In the game of craps, a pass line bet proceeds as follows: Two six-sided dice are rolled; the first roll of the dice in a craps round is called the “come out roll.” A come out roll of 7 or 11 automatically wins, and a come out roll of 2, 3, or 12 automatically loses. If 4, 5, 6, 8, 9, or 10 is rolled on the come out roll, that number becomes “the point.” The player keeps rolling the dice until either 7 or the point is rolled. If the point is rolled first, then the player wins the bet. If a 7 is rolled first, then the player loses. Write a program that simulates a game of craps using these rules without human input. Instead of asking for a wager, the program should calculate whether the player would win or lose. The program should simulate rolling the two dice and calculate the sum. Add a loop so that the program plays 10,000 games. Add counters that count how many times the player wins and how many times the player loses. At the end of the 10,000 games, compute the probability of winning [i.e., Wins / (Wins + Losses)] and output this value. Over the long run, who is going to win the most games, you or the house?

The condensed income statement for the Blossom and Paul partnership for 2020 is as follows. Blossom and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) $1,350,000 Cost of goods sold 864,000 Gross profit 486,000 Operating expenses Selling $315,000 Administrative 175,500 490,500 Net loss $(4,500 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.

1.Compute the break-even point in total sales dollars for 2020. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.)

2.Blossom has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Blossom estimates that sales volume will increase by 25%. Compute the net income under Blossom's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 0 decimal places, e.g. 2,520.)

3. Paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Blossom’s: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $40,000. Paul quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Compute the net income under Paul’s proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 0 decimal places, e.g. 2,520.)

4. Which plan should be accepted?

Paul's Plan or Blossom's plan?

The condensed income statement for the Peri and Paul partnership for 2017 is as follows.

PERI AND PAUL COMPANY

Income Statement

For the Year Ended December 31, 2017

Sales (240,000 units)                                                      $1,200,000          

Cost of goods sold                                                            800,000                

Gross profit                                                        400,000                

Operating expenses                                                                      

Selling                   $280,000                                             

Administrative                  150,000                                                

430,000                

Net loss                                                $(30,000               )

A cost behavior analysis indicates that 70% of the cost of goods sold are variable, 43% of the selling expenses are variable, and 39% of the administrative expenses are variable.

(Round to nearest unit, dollar, and percentage, where necessary. Use the CVP income statement format in computing profits.)

Part (A)

Compute the break-even point in total sales dollars and in units for 2017. (Round intermediate calculations to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 2,520.)

Break-even point in dollars                           $

Break-even point in units                              units

Part (B)

Peri has proposed a plan to get the partnership “out of the red” and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Peri estimates that sales volume will increase by 30%. What effect would Peri’s plan have on the profits and the break-even point in dollars of the partnership?

Amount                               Effect

Profit                     $

Break-even point                             $

(c)

Paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Peri’s: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $40,000. Paul quoted an old marketing research report that said that sales volume would increase by 61% if these changes were made. What effect would Paul’s plan have on the profits and the break-even point in dollars of the partnership?

Amount                               Effect

Profit                     $

Break-even point                             $

B. Moldavia, an open economy initially in LR equilibrium, experiences the
following two macroeconomic events:
1. The Moldavian government cuts government spending and thereby
reduces its budget deficit.
2. International financial markets begin to diversify their portfolios
away from Moldavian assets.

As a result of these two events, real interest rates in Moldavia do NOT change.
Using a three-panel open economy set of diagrams, show the effects of these
changes on the LR equilibrium levels of national savings, domestic investment,
and net exports in Moldavia (be sure your graphs reflect the effects on real
interest rates as well). Explain your results. Is the change in net exports driven
more by changes in S or more by changes in I in Moldavia? Why?

i. The decline in the budget deficit ______ public savings in Moldavia at each level
of the real interest rate, shifting the S curve for loanable funds _____.
a. Increases ; out and to the right
b. Increases ; back and to the left
c. Decreases ; out and to the right
d. Decreases ; back and to the left

ii. International rebalancing of portfolios away from Moldavian assets means that
foreigners’ purchases of Moldavian assets will ______, thus _____ NCO in
Moldavia.
a. Rise ; increasing
b. Rise ; decreasing
c. Fall ; increasing
d. Fall ; decreasing

iii. Given (as stated above) that these two events do not change the equilibrium real
interest rate in Moldavia, equilibrium investment _______ , and the equilibrium
level of NCO ________.
a. Rises ; rises
b. Falls ; rises
c. Does not change ; rises
d. Does not change ; falls

iv. These two events combine to _______ the equilibrium level of the real exchange
rate in Moldavia, __________ the relative price of Moldavian goods and services
relative to foreign goods and services, and _________ the equilibrium level of net
exports in Moldavia.
a. Raise ; increase ; lower
b. Raise ; decrease ; raise
c. Reduce ; increase ; lower
d. Reduce ; decrease ; raise

v. This change in NX is entirely driven by the change in ______ because _____ .
a. National savings ; investment decreases.
b. National savings ; investment does not change.
c. Investment ; national savings decreases.
d. Investment ; national savings does not change.

1) indicate which 9 of the following 18 statements are false.

4) Today, you sold 1 share of Litchfield Design stock. The percentage return over the past quarter (from 3 months ago to today) for these shares was 6.29 percent. You purchased the shares 3 months ago at a price of 118.69 dollars per share. You just received 4.57 dollars in dividends. What was the price of the stock when you sold it?

6) Blue Eagle Recycling stock has an expected annual return of 15.81 percent. The stock is currently priced at 62.97 dollars per share and has an expected dividend yield of 7.76 percent. What is the price of the stock expected to be in 1 year?

10) Platinum Water Shipping stock is expected to pay a dividend of 3.92 dollars in 1 year and a dividend of 3.6 dollars in 2 years. The stock is expected to be priced at 84.69 dollars in 1 year and at 90.84 dollars in 2 years. What is the current price of Platinum Water Shipping stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Question 11

Fairfax Paint stock is expected to pay a dividend of 3.62 dollars in 1 year and a dividend of 2.44 dollars in 2 years. The stock is currently priced at 92.29 dollars and is expected to be priced at 99.32 dollars in 1 year. What is the price of Fairfax Paint stock expected to be in 2 years? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Question 12

Orange Valley Technology stock is expected to pay a dividend of 3.8 dollars in 1 year. The stock is currently priced at 124.99 dollars, is expected to be priced at 129.57 dollars in 1 year, and is expected to be priced at 135.13 dollars in 2 years. What is the dividend in 2 years expected to be for Orange Valley Technology stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Most unions have opposed free trade agreements, such as NAFTA. On the other hand, most employer lobbying groups have supported such agreements. Create an argument for one side or the other.

Question 5: Which of the following contracts has the most price risk? The most reinvestment risk?

7-year bond with a 5% coupon

1-year bond with a 12% coupon

3-year bond with a 5% coupon

15-year zero coupon bond

15-year bond with a 10% coupon

Sort the pH of the following mixtures from LOWEST (most acidic) to HIGHEST (most basic):

(I) 0.001 mol of HCl added to 1 L water

(II) 0.001 mol HCl added to a buffer solution of 0.1 M HCOOH and 0.1 M NaHCOO (pKa=3.75)

(III) 0.001 mol HCl added to a buffer solution of 0.1 M NH4Cl and NH3 (pKa=9.25)

The SAT is the most widely used college admission exam. (Most community colleges do not require students to take this exam.) The mean SAT math score varies by state and by year, so the value of µ depends on the state and the year. But let’s assume that the shape and spread of the distribution of individual SAT math scores in each state is the same each year. More specifically, assume that individual SAT math scores consistently have a normal distribution with a standard deviation of 100. An educational researcher wants to estimate the mean SAT math score (μ) for his state this year. The researcher chooses a random sample of 685 exams in his state. The sample mean for the test is 490.

Find the 90% confidence interval to estimate the mean SAT math score in this state for this year.

(Note: The critical z-value to use, zc, is: 1.645.)

Your answer should be rounded to 3 decimal places.

The SAT is the most widely used college admission exam. (Most community colleges do not require students to take this exam.) The mean SAT math score varies by state and by year, so the value of µ depends on the state and the year. But let’s assume that the shape and spread of the distribution of individual SAT math scores in each state is the same each year. More specifically, assume that individual SAT math scores consistently have a normal distribution with a standard deviation of 100. An educational researcher wants to estimate the mean SAT math score (μ) for his state this year. The researcher chooses a random sample of 684 exams in his state. The sample mean for the test is 481. Find the 90% confidence interval to estimate the mean SAT math score in this state for this year. (Note: The critical z -value to use, z c , is: 1.645.)