1. Portfolio A consists of $5,000 investment in a 1-year zero-coupon bond and $20,000 investment in a 20-year zero-coupon bond. Portfolio B consists of a 10-year zero-coupon bond with a face value of $17,000. The current yield on all bonds is 4% per annum (continuously compounded).
   1. Compute the actual percentage changes in the values of the two portfolios for a 20-basis point increase in yields.
   2. Compute the actual percentage changes in the values of the two portfolios for a 200-basis point increase in yields.
   3. Compute the duration for each portfolio. Use these durations to forecast the change in the value of each portfolio for a 20-basis point and a 200-basis point increase in yields.
   4. Compute the convexities for each portfolio. Use duration and convexity to forecast the change in the value of each portfolio for a 20-basis point and a 200-basis point increase in yields.
   5. Find the percentage forecast errors from c and d. Discuss your results.

5. A market research organization takes a simple random sample of 200 households in a town with 25,000 households. Of the 200 sampled households, 158 report having a video ondemand service like Netflix, Amazon Video, or Hulu.

(a) To answer parts (b) and (c), you need a box model. The box representing the population has a standard deviation that is (circle one) known OR estimated to be (fill in the value) _______________.

(b) The percentage of households in the town with a video on-demand service is estimated as _______________%, and this estimate is likely to be off by about _______________%.

(c) A 90%-confidence interval for the percentage of households in the town with a video ondemand service goes from _______________% to _______________%.

(d) Explain why it's ok to use the normal approximation to answer part (c). Your answer should contain the name of a theorem and one or more numerical comparisons.

(e) TRUE or FALSE (circle one): There is a 90% chance that the true percentage of households in the town with a video on-demand service falls within the interval calculated in (c).

A market research organization takes a simple random sample of 200 households in a town with 25,000 households. Of the 200 sampled households, 158 report having a video on-demand service like Netflix, Amazon Video, or Hulu.

(a) To answer parts (b) and (c), you need a box model. The box representing the population has a standard deviation that is (circle one) known OR estimated to be (fill in the value) _______________.

(b) The percentage of households in the town with a video on-demand service is estimated as _______________%, and this estimate is likely to be off by about _______________%.

(c) A 90%-confidence interval for the percentage of households in the town with a video on-demand service goes from _______________% to _______________%.

(d) Explain why it's ok to use the normal approximation to answer part (c). Your answer should contain the name of a theorem and one or more numerical comparisons.

(e) TRUE or FALSE (circle one): There is a 90% chance that the true percentage of households in the town with a video on-demand service falls within the interval calculated in (c).

Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail.

The sample mean is x = 12.6%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01.

b). Compute the z value of the sample test statistic. (Round your answer to two decimal places.) ___________?


(c) Find (or estimate) the P-value. (Round your answer to four decimal places.) _________?

Based on data from a​ college, scores on a certain test are normally distributed with a mean of 1532 1532 and a standard deviation of 316 316. LOADING... Click the icon to view the table with standard scores and percentiles for a normal distribution. a. Find the percentage of scores greater than 1848 1848. nothing ​% ​ (Round to two decimal places as​ needed.) b. Find the percentage of scores less than 900 900. nothing ​% ​ (Round to two decimal places as​ needed.) c. Find the percentage of scores between 1374 1374 and 2006 2006. nothing ​% ​ (Round to two decimal places as​ needed.)

Standard score   Percent
-3.0   0.13
-2.5   0.62
-2   2.28
-1.5   6.68
-1   15.87
-0.9   18.41
-0.5   30.85
-0.1   46.02
0   50.00
0.10   53.98
0.5   69.15
0.9   81.59
1   84.13
1.5   93.32
2   97.72
2.5   99.38
3   99.87
3.5   99.98

The Wrigley Corporation needs to raise $17 million. The investment banking firm of Tinkers, Evers & Chance will handle the transaction.

a. If stock is utilized, 1,700,000 shares will be sold to the public at $10.75 per share. The corporation will receive a net price of $10.00 per share. What is the percentage underwriting spread per share? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  

b. If bonds are utilized, slightly over 17,000 bonds will be sold to the public at $1,005 per bond. The corporation will receive a net price of $997 per bond. What is the percentage of underwriting spread per bond? (Relate the dollar spread to the public price.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  

c-1. Which alternative has the larger percentage of spread?
  

c-2. Is this the normal relationship between the two types of issues?
  

2. We are interested in analyzing data related to the Olympics from one decade. We are looking at individuals and if they participated in the summer or winter Olympics and whether or not they won a medal. Use S to denote summer and M to denote if a medal was won. The probability that someone participated in the summer Olympics is 72%. The probability that they won a medal is 13%. The probability that they won a medal and it was in the summer Olympics is 10%. ( please show steps)

a. What percentage of people participated in the summer Olympics or won a medal?

b. What percentage of people participated in the winter Olympics?

c. Given someone won a medal, what is the probability that they participated in the summer Olympics?

d. What percentage of people did NOT participate in the summer games NOR won a medal?

e. Are M and S mutually exclusive events? Why or why not? f. Are M and S independent events? Explain, using probabilities.

g. If we know someone participated in the summer Olympics, what is the probability that they also won a medal?

A company uses a ranking system of values from 0 to 5 to determine pay raise percentage and new salary for employees. Create the code for a python application that prompts the user for the annual performance ranking for an employee and their current salary.   Your code should use the annual performance ranking to determine the pay raise percentage based on the table below, then calculate the new annual salary ( salary + raise) in dollars. Assume rankings are only 0 to 5 inclusive. The employee ranking must be greater than or equal to zero and less than 6. Your code should have statements to output the calculated raise and new salary for each case.

Use the following table to determine pay raise percentage:

Employee Ranking                    Pay raise %

0                                                 0%

1                                               1.25%

2                                               2.0%

3                                               2.5%

4                                               3.25%

5                         3.5%

Run with the following test cases:

Rank Salary

3 $76,000

5 $32,000

1 $52,000

A researcher conducts a study of white and black attitudes toward the police in his state.

The percentage of a random sample of white respondents (N = 300) who say they have a favorable attitude toward the police is 61%. The percentage of a random sample of black respondents (N = 250) who say they have a favorable attitude toward the police is 47%.

• Is there a real (statistically significant) difference between the percentage of Whites and African Americans who have a positive attitude toward the police in the larger population, or are these results likely to have occurred by chance?
• Construct a 95% confidence interval for the proportion of Whites in the population who have a favorable attitude toward the police.
• Construct a 95% confidence interval for the proportion of African Americans in the population who have a favorable attitude toward the police.

Please show work. I want to learn how to execute the question. Class does not use any statistical softwares or excel.

1. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites:

a. Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio. (5 points)

b. What would be the percentage increase in net operating income if sales volume increases by 50%? (5 points)

c. If the selling price increases by 10% and sales volume decreases by 10%, what would be the net operating income? (5 points)

d. What would be the break even point in unit sales if variable expenses per unit increases by 8% and fixed expenses increase by 10%? (5 points)

e. What is the margin of safety percentage? At what “percentage of sale volume decrease” the company would experience zero net operating income? (5 points)