Null And Alternative Hypotheses

/in /by

HW-4

Bus 310-011

Due Date: 11:59 pm Feb 28

Total points: 16

For this assignment, submit one Excel file. Save the file Dataset_HW-4 as HW-4_Bus 310_your last name.

1. Use Part-1 sheet to answer this question.

 

A manufacturer is interested in determining whether it can claim that the boxes of detergent it sells contain, on average, more than 500 grams of detergent. The firm selects a random sample of 100 boxes and records the amount of detergent (in grams) in each box. The data are provided in the file Dataset_HW-4 sheet named Part-1.

a) Identify the null and alternative hypotheses for this situation.

b) Is there statistical support for the manufacturer’s claim? Use α = 0.10. Explain. [ For part b, reach conclusion using t-Table value and t – Test Statistic value]

c) Use the p-value to reach a statistical conclusion.

 

[1 + 3+ 2 = 6 points]

 

2. Use Part-2 sheet to answer this question.

 

A study by Hewitt Associates showed that 79% of companies offer employees flexible scheduling. Suppose a researcher believes that in accounting firms this figure is lower. The researcher randomly selects 415 accounting firms and through interviews determines that 303 of these firms have flexible scheduling. With a 1% level of significance, does the test show enough evidence to conclude that a significantly lower proportion of accounting firms offer employees flexible scheduling?

a) Identify the null and alternative hypotheses for this situation.

b) Is there statistical support for researcher’s claim? Use α = 0.01. Explain. [ For part b, reach conclusion using z-Table value and z – Test Statistic value]

c) Use the p-value to reach a statistical conclusion.

[1 + 3+ 2 = 6 points]

 

 

3. Use Part-3 sheet to answer this question.

 

As the prices of heating oil and natural gas increase, consumers become more careful about heating their homes. Researchers want to know how warm homeowners keep their houses in January and how the results from Wisconsin and Tennessee compare. The researchers randomly call 23 Wisconsin households between 7 P.M. and 9 P.M. on January 15 and ask the respondent how warm the house is according to the thermostat. The researchers then call 19 households in Tennessee the same night and ask the same question. The results follow.

 

Wisconsin Tennessee
71 71 65 68 73 75 74 71
70 61 67 69 74 73 74 70
75 68 71 73 72 71 69 72
74 68 67 69 74 73 70 72
69 72 67 72 69 70 67  
70 73 72          
 

 

 

For α = .01, is the average temperature of a house in Tennessee significantly higher than that of a house in Wisconsin on the evening of January 15? Assume the population variances are equal and the house temperatures are normally distributed in each population. [Hint: Similar problem is available under Lec-5 folder. Use p-value generated by Excel data analysis toolpak to reach to the statistical conclusion. Make sure to formulate the null and alternative hypotheses.]

 

[4 points]

Multiple Regression & Prediction

/in /by

HW-7

Bus 310-011

Due Date: 11:59 pm Apr 11

Total points: 8

For this assignment, submit one Excel file. Save the file P02_11.xlsx as HW-7_Bus 310_your last name.

1. Explore the relationship between the selling prices (Y) and the appraised values (X) of the 148 homes in the file P02_11.xlsx by answering the following questions.

a. Create a scatterplot of the selling price (Y) versus the appraised values (X). Based on the visual evidence, would you say that the selling prices and the appraised values are strongly related? Is the relationship a linear one? Superimpose a trend line on the scatterplot.

b. Estimate a simple linear regression equation using the given data and interpret it.

c.

What is the value of Rin this model? Explain Rin words. 

d. Is this model statistically significant? What is the p-value? Use alpha=0.05.

e. Develop a residual plot using excel. Are any assumptions violated? Explain.

f. Draw a normal probability plot of residuals by finding out the Z-score of the residuals. Use Excel. Plot Z-score at the horizontal axis and residuals at the vertical axis. Do the residuals seem normally distributed? Explain.

[Hint: Similar problem with solution is available under Lec-8 folder.]

[1.5+ 1 + 1+ 1.25 + 1.25 + 2 = 8 points]

 

 

2

Activity Ratio Analysis

/in /by

 Team Project Financial Statement Analysis Guidelines Use the five classifications of financial ratios, 1) Liquidity, 2) Activity, 3) Financing, 4) Profitability, and 5) Market to assess the financial performance for Walmart. Excellent resource material can be found in the Financial Statement Analysis Tables 2.4 to 2.8 in your text. Each of these classifications includes at least two respective financial ratios.

  • Unit 3 [AB217]

    Page 1 of 3

    Unit 3 Assignment: Team Assignment Financial Statement Analysis This Assignment presents the opportunity to work with your classmates in a ‘virtual’ team project. As teams, the ability to interact and solve problems together, when at a distance, is a key skill in today’s business environment.

    You have been assigned to a Team (i.e., depending on course enrollment, a five or six person group working as a team) to answer the Case Assignment instructions below. One person from the group is to turn in the Assignment for the group to the Dropbox. Each person in the group must turn in their individual peer

    evaluations to their Dropbox to receive credit for the Assignment. The Team Peer Evaluati on Form is located in Course Documents and will be individually submitted in addition to the one group submission of the case analysis.

    This Assignment will assess your knowledge based on the following outcome: PC-1.1: Engage in a team setting with professional integrity and respect.

    Supplemental Resource (not required) – This material can be a very helpful resource for this and subsequent

    virtual team projects. The e-text below can be found in the Library: Lipsinger, R., & DeRosa, D. (2010). Virtual team success: A practical guide for working and leading from a

    distance. Hoboken, NJ: John W iley & Sons, Inc.

    Please note the sections on social loafing (pp. 67–68, 78–88). Pages 76, 107 and 138 are helpful Reference

    Guides intended to help you troubleshoot your virtual team. Optional Guidelines Experience has shown the following timeline to be helpful. Please do not feel constrained by this time line; it is not a graded item.

    ● Unit 3: W ednesday — Greet each other in the Team Discussion Board. ● Unit 3: Thursday — Determine who will lead the project, who will do which parts, by when,

    what your communication expectations are and when you will be meeting next. ● Unit 3: Friday — Confirmation of delegated duties. Delegated parties accept their delegated duty.

    ● Unit 3: Saturday — Project Leader reassigns any duties not accepted by individuals on the team. ● Unit 3: Sunday — Submit draft parts to Project Leader. Project Leader posts draft of the

    paper in the Team Discussion Board. ● Unit 3: Monday — Team edits/improves the draft Assignment deliverable. ● Unit 3: Tuesday — One team member submits the paper. Individual Team Peer Evaluation Form

    must be submitted to receive a grade for the Assignment.

    Some learners have found this to be a helpful guide for their first meeting or initial Discussion Board post. Agenda:

    ● Refer to The Team Project Financial Statement Analysis Guidelines (below). W hat team are you on and who are your teammates?

    ● Who will be the team leader?

    ● Explicit understanding by all of the expectations as a team member.

    ● Determine methods of communication and protocol; clarify date and time of next meeting.

    ● Who will complete which of the financial ratio classifications and their respective ratios?

     

     

    Unit 3 [AB217]

    Page 2 of 3

    ● Who will compile or collect all data to prepare the final document?

    ● What will be the arrangement to ensure all team members review and approve the document?

    ● Determine communication protocol.

    Team Project Financial Statement Analysis Guidelines

    Use the five classifications of financial ratios, 1) Liquidity, 2) Activity, 3) Financing, 4) Profitability, and 5) Market to assess the financial performance for W almart. Excellent resource material can be found in the Financial Statement Analysis Tables 2.4 to 2.8 in your text. Each of these classifications includes at least

    two respective financial ratios.

    A team member is typically assigned one of the five classifications. I.e., student A will be responsible for Liquidity and student B will be responsible for Activity, and so on. You will present a definition of the classification by citing the course text and other scholarly sources.

    The team leader (compiler of all member analyses) may need to be assigned a classification as well; team size will dictate this.

    Your paper, based upon your team’s collective analysis, should include a measure of and analysis of

    financial outcomes based on at least two financial ratios for each financial ratio classification. I. e., the Liquidity classifications of ratios are based upon the Quick and Current ratio outcomes.

    You will calculate ratios for each classification, two ratios per classification, for the three years data. I.e.,

    the Current ratio may have been 2.0 in year three and 1.5 the following year, and .75 in the most recent year. It is based on these results that you will measure financial performance, or trends from one year to the next. It is imperative that the ratios-numbers, and quantitative outcomes, support your analysis.

    Review the following documents:

    1. Team Project Outline 2. Three years of data for W almart’s Balance Sheet and Income Statement.

    3. Team Project Answer Sheet

    Criteria: Your paper should use correct APA 6th formatting for your in-text citations to justify your discussion and place references at the end of the paper. Be sure to cite sources to explain what each of these ratio classifications tell an investor.

    Avoid using quotations, you should paraphrase the material and use an in-text citation to give

    credit to the reference. Review the APA formats found in the W riting Center. Include in your paper:

    ● Cover page with each team member’s name that participated on the team project ● Introduction, the purpose of the analysis ● Analysis, an explanation of what each ratio classification assesses. (A minimum of one

    paragraph for each ratio.) ● In which financial ratio classifications are negative ratios occurring? How can this be corrected? ● In which financial ratio classification are positive ratios occurring? How can this be maintained?

    ● Conclusion, why would you (or would you not) invest in W almart. ● Reference page

     

     

    https://kapextmediassl-a.akamaihd.net/business/AB217/AB217_1802C/Team_Project_Outline.pdf
    https://kapextmediassl-a.akamaihd.net/business/AB217/AB217_1802C/Income_Statement_and_Balance_Sheet_WalMart.xlsx
    https://kapextmediassl-a.akamaihd.net/business/AB217/AB217_1802C/Team_Project_Answer_Sheet_for_WalMart.xlsx

     

    Unit 3 [AB217]

    Page 3 of 3

    Directions for Submitting Your Team paper

    Make sure that you save a copy of the paper you submit.

    1. To submit your paper, have one member of your group go to the Dropbox and select Unit 3:

    Assignment and follow the instructions.

    2. Individually, each member of the group completes the peer evaluation form and individually submits the peer evaluation to the Unit 3 Team Peer Evaluation Dropbox. (file name: Kris.Kringle.peer.evaluation.unit-3)

     

    Unit 3 Assignment: Team Assignment Financial Statement Analysis Points Possible

    Points Earned

    Content

    Responses successfully answer the Assignment question(s); thoroughly uses the text and other literature. Includes a strong thesis statement, introduction and

    conclusion. The main points of the paper are developed clearly. Quantitative outcomes support analysis.

    20

    Definitions of ratio classifications are supported by proper scholarly sources. References are applied substantively to the paper’s topic. The analysis skillfully addresses counter-arguments and does not ignore data contradicting its claim.

    Refers to sources both in-text and in the reference page.

    20

    Achievement of a well-synthesized paper using contributions from team participants to achieve a paper that resembles the collective talents of the group. Team member performed with integrity and respect towards other participants of

    the team (peer evaluation). Points will be deducted if the Peer Evaluation Form is not submitted to the Dropbox.

    10

    Analysis

    Response exhibits strong higher-order critical thinking and quantitative analysis (e.g., trends supported by clearly defined evaluation). Paper shows original thought.

    10

    Analysis includes proper classifications, explanations, comparisons, and inferences.

    10

    Critical thinking includes appropriate judgments, conclusions and assessment based on evaluation and synthesis of information.

    10

    Writing

    Grammatical skills are strong with typically less than one error per page. Correct use of APA 6th edition formatting.

    6

    Content is appropriate to the Assignment: fresh (interesting to read), accurate, (no far-fetched, unsupported comments), precise (say what you mean), and concise (not wordy).

    8

    Paper is in 12-point font. Narrative sections are double-spaced with a double- space between. Paper is free of serious errors; grammar, punctuation, and spelling.

    8

    Total 100

Financial Valuation (Time-Value Of Money) Cases

/in /by

Purpose of Assignment

The purpose of this assignment is to  provide students an opportunity to apply the concepts of time value of  money covered in Ch. 13 to integrated case studies.

Assignment Steps

Resources: Financial Valuation (Time-Value of Money) Cases Excel® Template

Save the Financial Valuation (Time-Value of Money) Cases Excel® Template to your computer.

Read the instructions on the first tab.

Complete the three cases located in the template.

PART 2

Quantitative Techniques in Financial Valuation Problem Set

Purpose of Assignment

The purpose of this assignment is to  provide students an opportunity to practice and learn the time-value of  money concepts covered during Week 4. Students will understand how to  evaluate future values, present values, interest rates, and time periods  for financial investments.

Assignment Steps

Resources: Quantitative Techniques in Financial Valuation Problem Set Excel® Template

Save the Quantitative Techniques in Financial Valuation Problem Set Excel® Template to your computer.

Read the instructions on the first tab.

Complete the twelve exercises located in the template and record your answers in the highlighted spaces.

Format your paper consistent with APA guidelines.

Question 1

Barry learned in an online investment course that he should start investing as soon
as possible. He had always thought that it would be smart to start investing after he
finishes college and when his salary is high enough to pay the bills and to have money
left over. He projects that will be 5–10 years from now. Barry wants to compare the
difference between investing now and investing later. A financial advisor who spoke
to Barry suggested that a Roth IRA (Individual Retirement Account) would be a good
investment for him to start.
1. If Barry purchases a $2,000 Roth IRA when he is 25 years old and expects to
earn an average of 6% per year compounded annually over 35 years (until he is
60), how much will accumulate in the investment?
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
2. If Barry doesn’t put the money in the IRA until he is 35 years old, how much
money will accumulate in the account by the time he is 60 years old using the same
return of 6%? How much less will he earn because he invested 10 years later?
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
Difference in amount earned
FV Part 1 minus FV Part 2
3. Barry knows that the interest rate is critical to the speed at which your investment grows.
For instance, if $1 is invested at 2% compounded annually, it takes approximately 34.9 years
to double. If $1 is invested at 5% compounded annually, it takes approximately
14.2 years to double.
Determine how many years it takes $1 to double if invested at 10% compounded annually; at
12% compounded annually.
Hint: The easiest way to get the answer is to use the Rule of 72.
Years to double the investment = 72 ÷ interest rate
4. At what interest rate would you need to invest to have your money double
in 10 years if it is compounded annually?
PV
FV
NPER
RATE — Use the RATE function in Excel. PV should be negative, FV should be positive. PMT should be blank.

Question 2

Abdol Akhim has just come from a Personal Finance class where he learned that he
can determine how much his savings will be worth in the future. Abdol is completing
his two-year business administration degree this semester and has been repairing
computers in his spare time to pay for his tuition and books. Abdol got out his savings
records and decided to apply what he had learned. He has a balance of $1,000 in a
money market account at First Savings Bank, and he considers this to be an emergency
fund. His instructor says that he should have 3–6 months of his total bills in an
emergency fund. His bills are currently $700 a month. He also has a checking account and a
regular savings account at First Savings Bank, and he will shift some of his funds from
those accounts into the emergency fund. One of Abdol’s future goals is to buy a house.
He wants to start another account to save the $8,000 he needs for a down payment.
1. How much interest will Abdol receive on $1,000 in a 365-day year if he keeps
it in the money market account earning 1.00% compounded daily?
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
Compound Interest
2. How much money must Abdol shift from his other accounts to his emergency fund
to have four times his monthly bills in the account by the end of the year?
Desired Emergency fund
Current balance in money mkt.
Interest that Abdol will earn
Balance to be transferred
3. Abdol realizes he needs to earn more interest than his current money market can provide.
Using annual compounding on an account that pays 5.5% interest annually, find the amount
Abdol needs to invest to have the $8,000 down payment for his house in 5 years.
Future Value Needed (FV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Amount Invested Now (PV)
4. Is 5.5% a realistic rate for Abdol to earn in a relatively short-term investment of 5 years, particularly at his bank?
Hint: For answering this question, explore how much interest do banks pay on short-term investments or CDs.
Compare this number with 5.5% to see whether it is a realistic goal. If not, propose to Abdol what should he invest in
instead.

Question 3

At 45 years of age, Seth figured he wanted to work only 10 more years. Being a full-time landlord had a lot
of advantages: cash flow, free time, being his own boss—but it was time to start thinking toward retirement.
The real estate investments that he had made over the last 15 years had paid off handsomely. After selling a
duplex and paying the associated taxes, Seth had $350,000 in the bank and was debt-free. With only 10 years
before retirement, Seth wanted to make solid financial decisions that would limit his risk exposure. Fortunately,
he had located another property that seemed to meet his needs— a well maintained four-unit apartment. The
price tag was $250,000, well within his range, and the apartment would require no remodeling. Seth figured he
could invest the other $100,000, and between the two hoped to have $1 million to retire on by age 55.
1. Seth read an article in the local newspaper stating the real estate in the area had appreciated by 5% per year
over the last 30 years. Assuming the article is correct, what would the future value of the $250,000 apartment
be in 10 years?
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
2. Seth’s current bank offers a 1-year certificate of deposit account paying 2% compounded semiannually.
A competitor bank is also offering 2%, but compounded daily. If Seth invests the $100,000, how much more
money will he have in the second bank after one year, due to the daily compounding?
Current Bank Competitor Bank
Semiannually Daily
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
Difference in FV =D36-C36
3. After looking at the results from questions 1 and 2, Seth realizes that a 2% return in a certificate of deposit
will never allow him to reach his goal of $1 million in 10 years. Presuming his apartment will indeed be worth
$400,000 in 10 years, compute the future value of Seth’s $100,000 investment using a 10%, 15%, and 20% return
compounded semiannually for 10 years. Will any of these rates of return allow him to accomplish his goal of
reaching $1 million by age 55?
10% 15% 20%
Initial Investment (PV)
Quoted Rate
Compounding Frequency Semiannually Semiannually Semiannually
Number of compoundings (m)
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
Plus: Apartment Value $400,000 $400,000 $400,000
Total FV =FV + Apartment Value
Which rate of return allows him to accomplish his goal of reaching $1 million? Choose one
4. A friend of Seth’s who is a real estate developer needs to borrow $80,000 to finish a development project.
He is desperate for cash and offers Seth 18%, compounded monthly, for 2.5 years. Find the future value of
the loan.
Initial Investment (PV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Ending Amount (FV)
5. After purchasing the apartment, Seth receives a street, sewer, and gutter assessment for $12,500 due in 2 years.
How much would he have to invest today in a CD paying 2%, compounded semiannually, to fully pay the assessment in 2 years?
Future Value Needed (FV)
Quoted Rate
Compounding Frequency Choose one
Number of compoundings (m) For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365
Quoted Rate divided by m = RATE
Number of Years
NPER (Num. of years * m)
Amount Invested Now (PV)