1. “The Long Tail”:
   1. A phenomenon whereby firms can make money by offering a limited selection
   2. Refers to the large number of products available through conventional retail stores
   3. A phenomenon heavily leveraged by Blockbuster in its competitive battles with Netflix.
   4. A phenomenon that leverages the fact that selection attracts customers, and that the Internet allows large-selection inventory efficiencies.                                                                                    
2. Which of the following statements is false?
   1. From an innovation standpoint, Netflix is considered an “early mover” in leveraging Internet technology to establish best-in-class brand strength.
   2. Collaborative filtering is a classification of software that monitors trends among customers, and then uses this data to personalize an individual customer’s experience.
   3. It is not possible to achieve scale in the streaming industry.
   4. Scale economies are achieved by firms that leverage the cost of an investment across increasing units of production.                                                                                                                                  
3. Which of the following statements about costs is true?
   1. Marginal costs are costs that do not vary according to the production volume.
   2. Fixed costs are costs associated with each additional unit produced.
   3. The marginal costs of digital goods are zero.
   4. There are some costs associated with digital distribution.                                                                              
4. Disintermediation:
   1. Removing an organization from a firm’s distribution channel.
   2. Expands the path between supplier and customer.
   3. Illustrated by the purchase of Comcast by NBC/Universal.
   4. In the video industry, it results in studios having to share revenue with third parties.                                        
5. Which of the following is not true of Netflix relative to most pay channels?
   1. Netflix is generally more expensive than pay channels.
   2. Netflix offers more programming than pay channels.
   3. Netflix is available in more countries worldwide than pay channels
   4. Netflix can stream to customers who do not have a cable TV subscription.                                            

1. The overnight lending rate is

a. the interest rate the banks charge one another on overnight loans, whereas the prime interest rate is the interest rate banks change on loans to their most creditworthy customers.

b. the interest rate the banks charge on loans to their most creditworthy customers, whereas the prime interest rate is the interest rate banks charge their largest and most preferred business customers.

c. the interest rate the banks charge on loans to their most creditworthy customers, whereas the prime interest rate is the interest rate banks charge one another on overnight loans.

d. the interest rate the Bank of Canada charges banks for a loan, whereas the prime interest rate is the interest rate banks charge their preferred customers.

2. The overnight lending rate is

a. lower than the prime interest rate because federal funds are loaned overnight.

b. higher than the prime interest rate because there are many alternative uses for the funds and opportunity costs must be accounted for.

c. nearly the same as the prime interest rate because they are both short term loans.

d. not comparable to the prime interest rate since the lenders are different.

3. Changes in the overnight lending rate and the prime interest rate closely track one another because

a. there are fewer prime rate reserves available for lending.

b. both rates are related to the relative scarcity or availability of reserves.

c. all interest rates will be equal whether the customers are banks, businesses, or households.

d. the Bank of Canada arranges this to be the case.

A recent study of home internet access reported the following number of hours of internet access per month for a sample of 20 persons [3+4+4+2 points]. 74 81 83 72 76 71 63 66 68 78 76 66 87 54 82 86 90 98 58 92 (a) Use probability plot in MINITAB to check if data are approximately normally distributed. (b) Use MINITAB to construct a 90% confidence interval for the population mean score and interpret your result. (c) Use MINITAB to construct a 95% confidence interval for the population mean scores and interpret your result. (d) Compare part (b) and (c) and explain which confidence interval is narrower and why?

Two stocks has the following year-end stock prices and dividends:

Which stock has a higher annual average capital gain yield over the four years? Which stock has a higher average dividend yield?If T-bill rate is 2.0 percent, which stock has a higher average nominal risk premium based on the annual average total return?What are the two primary lessons learned from capital market history? Provide evidence

Thanks

3) A concession manager at Yankee Stadium wants to know how temperature affects beer sales. She took a sample of 10 games and recorded the number of beers sold and the temperature in the middle of the game. Temperature 80 68 78 79 87 74 86 92 77 84 Number of Beers 20533 1439 13829 21286 30985 17187 30240 87596 9610 28742

a. Draw a scatter plot of the data.

b. The manager estimates the regression equation to be: numberofbeers = −100, 678 + 1, 513 ∗ temperature Draw this on your scatter plot.

c. For one of the estimated points, indicate the residual with ei .

d. For that same point, indicate what part of the variation is explained by the model with ˆyi − y¯.

(1 point) A study was conducted to determine whether the final grade of a student in an introductory psychology course is linearly related to his or her performance on the verbal ability test administered before college entrance. The verbal scores and final grades for 10 students are shown in the table below. Student Verbal Score x Final Grade y 1 38 77 2 39 90 3 60 71 4 67 73 5 42 69 6 77 84 7 38 77 8 69 74 9 33 63 10 35 65 Find the following: (a) The correlation coefficient: r= (b) The least-squares line: ŷ = (c) Calculate the residual for the seventh student:

AM -vs- PM Test Scores: In my AM section of statistics there are 22 students. The scores of Test 1 are given in the table below. The results are ordered lowest to highest to aid in answering the following questions.

(a) The value of P₉₀ ---->

(b) Complete the 5-number summary.

1. Financial accounting is focused mostly on
a. controlling and planning for costs
b. reporting for external users such as creditors, shareholders, etc.
c. performing an evaluation of profitability.
d. providing information for strategic and tactical decisions.
e. providing analysis to facilitate long-term decision making.

2. Which of the following is something management accountants should do to satisfy their users?
a. provide specialized information that given users can use
b. consider only financial measures
c. focus exclusively on internal users
d. follow generally accepted accounting principles
e. focus on planning more than control

3. "Cost management" describes
a. the actions by managers to increase value for customers while continuously reducing and controlling costs.
b. the identification of excessive costs in the production process.
c. the satisfaction of customers' needs.
d. actions by managers to satisfy customers while maintaining current cost levels.
e. ensuring all costs remains constant.

4. Management accounting
a. measures, analyzes, and reports financial and nonfinancial information to internal managers.
b. provides information about the company as a whole.
c. reports information that has occurred in the past that is verifiable and reliable.
d. provides information that is generally available only on a quarterly or annual basis.
e. must follow generally accepted accounting principles.

5. Strategy specifies
a. how an organization matches its own capabilities with the opportunities in the marketplace.
b. standard procedures to ensure quality products.
c. incremental changes for improved performance.
d. the demand created for products and services.
e. that a company's financial procedures are in compliance with IFRS/ASPE.

Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.

The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:

1. Compute the activity-based overhead rates for each of the three cost pools

2. Determine the overhead cost assigned to each product line.

3. Compute the operating income for each product line, using the activity based overhead rates.