Please read case and answer the question thank you.

In recent years, cyberwar has left the realm of science fiction and has become the cold, hard reality of the modernage. Every statistic having to do with the increase in frequency and size of cyberattacks is on the rise. In 2015,hackers targeted eBay, Home Depot, JPMorgan Chase, Anthem Health, and even the White House, exposingpersonal information belonging to thousands of customers of these companies. But unlike past examples ofwarfare, the online battlefield doesn’t just belong to the strongest nations,although the U.S., China, and Russia are all actively engaged in both offensiveand defensive cyberwar efforts.The battlefield of the Internet has reduced differences between the strongest and weakest nations to a significant degree, and even one of the poorestcountries on earth, North Korea, was alleged to have executed a successful attack on Sony’s U.S. division, stealing, releasing, and destroying terabytes of private data. The reason behind the attack was the pending release of the movie The Interview, a comedy starring James Franco and Seth Rogen which depicts the assassination of Korean leader Kim Jong-un. An anonymous group calling themselves the “Guardians of Peace” orchestrated the attack, wreakinghavoc on Sony’s entire organization and insisting that The Interview be canceled. Sony eventually canceled the New York City premiere of the film andother major theater chains balked at screening the film.Although the film was eventually released across a very low number of theatersand featured major revisions to the plot, the attackers were largely successful intheir goals.Between bot networks, DDoS attacks, Trojans, phishing, ransomware, data theft, identity theft, credit card fraud, and spyware, there’s no shortage of waysfor cybercriminals to make an impact online. However, as cybersecurity expert Amy Zertag explains in this video, the difference between these types ofattacks, which can be extremely annoying to the victims and have major implications for e-commerce, and the next wave of cyberattacks, which havethe potential to damage or destroy important components of nationalinfrastructure, issignificant. Restoring a stolen identity is annoying, as anybody who’s had to do itunderstands. Canceling or interfering with a movie release has dire implications forcreative expression. But attacks to systems such as self-driving car guidance systems, airplanes, or municipal power and water supplies, all of which are increasingly becoming computerized and automated, could have much more serious consequences.The Stuxnet worm, which destroyed thousands of Iranian nuclear centrifugesin an effort by the U.S. and Israel to cripple Iran’s nuclear program, was an example of this type of attack in action. While it was successful in this regard,it was also a proof of concept of this type of attack, and similar attacks havebeen made against industrial control modules,computer systems, and networks. The world is moving towards the Internet ofThings, where everyday objects such as TVs, thermostats, appliances, cars, and other equipment gain the ability to connect to the Internet and shareinformation. The potential applications of these technologies to improve our livesare limitless, but the Internet of Things also creates a whole new area of attack forpotential cybercriminals.

1. What are the three classes of cyberattacks and their effects, according to Zertag?

2. What metaphor does Zertag use to describe the idea that online, there are “no safe neighborhoods?” What doesshe mean?

3. What does Zertag mean when she says that the Internet has a “huge attack surface”? How will the “Internet ofThings” exacerbate this issue?

4. What are the five differences between cyberwarfare and traditional warfare, according to Zertag?

We need to find the confidence interval for the SLEEP variable. To do this, we need to find the mean and standard deviation with the Week 1 spreadsheet. Then we can the Week 5 spreadsheet to find the confidence interval.

First, find the mean and standard deviation by copying the SLEEP variable and pasting it into the Week 1 spreadsheet. Write down the mean and the sample standard deviation as well as the count. Open the Week 5 spreadsheet and type in the values needed in the green cells at the top. The confidence interval is shown in the yellow cells as the lower limit and the upper limit.

1. Give and interpret the 95% confidence interval for the hours of sleep a student gets. Change the confidence level to 99% to find the 99% confidence interval for the SLEEP variable.

2. Give and interpret the 99% confidence interval for the hours of sleep a student gets.

3. Compare the 95% and 99% confidence intervals for the hours of sleep a student gets. Explain the difference between these intervals and why this difference occurs.

In the Week 2 Lab, you found the mean and the standard deviation for the HEIGHT variable for both males and females. Use those values for follow these directions to calculate the numbers again.

(From Week 2 Lab: Calculate descriptive statistics for the variable Height by Gender. Click on Insert and then Pivot Table. Click in the top box and select all the data (including labels) from Height through Gender. Also click on “new worksheet” and then OK. On the right of the new sheet, click on Height and Gender, making sure that Gender is in the Rows box and Height is in the Values box. Click on the down arrow next to Height in the Values box and select Value Field Settings. In the pop up box, click Average then OK. Write these down.

Then click on the down arrow next to Height in the Values box again and select Value Field Settings. In the pop up box, click on StdDev then OK. Write these values down.)

You will also need the number of males and the number of females in the dataset. You can either use the same pivot table created above by selecting Count in the Value Field Settings, or you can actually count in the dataset. Then use the Week 5 spreadsheet to calculate the following confidence intervals. The male confidence interval would be one calculation in the spreadsheet and the females would be a second calculation.

4. Give and interpret the 95% confidence intervals for males and females on the HEIGHT variable. Which is wider and why?

5. Give and interpret the 99% confidence intervals for males and females on the HEIGHT variable. Which is wider and why?

6. Find the mean and standard deviation of the DRIVE variable by copying that variable into the Week 1 spreadsheet. Use the Week 4 spreadsheet to determine the percentage of data points from that data set that we would expect to be less than 40. To find the actual percentage in the dataset, sort the DRIVE variable and count how many of the data points are less than 40 out of the total 35 data points. That is the actual percentage. How does this compare with your prediction? Mean ______________ Standard deviation ____________________ Predicted percentage ______________________________ Actual percentage _____________________________ Comparison ___________________________________________________ ______________________________________________________________

7. What percentage of data would you predict would be between 40 and 70 and what percentage would you predict would be more than 70 miles? Use the Week 4 spreadsheet again to find the percentage of the data set we expect to have values between 40 and 70 as well as for more than 70. Now determine the percentage of data points in the dataset that fall within this range, using same strategy as above for counting data points in the data set. How do each of these compare with your prediction and why is there a difference? Predicted percentage between 40 and 70 ______________________________ Actual percentage _____________________________________________ Predicted percentage more than 70 miles ________________________________ Actual percentage ___________________________________________ Comparison ____________________________________________________ _______________________________________________________________ Why? __________________________________________________________ ________________________________________________________________

Instructions:

Please write all answers in java

Each problem should be completed as a single separate .java file, each with its own main(). Inputs should be read using a Scanner object and output should be printed using System.out.println. As you finish each question, submit your code to the autograder at:

http://162.243.28.4/grader/homework2.html

Make sure to include your name at the top as a single word.

The submission utility will test your code against a different input than the sample given.

When you're finished, upload all of your .java files to Blackboard.

Grading:

Each problem will be graded as follows:

0 pts: no submission

1 pts: submitted, but didn't compile

2 pts: compiled, but didn't produce the right output

5 pts: compiled and produced the right output

Problem 1: "Letter index"

Write a program that inputs a word and an unknown number of indices and prints the letters of the word corresponding to those indices. If the index is greater than the length of the word, you should break from your loop

Sample input:

apple 0 3 20

Sample output:

a l

Problem 2: "Matching letters"

Write a program that compares two words to see if any of their letters appear at the same index. Assume the words are of equal length and both in lower case. For example, in the sample below, a and e appear in both words at the same index.

Sample input:

apple andre

Sample output

a

e

Problem 3: "Word count"

You are given a series of lowercase words separated by spaces and ending with a . , all one on line. You are also given, on the first line, a word to look up. You should print out how many times that word occured in the first line.

Sample input:

is

computer science is no more about computers than astronomy is about telescopes .

Sample output:

2

Problem 4: "Treasure Chest"

The input to your program is a drawing of a bucket of jewels. Diamonds are represented as @, gold coins as $, rubies as *. Your program should output the total value in the bucket, assuming diamonds go for $1000, gold coins for $500, and rubies for $300. Note that the bucket may be wider or higher than the bucket in the example below.

Sample input:

|@* @ |

| *@@*|

|* $* |

|$$$* |

| *$@*|

-------

Sample output:

$9900

Problem 5: “Speed Camera”

Speed cameras are devices that monitor traffic and automatically issue tickets to cars going above the speed limit. They work by comparing two pictures of a car at a known time interval. If the car has traveled more than a set distance in that time, the car is given a citation.

The input are two text representations of a traffic picture with a car labeled as letters “c” (the car is moving upwards. These two pictures are shot exactly 1 second apart. Each row is 1/50 of a mile. The car is fined $10 for each mile per hour over 30 mph, rounded down to the nearest mph. Print the fine amount.

Sample input:

|.|

|.|

|.|

|.|

|c|

---

|.|

|c|

|.|

|.|

|.|

Sample output:

$1860

Problem 6. Distance from the science building

According to Google Maps, the DMF science building is at GPS coordinate 41.985 latitude, -70.966 longitude. Write a program that will read somebody’s GPS coordinate and tell whether that coordinate is within one-and-a-half miles of the science building or not.

Sample input:

-70.994

41.982

Sample output:

yes

At our position, 1 1/2 miles is about .030 degrees longitude, but about .022 degrees latitude. That means that you should calculate it as an ellipse, with the east and west going from -70.936 to -70.996, and the north and south going from 41.963 to 42.007.

Hint: Use the built in Ellipse2D.Double class. Construct a Ellipse2D.Double object using the coordinates given, and then use its "contains" method.

Problem 7: "Palindrome Numbers"

A palindrome is a word that reads the same forwards and backwards, such as, for example, "racecar", "dad", and "I". A palindrome number is the same idea, but applied to digits of a number. For example 1, 121, 95159 would be considered palindrome numbers.

The input to your program are two integers start and end. The output: all of the palindrome numbers between start and end (inclusive), each on a new line.

Sample input:

8 37

Sample output:

8

9

11

22

33

Hints:

1. Start by writing and testing a function that takes a number and returns true/false if the number is a palindrome. Then call that function in a for loop.

2. To see if a number is a palindrome, try turning it into a string. Then use charAt to compare the first and last digits, and so on.

PAGE 1 Table 11-1 Boat Specifications Spring 2020 Group_Project MET 405 - Economic Analysis for Engineering and Technology Total points: 100 Due Date: April 23, 2020 by 11:59 pm Project Case: Harbor Delivery Service (HDS) is an over the water delivery service operating in several large port/metropolitan areas. Each branch office has from 5 to 15 boats in its fleet. Currently, each branch office purchases its boats locally based on the branch manager’s preferences. This has resulted in each branch having a mix of brands and models and both diesel- and gasoline-powered units in some ports. Maintenance for this mixed fleet is a major headache, and costs seem out of control. To better utilize resources, the company has been repositioning boats to avoid unnecessary purchases and idle resources. This has been far from a resounding success, as the receiving locations are not prepared to maintain the boats if they differ from those it currently has. The branch managers inevitably find major faults with the boats transferred into their site. Additionally, this causes the sites to need both diesel and gasoline refueling facilities, with the inevitable confusion and mistakes. The various types and brands also make it difficult to create a “brand image.” HDS has decided to centralize procurement of boats and to standardize on brands and fuel types. The task of standardizing the fleet has been assigned to a team consisting of the chief operating officer and three branch managers. The team has identified the size and configuration of boat that best meets the general needs of HDS but have been unable to agree on a common power unit. A poll of the branch managers finds that five out of ten branch managers prefer the gasoline option due to its higher speed, while two out of ten are indifferent to the choice of power unit. Marketing has expressed a preference for diesel power units. They claim that the customers perceive diesel units as less flammable and support this preference with data that shows that insurance premiums are $500 more per year for gasoline-powered boats. Marketing cannot show that demand has been impacted by power unit choice. You have been tasked with recommending the appropriate power unit. To support this task, you have constructed the following table (Table 11-1) based on the specifications of the two boats under consideration. Gasoline Diesel Purchase price $76,586 $97,995 Engine size 350 hp 300 hp Average speed (manufacturer’s estimate) Knots (nautical mile per hour) 21.1 17.4 Fuel consumption (gallons per hour) 26 17 Fuel capacity (gallons) 300 300 PAGE 2 The boat manufacturer (the only difference in the two boats is the engine) has supplied an estimate of the average speed of each unit and the fuel consumption based on this average speed. Since the boats are used in harbors and for fairly short runs, the higher speed of the gasoline engine is valued at only $50 per day. When not in use, the gasoline engines will be turned off, while the diesel units would idle and burn fuel at the rate of 1 gal per hour. Both units are seen as adequate to meet the delivery schedules/requirements of HDS. Your investigations into maintenance costs have determined that the diesel unit requires $9000 in annual maintenance (mainly for the cooling system), while the gasoline engine unit has an annual cost of $6000. Oil changes are $25 for the gasoline unit and $57 for the diesel unit. Oil changes occur every 100 hours of engine use. Diesel is estimated to run $2.95 per gallon while gasoline runs $3.15 per gallon. The branch offices are located adjacent to a fueling/service dock ran by another business unit of HDS’s parent company. The boats are docked at the fueling facility overnight and each evening the tanks are topped off before the boats are turned over to the maintenance crew for service and cleaning. Thus, nightly refueling stops cost $15, but if refueling must be done during the day it costs $55. The units will typically cover 200 nautical miles in the course of the day. Crews are changed every six hours. The delivery service operates 18 hours per day 7 days a week. The diesel units, if purchased, will be kept in service for 4 years before being sold for $48,000 each. The gasoline units will be sold after 3 years of service for $38,000. HDS’s minimum attractive rate of return (MARR) is 18%. How many nautical miles per day must be traveled to change your recommendation?

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40 Direct labor 0.2 hours $ 11.00 per hour $ 2.20 Variable overhead 0.2 hours $ 4.00 per hour $ .80 The company reported the following results concerning this product in June. Originally budgeted output 3,100 units Actual output 2,500 units Raw materials used in production 22,300 ounces Purchases of raw materials 23,400 ounces Actual direct labor-hours 450 hours Actual cost of raw materials purchases $ 45,100 Actual direct labor cost $ 13,100 Actual variable overhead cost $ 3,550 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for June is:

Multiple Choice

$8,150 U

$2,809 F

$2,809 U

$8,150 F

Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,500 machine-hours. Budgeted and actual overhead costs for the month appear below:

The company actually worked 4,520 machine-hours during the month. The standard hours allowed for the actual output were 4,510 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?

Garrison 16e Rechecks 2017-10-31

Multiple Choice

$800 Favorable

$270 Favorable

$229 Favorable

$112 Unfavorable

The Fime Corporation uses a standard costing system. The following data have been assembled for December:

The standard hours allowed for December’s production is:

Multiple Choice

5,100 hours

5,400 hours

6,000 hours

5,700 hours

Miguez Corporation makes a product with the following standard costs:

The company budgeted for production of 4,500 units in September, but actual production was 4,400 units. The company used 7,340 liters of direct material and 1,870 direct labor-hours to produce this output. The company purchased 7,700 liters of the direct material at $9.10 per liter. The actual direct labor rate was $43.10 per hour and the actual variable overhead rate was $3.70 per hour.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for September is:

Multiple Choice

$374 F

$264 F

$264 U

$374 U

The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

What is the labor efficiency variance for the month?

Multiple Choice

$19,401 F

$16,125 F

$19,401 U

$16,641 F

At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $10,480 and that the associated rate variance was $330 unfavorable. If 5,800 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:

Multiple Choice

$1.75 per MH

$1.86 per MH

$1.92 per MH

$1.81 per MH

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

The following data pertain to operations for the last month:

What is the variable overhead efficiency variance for the month?

Multiple Choice

$600 U

$15,930 F

$13,865 U

$14,465 U

Daniel Fowler, senior vintner at Napa Winery, had been put in charge of developing an optimal blending plan for the upcoming season. This assignment was the result of a recent Napa Winery board meeting where the CEO had presented her ideas regarding the use of analytics for enhancing profits while at the same time not affecting quality. Industry reports indicated that a growing number of the major wineries were using analytics to assist in the wine-blending process. The board meeting had concluded with the CEO tasking Fowler to develop an analysis and report his findings to the board at next month’s meeting.

The United State has become the largest wine market in the world, with sales approaching $40 billion annually. Typically, two types of wines are produced: varietals and blends. Wine blending is the process of combining several grape varieties to achieve a characteristic that is lacking in the original grapes. There are several reasons why a vintner might want to blend wines, including: (1) enhancing aroma; (2) improving the color; (3) raising or lowering the acidity level; (4) raising or lowering alcohol levels. The process of wine blending contains both objective and subjective components. Alcohol level is an example of an objective standard.

Napa Winery was one of the premium wine producers in the state and had recently begun to sell its products on a global basis. The winery produced and distributed a wide range of premium wine, including its flagship – CS Wine. The firm’s management was considering employing prescriptive analytics as a means of improving the wine-blending process. Typically, wines were produced from a blend of several types of grapes. In producing these blended wines, the vintner had to take into consideration both grape characteristics and government regulations. Each of the candidate blends was then subject to a series of taste tests. In those cases where the candidate wines were found to be unacceptable by the tasters, a set of new products was often produced. The vintner planned to use prescriptive analytics to help develop an optimal blending strategy and assumed that all bottles produced could be sold. More specifically, the vintner was going to undertake a comparative assessment of Napa Winery’ premier CS Wine product sector. The three specific production wines from this sector were:

Vintage CS Wine, which wholesaled for $9 per bottle

Non-vintage CS Wine, which wholesaled for $5.50 per bottle

Non-vintage M Wine, which wholesaled for $2.95 per bottle

Listed below are the winery objectives and government regulations.

Winery objectives and specifications

Maximize net profit.

The acidity level of CS Wine cannot exceed 0.7 grams per 100 milliliters.

The vintage CS Wine must not contain more than 0.2 per cent sugar.

The non-vintage CS Wine must not contain more than 0.3 per cent sugar.

The acidity level of M Wine cannot exceed 0.3 grams per 100 milliliters.  

Government regulations

All wines labeled varietal (e.g. CS Wine) must contain at least 75% of the named grape type.

All wines must contain at least 10% and no more than 15% alcohol level by volume.

All vintage-dated wines must contain 95% blending grapes from the year on the bottle label.

All vintage-dated wines must also report the viticulture area on the label and must contain at least 85% blending grapes from this area.

Presented in Exhibit 1 are the characteristics of the four blending grades along with available quantities and associated costs.

Exhibit 1. Grape type characteristics, quantities and costs

Questions:

What is the optimal blending plan that will help Napa Winery achieve simultaneously its own objectives and specifications, and meet the government regulations?

Are the government regulations adding more pressure on the company? What will be the optimal blending plan if those regulations will not exist? Are certain regulations more restrictive than others? Conduct a comparative analysis to identify which government regulations will be the most beneficial to company’s business.

What other aspects should Daniel Fowler take into consideration in his modeling approach before presenting the results to the CEO during the board meeting? (Hint: New optimization models might be required to sustain your recommendations)

Problem 4: House Prices

Use the “Fairfax City Home Sales” dataset for parts of this problem.

a) Use StatCrunch to construct an appropriately titled and labeled relative frequency histogram of Fairfax home closing prices stored in the “Price” variable. Copy your histogram into your document.

b) What is the shape of this distribution? Answer this question in one complete sentence.

c) Assuming the population has a similar shape as the sample with population mean $510,000 and population standard deviation $145,000; calculate the probability that in a random sample of size 10, the mean of the sample will be greater than $600,000. You may assume a random sample was taken and the sample came from a big population. However, be sure to check the central limit theorem condition of a large sample size before completing this problem using one complete sentence. If this condition is not met, you cannot complete the problem.

d) Assuming the population has a similar shape as the sample with population mean $510,000 and population standard deviation $145,000; calculate the probability that in a random sample of size 36, the mean of the sample will be greater than $600,000. You may assume a random sample was taken and the sample came from a big population. However, be sure to check the central limit theorem condition of a large sample size before completing this problem using one complete sentence. If this condition is not met, you cannot complete the problem.

Data:

Price Year, Days, TLArea, Acres

369900   1922   44   1870   0.39

373000   1952   0   1242   0.27

375000   1952   8   932   0.15

375000   1950   2   768   0.19

379000   1952   31   816   0.21

380000   1941   53   1092   0.19

385000   1951   5   984   0.27

387700   1953   5   975   0.36

395000   1954   18   957   0.29

395000   1951   12   1105   0.22

399900   1954   29   1206   0.28

399900   1951   6   1226   0.18

400000   1954   31   957   0.27

410000   1949   6   1440   0.2

410000   1954   17   1344   0.23

412500   1954   4   1008   0.25

415000   1953   17   1371   0.28

420000   1954   2   957   0.25

426000   1952   3   1694   0.25

430000   1953   19   975   0.23

434900   1950   5   1128   0.18

435000   1954   32   1252   0.24

440000   1960   3   1161   0.26

440000   1954   2   1036   0.28

440000   1955   12   1645   0.28

440000   1960   5   1746   0.31

441000   1952   133   1062   0.23

442000   1961   4   1414   0.32

443000   1951   26   962   0.2

444900   1955   4   1122   0.19

446500   1953   3   962   0.26

450000   1952   2   1488   0.15

450000   1955   49   1122   0.23

450000   1979   0   1092   0.28

450000   1951   70   962   0.2

450000   1957   23   1300   0.51

451000   1947   12   1325   0.34

455000   1952   7   2267   0.81

455000   1962   4   1050   0.31

460000   1955   5   997   0.3

460000   1954   10   1125   0.17

465000   1954   77   1288   0.46

465900   1947   21   1309   0.19

469000   1963   153   1149   0.27

474000   1959   5   1319   0.32

475000   1955   4   1530   0.28

475000   1953   29   1008   0.2

475000   1955   6   1530   0.28

475000   1956   116   1345   0.5

475000   1956   1   1530   0.28

480000   1960   27   1236   0.27

480000   1959   133   1527   0.24

485000   1955   4   1008   0.24

485000   1956   74   977   0.24

488000   1960   11   1972   0.33

500000   1963   0   2145   0.25

500000   1953   14   1758   0.54

500500   1955   6   1630   0.28

510000   1959   5   1680   0.34

512000   1963   0   1968   0.22

519000   1961   1   1312   0.29

520000   1954   15   1492   0.25

520000   1958   80   1443   0.33

520000   1963   122   1822   0.32

530000   1962   6   1393   0.29

540000   1962   12   1414   0.25

543600   1962   4   1414   0.24

560000   1967   5   1530   0.28

560000   1961   16   1438   0.53

565000   1947   6   1510   0.25

565500   1967   5   1217   0.26

589000   1954   32   2368   0.3

593000   1954   9   2044   0.25

610000   1978   140   2091   0.09

655000   1976   180   2728   0.24

660000   1947   10   2635   0.22

665000   1950   37   2645   0.57

685000   1982   120   2752   0.09

795000   2002   259   3402   0.12

852000   2000   4   3215   0.11

895000   2000   63   3230   0.11

930000   2015   135   3175   0.15

940000   1860   42   3038   0.57

968500   1850   74   3630   0.34

1100000   2004   161   3640   0.19

General Journal Entries

The End of Upward Mobility Barack Obama's ascension to the presidency won't end racism, but it does mean race is no longer the dominant issue in American politics. Instead, over the coming decades, class will likely constitute the major dividing line in our society—and the greatest threat to America's historic aspirations. This is a fundamental shift from the last century. Writing in the early 1900s, W.E.B. DuBois observed, "The problem of the 20th century is the problem of the color line." Developments in the ensuing years bore out this assertion. Indeed, before the 1960s, the decade of Barack Obama's birth, even the most talented people of color faced often insurmountable barriers to reaching their full potential. Today in a multiracial America, the path to success has opened up to an extent unimaginable in DuBois's time. Obama's ascent reflects in particular the rise of the black bourgeoisie from tokens to a force at the heart of the meritocracy. Since the late 1960s, the proportion of African-American households living in poverty has shrunk from 70 percent to 46 percent, while the black middle class has grown from 27 percent to 37 percent. Perhaps more remarkable, the percentage who are considered prosperous—earning more than $107,000 a year in 2007 dollars—expanded from 3 percent to 17 percent. Yet as racial equity has improved, class disparities between rich and poor, between the ultra-affluent and the middle class, have widened. This gap transcends race. African-Americans and Latinos may tend, on average, to be poorer than whites or Asians, but stagnant or even diminishing incomes affect all ethnic groups. (Most housecleaners are white, for instance—and the same goes for other low-wage professions.) Divisions may not be as visible as during the Gilded Age. Keep Up With This Story And More By Subscribing Now As Irving Kristol once noted, "Who doesn't wear blue jeans these days?" You can walk into a film studio or software firm and have trouble distinguishing upper management from midlevel employees. But from the 1940s to the 1970s, the American middle class enjoyed steadily increasing incomes that stayed on a par with those in the upper classes. Since then, wages for most workers have lagged behind. As a result, the relatively small number of Americans with incomes seven times or more above the poverty level have achieved almost all the recent gains in wealth. Most disturbingly, the rate of upward mobility has stagnated overall, which means it is no easier for the poor to move up today than it was in the 1970s. This disparity is strikingly evident in income data compiled by Citigroup, which shows that the top 1 percent of U.S. households now account for as much of the nation's total wealth—7 percent—as they did in 1913, when monopolistic business practices were the order of the day. Their net worth is now greater than that of the bottom 90 percent of the nation's households combined. The top 20 percent of taxpayers realized nearly three quarters of all income gains from 1979 to 2000. Even getting a college degree no longer guarantees upward mobility. The implicit American contract has always been that with education and hard work, anyone can get ahead. But since 2000, young people with college educations—except those who go to elite colleges and graduate schools—have seen their wages decline. The deepening recession will make this worse. According to a 2008 survey by the National Association of Colleges and Employers, half of all companies plan to cut the number of new graduates they hire this year, compared with last. But the problem goes well beyond the current crisis. For one thing, the growing number of graduates has flooded the job market at a time when many financially pressed boomers are postponing retirement. And college-educated workers today face unprecedented competition from skilled labor in other countries, particularly in the developing world. The greatest challenge for Obama will be to change this trajectory for Americans under 30, who supported him by two to one. The promise that "anyone" can reach the highest levels of society is the basis of both our historic optimism and the stability of our political system. Yet even before the recession, growing inequality was undermining Americans' optimism about the future. In a 2006 Zogby poll, for example, nearly two thirds of adults did not think life would be better for their children. However inspirational the story of his ascent, Barack Obama will be judged largely by whether he can rebuild a ladder of upward mobility for the rest of America, too. !- Do you think that class differences are emerging as the big issue of this century? 2- Most people in this country think it is only fair that, with schooling and hard work, people should be able to get ahead. How true is that idea today? Explain 3- In your opinion how optimistic or pessimistic are young people in the United States about their chances to get ahead in the years to come? Why?

Bank Balance Sheet (Note: Use this information for all three problems)

Item                             Amount            Duration       Interest Rate       

Cash-type Securities       $50m                1.2 year             2.25%

Commercial Loans          $100m             2.4 years           4.50%

Mortgages                     $350m             8.0 years           6.50%

Core Deposits                $270m             1.0 year             2.00%

Notes Payable                $180m             2.0 years           4.50%

2. On-Balance Sheet Immunization Analysis (Use balance sheet information above, 6 points)

Immunization formulas: 1) Setting D_A x A = D_L x L will immunize the bank against interest rate risk.

2) Setting the Leverage-Adjusted Duration Gap equal to 0 will also immunize the bank against interest rate risk

(0 = D_A – k D_L ).

a. Calculate the duration of assets as a group and the duration of liabilities as a group, using a weighted-average approach (weight each item by the percentage it represents of the total amount). Also, calculate and report the adjusted duration gap.

Assume the bank wants to leave its assets unchanged, and change the composition of its liabilities, but keep the current dollar amount of liabilities the same.

b. What D_L would immunize the bank against interest rate risk? Use either immunization formula.

c. Assume the bank wants to keep its core deposits unchanged, but can issue new zero coupon bonds of any maturity to replace all of the current notes payable, and thereby achieve the desired D_L. Calculate the required maturity of the zero-coupon bonds to immunize the bank against interest rate risk.

d. If the strategy in part b immunizes the bank from interest rate risk, and interest rates do rise from an average rate of 6.0% to 7.0%, calculate the new value of the bank’s assets (A), the bank’s liabilities (L) and the net worth (E). Use the formula: %A or %L = -D x [ ΔR / (1 + R) ]

e. Explain the main implications of this exercise in a full essay of a full paragraph or more, and refer specifically to your numerical results above.