1. Explain how a tariff reduction leads to an increase in the quantity of imports and a decrease in equilibrium price.

2. Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide.

3. You have been placed in charge of trade policy for the U.S. Suppose corn is a crop that is doing well and the export market is beginning to expand. Corn production is considered an infant industry. Corn producers come to you and ask for tariff protection from cheaper corn grown in Canada. What sorts of policies will you enact and why?

Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg Open Int Mar 455.125 457.000 451.750 452.000 −2.750 597,913 May 467.000 468.000 463.000 463.250 −2.750 137,547 July 477.000 477.500 472.500 473.000 −2.000 153,164 Sep 475.000 475.500 471.750 472.250 −2.000 29,258

Suppose you buy 18 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 462.5, and you close out your position. Calculate your dollar profit on this investment. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Do questions E-G

The following table gives information on the amount of sugar (in grams) and the calorie count in one serving of a sample of 8 varieties of Kellogg’s cereal.

Sugar (grams), ? 4 14 12 10 8 6 7 3

Calories, ? 110 140 130 110 120 100 120 190

a. Construct a scatter diagram for these data. Does the scatter diagram exhibit a linear relationship between the amount of sugar and the number of calories per serving? We want to fit a straight-line model to relate calories y to the amount of sugar x. ? = ?0 + ?1 ? + ?

b. Compute: ????, ????, ????, ?̂ 0, ?̂ 1 .

c. Using your answer in part ( b ), find the predictive regression equation of the number of calories on the amount of sugar. Comment on the direction of the relationship. Does the intercept have a useful interpretation here? Explain.

d. Give a practical interpretation of the value of ?̂ 1. Find the estimated standard error of the regression model and provide an interpretation.

e. For the fifth observation, Compute the predicted value ?̂5, the residual ?̂5.

f. Compute standard error of ?̂ 1 . Find a 97 % Confidence interval for ?1

g. Conduct a test to determine whether the two variables, sugar x and calories y, are positively linearly related. Use ? = 0.05.

Key words and Definitions

Payout policy – the firm’s typical method of distributing cash to shareholders.

Dividend signaling – the theory that a firm’s dividend policy provides information to stakeholders.

SEC – the Securities and Exchange Commission is the federal government entity charged with protecting investors and with financial oversight of public firms and the financial markets.

Summary: Key Points in the Article.

Kraft Heinz shares were down by as much as 20% after the market closed. The firm wrote down the value of both Kraft and Oscar Mayer brands.by $15 billion after posting a $12.6 billion loss. In addition, the firm slashed dividends from 62.5 cents a share to 40 cents a share.

The dividend cut will allow the firm to “cut debt faster, improve the balance sheet” and allow Kraft Heinz to sell some business units. The company also announced the Securities and Exchange Commission was investigating various vendor relationships. Kraft Heinz stated it was fully cooperating with the investigation and the company launched an internal review of its procurement procedures.

Thinking Critically Questions:

1. What signal does a dividend cut send?

2. Why did Kraft Heinz cut dividends?

3. Why is Kraft Heinz selling some business units?

4. Discuss mitosis: Name all the stages of mitosis. Describe the main events that happen during each phase.

A random sample of 40 bags of flour is weighed. It is found that the sample mean is 453.08 gram. All weights of the bags of flour have a population standard deviation of 5.42 gm. What is the lower confidence limit (LCL) of an 80% confidence interval for the population mean weight?

1.

A three-digit number is formed from nine numbers (1, 2, 3, 4, 5, 6, 7, 8 & 9). No number can be repeated. How many different three-digit numbers are possible if 1 and 2 will not be chosen together?

Select one:

A. 672

B. 210

C. 462

D. 336

2.

In a recent survey conducted by a professor of UM, 200 students were asked whether or not they have a satisfying experience with the e-learning approach adopted by the school in the current semester. Among the 200 students interviewed, 121 said they have a satisfying experience. What is the 99% confidence interval for the proportion of all UM students who have a satisfying experience with the e-learning approach?

Select one:

A. 0.537 to 0.673

B. 0.548 to 0.662

C. 0.516 to 0.694

D. 0.524 to 0.686

3.

Suppose a professor wants to estimate the proportion of UM students who have a satisfying experience with the e-learning approach adopted by the school in the current semester. What is the minimum sample size that he should use if he wants the estimate to be accurate within 0.06 with a 90% confidence?

Select one:

A. 188

B. 267

C. 456

D. 752

4.

According to a poll on customer behavior, 30% of people say they will only consider cars manufactured in their country when purchasing a new car. Suppose you select a random sample of 180 respondents. The probability is 80% that the sample percentage will be contained within what symmetrical limits of the population percentage?

Select one:

A. 25.6% and 34.4%

B. 27.1% and 32.9%

C. 24.4% and 35.6%

D. 23.3% and 36.7%

The manager of a computer retails store is concerned that his suppliers have been giving him laptop computers with lower than average quality. His research shows that replacement times for the model laptop of concern are normally distributed with a mean of 3.8 years and a standard deviation of 0.6 years. He then randomly selects records on 16 laptops sold in the past.

What is the distribution of ¯xx¯? ¯xx¯ ~ N( )

What is the probability that one randomly selected laptop is replaced less than 3.7 years?

For 16 laptops, find the probability that the average replacement time is less than 3.7 year.

For part d), is the assumption of normal necessary? No or Yes

Bioinformatics:

What could be some of the reasons why your query sequence did not exactly match the sequence in the database (think of sampling, sequencing, and biological reasons).

Consider the randomized block design with 4 blocks and 3 treatments given above. Test H₀: there is no difference between treatment effects at α = .05.

OpenSea, Inc. is evaluating investment opportunities and should decide between two mutually exclusive projects: A, or B. Both projects require the same initial investments 14 million and generate different cash flows as follow: -Project (A) generates 3.0 million per year in a perpetuity - Project (B) generates 1.9 million in perpetuity growing at 2.2% (forever)

1. If OpenSea is using the IRR to make her final decision, calculate the IRR of each of the following project.
2. Calculate the NPV of both project if the required rate is 10%
3. Calculate the crossover rate (If existing)
4. Graph the NPV function of both project and discuss (You can use excel and then insert your Graph here)

On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $790,000, retained earnings of $340,000, and a noncontrolling interest fair value of $420,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 50 percent of the current year purchases remain in Smashing's inventory.

a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.

b.Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing.

a.Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.

8) A researcher conducts a poll to study the level of educational attainment in a certain state. Of the 258 people surveyed by the researchers, 39 had a bachelor's Degree.

a) Find a 90% confidence interval for the true proportion of people the state with bachelor's degrees.

b) Provide the margin of error of the interval as your answer.

Round your answer to 4 decimal places.

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2018, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2018, follow.
  
Additional Information Items

1. An analysis of WTI's insurance policies shows that $2,400 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,800 are available at year-end 2018.
3. Annual depreciation on the equipment is $13,200.
4. Annual depreciation on the professional library is $7,200.
5. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,500, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2019.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,000 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.
   

1) Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

2A) Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts.
2B) Prepare an adjusted trial balance.

3A)Prepare Wells Technical Institute's income statement for the year 2018.
3B) Prepare Wells Technical Institute's statement of retained earnings for the year 2018.
3C) Prepare Wells Technical Institute's balance sheet as of December 31, 2018.