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umamaheshwari991

With a perfectly balances roulette wheel, in the long run, red numbers should turn up 18 times in 38. To test its wheel, one casino records the results of 3,800 plays, finding 1,890 red numbers. Is that too many reds? Or chance variation? (a) Formulate the null and alternative hypotheses as statements about a box model. (b) The null says that the percentage of reds in the box is _____. The alternative says that the percentage of reds in the box is ______. Fill in the blanks. Solution Ho: p=18/38 H1: p18/38 Test statistic: z = (p_hat - p)/sqrt(p(1-p)/n) = (1890/3800 - 18/38)/sqrt((18/38)*(1-18/38)/3800) = 2.92 p-value = 2* z(2.92) = 2*0.0017 = .0034 Reject Ho since p-value is less than =0.05. The sample indicates that there were too many reds..

with a well-designed sample survey, the sample percentage is very likely to equal the population
percentage. true or false
Solution
False. Samples never, ever represent populations. Samples are only tiny segments
of populations. It is impossible to ever get a sample that represents a population.

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In 2012, the Commonwealth of Virginia contemplated outsourcing the management of its port to private operators. Most large ports in the U.S. (L.A.,Seattle, NY/NJ) have one or more private firms managing and operating them. Ultimately, Virginia decided not to privatize its port management. (a)Why might a private operator generate better results than a public sector operator? (b)A private operator has to pay for the right to operate a port. If you are in charge of a port, perhaps L.A., how would you determine the right amount of money to charge the private operator? (c)How could you structure the contract so that the private operator has an incentive to do well and L.A. will also do well at the same time? Solution (a) Operations and Managemnet of ports are businesses in their own right and should be managed to achieve optimal utilization of capital. Investments in port assets are affected by risk, competition for land and capital, or other factors in the competitive business environment. Subsidies and government-provided incentives distort the allocation of resources for port development and may result in over- or underinvestment. Therefore, private operators may generate better results than a public sector operator. (b) For determing the right amoount of money to be charged to private operators, an authority of port has to consider numerouos factors that may affect the interport competition. Such as geographical location including Proximity to one or more major maritime routes, natural deep water, good protection against waves and currents, large waterfront and landside expansion possibilities, proximity to major production or consumption areas, good hinterland connections (road, rail, pipeline, and waterway) with high frequency service offering good connectivity. Types of cargos handled at the port, Institutional structure and socioeconomic climate are other factors that measures the benefits for the operators. Besides costs will also be determined and then a match between them is found to get the right amount of charge. (c) The contract would include some government interventions to improve the public goods, that are inherently nondivisible and nonconsumable, such as public safety, security, and a healthy environment. Investments would be made by the public in port assets that have strong direct and indirect multiplier effects on the entire national economy and, further, that the commitment of public resources would be made available to encourage coinvestment by the commercial and industrial sectors..

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In 2012 Annie invests $55,000 in an activity for which she is not a material participant. Annie has no other sources of income. Annie\'s losses from the activity are as follows: Income/(Loss) 2012 ($45,000) 2013 ($20,000) 2014 $30,000 Calculate Annie’s deductible loss, basis, and any losses suspended under the at-risk and/or passive activity loss rules each year. Solution As Tonu is not a material participant, the basis will be Year 1 55000 Year 2 10000(55000-45000) Year 3 -10000(10000-20000) The risk will be 2012 55000 2013 10000 2014 (10000).

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In 1948 Claude Shannon quantified information as: Solution Description: Basically in a message we get information. But getting such information is probability oriented. It means we expect to get such and such information. There is no surprising act. But if there is any surprise of getting unexpected information, then this is not probability oriented. It means, there was no probability in the mind of recipient of getting such information. Therefore, Surprise and probability are inversely related. More surprise indicates less probability. Beyond information: This description is beyond the defination of information. This is the mathematical exposure of information and probability. Quantify: Information is quantified by recipient\'s surprise. More surprise means more information..

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Importance of IA function Key concepts of independent and objectivity Idea of governance of risk control 3 functions Assurance and consulting difference Roles of the Board, Senior management, Internal Audit, External Audit pertains internal control The responsibilities of CAE The component of ERM, Role of IA in ERM(Inferent Risk, Controllable Risk and Residual Risk) What are segment of duties Difference between Risk appetite, Risk response and Risk assessment What are the different types of controls Solution Answer:The Importance of IA function are Key concepts of independent and objectivity:Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another\'s independence and objectivity. The difference between Risk appetite, Risk response and Risk assessment: Both risk appetite and risk tolerance set boundaries of how much risk an entity is prepared to accept. Risk appetite is a higher level statement that considers broadly the levels of risks that management deems acceptable while risk tolerances are more narrow and set the acceptable level of variation around objectives. For instance, a company that says that it is does not accept risks that could result in a significant loss of its revenue base is expressing appetite. When the same company says that it does not wish to accept risks that would cause revenue from its top-10 customers to decline by more than 10% it is expressing tolerance. Operating within risk tolerances provides management greater assurance that the company remains within its risk appetite, which, in turn, provides a higher degree of comfort that the company will achieve its objectives. A risk assessment is a systematic examination of a task, job or process that you carry out at work for the purpose of; Identifying the significant hazards that are present (a hazard is something that has the potential to cause someone harm or ill health). The different types of controls are:.

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In 1995, Oseola McCarty donated $150,000 to the University of Southern Mississippi to establish a scholarship fund (New York Times, November 12, 1996, pp. A1, A22). What is unusual about this donation is that the entire amount came from what she was able to save each month from her work as a washerwoman, a job she began in 1916 at the age of 8, when she dropped out of school. How much would Ms. McCarty have had to put into her savings account at the end of every 3 months to accumulate $150,000 over 79 years? Assume that she received an interest rate of 5.25% compounded quarterly. Solution $32.49 formula for payment PMT=FV/(((1+i)^N-1)/i) FV = future value = 150,000 i = interest rate = 0.0525/4 = 0.013125 (quarterly) N = number of periods = 79 x 4 = 316 (3 month periods) PMT = 150,000/(((1+0.013125)^316 - 1)/0.013125) = $32.49.

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