1. A market basket has three items in 1990, refrigerators that cost $600, washers that cost $300, and stoves that cost $200. In 2017, these items (similar brand, size and quality) cost $1000, $600, and $500, respectively. I decide to say that the base year is 2000 where the costs of these items were $800, $450, and $350, respectively. In each year, people purchased 10 refrigerators, 20 washers and 25 stoves. Calculate the CPI index for 1990 and 2017.

Item Base Year 2000 1990 cost 2017 cost

Refrigerator $800 $600 $1000

Washers $450 $300 $600

Stoves $350 $200 $500

1. The substitution effect is one problem with the CPI. Using data from problem one and from data that you make up, show me why the substitution effect is a problem. Does the substitution effect overstate or understate inflation. Your calculations will show which one.

1. As mentioned above, one problem with the CPI is the substitution effect. Another problem is that taxes are not taken into account. We did not talk about disappearing products (type writers) or products that appear (computers) through time. How do you think these things are accounted for when calculating the CPI?

1. Show me a graph of the business cycle and label it.

1)

Annual sales (=demand), D = 4000 sets

Order cost, S = $ 25

Holding cost, H = $ 5

Current order quantity, Q = D/2 = 4000/2 = 2000 sets

Optimal order quantity, EOQ = sqrt(2DS/H)

= sqrt(2*4000*25/5)

= 200 sets

Annual holding cost of current policy = H*Q/2

= 5*2000/2

= $ 5000

Annual holding cost of optimal policy = H*EOQ/2

= 5*200/2

= $ 500

Difference in holding costs = 5000 - 500

= $ 4,500

2) A distribution center operates for a major electronics company that fulfills orders that customers make from the website. (15 pts.)

Estimated annual demand: 16,936 laptops (50 weeks per year)

Cost: $840 per laptop

Lead Time: 5 weeks

Standard deviation of weekly demand: laptops

Standard deviation of lead time: 0.9 weeks

Holding cost per unit per year: 60% of item cost

Ordering cost: $37 per order

Desired service level: 98% (z=2.05)

***Calculate the reorder point and the safety stock? Note that you need to convert the annual demand to weekly demand based on 50 wks/yr.

A) Suppose owls is a MATLAB array with 251 rows and 51 columns representing the number of owls counted in the 251 counties in Texas had over the years 1960-2010. Write code to define a MATLAB variable to find the median number of owls counted in each county.

B) Suppose cattle is a MATLAB array with 251 rows and 51 columns representing the number of cattle in the 251 counties in Texas had over the years 1950-2000. Write code to define a MATLAB variable that contains the median number of cattle counted each year.

C) Suppose the Texas Department of Public Health is tracking the number of tuberculosis deaths in an array (TBDeaths, 30 by 48), representing the number of new tuberculosis related deaths in the 30 least populous counties (in order low to high) in Texas over the years 1960-2017. Write code to define a MATLAB variable that contains the overall minimum number of TB deaths cases in these counties during the recording period.

D) Suppose the Texas Department of Motor Vehicles is tracking the number of car, truck and motorcycle (respectively) crashes in Texas over the years 2000 to 2019 in an array TXCrash (3 x 20).

Write code to define a MATLAB variable that contains the number of truck crashes for the year 2019.

A firm’s corporate strategy is driven largely by its top management team. One method of gauging the influence of marketing on corporate strategy is to measure the proportion of firms with a chief marketing officer on their top management team. Over the 5-year period from 2000 to 2004, 42% of firms had a chief marketing officer on their top management team. [Source: Pravin Nath and Vijay Mahajan, “Chief Marketing Officers: A Study of Their Presence in Firms’ Top Management Teams,” Journal of Marketing, 70 (2007).] To test the hypothesis that the influence of marketing on corporate strategy today is different from its influence in the 2000–2004 period, a random sample of 91 U.S. firms is selected. Of these, 26 firms have a chief marketing officer on their top management team. The test is conducted at a significance level of α = 0.01. Let p be the true proportion of firms with a chief marketing officer currently on their top management team.

To conduct the hypothesis test, the null and alternative hypotheses are formulated as: A. H₀: p ≥ 0.42; Ha: p < 0.42 B. H₀: p̄ = 0.42'; Ha: p̄ ≠ 0.42 C. H₀: p = 0.42; Ha: p ≠ 0.42 D. H₀: p ≤ 0.42; Ha: p > 0.42 If the null hypothesis is true, the sampling distribution of the sample proportion p̄ can be approximated by ____ with a mean of ____ and a standard deviation of ___ . The test statistic is ____. Use the Distributions tool to develop the rejection region. According to the critical value approach (with α = 0.01), when do you reject the null hypothesis? Reject H₀ if t ≤ –2.632 or if t ≥ 2.632 Reject H₀ if z ≤ –2.576 Reject H₀ if z ≤ –2.576 or if z ≥ 2.576 Reject H₀ if z ≤ –2.326 or if z ≥ 2.326 Use the provided Distributions tool to determine the p-value. The p-value is ____. Using the critical value approach, the null hypothesis is (not rejected/rejected), because ___. Using the p value approach, the null hypothesis is (not rejected/rejected), because ____. Therefor you (can/cannot) conclude that the influence of marketing on corporate strategy today is different from its influence in the 2000–2004 period.

Bloomington Publishers is considering publishing five different textbooks. The maximum number of copies of each textbook that can be sold, the variable cost of producing each textbook, the sales price of each textbook, and the fixed cost of a production run for each textbook are given in the file Prob3. For example, producing and selling 2000 copies of book 1 yields a revenue of $80(2000) = $160,000 but costs $80,000 + $44(2000) = $168,000. This company can produce at most 20,000 copies in total. Furthermore, it can publish no more than three different types of textbooks. Also, it knows that it cannot publish book 1 if it chooses to publish book 2. Finally, if this company publishes book 4 it must also publish book 5. Bloomington Publishers wants to find a production plan that maximizes total profit. Formulate and solve an integer programming model in Prob3 to help this publisher identify the best production plan.

All work must be done in R programing. Consider this dataset provided to you as prob10.txt c1 t1 c2 t2 c3 t3 c4 t4 2650 3115 2619 2933 2331 2799 2750 3200 1200 1101 1200 1309 1888 1901 1315 980 1541 1358 1401 1499 1256 1238 1625 1421 1545 1910 1652 2028 1449 1901 1399 2002 1956 2999 2066 2880 1777 2898 1999 2798 1599 2710 1754 2765 1434 2689 1702 2402 2430 2589 2789 2899 2332 2300 2250 2741 1902 1910 2028 2100 1888 1901 2000 1899 1530 2329 1660 2332 1501 2298 1478 2287 2008 2485 2104 2871 1987 2650 2100 2520 (2) Read it in and set the row names to “Gene 1” through “Gene 10” It should look like this in R > prob10 c1 t1 c2 t2 c3 t3 c4 t4 Gene 1 2650 3115 2619 2933 2331 2799 2750 3200 Gene 2 1200 1101 1200 1309 1888 1901 1315 980 Gene 3 1541 1358 1401 1499 1256 1238 1625 1421 Gene 4 1545 1910 1652 2028 1449 1901 1399 2002 Gene 5 1956 2999 2066 2880 1777 2898 1999 2798 Gene 6 1599 2710 1754 2765 1434 2689 1702 2402 Gene 7 2430 2589 2789 2899 2332 2300 2250 2741 Gene 8 1902 1910 2028 2100 1888 1901 2000 1899 Gene 9 1530 2329 1660 2332 1501 2298 1478 2287 Gene 10 2008 2485 2104 2871 1987 2650 2100 2520 (3 )Perform a one-sample t-test to compare the hypothesis that the mean of the control expression values is 2000.

using C++

23. Savings Account Balance
Write a program that calculates the balance of a savings account at the end of a three-
month period. It should ask the user for the starting balance and the annual interest
rate. A loop should then iterate once for every month in the period, performing the
following steps:
A) Ask the user for the total amount deposited into the account during that month
and add it to the balance. Do not accept negative numbers.
B) Ask the user for the total amount withdrawn from the account during that
month and subtract it from the balance. Do not accept negative numbers or
numbers greater than the balance after the deposits for the month have been
added in.
C) Calculate the interest for that month. The monthly interest rate is the annual
interest rate divided by 12. Multiply the monthly interest rate by the average of
that month’s starting and ending balance to get the interest amount for the
month. This amount should be added to the balance.
After the last iteration, the program should display a report that includes the following
information:
• starting balance at the beginning of the three-month period
• total deposits made during the three months
• total withdrawals made during the three months
• total interest posted to the account during the three months
• final balance

test case:

Test Case1:

Welcome to Your Bank!
What is your starting Balance? $100
What is the annual interest rate?. Please enter whole value. For example 6 for 6% :6

Month #1
Current Balance: $100.00
Please enter total amount of deposits: $2000
Please enter total amount of withdrawals: $200
New Balance: $1905.00

Month #2
Current Balance: $1905.00
Please enter total amount of deposits: $3000
Please enter total amount of withdrawals: $2000
New Balance: $2917.03

Month #3
Current Balance: $2917.03
Please enter total amount of deposits: $4000
Please enter total amount of withdrawals: $2000
New Balance: $4936.61

Start Balance:         $100.00
Total Deposits:        $9000.00
Total Withdrawals:     $4200.00
Total Interest Earned: $36.61
Final Balance:         $4936.61

Landers Inc. had the following transactions involving non-strategic investments during 2017.

Required:
1. Prepare an amortization schedule for the Littleton bond showing only 2017 and 2018. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values. Use 365 days in a year.)



2. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar amount. Use 365 days in a year.)



3. Show how Landers Inc.’s investments will appear on its December 31, 2017, balance sheet.

Landers Inc. had the following transactions involving non-strategic investments during 2017.

Required:
1. Prepare an amortization schedule for the Littleton bond showing only 2017 and 2018. (Round your intermediate and final answers to the nearest whole dollar amount. Enter all the amounts as positive values. Use 365 days in a year.)



2. Prepare journal entries to record the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar amount. Use 365 days in a year.)



3. Show how Landers Inc.’s investments will appear on its December 31, 2017, balance sheet.

Royal Ltd. manufactures equipment that is sold or leased. On 31 December 2017 Royal leased equipment to Water Ltd. for a non-cancelable lease term of three years ending 31 December 2020 at which time possession of leased asset will revert back to Royal Ltd.

The equipment cost $300,000 to manufacture and has an expected useful life of six years. Its normal sales price (fair value) is $365,760. The residual value was guaranteed by Water Ltd. for $10,000 at the end of lease term. Water Ltd. estimated the fair value of the equipment at end of lease term will be around $5,000.

Under the lease, three equal annual payments of $130,960 are due on December 31 of each year. The first payment was made on 31 December 2017. Water Ltd.’s incremental borrowing rate is 12%. Water knows the interest rate implicit in the lease payment is 10%. Both companies use straight-line depreciation and have the fiscal year ended at 31 December of each year. (Please use the discount table provided in your calculation, no decimal points in rounding, for example, 130.7 should be written as 131.)

Required:

1. The present value of the minimum lease payment (PVMLP) is _____.

2. Prepare the appropriate entries for Water Ltd. on 31 December 2017 & 2018. Indicate the date for each entry. Narratives for journal entries are not required.

3. Prepare the appropriate entries for Royal Ltd. on 31 December 2017. Narratives for journal entries are not required.

4. Prepare appropriate entries for Water Ltd. on 31 December 2020. Indicate the date for each entry. Narratives for journal entries are not required.

5. On the statement of financial position, as of 31 December 2018, the balance for current liabilities for Water Ltd. relating to the lease is ______, and noncurrent liabilities relating to the lease is ______.