In this activity, you are going to look at the sampling distribution and how it depends on the size of the sample. This will be done by simulating a sample drawn from a population with known properties. In particular you'll be looking at a variable that is more or less like the distribution of human adult heights - normally distributed with a mean of 68 inches and a standard deviation of 3 inches. Here's one random sample of size n = 10 from this simulated population:

> rnorm(10, mean=68, sd=3)

[1]  62.842   71.095   62.357  68.896   67.494

[6]  67.233   69.865   71.664  69.241   70.581

These are the heights of a random sample of n = 10. The sampling distribution refers to some numerical description of such data, for example, the sample mean. Consider this sample mean the output of a single trial.

> mean( rnorm(10, mean=68, sd=3) )

[1] 67.977

If you gave exactly this statement, it's very likely that your result was different. That's because you have a different random sample -- rnorm generates random numbers. And if you repeat the statement, you'll likely get a different value again, for instance:

> mean( rnorm(10, mean=68, sd=3) )

[1] 66.098

Note that both of the sample means above differ somewhat from the population mean of 68. The point of examining a sampling distribution is to be able to see the reliability of a random sample. Do to this, you generate many trials, say 1000,  and look at the distribution of the trials. For example, here's how to look at the sampling distribution for the mean of 10 random cases from the population:

> s = do(1000)*mean( rnorm(10, mean=68, sd=3) )

By examining the distribution of the values stored in s, you can see what the sampling distribution looks like. Generate your own sample

1 What is the mean of this distribution?

2 What is the standard deviation of this distribution?

3 What is the shape of this distribution?

Now modify your simulation to look at the sampling distribution for n = 1000.

4 What is the mean of this distribution?

5 What is the standard deviation of this distribution?

6 What is the shape of this distribution?

Which of these two sample sizes, n = 10 or n = 1000, gave a sampling distribution that was more reliable? How might you measure the reliability?

Billingham Packaging is considering expanding its production capacity by purchasing a new​ machine, the​ XC-750. The cost of the​ XC-750 is $ 2.71 million.​ Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $49,000 feasibility study to analyze the decision to buy the​ XC-750, resulting in the following​ estimates:

​Marketing: Once the​ XC-750 is operational next​ year, the extra capacity is expected to generate $10.00 million per year in additional​ sales, which will continue for the​ 10-year life of the machine.

​Operations: The disruption caused by the installation will decrease sales by $ 5.05 million this year. As with​ Billingham's existing​ products, the cost of goods for the products produced by the​ XC-750 is expected to be 73% of their sale price. The increased production will also require increased inventory on hand of $1.11 million during the life of the​ project, including year 0.

Human​ Resources: The expansion will require additional sales and administrative personnel at a cost of $1.92 million per year.

• ​Accounting: The​ XC-750 will be depreciated via the​ straight-line method over the​ 10-year life of the machine. The firm expects receivables from the new sales to be 16% of revenues and payables to be 10 % of the cost of goods sold.​ Billingham's marginal corporate tax rate is 35%.

a. Determine the incremental earnings from the purchase of the​ XC-750.

b. Determine the free cash flow from the purchase of the​ XC-750.

c. If the appropriate cost of capital for the expansion is 9.9%​, compute the NPV of the purchase.

d. While the expected new sales will be $10.00 million per year from the​ expansion, estimates range from $7.95 million to $12.05 million. What is the NPV in the worst​ case? In the best​ case?

e. What is the​ break-even level of new sales from the​ expansion? What is the breakeven level for the cost of goods​ sold?

f. Billingham could instead purchase the​ XC-900, which offers even greater capacity. The cost of the​ XC-900 is $4.07 million. The extra capacity would not be useful in the first two years of​ operation, but would allow for additional sales in years 3 through 10. What level of additional sales​ (above the $10.00 million expected for the​ XC-750) per year in those years would justify purchasing the larger​ machine?

Billingham Packaging is considering expanding its production capacity by purchasing a new​ machine, the​ XC-750. The cost of the​ XC-750 is $ 2.71 million.​ Unfortunately, installing this machine will take several months and will partially disrupt production. The firm has just completed a $49,000 feasibility study to analyze the decision to buy the​ XC-750, resulting in the following​ estimates:

​Marketing: Once the​ XC-750 is operational next​ year, the extra capacity is expected to generate $10.00 million per year in additional​ sales, which will continue for the​ 10-year life of the machine.

​Operations: The disruption caused by the installation will decrease sales by $ 5.05 million this year. As with​ Billingham's existing​ products, the cost of goods for the products produced by the​ XC-750 is expected to be 73% of their sale price. The increased production will also require increased inventory on hand of $1.11 million during the life of the​ project, including year 0.

Human​ Resources: The expansion will require additional sales and administrative personnel at a cost of $1.92 million per year.

• ​Accounting: The​ XC-750 will be depreciated via the​straight-line method over the​ 10-year life of the machine. The firm expects receivables from the new sales to be 16% of revenues and payables to be 10 % of the cost of goods sold.​ Billingham's marginal corporate tax rate is 35%.

a. Determine the incremental earnings from the purchase of the​XC-750.

b. Determine the free cash flow from the purchase of the​XC-750.

c. If the appropriate cost of capital for the expansion is 9.9%​, compute the NPV of the purchase.

d. While the expected new sales will be $10.00 million per year from the​ expansion, estimates range from $7.95 million to $12.05 million. What is the NPV in the worst​ case? In the best​ case?

e. What is the​ break-even level of new sales from the​expansion? What is the breakeven level for the cost of goods​sold?

f. Billingham could instead purchase the​ XC-900, which offers even greater capacity. The cost of the​ XC-900 is $4.07 million. The extra capacity would not be useful in the first two years of​operation, but would allow for additional sales in years 3 through 10. What level of additional sales​ (above the $10.00 million expected for the​ XC-750) per year in those years would justify purchasing the larger​ machine?

Case Study:
A Degree for Meter Readers Judy Anderson was assigned as a recruiter for South Illinois Electric Company (SIE), a small supplier of natural gas and electricity for Cairo, Illinois, and the surrounding area. The company had expanded rapidly during the last half of 1990s, and the growth was expected to continue. In January 2003 SIE purchased the utility system serving neighbouring Mitchell Country. This expansion concerned Judy. The company workforce had increased by 30 percent the previous year, and Judy had found it a struggle to recruit enough qualified job applicants. She knew that the expansion would intensify the problem. Judy is particularly concerned about meter readers. The task required in meter reading are relatively simple, a person drives to homes served by the company, finds the gas or electric meter, and records its current reading. If the meter has been tempered with, it is reported. Otherwise, no decision-making of any consequence is associated with the job. The readers perform no calculations. The pay was $8.00 per hour, high for unskilled work in the area. Even so, Judy had been having considerable difficulty keeping the 37 meter readers’ positions filled. Judy was thinking about how to attract more job applicants when she received a call from a human resource director, Sam McCord. “Judy”, Sam said, “I’m unhappy with the job specification calling for only high school education for meter readers. In the planning for the future, we need better educated people in the company. I’ve decided to change the education requirement for the meter reader job from a high school diploma to a college degree.” “but, Mr. McCord”, protested Judy, “the company is growing rapidly. If we are to have enough people to fill those jobs, we just can’t insist on finding college applicants to perform such a basic task. I don’t see how we can meet our future needs for this job with such an unrealistic job qualification.” Sam terminated the conversation abruptly by saying, “No, I don’t agree. We need to upgrade all the people in our organization. This is just part of a general effort to do that. Anyway, I cleared this with the president before I decided to do it.

Please write an opening introduction based on above case study.

1. To fund the expansion of health insurance coverage of children, Governor Kulongoski proposed an 84.5 cents per package increase in the state’s cigarette tax. What was the result?

   	a.	The measure was revised to be a 1% health insurance assessment on the state’s 26 largest hospitals and eight largest health insurance companies, which failed to pass because of the opposition of the hospitals and insurers.
   	b.	Democrats held a three-fifths supermajority in the legislature and enacted the tax increase.
   	c.	The measure was referred to the voters and passed with the support of nearly 90 health, business, union, education, and children’s advocacy groups.
   	d.	The tobacco industry spent $11.4 million to defeat the measure on the basis that it was unfair to smokers and poorer people and an attack on freedom of choice.

QUESTION 22

1. The Medicare Part D drug plan has ____.

   	a.	failed to induce better performance by insurance plans because very few seniors leave bad plans or use their market power
   	b.	protected seniors from marketing abuses and other manipulative practices
   	c.	failed to broaden access to drug coverage for seniors
   	d.	successfully introduced market competition through consumer choice

QUESTION 23

1. Which group was, for the first time, directly and actively involved in Massachusetts health care reform efforts, broadening the constituency for reform?

   	a.	Health Care for All
   	b.	ACT! (Affordable Health Care Today)
   	c.	labor unions
   	d.	the Greater Boston Interfaith Organization

QUESTION 24

1. In 2011, the legislature was committed to not raising taxes and also to preserving the roughly $8 billion Rainy Day Fund. How did they accomplish that?

   	a.	by slightly raising the oil and gas production tax
   	b.	by cutting school funding and estimated requirements for health and human services
   	c.	by freezing salaries of state employees and legislators
   	d.	by significantly raising the oil and gas production tax

QUESTION 25

1. In the early 1990s, Massachusetts created a demonstration program, the MassHealth Program, that included a number of coverage expansions under one umbrella program. This was done through ____.

   	a.	the Children's Medical Security Plan
   	b.	the Uncompensated Care Pool
   	c.	a comprehensive Medicaid waiver (a 1115 waiver)
   	d.	the State Children's Health Insurance Program

The Jarrad Corporation's management team is getting ready to prepare its master budget for one its product lines for the year 2019. The company produces caramel lollipops which are basically cooked down sugar on a stick, a diabetics nightmare along with many other sweet treats,

Budgeted sales of the lollipops for each quarter of 2019 are as follows:

1st Quarter-12,500 cases

2nd Quarter-14,000 cases

3rd Quarter-25,500 cases

4th Quarter-34,900 cases

There are 100 lollipops in a case and each sells for $200. Jarrad is budgeting a 5% sales price increase effective July 1,2019

The 4th Quarter 2018 sales have been budgeted at 32,000 cases and Jarrad wants to have an ending inventory carried over into 2019 of 2,000 cases.

At the end of 2019 they desire an ending inventory of 2,250 cases. Each quarter an additional 10% of that quarter's sales is to be produced as an ending invenroy to be carried over into the following quarter.

Materials:

Sugar costs the company $3.20 per lb. (16 ounces) Each lolllipop is 2 ounces of sugar which is melted down into caramel. The caramel is coated in 2 ounces of Belgian chocolate which costs the company $.28 per ounce. Each lollipop stick costs $.03

Direct Labor and Mchine Hours:

The production of these lollipops is a highly automated one requring only 45 minutes to produce one case of lollipops. Of this 45 minutes, 30 minutes are automated and 15 minutes requires human interaction. The cost of running the machines during the year based on 4,500 hours is $8.75 per hour. Budget these hours evenly over the four quarters of 2019. The direct labor rate per hour is $11. The budgeted cost of operating the machinery is included in the manufacturing overhead budget for the year.

-What is the budgeted amount of sales revenues for 2019?

1st Quarter $.......................................

2nd Quarter $.....................................

3rd Quarter $......................................

4th Quarter $......................................

Total Budgeted Sales for 2019 $...............................................................

-How many cases of lollipops should be produced in 2019?

1st Quarter.......................................

2nd Quarter......................................

3rd Quarter......................................

4th Quarter......................................

Total Production of Lollipops in 2019?.............................................

-What is the budgeted cost of the sugar which is required to produce the total number of lollipops to be produced in 2019? Ignore any beginning inventory which is not given. $.......................................

Gary and Ace are happily married, and have adopted a daughter, Gidget, who is 2 years old. They met while attending Lindenwood, and still feel strong loyalty to their alma mater. Gary played on the Lions football team and majored in exercise science. He works as a construction worker, and earns $60,000/year. Ace majored in communications and works for a local radio station selling advertising. He earns $35,000/year. They expect to earn this amount of money annually for the next 30 years. 20% of their income is used to pay taxes and other payroll deductions. They think they can earn an annual rate of return, after inflation, of 6%.

Their home is worth $300,000, and has a $250,000 mortgage. They have two cars, each worth $25,000, and each with a loan of $15,000. If one of them dies, they won't need both cars, so the survivor would sell one of them. They have credit card debt of $10,000. Gary has $50,000 in his 401k, while Ace has $40,000 in his They have other investments totaling $75,000.

Gary wants to have a big party when he die. He wants his ashes spread to the end zone of Harlan Hunter Stadium. He says the Lions as a team are near dead anyway, so why not The cost for this is expected to be $20,000. Ace wants a New Orleans style funeral, with a parade. He wants to be buried in a mausoleum, because he is afraid of worms and doesn't want to be buried in the ground. The cost for his funeral is expected to be $40,000. They want to ensure that if one of them dies, the other will have enough money to pay off the car, home, and credit card bills, and fund the cost of their funerals and burial. They also want to make su that Gidget is provided for, which means they want $2,000/month for her care until she is age 23. They are uncertain whether social security will provide any benefits, as they are convinced that right-wing, zealots will take benefits away from those raised in alternative family situations, so don't plan on any social security income.

Using each of the three methods (Human Life Replacement, Needs Approach, and Capital Re how much life insurance will Ace and Gary EACH need?

Crawford Company is a family-run business that manufacturers steering wheels for self-driving cars. Crawford makes both a standard wheel which is similar to traditional car steering wheels and a deluxe model which is larger to allow a human driver to easily reach over and take control over the automated system. The company has been using a plant-wide overhead rate based on direct labor hours to allocate its overhead to each model. LeeAnn Lucky, the new controller, is convinced that an activity-based costing system will provide better information about the costs and profitability of each model which should lead to better decisions about whether the company should focus on one model or the other. She has pulled the following information about overhead costs from the past year and inserted activity-based costing (ABC) information:  

The company's managers expect to produce 1,000 units of each model during the upcoming year. Answer the following questions. Each question is worth 1 point.

1. Compute the total budgeted manufacturing overhead cost for the upcoming year using ABC costing information.

2. Compute the manufacturing overhead cost per wheel of the standard model using Activity-Based Costing.

3. Compute the manufacturing overhead cost per deluxe wheel using Crawford's traditional plant-wide overhead rate.  

4. If Crawford continues with the traditional method of allocating manufacturing overhead based on direct labor hours instead of switching to the Activity-Based Costing system, by how much will the Deluxe wheel line be over- or under-costed per unit? Enter an under-costed amount as a negative number and an over-costed amount as a positive number.

Sex Education and Teenage Pregnancy

Santrock (2016) mentions in his text that the United States has one of the highest teenage pregnancy rates of industrialized nations, despite the fact that adolescent sexual activity is no higher in the United States. Why is that? For starters, sex during adolescence is considered a "taboo" subject in our culture. Abstinence is also promoted and touted as the most safest, surefire way to avoid the consequences of early sexual activity. Additionally, we teach teens that sexual activity is an "adult activity" and do not acknowledge that during the adolescent period, when there is an upsurge of hormones and changes in the physiological landscape, teens grow curious about their bodies and that of the opposite sex. Teens are also at a stage in their life where experimentation and identify formation are at its "peak", and questioning, expressing, and exploring their sexual identity is part of that process.

How many people did you know in high school knew what sex was and even had sex? Probably the majority. That is because sexual curiosity during adolescence is part of healthy, typical human development.

What is sex education?

Briefly, sex education is about instilling accurate, scientific-based information and spreading awareness about the following:

1. The physiological changes that occur in the body due to pubertal/hormonal changes.

2. The risks and consequences involved in sexual activity such as contracting sexually transmitted diseases or pregnancy.

3. It involves teaching youngsters how to set boundaries with others when it comes to their own body and other people's bodies (i.e."No means NO!").

4. Contraception options-how to be "sex smart" such as the benefits of using protection.

5. A discussion about knowing when they are "ready" to have sex.

6. Define rape and sexual assault and how to know if you are about to be a victim.

Put it in Perspective...

Answer the Following Discussion Questions:

1. What was your experience with 'sex education'? Did you take a class in school? Did you learn from your caregivers? Include points that you remember learning. And how has that served you as a teenager?

2. According to the film "Inside the Teenage Brain" and your textbook readings, what are some effective ways to approach a conversation with teenagers about 'safe sex'?