conducting a study with human subjects for nearly a year. As a result, A has come to know Participant M quite well. The study is taking longer than expected, and some of the participants are leaving the study. Because of the nature of the working relationship with the participants, Research Psychologist A and Participant M have become interested in an intimate relationship. Since neither one wants to jeopardize the progress of the study, they agree to retain only a professional relationship for the duration of the study, and then to pursue an intimate relationship once the study is completed and the results have been published.

address the ethical issues of this case and present options for resolving the ethical conflict. consider individual perceptions as well as the needs, potential, and motivation of the involved parties when positing your resolution.

Describe the ethical conflict in the scenario above.

Describe the options for resolving the ethical conflict including the interpersonal perceptions and other considerations that influence the options. (Benchmarks: Relationships, Spirit and Self-Discovery C8.2: Evaluate changes in one's ability to be perceptive of others.)

Identify the preferred option for resolving the conflict, and explain why it is the best option. How does this option address the needs, potential, and motivations of the involved parties? (Benchmarks: Relationships, Spirit and Self-Discovery C8.3: Synthesize the potential and motivations of self and others.)

Propose steps Research Psychologist A should take to avoid a similar situation in the future.

Write a javascript program that computes the total cost for a five year car lease. The program starts with a monthly leasing amount and a yearly increase in percent. The program then outputs the total amount paid for each year and the total overall cost of the lease.

Assume the market price of a 6​-year bond for Margaret Inc. is ​$775​, and it has a par value of $ 1,000. The bond has an annual interest rate of 7​% that is paid semiannually. What is the yield to maturity of the​ bond?

The yield to maturity of the bond is

WeHaul Trucking is planning its truck purchases for the coming year. It allocated $600,000 for the purchase of additional trucks, of which three sizes are available. A large truck costs $150,000 and will return the equivalent of $15,000 per year to profit. A medium-sized truck costs $90,000 and will return the equivalent of $12,000 per year. A small truck costs $50,000 and will return the equivalent of $9,000 per year. WeHaul has maintenance capacity to service either four large trucks, five medium-sized trucks, or eight small trucks, or some equivalent combination. WeHaul believes that it will be able to hire a maximum of seven new drivers for these added trucks. The company cannot spend more than one/half of the total funds it actually spends to purchase medium-sized trucks. (Hint: this is not necessarily one half of the total funds it has allocated for the purchase of additional trucks).   

You must submit your linear programming formulations and show the linear programming software solution to this problem to receive credit. If you solve this using another linear programming approach, you may submit that instead of the software solution.   

a) Formulate a linear programming model to be used for determining how many of each size of truck to purchase if the company wants to maximize its profit. Ignore the time value of money. Provide the linear programming variables, the objective function, and the constraints for the problem.

b) At optimality, how much profit will result and what is the optimal combination of trucks? You must submit your linear programming formulations and show the linear programming software solution to this problem to receive credit. If your answer is in fractional units of trucks that is acceptable – do not round to whole number of trucks.

c) Using your sensitivity analysis output, provide two sensitivity analysis interpretations. One must be for the objective function and one must be for one of the constraints. You must provide the source of your answers from the sensitivity analysis output.

d) Now suppose that there is a requirement that WeHaul must purchase at least two small trucks for each medium size truck. Also, the number of larger trucks cannot be more than the total number of medium and small trucks. Write the constraint(s) for this requirement. However, you do not need to resolve the problem.