Declining Industries
The list of the fastest declining industries in the US includes: (1) hotels and motels, (2) DVD rentals, (3) book stores, (4) household appliance manufacturing. How can firms in these industries adapt to the declining industry conditions?

1. How can hotels adapt to the declining condition in their industry? What strategies can they pursue?

2. How can bookstores adapt to the declining condition in their industry? What strategies can they pursue?

3. How can DVD rental firms adapt to the declining condition in their industry? What strategies can they pursue?

4. How can manufacturers of household appliances adapt to the declining condition in their industry? What strategies can they pursue?

We have the following information on the shares prices of Papa Smirph Corporation over the last five years. Calculate the total dollar return and percentage return on each share.

Select one:

a. $12; 60%

b. $19.7; 61.6%

c. $19.7; 98.5%

d. $12; 38.5%

e. $3.94; 15.3%

Given the following share price history, what is the arithmetic average return per share?

Select one:

a. 13.64%

b. 4.05%

c. 3.24%

d. 5.36%

e. 32.75%

Given the following share price and Consumer Price Index history, what is the average real return per share?

Select one:

a. 12.59%

b. 4.49%

c. 3.55%

d. 5.16%

e. 5.59%

This is a firm in a perfectly competitive market. The selling price is $5.

Fill in the table below and enter the answers to the questions down below:

1-How many units should be produced?

2- What will be the profit per unit?

3- What will be the total profit?

4- If the price were to drop to $4 how many units should be produced?

5- What will be the total profits?

6- If the price falls to $1, how many units should be produced?

7- At what price will you break even?

8- At what price should the company close down?

9- At what price will you be minimizing losses?

10- There are 2 ways of calculating the change in total profits. List and explain what information you would use.

Using the SATGPA data set in Stat2Data package. Test by using α= .05.

1) Create the following three variables and then print out all the six variables.

Create a new variable “SAT”, which is the sum of MathSAT and VerbalSAT.

Create second new variable “SATLevel”, and assign the value of “SATLevel” as 1 when

SAT<=1100, 2 when 1100<SAT<=1200, 3 when 1200<SAT<=1300, and 4 when

SAT>1300.

Create third new variable “GPALevel” and assign the value of “GPALevel” as 1 when

GPA<=2.8, 2 when 2.8<GPA<=3.3, 3 when 3.3<GPA<=3.5, and 4 when GPA>3.5

Print out all the data in the descending order of their GPALevel and the ascending order of

their SAT when GPALevel is the same.

2) Use the Chi-Square test to conclude if the SATLevel and GPALevel are independent.
3) Compute the mean and variance of “GPA” for each level of “GPALevel”, and compute the

correlation matrices for the four variables: MathSAT, VerbalSAT, GPA and SAT.
4) Do the data provide sufficient evidence to indicate that the mean of MathSAT is significantly greater

than the mean of VerbalSAT.
5) Test if the proportion of MathSAT greater than VerbalSAT is 0.6.

part a. Based on the model Solute and Solvent, for the following common solutions identify the solvents in the following mixtures:

1. soda

2. vinegar

3. vodka

4. sea water

5. rubbing alchohol (70% isopropanol)

a. ethanol

b.oxygen

c. water

d. isopropanol

e. carbon dioxide

f. acetic acid

part b. Based on the model Solute and Solvent, for the following common solutions identify the solutes in the following mixtures:

1. soda

2. vinegar

3. vodka

4. sea water

5. rubbing alchohol (70% isopropanol)

part c. label which is saturated, unsaturated, supersaturated

1. A solution where the maximum solute has not been dissolved into the solvent and more solute can be added

2. A solution in which the addition of ANYMORE solute will precipate out as a solid.

3. A solution in which more solute is dissolved than the solvent can dissolve under normal conditions.

4. It has occurred in the process of making Rock Candy

5. Southern Style Sweetened Tea

6. Unsweetened Black Tea

Administrators of a computer system are gathering data to try to explain the number of interruptions in their network. For a sample of 22 days, they measured the number of interruptions per day and the daily usage (measured by the average number of users of the system per hour of that day). Fit an appropriate regression model to predict the number of interruptions based on the usage. Assess the fit of the model. Formally assess whether usage is a significant predictor of mean interruptions, providing numerical justification (test statistic and P-value) for your conclusion. Carefully interpret what the estimated model tells you about how the expected number of interruptions changes as the daily usage changes. Predict the

expected number of interruptions for a day that has 150 users per hour on average, using a point estimate and a 95% interval.

SAS code:

DATA four;
INPUT interruptions usage;
cards;
0 104.2
2 124.6
5 176.3
6 169.3
1 104.6
2 115.8
3 127.8
6 179.4
8 210.5
4 126.7
0 100.5
1 119.5
1 123.8
0 106.4
4 156.7
3 148.2
5 156.2
6 167.3
8 198.2
2 124.6
3 145.9
4 156.2
;
run;

Administrators of a computer system are gathering data to try to explain the number of
interruptions in their network. For a sample of 22 days, they measured the number of
interruptions per day and the daily usage (measured by the average number of users of the
system per hour of that day). Fit an appropriate regression model to predict the number of
interruptions based on the usage. Assess the fit of the model. Formally assess whether usage
is a significant predictor of mean interruptions, providing numerical justification (test statistic and
P-value) for your conclusion. Carefully interpret what the estimated model tells you about how
the expected number of interruptions changes as the daily usage changes. Predict the
expected number of interruptions for a day that has 150 users per hour on average, using a
point estimate and a 95% interval.

DATA four;
INPUT interruptions usage;
cards;
0 104.2
2 124.6
5 176.3
6 169.3
1 104.6
2 115.8
3 127.8
6 179.4
8 210.5
4 126.7
0 100.5
1 119.5
1 123.8
0 106.4
4 156.7
3 148.2
5 156.2
6 167.3
8 198.2
2 124.6
3 145.9
4 156.2
;
run;

In your audit of Newman Company, you find that a physical inventory on December 31, 2019, showed merchandise with a cost of $399,450 was on hand at that date. You also discover the following items were all excluded from the $399,450.

1. Merchandise costing $52,310 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Newman on January 5, 2018.

2. Merchandise costing $75,730 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Newman on January 4, 2018.

3. Merchandise costing $42,890 which was shipped by Newman f.o.b. shipping point to a customer on December 29, 2017. The customer was scheduled to receive the merchandise on January 2, 2018.

4. Merchandise costing $39,580 which was shipped by Newman f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018.

5. Merchandise of $61,320 which is held by Newman on consignment. The consignor is the Max Suzuki Company.

For each of the items 1- 5, determine whether it should be Added In (A) or Ignored (ok as is) (I). For each of the above items place an A or an I beside the number below.

1. __________________ 2. __________________ 3. __________________ 4. __________________ 5. __________________

Governments to get the economy out of recession or cool the economy down when the economy is overheating often use fiscal policy.  

1. What is fiscal policy?  

2. How can it be used to get the economy out of recession?

3. How can it be used to get the economy out of the situation where the economy is in an expansionary period where we exceed long run potential?  

4. Do both situations result on different impacts on inflation? Why or why not?

Calculations:

1. If there a $2billion increase in government spending, other things being equal, what would be the resulting change in aggregate demand, and how much of the change would a change in consumption, if the MPC were the following:

1. 1/3?
2. 1/2?
3. 2/3?
4. 3/4?
5. 4/5?

2. The economy is experiencing a $225 million inflationary gap. If the government decided to solve this macroeconomic disequilibrium using a change in taxes, would you recommend an increase or decrease in taxes? If the MPC =0.9, what magnitude of tax change would be appropriate?

3.  The economy is experiencing a recessionary gap of $30 billion. If the MPC=0.75, what government spending stimulus would you recommend to move the economy back to full employment? If the MPC=0.66

The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $510,000 on November 1, 2018. The bonds sold for $459,529, a price to yield the market rate of 8%. The bonds mature October 31, 2038 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method.

Required: (Having trouble figuring out calculations) :/
1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2018?
2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2018?
3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2019?
4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2019?