Abc Acquitsion

Abc Acquitsion
Corporate Valuation
Problem Set 2 Dr. Zacharias Sautner If no information about the premium has been given in the questions below, you can use the data form the
following table:
Arithmetic average Geometric Average Stocks вЂђ Stocks вЂђ Stocks вЂђ Stocks вЂђ Historical Period T.Bills T.Bonds T.Bills T.Bonds
1928вЂђ2004 7.92% 6.53% 6.02% 4.84% 1964вЂђ2004 5.82% 4.34% 4.59% 3.47% 1994вЂђ2004 8.60% 5.82% 6.85% 4.51% For a longвЂђterm
investor the geometric average with treasury bonds (4.84%) is used. For a shortвЂђterm investor the arithmetic average with treasury bills (7.92%) is
used. In both cases the longest possible period is taken.
Solutions 1. In ... Show more content on Helpwriting.net ...
The current T.bill rate is 3%. (It was 5% one year ago).The stock is currently selling for $50, down $4 over the last year, and has paid a dividend of
$2 during the last year and expects to pay a dividend of $2.50 over the next year. The New York Stock Exchange (NYSE) composite has gone down
8% over the last year, with a dividend yield of 3%. HeavyTech Inc. has a tax rate of 40%. a. What is the expected return on HeavyTech over the
next year? b. What would you expect HeavyTech's price to be one year from today? c. What would you have expected HeavyTech's stock returns to
be over the last year? d. What were the actual returns on HeavyTech over the last year? e. HeavyTech has $100 million in equity and $50 million in
debt. It plans to issue $50 million in new equity and retire $50 million in debt. Estimate the new beta. a. Using the CAPM, we compute the expected
return as 0.03 + 1.2(0.0792) = 12.5%. We use a TвЂђbill rate, because the focus is on the shortвЂђterm expected return (the next year). For the same
reason, we use the market premium over bills. b. The cumвЂђdividend price, one year from now, would be $50 *(1 + 12.50%) = $56.25. The ex
dividend price, assuming that the stock price goes down by the amount of the dividend is $56.25– $2.50 = $53.75. c. Over last year, the expected return
would have been 0.05+1.2*0.0792=14.5%.
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Effect of Matherial Weaknesses on Stock Exchange Market
EFFECTS OF MATERIAL WEAKNESS ON STOCK EXCHANGE MARKET
The impact of Sarbanes Oxley Act in companies' share price
Ronnie Damonte
Month Year
School of Business Administration
TABLE OF CONTENTS:
1. INTRODUCTION3
1.1 Background Information.3
1.2 Objectives of the Research.3
1.2 Research Questions.4
1.3 Methods.4 2. SARBANES OXLEY ACT5
2.1 What is the "Sarbanes Oxley Act"?5
2.2 SOX genesis.5 2.2.1 Toward the SOX.5 2.2.2 The development of SOX bill.6
2.3 Structure and contents of Sarbanes Oxley Act.8 2.3.1 – 100s Public Company Accounting Oversight Board.8 2.3.2 – 200s Auditor Independence.8
2.3.3 – 300s Behavior and Compensation of CEO, CFO and professional advisors.9 2.3.4 – 400s Disclosure ... Show more content on Helpwriting.net ...
The introduction chapter of this paper presents next the research questions, the methods of the research and then an overview of Deloitte. The second
chapter is concentrated on the Sarbanes–Oxley Act evolution, composition and theoretical framework. The third chapter presents the empirical research
process and finally, the fourth chapter contains the results of the research and provides the analysis of the selected data.
1.2 Research Questions.
The main research question of this bachelor 's thesis is: * How does a material weakness affect company share price?

This main question is followed by two sub questions: * What are the differences between material weaknesses effects originating from companies
having diverse sizes? * In which way the market reaction is influenced by the type of industry?
1.3 Methods.
This is an inductive research where quantitative methods have been used. The quantitative analysis consists of stock price data acquired from the New
York Stock Exchange and the results of audit regarding company 's internal control over financial reporting required by the Sarbanes Oxley Act.
Statistical results of the data analysis have been received by using the Gauss curve, as preferred distribution function, and the

Boeing's Strategy
The Capital Assets Price Model (CAPM), is a model for pricing an individual security or a portfolio. Its basic function is to describe the relationship
between risk and expected return, which is often used to estimate a cost of equity (Wikipedia, 2009). It serves as a model for determining the discount
rate which is used in calculating net present value. The CAPM says that the expected return of a security or a portfolio equals the rate on a risk–free
security plus a risk premium. The formula is:
R = Rf + *(E(Rm)–Rf) Rf = Risk free rate of return, usually U.S. treasury bonds ( ) ОІ = Beta for a company E(Rm) = Expected return of the market
(commercial airlines market) E(Rm)–Rf = Sometimes ... Show more content on Helpwriting.net ...
There are two formulas to calculate the weight of debt and equity as show below:
Debt/Equity=0.525 (D/E=0.525)
Debt+Equity=1 (D+E=1); D=1–E
Using the second formula substituting back into the first equation and the result is 1–E/E=0.525, so through calculating this equation, it can indicate
that E is 0.656 and D is 1–0.656=0.344. The Boeing's capital structure is that the weight of debt is 34.4% and the weight of equity is 65.6%.
From this case, it gives a well–known formula how to finance Boeing's weighted–average cost of capital (WACC), it shows below:
WACC= (percent Debt) (Pretax cost of debt capital) (1– Marginal effective corporate tax rate) + (percent Equity) (Cost of equity capital)
In previous calculation, it already know the percent Debt is 34.4%, percent Equity is 65.6%, Cost of equity capital is 11.088% and in this case gives
Marginal effective corporate tax rate is 35%. So it only just to calculate cost of Debt. The cost debt is the interest rate or yield that a firm must pay on
its bonds. In this case, it uses weighted average yield to maturity to calculate cost of debt. Through the form of EXHIBIT 11 and using two column
debt amount and yield to maturity to finance cost of debt is 5.286%, however, the appropriate cost of debt is the after–tax

Nike Wacc Case
NIKE INC. CASE 14
Philip Chen, Choco Huang, Ariel Chou, Matt Krieger
In this report we analyzed Cohen's approach in calculating WACC. After observing how Cohen derived his figures we came up with our own WACC,
terminal value, and EPS.
Cohen broke down his calculations into five parts 1) Single or Multiple Costs of Capital 2) Proportion of capital from debt and equity 3) Cost of Debt
4) Cost of Equity 5) WACC
In part one; we disagreed with Cohen where he decided to value the company as a whole instead of valuing each division separately. Since Nike is a
multidivisional firm Cohen should of aggregated the values of the individual divisions and calculate a different cost of capital for each one. Since the
exhibit 1 ... Show more content on Helpwriting.net ...
The beta is the 0.69 YTD 06/30/2001 figure and our risk premium is the arithmetic mean. Both are found in exhibit 4. We used the arithmetic mean
because it is a better indicator of the average returns in the past and 71% of financial analysts prefer arithmetic mean over geometric mean. Geometric
mean is not preferred because (PLEASE ADD "WHY NOT" HERE. I REMEBER BOB DOING AN EXAMPLE IN CLASS WHERE GEOMETRIC
MEAN IS A TRICK ON STUIPID INVESTORS). Here is ourcalculation of CAPM.
CAPM=5.39%+0.69(7.50%). CAPM= 10.6%
In Part 5 we can summarize our calculations for WACC. Table 1.2 shows our WACC. | Portion| Cost (K)| Contribution to WACC| Common Share|
30.57%| 10.60%| 3.24%| Debt| 69.43%| 9%| 6.25%| | | WACC| 9.49%|
Our WACC is higher than Cohen's because of the portions allocated to debt and equity, and the use of market value to calculate cost of debt.
Since WACC has changed the terminal value will also change. The formula for terminal value= year 10 FCF*(1+L–T growth)/ (WACC–L–T growth).
We used the L–T growth in exhibit 4, which is forecast of dividend growth at 5.50%. Therefore the new terminal value is 41,584. Since terminal
value has changed the discounted present value of future cash flow will also change. The new discounted PV of FCF less debt is 21,224. The new
EPS is $67.50 (21,224/271.5).
MAYBE ADD CONCLUSION PLEASE
Additional Calculation
Table 1.3 | R/E Yr.2000| NI Yr. 2001| R/E Yr.2001| |

Essay on Examining Flexibility in Small Business
1– Preliminary arrangements
Progressively and for the sake of qualifying the proposed P–E's gap measurement context, the paper endorsed a number of acknowledged scholar
techniques. The objective was to farm those techniques in order to spell out an acceptable managerial instrument, and to anticipate the concept of
flexibility.
a) Questionnaire /constructs development
For developing a questionnaire, exploratory research is needed to investigate the likely determinants or attributes to be considered. Personal or focus
interviews with the service users would be recommended. And for defining the scale attributes, a manager can capitalize on the previous empirical
works cited in literature that are relevant to his or her own ... Show more content on Helpwriting.net ...
favorable) to 1(e.g. unfavorable). The observed frequencies of each category, however, are counted and being weighted to imply that a greater
importance is attached to respondents with certain characteristics of the scale. The arithmetic means produced of scale's categories guide only the
analysis and merely generate a directional insight, and do not provide specific numerical magnitude. Our methodology endorses such a rating scale. c)
Sample Size and Control The introduced methodology uses a sample size of less than thirty (< 30). X–bar construction could be based on a sample size
as small as four (Oakland, 2003:106); DeVor, Chang, and Sutherland, 1992:198), but larger samples help detecting spordiac causes, however.
As most small businesses are well aware of their customers' profile, the sampling frame becomes easily identified.
It is rather important to precisely define the respondents, or to set up a filtering question(s) at the early beginning of the expectation and perception
questionnaires. However, the convenience sampling method is chosen for developing the expectations' questionnaire, while the simple random
sampling approach fits the perceptions' questionnaires. These proposed sampling techniques provide a level of validity to the samples

Ap Statistics Assignment
1
LANGLEY HIGH SCHOOL
2013 AP STATISTICS SUMMER ASSIGNMENT
Welcome to AP Statistics!
You have selected a course unlike any other math course. The purpose of this Summer Assignment is to:
1. Give you information on what to expect, and how this course is different from other math courses.
2. Refresh your knowledge on statistics topics that you should know prior to this course.
3. Give you a chance to demonstrate your ability to analyze data and write conclusions.
The Assignment is divided into 8 parts. We start with an interesting study in "counterintuitive" statistics called
Simpson's Paradox. The next 6 parts provide a refresher on topics of graphing and describing data that you should already know, with some practice.
The ... Show more content on Helpwriting.net ...
We, in turn, will make the course as fun and interesting as possible as we introduce you to the exciting world of applied statistics, and prepare you to
succeed on the May AP Exam.
Well–trained statisticians are in high demand and encounter excellent employment prospects. Forbes magazine named Statistics in their top 15 most
valuable college majors in terms on salary and career prospects. Statistics is a critical skill for jobs in many diverse fields: medicine, law, business,
sports, agriculture, entertainment, biology (genetics), politics (polling), psychology, engineering, gaming (casinos), and many more. Hal Varian,
Google Inc. chief economist, says that Statisticians will be "the sexy job of the next decade". In the following video link, he describes why there is
such a critical need for people who understand statistics and managing data: http://www.youtube.com/watch?v=pi472Mi3VLw
Start this summer assignment early to allow for time to receive clarification (if necessary) to complete. If you have any questions or concerns while
completing this assignment, email Ms. Kreshover and/or Mr. Setzer.
Ms. Kreshover
Vanessa.Kreshover@fcps.edu

Mr. Setzer
Paul.Setzer@fcps.edu
3
(Let's start with something fun and different!)
Simpson's paradox describes data that suggests one conclusion when aggregated, and a different conclusion when presented in subcategories.
Part 1: Simpson's Paradox
Practice Problems:
Who's the

Business Problem Proposal Mba 510
Running head: BUSINESS PROBLEM PROPOSAL Business Problem Proposal University of Phoenix Business Problem Proposal Wal–Mart is a
worldwide retail company. In 2008, Wal–Mart operated 971 discount stores, 2,447 super centers, 132 neighborhood markets, and 591 Sam's Clubs in
the United States (MarketLine, 2008). The company is headquartered in Bentonville, Arkansas and employs about 2.1 million people worldwide. The
business problem to be illustrated is the high employee turnover that Wal–Mart experiences. A look into why employee retention is so high and the
associated costs of this high turnover will be explored. Illustrations will show Wal–Mart's problem of high turnover in statistical terms and list a set of
recommendations to reduce... Show more content on Helpwriting.net ...
Coefficient of correlation measures the strength of linear relationships between two variables. The two variables must have an interval scale of
measurement. Relationships of –1.00 and +1.00 have strong respective positive or negative correlations. A relationship of zero identifies a weak
relationship between the two variables being analyzed. Primary and Secondary Data Sources The retention of Wal–Mart employees has been a
problem. A quantitative correlational study to access job pay satisfaction, turnover intentions, and leadership styles will be discussed. The primary
data consisted of questionnaire surveys. If required, informal interviews can be included. The primary data research was to determine whether
satisfaction with supervisor or overall job pay satisfaction is more significantly related to turnover intentions. The primary data was coded for a quick
analysis and was verifiable by re–questioning. Secondary data was extracted from published statistics such as census, housing and social security data.
Other secondary data was retrieved from similar industry models, internal databases, and library databases. The secondary data research was to
recommend leadership styles associated with job satisfaction as a means to increase retention. Data was collected from a sample of employees using
on–line and paper–and–pencil questionnaires. The survey incorporated demographic items and instruments that measured perceived transformational,
transactional,

Best Practices in Estimating the Cost of Capital: An Update
BROTHERSON ET AL. – "BEST PRACTICES" IN ESTIMATING THE COST OF CAPITAL: AN UPDATE
15
"Best Practices" in Estimating the Cost of Capital: An Update
W. Todd Brotherson, Kenneth M. Eades, Robert S. Harris, and Robert C. Higgins
"Cost of capital is so critical to things we do, and CAPM has so many holes in it–and the books don't tell you which numbers to use... so at the end of
the day, you wonder a bit if you've got a solid number. Am I fooling myself with this
Theories on cost of capital have been around for decades.
Unfortunately for practice, the academic discussions typically stop at a high level of generality, leaving important questions
This paper updates our earlier work on the state of the art in cost of capital ... Show more content on Helpwriting.net ...
For instance, Jacobs and
Shivdasani (2012) provide useful insights based on the
Association for Finance Professionals (AFP) cost of capital survey. While the survey had 309 respondents, AFP (2011, page 18) reports this was a
response rate of about 7% based on its membership companies. In contrast, we report the result of personal telephone interviews with practitioners from
a carefully chosen group of leading corporations and
theory is silent or ambiguous and practitioners are left to their own devices.
The following section gives a brief overview of the weighted–average cost of capital. The research approach and sample selection are discussed in
Section II. Section III reports the general survey results. Key points of disparity are reviewed in Section IV. Section V discusses further survey results
on risk adjustment to a baseline cost of capital, and
Section VI highlights some institutional and market forces affecting cost of capital estimation. Section VII offers
(1)

where:
K = component cost of capital.
W = weight of each component as percent of total capital. t = marginal corporate tax rate.
For simplicity, this formula includes only two sources of capital; it can be easily expanded to include other sources as well.
Finance theory offers

Employee Attrition
EMPLOYEE ATTRITION 'An Analysis of Factors Influencing Attrition in the growing Economies' INTRODUCTION In the recent decades the Indian
industry has changed its outlook. The employment scene has changed its appearance. The factors like skill sets, job satisfaction drive the employment
and not just the money. The employer hence faces the heat of continuous employee turnover. Continuous efforts are made by organisations to control
the employee turnover rate as it directly affects the performance of the organisation as many key people leave the organisations for various reasons at
crucial points. This turnover is normally known as ATTRITION. Defining attrition: A reduction in the number of employees through retirement,
... Show
more content on Helpwriting.net ...
This also leads to point number 6 5.External equity is missing too. Don't do an annual compensation survey when the market moves every 3–4 months.
If your practitioners feel that externally comparable professionals are being valued more, then they will leave. 6.No communication around total
value. If you offer benefits apart from only monetary terms do you communicate that to employees too. Things like being a global or niche industry
leader, value of the brand of the organization, should also be made explicit. 7.No career planning. Are people aware of the ways in which they can
grow in the organization? Who are the role models within the organization? Do they know what they have to do to gain the competencies to move to
various levels? (update: Can you be radical enough and create an internal The decision to choose this project was taken by us for the following
reasons: 1. The project was inherently complex and involved imparting objectivity to factors that are inherently subjective in nature. Also the
complexity of the project ensures for us a thorough and in–depth understanding of the concepts and fundamentals of marketing research which is the
most important aim of this basic course on Research Methodology. 2. The study pertained to the industry and we could easily identify with one of our
own breed. Also since we all have experience this

Thoron Concentration Essay
The results of experimentally determined values of indoor radon, thoron and their progeny concentrations observed in selected 127 dwellings of 47
villages sampled by single entry pin–holes based dosimeters and progeny sensors for one year are summarized in Table 1. The radon concentration
varies from 16В±0.9 Bqm–3 to 50В±23 Bqm–3 with an arithmetic mean of 30В±7 Bqm–3 and geometric mean (and geometric standard deviation) of
30 (1.25) Bqm–3, which is less than the lower limit of the action level (200–300 Bqm–3) recommended by International Commission on Radiological
Protection [28]. Also, the mean radon concentration is well below the world average value of 40 Bqm–3 [1]. The present results of radon concentration
are lower than the action ... Show more content on Helpwriting.net ...
Hence the p–values in both cases are greater than the 0.05, so the test accepts the hypothesis of normality. The SW test is consistent with the
standardized skewness and the standardized kurtosis values (Fig. 4). They accept the normality for annual radon and thoron concentrations. In order to
determine normality graphically, the output of the normal Q–Q plot was also used (Fig. 5). From Fig. 5, it is clear that the data points are along the
diagonal line. Hence, the data are normally distributed.
The equilibrium equivalent radon concentration (EERC) has been found to vary from 7В±2 Bqm–3 to 26В±1 Bqm–3 with an arithmetic mean of
17В±5 Bqm–3 and geometric mean (and geometric standard deviation) of 17 (1.11) Bqm–3. Similarly, the equilibrium equivalent thoron concentration
(EETC) has been found to vary from 0.4В±0.1 Bqm–3 to 2.6В±1 Bqm–3 with an arithmetic mean of 1.3В±0.5 Bqm–3 and geometric mean (and
geometric standard deviation) of 1.2 (1.46) Bqm–3, respectively. The ICRP [32] has recommended the range of 2 to 50 Bqm–3 for EERC and 0.04 to 2
Bqm–3 for EETC.
The ICRP [32] estimated an expected concentration in buildings, which in terms of EERC is 2 to 50 Bqm–3 and EETC is 0.04 to 2 Bqm–3. All
measured values of EERC are found well within the range limit prescribed by ICRP [32]. However, about 6 villages (13%) have a higher value of
EETC than the maximum limit given by ICRP [32] and

Essay Value Walmart
Valuing Walmart Author: Austin Bogus Jarrod Fenstermacher Remi Omisore For Review: Professor Gurdip S. Bakshi "We, the aforementioned team,
pledge on our honor that we have not given or received any unauthorized assistance on this assignment." – University of Maryland Honor Pledge
September 24, 2012 Case Three 3.1 Question One As of February 2010, what is your assessment of the worth of Walmarts stock? Utilize all of the
methods discussed in the case to value the shares, including the following: The perpetual growth in dividends Forecasted dividends for the next several
years plus sale of the stock in the future The three–stage dividend model The price/earnings approach 3.1.1 The perpetual growth in... Show more
content on Helpwriting.net ...
Dividends were assumed to grow at the geometric average of the last 6 years, 20.28%. P0 = D2 Dn Pn D1 + + В·В·В· + + 1 2 n (1 + Ke ) (1 + Ke ) (1
+ Ke ) (1 + Ke )n $1.58 $2.28 $87.31 $1.31 + + В·В·В· + + = 1 2 4 (1 + 7.0%) (1 + 7.0%) (1 + 7.0%) (1 + 7.0%)4 = $72.53 (3.2) 3.1.3 The three–stage
dividend model Some applications of dividend discount modeling can be more complex. One method divides the future growth in dividends into three
periods, all of which have diп¬Ђerent growth rates. This is useful when a company's proп¬Ѓts are expected to grow rapidly and then gradually decline
to an industry average. The complexities of this model are outside of the scope of this report, and the model can easily be run using tools found
online. The assumptions of this calculation as follows. Walmart is no longer in a growth phase, so this calculation assumes that it is at the
transitional phase. Because of this, 2007 data is used to initialize the calculation (EPS, dividend, etc.,) and the 'growth' period was 3 years. Initial
growth of EPS still assumed to be 10.4%. 14 transitional years, as required by the model (total of 17 years for growth and transition is required). All
of these assumptions result in a 3 stage DDM

Questions On Digital Business And New Heights Essay
BML PLATINUM Seven Key Steps to Take Your Digital Business To New Heights In the digital era, digital marketing has become the powerhouse
of businesses and if you want to keep your lights on, then you must be ready to take your digital business to a higher level. But, what do you need to
do achieve this? As an internet entrepreneur, thriving in your digital business will not be a stroll in the park. You have to be well equipped with
knowledge about the internet marketplace, how to advertise yourself and how to get an edge over your competitors. While several tips are laid out
there for you, the question becomes–do these tips really work? In this article, I will give you the key steps and hope that you can manage to work
your way around using them and take your digital business to a new level; . Build a Tribe The word tribe has grown dramatically over the last
couple of years. A tribe can be simply defined as your audience. These are people who listen to you, follow you, understand that you are there to
help them and you have a common goal. Your audience pays attention to you, and they say as much as they hear you say. These are people who
believe in your ideas and strategies and can be considered to be your team. These are people you give value to and they are your super fans. A tribe
is very different from a mailing list; these people don't just come and go. They are not the kind of people who receive your mail and don't do anything.
They stick with you due to a common

Arithmetic Mean and Bounce Plate Essay examples
Guessing the Bounce Plate Affect
Abstract
The goal behind this experiment was to estimate the distance a ball would travel after it falls a certain distance and bounces off a metal plate which
has an angle of 45 degrees. To find this we had to take the basic equations for kinematics which are (1/2)at2=x and v=v0+at and combine them to
make an equation that will help us solve for the distance the ball will travel after hitting the bounce plate. The equation came out to be R=g*(sqrt(2)
/sqrt(g))*(sqrt(H)*sqrt(h)), as that g is acceleration of gravity, h is the height of bounce plate, and H is the height of where the ball will be dropped.
After completing this experiment the result was that the standard deviation was +/– 2.3 cmfrom the ... Show more content on Helpwriting.net ...
|X(3) |18.7 |27.2 |24.2 |13.8 |
|X(4) |19.5 |25 |27.9 |13.1 |
|X(5) |15 |26.4 |22.8 |13.3 |
|X(6) |20.3 |28.7 |24.6 |10 |
|X(7) |23.5 |28.7 |24.6 |17.2 |
|X(8) |16.7 |23.6 |26.6 |13.9 |
|X(9) |16.2 |25.8 |23.2 |15.6 |
|X(10) |19.2 |25.5 |24.5 |17.2 |
|X(11) |21.5 |29 |26.4 |15.1 |
|X(12) |18.7 |28 |26.5 |14.3 |

Marriot Corp: Cost of Capital
Introduction and background We are conducting an analysis of Marriott Corporation for calculating the hurdle rates at each of the firm 's three
divisions––lodging division, restaurant division and contract service division. Marriott uses Weighted Average Cost of Capital (WACC) as the hurdle
rate, and use it to discount the appropriate cash flows when evaluate an investment project. Our goal is to determine the WACC at every division base
on the information that the case has provided. First of all, we will determine the cost of debt, cost of equity and the capital structure for the whole
company. Then we will compute for the tax rate, and calculate the WACC for the whole company. After this, we will determine the Risk
–free Rates,...
Show more content on Helpwriting.net ...
Strategy #2 conflicts with the company 's objective because the company is using hurdle rate to discount cash flows and evaluate potential
investments. If Re was higher, then WACC, which is the hurdle rate, would be higher as well. If this was the case, the company 's growth would
be reduced therefore failing the company 's growth objective. If the company 's objective is to keep growing by aggressively developing
appropriate opportunities, it is best if they do not use their funds to buy back stock shares, even though these shares were undervalued. So strategy
#4, which is to repurchase undervalued shares, conflicts with the company 's objective. When the company intends to remain a premier growth
company, it must aggressively invest in different profitable projects to generate more profit. If Marriott used their funds to buy back stock shares, the
available funds for investment would be reduced. This will have a negative effect on the company 's growth objective. 2.How does Marriot use its
estimate of its cost of capital? Does this make sense? Marriot use cost of capital as the hurdle rate to discount future cash flows for the investment
projects of the firm 's three divisions. Hurdle rate is the minimum rate of return that is required in order for the company to accept the investment.
Marriot use the hurdle rate to calculate the net present

Qnt561 One and Two Samples Sets Week 5
One– and Two–Sample Tests of Hypothesis, Variance, and Chi
–squared Analysis Problem Sets
University of Phoenix
Applied Business Research and Statistics
QNT 561
August 5, 2011
Chapter 10
Exercise Question 31: A new weight–watching company, Weight Reducers International, advertises that those who join will lose, on the average, 10
pounds the first two weeks with a standard deviation of 2.8 pounds. A random sample of 50 people who joined the new weight reduction program
revealed the mean loss to be 9 pounds. At the .05 level of significance, can we conclude that those joining Weight Reducers on average will lose less
than 10 pounds? Determine the p–value
To calculate the test statistics:
Z=(9–10)/(2.8/sqrt(50))= –2.525 ... Show more content on Helpwriting.net ...
He selects a sample of 15 families, some with only a single insured driver, others with several teenage drivers, and pays each family a stipend to
contact the two companies and ask for a price quote. To make the data comparable, certain features, such as the deductible amount and limits of liability,
are standardized. The sample information is reported below. At the .10 significance level, can we conclude that there is a difference in the amounts
quoted?
Geico Mutual Insurance
Family| Progressive Car Insurance| GEICO Mutual Insurance| Becker| 2,090| 1,610| Berry| 1,683| 1,247| Cobb| 1,402| 2,327| Debuck| 1,830| 1,367|
DuBrul| 930| 1,461| Eckroate| 697| 1,789| German| 1,741| 1,621| Glasson| 1,129| 1,914| King| 1,018| 1,956| Kucic| 1,881| 1,772| Meredith| 1,571|
1,375| Obeid| 874| 1,527| Price| 1,579| 1,767| Phillips| 1,577| 1,636| Tresize| 860| 1,188|
Chapter 12
Exercise Question 23: A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the

oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation
of the selling process was $45,600. A sample of 18 homes, also sold within the last year, that were one to three blocks from the ocean revealed that the
standard deviation was $21,330. As the .01 significance level, can

Motion Picture Industry Essay
Motion Picture Industry
Data is important and a main–stream form of communication throughout the world; however, without being able to represent the data in a format that
is easily understandable, then the data will not be as useful. Anderson, Sweeney, Williams, Camm, & Cochran (2015) define data as "the facts and
figures collected, analyzed, and summarized for presentation and interpretation" (p. 5). It is important for statisticians, mangers, and employees to
collect and present statistical data in accurate and easy to read format. When presenting data to managers for instance, the easiest form of
communication, yet effectively provide details as to the importance of the data to the applicable situation should be used. Scientists use data to measure
scientific results; such as, comparing the amount of carbon dioxide in the atmosphere over the last 650,000 years (NASA, 2015) – See Appendix A. In
business, data is found in all parts of industry; such as, accounting, finance, marketing, production, economics, and information systems (Anderson et al,
2015, p. 3–5). In the case of this study, the results will be shown as a managerial report from an accumulation of data showing the financial success of
100 motion pictures on the years 20XX in the following categories: Rank, Movie Title, Opening Gross, Total Gross, Theaters (number of) and Weeks
(weeks shown). The managerial report will show the descriptive statistics (mean, median, range and standard deviation see data

Finance 261 Mock Test
Version 1
FINANCE 261
FINANCE 261 Test Answer Sheet
Name: __________________________________________ Student ID Number:_______________________________
Please use CAPITAL LETTERS when writing your answers.
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FINANCE 261
THE UNIVERSITY OF AUCKLAND Department of Accounting and Finance
FINANCE 261 Introduction to Investments

MID–SEMESTER TEST Semester 1 – 2013
INSTRUCTIONS Time allowed: 60 minutes (includes reading time) Total Marks: 20
a. b. c. d. e. f.
Answer ALL questions. There are 20 questions each worth 1 mark.... Show more content on Helpwriting.net ...
The optimal weights of X and Y in O are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of
10%. To form an efficient portfolio with an expected rate of return of 8%, you should invest approximately __________ and __________ of your
$1,000 in security X and Y respectively. A. $348, $232 B. $312, $208 C. $279, $186 D. $243, $162 D Expected return on Portfolio O = 12.4%
Denoting the weight on Portfolio O, w: 12.4w + 5Г—(1–w) =8 w = 3/7.4 = 0.4054 Dollar investment in X = 1000 Г—0.6Г—0.4504 = $243 Dollar
investment in Y = 1000 Г—0.4Г—0.4504 = $162
5
Version 1
FINANCE 261
Question 10 You invest $1,000 in a portfolio composed of the risky market portfolio with an expected rate of return of 16% and a standard deviation of
20% and (risk–free) treasury bills with a rate of return of 6%. The slope of the capital market line formed with the risky market portfolio and the
risk–free asset is _________. A. 1.10 B. 0.80 C. 0.50 D. 0.20 C Sharpe ratio = (16 – 6) / 20 = 0.5 Question 11 When calculating the variance of a
portfolio 's percentage returns squaring the deviations from the mean percentage return results in ________. I. preventing the sum of the deviations
from always equaling zero II. exaggerating the effects of large positive and negative deviations III. a number in units of percentage of returns A. III
only B. I and II only C. I and III only D. I, II and III B Question 12 You would like to

holla Essay
Introduction to Confidence Intervals (page 248)
In chapter 7 we discussed how to make inferences about a population parameter based on a sample statistic. While this can be useful, it has severe
limitations. In Chapter 8, we expand our toolbox to include Confidence Intervals. Instead of basing our inference on a single value, a point estimate, a
Confidence Interval provides a range of values, an interval, which – at a certain level of confidence (90%, 95%, etc.) – contains the true population
parameter. Having a range of values to make inferences about the population provides much more room for accuracy than making an inference off of
only one value.
When we worked with probabilities based on sample means, we learned that there is ... Show more content on Helpwriting.net ...
Assume that the population standard deviation is fairly stable at 1.8 hours.
Calculate the 95% confidence interval for the population mean weekday sleep time of all adult residents of this Midwestern town.
95% = 1.96 6.4 +(–) 1.96 x (1.8/sqrt80) = [6.01, 6.79]
Can we conclude with 95% confidence that the mean sleep time of all adult residents in this Midwestern town is not 7 hours?
Yes, we can conclude with 95% confidence that the mean sleep in this Midwestern town is not 7 hours because the value 7 does not fall within the
confidence interval.
Confidence Interval for the Population Mean when Sigma is Unknown
While it is possible that we could know enough about our population to make an assumption about what the population standard deviation is, it is much
more likely that if we do not know the population mean, then we do not know the population standard deviation. In this case, we can't use the standard
normal distribution, and we use a different distribution, the Student's t distribution. Instead of пЃі, we use s, the sample standard deviation.
The formula is: xВ±ta/2, df sn .
пЃЎ/2 is still defined the same way, and df is degrees of freedom, calculated as n–1, where n is the sample size. Degrees of freedom determine the
extent of the broadness of the tails of the distribution; the fewer the degrees of freedom, the broader the tails.
Solve the following problems:
Find ta/2, df for the following confidence levels: T–SCORE

Arithmetic Mean and Excellent Banks
Measuring Service Quality Using SERVQUAL
IntroductionMeasuring the quality of a service can be a very difficult exercise. Unlike product where there are specific specifications such as length,
depth, width, weight, colour etc. a service can have numerous intangible or qualitative specifications. In addition there is there expectation of the
customer with regards the service, which can vary considerably based on a range of factors such as prior experience, personal needs and what other
people may have told them.
SERVQUAL– a methodology for measuring service qualityAs a way of trying to measure service quality, researchers have developed a methodology
known as SERVQUAL– a perceived service quality questionnaire survey ... Show more content on Helpwriting.net ...
Please allocate 100 points among the five sets of features according to how important it is to you. Make sure the points add up to 100.
FeaturesPoints
1.The appearance of the banks physical facilities, equipment, personnel and communication materials.
2.The bank 's ability to perform the promised service dependably and accurately
3.The banks willingness to help customers and provide prompt service.
4.The knowledge and courtesy of the bank 's employees and their ability to convey trust and confidence.
5.The caring individual attention the bank provides its customers.
Total:100
Table 2 – SERVQUAL Importance Weights
SERVQUAL DimensionScore from Table 1Weighting from Table 2Weighted Score
Tangibility
Reliability
Responsiveness
Assurance
Empathy

Average Weighted score:
Table 3 – Calculation of Weighted SERVQUAL Scores
Appendix A– the SERVQUAL Questionnaire
The SurveyThe questionnaire below is in two sections. The first section asks you to rank all banks according to your expectations i.e. what you
expect all banks to provide. The second section asks you to rank the bank you chose for the survey according to your experiences and perceptions.
ExpectationsThis section of the survey deals with your opinions of banks. Please show the extent to which you think

Arithmetic vs. Geometric Means: Empirical
1
"Arithmetic vs. Geometric Means: Empirical
Evidence and Theoretical Issues" by Jay B. Abrams, ASA, CPA, MBA
Copyright 1996
There has been a flurry of articles about the relative merits of using the arithmetic mean
(AM) versus the geometric mean (GM). The Ibbotson SBBI Yearbook took the first position that thearithmetic mean is the correct mean to use in
valuation. Allyn Joyce's June 1995
BVR article initiated arguments for the GM as the correct mean.
The previous articles have centered around Professor Ibbotson's famous example using a binomial distribution with 50%–50% probabilities of a +30%
and –10% return. The debate has been very interesting, but it is off on a tangent, focused on the wrong issue.
There are theoretical ... Show more content on Helpwriting.net ...
Regression #1: Returns as a Function of Risk
The arithmetic mean outperforms3 the geometric mean in this regression, with Adjusted R2 of 97.78% versus 81.93% and t–statistic of 19.9 versus 6.5.
Additionally, the constant of
2 "A Breakthrough in Calculating Reliable Discount Rates," Valuation, August, 1994. Additionally, Grabowski and King subsequently published
articles on the same topic in Business Valuation Review, June 1995, p. 69–74 and September 1996, p.
103–115.
3 In other words, AM does a better job of explaining risk than GM.
3
5.24% for the arithmetic mean makes economic sense, i.e., it matches the 70–year average Treasury Bond rate–the best proxy for the risk–free
rate–while the constant for the geometric mean matches nothing in particular; and how could it? The geometric mean is stripped of some of the
information relating to volatility, so therefore it will obviously do an inferior job of forecasting returns based on volatility.
Let's see how it does in explaining returns as a function of log size.
Regression #2: Returns as a Function of Log Size
Again, the arithmetic mean outperforms the geometric mean. Its adjusted R2 is 91.43% compared to 84.48% for the geometric mean. The absolute
value of Its t–statistic is 9.2,

The Issue Of Equal Pay For Equal Work
The issue of equal pay for equal work performed by women; is a political hot button in the 2016 presidential campaign. So much so that the stump
speeches, for both former secretary of state Hillary Clinton, and senator, Bernie Sanders, always include this issue. Since the 1960s, congress and
many researchers have tested this theory. In order to affirm the validity of this message, we will perform a five–step hypothesis test. In the book,
"Statistical Techniques in Business & Economics," authors D. Lind, W. Marchal & S. Wathen (2012), describe how to conduct this test of hypothesis.
We seek to determine if two sampled populations, females and males, have the same mean (arithmetic average) wages. The process begins with only
the raw data from a 2005 wages database. As a result, the authors further explain: "The method described does not require that we know the standard
deviations of the populations (2012)." For that reason, we assume the sampled populations are equal, but, the standard deviations are unknown. Then,
we use the t–test as the test statistic, with 30 degrees of freedom.
Problem Statement In an online article entitled "The Simple Truth About theGender Pay Gap", published on the AAUW website, author Catherine
Hill, PhD, had this to say: "Did you know that in 2014, women working full time in the United States typically were paid just 79 percent of what men
were paid, a gap of 21 percent? The gap has narrowed since the 1970s, due largely to women's

Case Study On Boeing
Question 1
Why is Boeing contemplating the launch of the 7E7 project? Is this a good time to do so?
We can see from the case study that Boeing and Airbus in 2002 dominated the large plane market. Whilst it was in competition with Airbus, Boeing
was falling behind and in 2002 Airbus was set to launch the A380 set to be the largest passenger aircraft ever built. The demand for commercial
aircrafts of this size was positive. Boeing's investment into the future through research and development could result in increased efficiency.
Boeing was seen as a leader of the commercial aircraft industry; however, it must be noted that as explained in the case study air travel in influenced by
business cycles, consumer confidence and exogenous events, and at the time of consideration there were a number of factors going against the launch
of the 7E7 project. War, SARS and terrorism; the September 11 attacks using commercial airplanes added to the challenges already presented.
Looking at all the factors we must accept that these challenges are short term and when reviewing the long–term lifecycle through the 20–year
predicted forecast the timing shows a healthy long–term outlook that will continue into the future.
Question 2
a. What is an appropriate required rate of return against which to evaluate the prospective IRRs from the Boeing 7E7?
Hiller states that when the IRR is positive, the basic financial theory implies that the Board should accept the project, however, we know

One- and Two-Sample Tests of Hypothesis, Variance, and...
One– and Two–Sample Tests of Hypothesis, Variance, and Chi
–squared Analysis Problem Sets
Exercises 19 and 20 (Ch. 17)
Chapter 10
31. A new weight–watching company, Weight Reducers International, advertises that those who join will lose, on the average, 10 pounds the first two
weeks with a standard deviation of 2.8 pounds. A random sample of 50 people who joined the new weight reduction program revealed the mean loss to
be 9 pounds. At the .05 level of significance, can we conclude that those joining Weight Reducers on average will lose less than 10 pounds? Determine
the p–value.
Answer
H0: Mean weight lose = 10 pound (Вµ = 10)
H1: Mean weight lose < 10 pound (Вµ < 10)
Test Statistic used is Z test . Given that = 9, n= 50, пЃі = ... Show more content on Helpwriting.net ...
The sample does not provide enough evidence to support the claim that the 30–year mortgage rate for small banks is less than 6 percent.
P value = = 0.075091318
Exercises 27, 46, and 52 (Ch. 11)
Chapter 11
27. A recent study focused on the number of times men and women who live alone buy take–out dinner in a month. The information is summarized
below.
Statistic Men Women
Sample mean 24.51 22.69
Population standard deviation 4.48 3.86
Sample size 35 40

At the .01 significance level, is there a difference in the mean number of times men and women order take–out dinners in a month? What is the p–value?
Answer
The null hypothesis tested is
H0: There is no significance difference in the average number of times men and women who live alone buy take–out dinner. (Вµ1= Вµ2)
The alternative hypothesis is
H1: There is significance difference in the average number of times men and women who live alone buy take–out dinner. (Вµ1в‰ Вµ2)
The test statistic used is
Rejection criteria: Reject the null hypothesis, if the calculated value of z is

Statistics: Arithmetic Mean and Relative Frequency
HONORS STATISTICS
CH1
In an observational study, researchers simply observe characteristics and take measurements, as in a sample survey.
In a designed experiment, researchers impose treatments and controls and then observe characteristics and take measurements.
Data from a sample of citizens of a certain country yielded the following estimates of average TV viewing time per month for all the citizens.
Answer: Inferential, because the statistics are used to make inference about the population.
* 50 kids are divided into 2 groups. One is exposed to a vid on bullying. The other isn't. After one week, both groups are questioned about their attitudes
about violence. This is a designed experiment
5 state officials: ... Show more content on Helpwriting.net ...
No, since the data is qualitative
4. Paved| 92| 106| 86| 91| 106| 88| 74| DIRT| 69| 58| 50| 57| 60| 93| 109|
Range of paved is .. 106 – 74 = 32 ––– highest – lowest
Range of dirt is 109 – 50 = 59
Standard Deviation: Paved: A) All the values added together = x, then that value squared = x^2 B) Each value squared and then added together (92^2 +
106^2 + ...)
Finding the answer: Square root of B – (A/number of values or N) N–1
Do the same for Dirt with other numbers

5. 10 numbers given 67 148153 77 127 91 66 146 100 97 rearrange data in ascending order 66 67 77 91 97 100 127 146 148 153 a) obain quartiles:
Q2 = median ––– 97+ 100/ 2 = 98.5
For Q1, Q3, split the data in to two parts
66 67 77 91 97100 127 146 148 153 the median of the lesser data is Q1 and the median of the greater data is Q3
b) quartiles suggest the 25% of samples are less than Q1, 25% between Q1 and Q2, 25% between Q2 and Q3, and 25% greater than Q3
c) IQR = Q3– Q1
*number of units contained in the middle 50% of the samples span roughly (IQR answer) units
D) % number summary
Minimum, Q1, Q2, Q3, Maximum *The middle 50% has the greatest

Acct 3321 Final
STAT 3321– Final, Spring, 2007 – Green Exam – Printed Name_______________________
By signing below I state that I understand that academic dishonesty can result in punishment resulting in at least a zero on this test and could include
expulsion from the university and that all the work on this exam is mine.
Directions
1. Do not open exam until told.
2. Bubble in your last name, skip a space, and then your first name on the scantron.
3. Set all pagers and cell phones to silent and place on floor or backpack
4. When finished place your printed material inside your exam and place on desk in front.
5. Check the board for corrections to the exam before leaving.
6. You can not use your phone as a calculator.
7. Assume a = 0.05 ... Show more content on Helpwriting.net ...
0.0166
b. 0.0394
c. 0.3708
d. 0.0228
e. none of the above
12 In performing a regression analysis involving two numerical variables, we are assuming:
a. All of these choices are correct.
b. the variances of x and y are equal.
c. y has the same variation for each x value..
d. that x and y are independent.
e. the distribution of x is normal.
13 The classification of student major (accounting, economics, management, marketing, other) is an example of:

a. a categorical or qualitative random variable.
b. a discrete random variable.
c. a continuous random variable.
d. a parameter.
e. a scatter plot
14 In the simple linear regression model, the slope represents the:
a. average change in x per unit change in y
b. value of y when x = 0
c. value of x when y = 0..
d. average change in y per unit change in x..
e. the value of y given a value of x.
15 In testing the hypotheses: H0 ОІ1 ' 0: vs. H1: ОІ 1 в‰ 0 , the following statistics are available: n = 10, b0 = 1.8, b1 = 2.45, and Sb1= 1.20. The
value of the test statistic is:
a. 1.50
b. 0.300
c. 1.96
d. 0.306
e. 2.042
16 Which of the following is not a measure of central tendency?
a. the standard deviation
b. the mode
c. the mean
d. the median
e. all of the others are measures of central tendency
17 In regression analysis, the coefficient of determination R2 measures the amount of variation in y

TN16 The Boeing 7E7
THE BOEING 7E7
Teaching Note
Synopsis and Objectives
In 2003, the Boeing Company announced plans to build a new "super–efficient" commercial jet called the "7E7" or "Dreamliner." This was a "bet the
farm" gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new
airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other hand,
the current market for commercial airplanes was depressed because of terrorism risks, war, and SARS, a contagious illness that resulted in global
travel warnings. Boeing's board of directors would need to weigh those ... Show more content on Helpwriting.net ...
The instructor could easily take a "devil's advocate" approach toward the prevailing sentiment and invite defense of the students' opinions. In any event,
acknowledgment of a range of estimates builds drama and confirms that there are competing views among students–this motivates a detailed discussion
of the financial analysis.
3. How would we know if the 7E7 project will create value?
Students may be familiar with the classic NPV criterion. This case invites them to focus on the internal rate of return (IRR). If the IRR is greater than
the project cost of capital, the 7E7 is a positive net present value project.1 A discussion of why this is true provides a solid "big picture" foundation for
the case decision. The project IRRs are presented in case Exhibit 9. Therefore, the focus of student analysis should be on determining the benchmark
against which to evaluate the IRRs. Thus, this part of the discussion helps to motivate the analysis of WACC. Some students may have voted in a
manner that contradicts the IRR versus the cost of capital decision rule. This sets up the next question.
4. Okay, let's examine the details of how to estimate the WACC. Let's go step
–by–step. Where shall we get started?
The instructor can ask one student (or team of students) to walk the class through the detailed calculations. The presenter(s) may make one or more
errors or adopt some controversial practice in making the calculations. This presents a strategic

CFA Sample Exam
Chartered Financial AnalystВ® CFAВ® 2011 CFA Level 1 Sample Exam Questions and Answers 2011 CFA Level 1 Sample Exam Version 1
–2 2011
CFA Level 1 Sample Exam 2011 Level 1 Sample Exam Volume 1 SS1–Ethics and Professional Standards 1. Abasi Hasina, CFA, signed an
employment contract with a non–compete clause restricting him from working for a competitor for three years after leaving the employer, an
investment bank. After one year, Hsaina. quits his job for a position with an investment bank in a city across the country. The new job pays twice as
much as the old one. Lawyers with whom he consulted determined the non–compete clause was a violation of human rights and thus illegal, so he took
the offer. Did Hssina most likely... Show more content on Helpwriting.net ...
Kelso is part of a team of analysts who focus on the automobile industry. Recently, Kelso disagreed wjth two research "sell" recommendations
written by her team even though she felt confident the research process was properly conducted. In discussions with several clients, Kelso states
"even though my name is on the sell reports, these stocks are a buy because sales and share prices for both auto companies will rise significantly
due to strong demand for their vehicles." Concerning the "sell" recommendations, which of Kelso 's following actions would most likely violate the
CFA Institute Standards of Professional Conduct? A. Dissociating from the report B. Distinguishing between fact and opinion C. Sharing her
personal opinion of the stocks 2 2011 CFA Level 5 Sample Exam 8. Gardner Knight, CFA, is a product development specialist at an investment band.
Knight is responsible for creating collateralized debt obligations (CDOs) consisting of residential mortgage bonds. In the marketing brochure for his
most recent CDO, Knight provided a list of the mortgage bonds that the CDO was created from. The brochure also states that "an independent third
party, the collateral manger, had sole authority over the selection of all mortgage .bonds used as collateral in the CDO." However, Knight met with the
collateral manager and helped her select the bonds for the CDO. Knight is least likely to be in violation of which CFA Institute Standards of

Arithmetic Mean and Data
STATISTICS FOR MANAGEMENT– SET (1) 1) WHY IT IS NECESSARY TO SUMMARISE DATA? EXPLAIN THE APPROACHES
AVAILABLE TO SUMMARIZE THE DATA DISTRIBUTIONS? в
ћў Graphical representation is a good way to represent summarised data. However,
graphs provide us only an overview and thus may not be used for further analysis. Hence, we use summary statistics like computing averages. to
analyse the data. Mass data, which is collected, classified, tabulated and presented systematically, is analysed further to bring its size to a single
representative figure. This single figure is the measure which can be found at central part of the range of all values. It is the one which represents the
entire data set. Hence, this is called the measure of... Show more content on Helpwriting.net ...
When there are many tables in an analysis, then table numbers are helpful in identifying the tables. ii) TITLE: It indicates the scope and the nature
of contents in concise form. In other words, title of a table gives information about the data contained in the body of the table. It should not be
lengthy. iii) CAPTIONS: Captions are the headings and subheadings describing the data present in the columns. iv) STUBS: These are the
headings and subheadings of rows. v) BODY OF THE TABLE: It contains numerical information vi) RULING AND SPACING: It separates
columns and rows. However, totals are separated from main body by thick lines. vii) HEAD NOTE: It is given below the title of the table to indicate
the units of measurement of the data and is enclosed in brackets. viii) SOURCE NOTE: It indicates the source from which data is taken. The source
note related to table is placed at the bottom on the left hand corner. TABLE 1– % OF DISTRIBUTION OF POPULATION |Marital Status |Age/Sex
|LITERATE |ILLITERATE | |

The Data Collection And Sample Size During The Early...
A researcher must think about the data collection and sample size in the early stages of the research process because it will affect the way the
researcher analyzes the data. There are two main reasons a researcher should do it in the early stages. The first one is that the researcher cannot
apply just any technique to any variable. The other one is the size and nature of your sample are likely to impose limitations on the kinds of
techniques you can use (Bryman 2008). The female researcher wants to apply old research conducted that she read in an article and see if it applies
to involvement in leisure clubs and gyms. She handled the unanswered questions by programing the software to account for the 'missing data.'
Techniques of data analysis are applicable to some types of variable and not others you need to know the difference between interval/ratio, ordinal,
nominal, and dichotomous variables. According to Bryman, the interval variables are, "the distance between the categories that are identical across
the range of categories." Ordinal variables are variables that can be rank ordered, but the distances between the categories are not equal across the
range. Next are nominal variables, which are comprise categories that cannot be rank ordered. Finally, dichotomous variables, they are variables that
contain data that have only two categories. Univariate analysis refers to the analysis of one variable at a time. A frequency tables provides numbers
and percentages that

Statistics Exercise 16 Essay
в–Ў EXERCISE 16 Questions to be Graded
1. The researchers analyzed the data they collected as though it were at what level of measurement?
d. Experimental
2. What was the mean posttest empowerment score for the control group?
The mean posttest empowerment score for the control group was 97.12
3. Compare the mean baseline and posttest depression scores of the experimental group. Was this an expected finding? Provide a rationale for your
answer.
The mean baseline depression score of the experimental group is 14.00. The mean posttest depression score of the experimental group is 13.36. The
posttest score is 0.64 lower than the baseline score. This was an expected finding because it was hypothesized that after the completion of ... Show more
content on Helpwriting.net ...
Both and SD are descriptive statistics.
8. What was the mean severity for renal disease for the research subjects? What was the dispersion or variability of the renal disease severity scores?
Did the severity scores vary significantly between the control and the experimental groups? Is this important? Provide a rationale for your answer.
The mean severity for renal disease for the research subjects was 6.74. The dispersion or variability of the renal disease severity scores was 2.97. The
self–care self–efficacy severity score did vary significantly with the experimental group's mean posttest score being 6.44 points higher than its baseline
mean score. This is important because this finding indicates that the empowerment intervention had a positive impact on the self–care self–efficacy of
the patients.
9. Which variable was least affected by the empowerment program? Provide a rationale for your answer.

The depression variable was least affected by the empowerment program. The experimental group's average baseline score only dropped 0.64 from the
posttest, and the control group's average baseline score had no change in the posttest and stayed at 10.40.
10. Was it important for the researchers to include the total means and SDs for the study variables in Table 2 to promote the readers' understanding of
the study results? Provide a rationale for your answer.
It was important for the researchers to include the total means and SDs

Arithmetic Mean and Gulf View Essay
Gulf Real Estate Properties
Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as "expert in the real estate
market," monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each
condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near
but not on the Gulf. Sample data from the Multiple Listing Service in Naples, Florida, provided recent sales data for 40 Gulf View condominiums and
18 No Gulf View condominiums. Prices are in thousands of dollars.
Those analyses are below:
Descriptive Statistics ... Show more content on Helpwriting.net ...
These represent the range of the sale price. Lastly, I used the formula to get the standard deviation 48,945.28, which measures the variability.
To calculate the mean I added up the sum of days to sell and divided by 18. The mean is 203,188.89, which mean the average of the listed price. The
median was calculated by listing the numbers in numerical order from lowest to highest and located the number in the middle of 203,500. The median
represents the middle number of the days that it took to sell the condominiums. After calculating the median I located the minimum and maximum
based the lowest and highest data, which are 135,500 and 292,500. These represent the range of the sale price. Lastly, I used the formula to get the
standard deviation of 43,891.72, which measures the variability.
Based on the chart, the mean was calculated by adding up the sum of the list and divide 18, which the number of the total listed prices. The mean is
135,000, which mean the average of the listed price. Secondly, the median was calculated by listing the number in numerical order from lowest to
highest and located the number in the middle 126,000. The median represents the middle number of the listed price. After calculating the median I
located the minimum and maximum based the lowest and highest data, which are 48,000 and 338,000. These represent the range of the listed price.
Lastly, I used the formula to get the

Arithmetic Mean and Correct Answer Essay
п‚· Question 1 1 out of 1 points Questions 1 through 4 refer to the following: According to the US Department of Health and Human Services, the
percentage of adults who smoked cigarettes in 2011 was 19%. A survey of 500 adults taken in 2012 found 85 who smoke. The researcher is interested
in finding evidence at the .05 significance level of a decrease from 2011 to 2012 in the proportion of US adults who smoke. Which of the following
pairs of hypotheses is suggested by the scenario described above? Selected Answer: E. H0: p в‰Ґ 0.19 HA: p < 0.19 Correct Answer: B. H0: p в‰Ґ
0.19 HA: p < 0.19 п‚· Question 2 1 out of 1 points What is the value of the test statistic? Selected Answer: C. –1.140 Correct Answer: C.... Show
Selected Answer: C. .05 < p–value < .10 Correct Answer: C. .05 < p–value < .10 п‚· Question 16 1 out of 1 points What is the correct
decision? Selected Answer: B. Do Not Reject H0 Correct Answer: B. Do Not Reject H0 п‚· Question 17 1 out of 1 points Which of the following
correctly describes the 95% confidence interval for the mean based on the sample? Selected Answer: D. The interval includes the value 2.1 Correct
Answer: D. The interval includes the value 2.1 п‚· Question 18 0 out of 1 points Questions 18 and 19 refer to the following: In 2007, the median
single family house price in Elmore County, Alabama was $143,200. A current random sample of 100 single family houses indicates 39 that are
valued at more than $143,200 and 61 that are valued less than $143,200. The researcher is interested in evidence at the .05 level that the median house
price has decreased from the 2007 level. Which of the following correctly characterizes the p–value? Selected Answer: D. p–value > .10 Correct
Answer: B. .01 < p–value < .05 п‚· Question 19 0 out of 1 points Which of the following conclusions is supported at the .05 level? Selected
Answer: There is insufficient evidence to conclude that the median house price is less than $143,200. Correct Answer: The median house price is less
than $143,200. п‚· Question 20

Nike Case Study
INTRODUCTION
Kimi Ford, a portfolio manager of a large mutual fund management firm, is looking into the viability of investing in the stocks of Nike for the fund that
she manages.
Ford should base her decision on data on the company which were disclosed in the 2001 fiscal reports. While Nike management addressed several
issues that are causing the decrease in market sales and prices of stocks, management presented its plans to improve and perform better.
Third party sources also gave their opinions on whether the stock was a sound investment.
WACC CALCULATION:
Cost of Capital Calculations: Nike Inc
Cohen calculated a weighted average cost of capital (WACC) of 8.3 percent by using thecapital asset pricing model (CAPM) for ... Show more content
on Helpwriting.net ...
using the weights and costs of debt and equity. The formula used is: WACC = wdkd (1–T) + weke.
WACC = Wd*Kd(1–T) + WeKe = 10.05%*7.51 %( 1–38%) + 89.95%*10.46%
= 0.4682% + 9.4087% = 9.8767%
The weighted average cost of capital for Nike Inc. is 9.8765 percent.
The next model used to calculate the cost of capital is the dividend discount model.
Dividend Discount Model.
The assumption made with this model is that the company pays a substantial dividend, but Nike Inc. does not. Therefore, we rejected this model
because it does not reflect the true cost of capital. The calculation is as follows:
DDM = [Do(1+g)/Po] + g =[0.48(1+.055)/42.09] + .055 = 6.70%
Earnings Capitalization Model:
The final model used to compute the cost of capital was the earning capitalization model. The problem with this model is that it does not take into
consideration the growth of the company. Therefore we chose to reject this calculation. The earnings capitalization model calculations were found this
way:
ECM = E1/Po = 232/42.09 = 5.51%
Financial performance appraisal: Ratio Analysis

Profitability ratios
Liquidity Ratios:
These ratios measure the liquidity position of the firm in question i.e its ability to meet short term obligations with short term assets.
Current Asset Ratio = Current Assets/Current liabilities
2000 Current Ratio = 3596.4/2140 = 1.6 times
2001 Current Ratio = 3625.3/1786.7 = 2.03times
Acid test ratio

Adjusted Beta Formula Essay
Appendix I
C1: Equity = Stock Price x Number of Shares Outstanding
= $42.09 X 271.5
= $11,427.435 million
C2: Using Adjusted Beta formula:
Adjusted Beta = 0.67* historical Beta + 0.33 = 0.67* 0.69 +0.33=0.79
C3: Using CAPM formula:
KE = Krf + Гџ (Km–Krf) = 3.59%+0.79*6.7%=8.89%
C4: Using rearranged DGM formula:
KE =D1/P0 +g= 0.48(1+5.5%)/42.09 +5.5%=6.7%
C5: Using redeemable bond formula:
KD: 95.6= 100/ (1+KD/2)40 + 3.375(1–0.38)/(1+KD/2)n
KD=4.52%
C6: Using WACC formula:
Rwacc =4.52*10.19% + 8.89*89.81% = 8.44%
C7: average dividend growth rate: g = [0+12.5++ 20+12+8]/4 %=8%
(Assumption: In this calculation, the growth rates significantly higher than 20% and negative figure have been ignored.)
C8: Using CAPM: ... Show more content on Helpwriting.net ...
* Using CAPM (popular) for calculate Ke
KE = KRF + (KM – KRF) x Beta
п‚· Beta: is seen as an 'index of responsiveness' of changes in a security's returns relative to changes in returns on the market, in this case is sport utility
industry)
(In Exhibit 4 of Nike Inc., given from 1996 is Average beta = 0.80, beta in 2001 is 0.69)
п‚· KRF: risk free rate
п‚· (KM – KRF) : Risk market premium
п‚· KM: Return on market.

Using KRF = Profitability rate of Government bonds (U.S. Treasury), in Exhibit 4 we have U.S Treasury 20–year пѓЁ KRF= 5.74%
According to Joana Cohen, she got risk premium = 5.90% (in Exhibit 4: geometric mean = 5.90%, arithmetic mean = 7.50%)
Because of arithmetic mean is better for one–year period estimated expected returns, while geometric mean is better for long–term period valuation. So,
for long life valuation, we can find stable valuation (Jacquier et al., 2003). That's the answer for Joana Cohen choses geometric mean for her calculated.
Joanna Cohen calculated: KE = 5.74% + 5.90% x 0.80 = 10.46% ( rounding 10.5%)
Cohen uses average beta from 1996 to July 2001, 0.80 to be the measure of systematic risk, but we need to find out a beta that is most representative
to future beta. As such, most recent beta is the best choice in this situation (Sharpe, 1995). So most recent beta estimate is recent beta at 06 June 2001
is 0.69.
We have : KE = 5.74% +

Arithmetic Mean and Exchange Rate Effect
Chapter 3, Problem 3Using published sources (for example, The Wall Street Journal, Barron's, Federal Reserve
Bulletin), look up the exchange rate for U. S. dollars with Japanese yen for each of thepast 10 years (you can use an average for the year or a specific
time period each year).
Japanese Yen to U. S. Dollar (Retrieved from http://research.stlouisfed.org/fred2/data/EXJPUS.txt )DateExample– Japan Stock Price in YenExample–
Japan Stock Price in $1–Apr–1397.75825000$51.15 1–Apr–1281.25245000$61.54 1–Apr–1183.17715000$60.11 1–Apr–1093.45275000$53.50
1–Apr–0998.92005000$50.55 1–Apr–08102.67775000$48.70 ... Show more content on Helpwriting.net ...
Bonds5.10%6.40%1.253Long–term corpor. Bonds5.95%9.60%1.614Real Estate9.49%4.50%0.471Coefficient of variation is the measure of
variability of the data. If the CV is higher it means the risk is higher, when the CV is lower it means less risk and high stability. From the table above
the less riskier is Real Estate Category,Common Stocks are at the highest risk.c).Assume the arithmetic mean returns in these series are normally
distributed. Calculate the range of returnsthat an investor would have expected to achieve 95 percent of the time from holding common stocks.From
refering normal distribution table we get that at 95% probability we get that value of "z" is 0.3289http://cazelais.disted.camosun.bc.ca/264
/normal_table.pdfFrom the below formula we can calculate the value of range that have the range of 95% probabilityZ= (X– Mean)/ Standard Deviation
Common StockMean10.28%Std Deviation6.90%0.3289 = (X–10.28%)/6.90%Thus X = 0.3289*6.9+10.28X= 12.55 %It means that getting return of
12.55% or less will have

Arithmetic Mean and Five-step P-value Approach
Sample
9.23
A manufacturer of chocolate candies uses machines to package candies as they move along a filling line. Although the packages are labeled as 8
ounces, the company wants the packages to contain a mean of 8.17 ounces so that virtually none of the packages contain less than 8 ounces. A
sample of 50 packages is selected periodically, and the packaging process is stopped if there is evidence that the mean amount packaged is different
from 8.17 ounces. Suppose that in a particular of 50 packages, the mean amount dispensed is 8.159 ounces, with a sample standard deviation of 0.051
A. Is there evidence that the population mean amount is different from 8.17 ounces? (Use a 0.05 level of significance.)
B. Determine the p–value and ... Show more content on Helpwriting.net ...
C. Interpret the meaning of the p–value in (b).
D. Compare your conclusions in (a) and (b).
9.53
The U.S. Department of Education reports that 46% of full–time college students are employed while attending college (data extracted from "The
Condition of Education 2009," National Center for Education Statistics, nces.ed.gov). A recent survey of 60 full–time students at Miami University
found that 29 were employed.
A. Use the five–step p–value approach to hypothesis testing and a 0.05 level of significance to determine whether the proportion of full–time students
at Miami University is different that the national norm of 0.46.
B. Assume that the study found that 36 of the 60 full–time students were employed and repeat (a). Are the conclusions the same?
9.55
One of the issues facing organizations is increasing diversity throughout the organization. One of the ways to evaluate an organization's success at
increasing diversity is to compare the percentage of employees in the organization in a particular position with a specific background to the
percentage in a position with that specific background in the general workforce. Recently, a large academic medical center determined that 9 of 17
employees in a particular position were female, whereas 55% of the employees for this position in the general workforce were female. At the 0.05
level of significance, is there evidence that the proportion of females in this position at this

Recreational Properties Case Essay examples
Recreational Properties
1. Framing the Decision
Our objective is to maximise Anders Forsgen's financial return from this developmental deal while keeping into account the fact that we have other
option beyond this deal.
We have two primary decisions to make viz. whether: a)we should exercise our option to buy The White Mountain Development, and,
b)If we should develop White Mountain further to aim for higher returns
The development of White Mountain is attractive because as it only involves incremental capital costs, and no loss in time in terms of selling the
development.
These two decisions and the net pay off would be influenced by two key uncertainties viz. whether
a)we would get the lease or not (now in ... Show more content on Helpwriting.net ...
Attached is the detailed chart showing the interplay between these two probabilities (Figure 3). It also shows two nuanced inputs i.e.
a)That for almost all cases below 50% probability of lease being granted we are better of not exercising the option to buy the development, and,
b)That given that we have a favourable lease decision, we are better off on average developing the resort, but in the absence of a certainty on lease
decision, its unclear whether we should exercise out option or not in the first place.
As our payoff estimates are changing favourability of options too close to the base case scenario, we cannot make sound recommendations at this
time. A slight change in the probability of the lease being granted or our ability to develop or good reputation reverses our optimal decision.
Consequently we should have less confidence in our recommendation and attempt to gain more information or time. It is to be noted that solely getting
a higher certainty on the lease decision may help us provide a clear recommendation, as this uncertainty is pivotal in our choice of decision.

Sensitivity Table
4. Extending the Option
The key reason for Dolores to consider this as a good option is that it eliminates the uncertainty of the ruling on the lease issue.
Consequently the average realizable value jumps up from 1.7M to 3.5M, a gain of

Evidence That Can Be Defined As Non Scientific Reports?
Anecdotal evidence can be defined as non–scientific reports or observations that may be based on hearsay rather than hard facts. For example,
anecdotal evidence can come in the form of stories people tell or say but it is not known whether or not it can truly be trusted. Bias – distinguish the
following: Confirmation bias is defined as a type of bias that involves favoring information that confirms one's preconceptions, existing beliefs, or
biases. Take for example a person who holds a belief that people with glasses are smarter than people without, whenever this person interacts with
someone that has glasses they may place a greater importance on this, which would support their already existing belief. Publication bias can be
described as... Show more content on Helpwriting.net ...
Double blind study can be defined as an experimental procedure where those who are participating in the study and those who are administering
the experiment are unaware of the various aspects or procedures of the experiment. This is used to limit biases and placebo effects. Placebo is a
substance which has no medical effect but is administered as a control in an experiment. The positive results from the placebo is a result of the
patient's perception that this substance has beneficial effects. For example, participants may be involved in a study for a new pill that causes the
subjects to have increased energy. The people are given a placebo and some of the people report having more energy. Randomized control trial is
defined as a type of experiment where the participating subjects are given randomly selected treatments. This type of experiment is used to determine if
a cause–effect relationship exists for the treatment and the outcome. Repeatability and reproducibility of experiments Repeatability of experiments is
defined as how consistent the outcomes of the experiment are. For example, if the experiment conducted has the same outcomes each time then it has
high repeatability. Reproducibility is defined as the variation among various experiments. Sample size is defined as

Markowitz Portfolio Optimization
Report Introduction Markowitz (1952, 1956) pioneered the development of a quantitative method that takes the diversification benefits of portfolio
allocation into account. Modern portfolio theory is the result of his work on portfolio optimization. Ideally, in a mean–variance optimization model, the
complete investment opportunity set, i.e. all assets, should be considered simultaneously. However, in practice, most investors distinguish between
different asset classes within their portfolio–allocation frameworks. In our analysis, we view the process of asset allocation as a four–step exercise like
Bodie, Kane and Marcus (2005). It consists of choosing the asset classes under consideration, moving forward to establishing capital market... Show
Would you please explain (using the set of results for 3.5% risk free rate)? This entails an analysis of the economic conditions for different periods.
The most important insight we get is that in a diversified portfolio, the contribution to portfolio risk of a particular security will depend on the
covariance of that security's return with those of other securities. If you see the correlation matrix for the 2 sub periods, we can see that the
economic–wide risk factors have imparted positive correlations among the stock returns for Sub Period 2 (03 – 10). This was the time of economic
crisis (08–10) and since most of the risk was economic, the optimal portfolio incorporates less risky assets. While the sub period 1 (95 – 03) went
through a healthy growth period, had mostly firm specific risk and lesser economic risk. c) The CIO wants to propose investment limits on certain
asset classes to the IPC for consideration, but the CIO may not be aware of the likely impact on the performance of the Fund. Since you have run some
analysis above based on the proposed limits, present your analysis and make a recommendation regarding investment limits for the historical arithmetic
average (target) return and the 6% p.a. target return. The fundamental concept behind MPT is that the assets in an investment portfolio should not be
selected individually, each on their own merits. Rather, it is important to consider how each asset changes

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