_____ A random sample of 1003 U.S. adults was asked “Do you pretty much think televisions are a necessity of a luxury you could do without?” OF the 1003 adults surveyed, 521 indicated that televisions are a luxury they could do without.

a) What are the observational units?

b) What is the variable? Is it binary/dichotomous?

c) Verify that the conditions of the confidence interval are met – that we have a representative sample, and that and .

d) Produce a 90% confidence interval estimate of the proportion of U.S. adults that indicate that televisions are a luxury they could do without. Interpret the interval.

e) Produce a 93% confidence interval estimate of the proportion of U.S. adults that indicate that televisions are a luxury they could do without. Just produce and interpret the interval using the TI-83.

The pre-1914 value of the British pound to the U.S. dollar was $4.87. (To purchase one pound, one had to pay $4.87.) Following World War I, if the dollar had traded for the pound on an open currency market, the value would have been about $3.50. However, the British government insisted that the pound trade at its pre-war value to the U.S. dollar. Under such an arrangement:

1. Would Great Britain run annual trade surpluses or trade deficits with the USA? Why?

2. Would British goods have been more attractive or less attractive to U.S. consumers? Why?

3. Would there have been an influx of British tourists to the USA, or would there have been an increase in American tourists to Britain? Why?

PART A:

U.S. and Canada's currencies pesos and dollar, being traded in the foreign exchange market. If nothing changes, explain how value of pesos may change (appreciate or depreciate) due to the following two events.

a) Interest rates are higher in Canada than they are in the U.S.

b) GDP grows faster in the U.S. than they do in Canada.

PART B:

Bank Z has a total deposit of $2,600 million. Required reserve ration is set at 4%.

a. How much of the total deposit can bank Z loan out?

b. By how much will money supply change if bank Z, and all subsequent banks, are able to loan out their entire excess reserves as the result of the entire $2,600 million deposit.

Why do the accounting systems of different countries differ? Why do these differences matter?

why might an accounting- based system provide headquarters management with biased information about the performance of a foreign subsidiary? how can these biases best be corrected?

you are the CFO of the U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the U.S. one of your analysts told you that the Mexican peso is expected to depreciate by 30% against the dollar on the foreign exchange markets over the next year. what actions. if any. should you take?

you are the CFO of a Canadian firm that is considering building a $10 million factory in Russia

In an August 2012 Gallup survey of 1,012 randomly selected U.S. adults (age 18 and over), 53% said that they were dissatisfied with the quality of education students receive in kindergarten through grade 12. They also report that the "margin of sampling error is plus or minus 4%."

1. What is the best estimate of the proportion of U.S. adults who are dissatisfied with the quality of education students receive in kindergarten through grade 12?
2. Find an interval estimate for the parameter of interest. Interpret it in terms of dissatisfaction in the quality of education students receive. Use two decimal places in your answer.
3. Based on the interval give three (3) plausible proportions for the true proportion of U.S. adults who are dissatisfied with the quality of education students receive in kindergarten through grade 12.

a random survey of 1000 U.S. adults in 2007, 570 said it is likely that life exists on other planets. In a recent year, in a random survey of 1000 U.S. adults, 530 said it is likely that life exists on other planets.

a) At a 5% level of significance, can you support the claim that the proportion of U.S. adults who believe it is likely that life exists on other planets is less now than in 2007?

Hypotheses:

Test Statistic:

Analyze data (assuming H0 is true):

State a Conclusion:

b) (2pts) Suppose the actual percentage of adults that believe in life on other planets in 2007 was 55% and those that believe in life on other planets now it is 55%. If this is true, then was the correct decision made in part (a)? If not, what type of error was made?

Record the purchase of Japanese yen at the $0.0078 spot rate to settle the account for December 31, 20X7.

7. International capital budgeting

One of the important components of multinational capital budgeting is to analyze the cash flows generated from subsidiary companies.

Consider this case:

Sacramone Products Co. is a U.S.-based firm evaluating a project in Mexico.

You have the following information about the project:

What is the dollar-denominated net present value (NPV) of this project?

$2,580.13

$2,345.57

$2,697.41

$2,228.29

Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible) Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible) Suppose the U.S. government announces that it will bring the federal budget deficit to zero, over the next ten years, with no change in tax rates. Describe the effects of such a policy according to the three business cycle models, assuming that the policy is fully credible