r = (378) - (39)(85) / 8 = -36.375 √[211 - (39)^2 / 8] * √[983 - (85)^2 / 8] r= -.8908
r^2= .7935
Since r is negative there would be a negative correlation.

9) Pennsylvania Refining Company is studying the relationship between the pump price of gasoline and the number of gallons sold. For a sample of 20 stations last Tuesday, the correlation was .78. At the .01 significance level, is the correlation in the population greater than zero? Significance = .01

11) The Airline Passenger Association studied the relationship between the number of passengers on a particular flight and the cost of the flight. It seems logical that more passengers on the flight will result in more weight and more luggage, which in turn will result in higher fuel costs. For a sample of 15 flights, the correlation between the number of passengers and total fuel cost was .667. Is it reasonable to conclude that there is positive association in the population between the two variables? Use the .01 significance level. Significance= .01

t= (0.667√15- 2)/(√1- 〖0.667〗^2 )
t= 3.228
CV = 2.650
Reject null
The problem shows a positive correlation between the two variables passengers, and fuel costs.

14) The following sample observations were randomly selected. Y A) Determine the regression equation.
B) Determine the value of Ŷ when X is 7.
X Y x^2 xy

...confidence interval, what is the value of t?
For a 90 percent confidence interval, and df = 15, t= 1.753
d. Develop the 90 percent confidence interval for the population mean.
Xbar = 60; s = 20; n = 16
Xbar ±t(s/√n) = 60 ± 1.753 (20/√16) = 60± 1.753 (5) = 60± 8.765 = [51.24, 68.77]
e. Would it be reasonable to conclude that the population mean is 63 pounds?
Yes because 63 pounds is among the confidence intervals.
Lind Chapter 9; Exercise 28
A processor of carrots cuts...

...Chapter 17, Problem B1
A. To remain comfortably within the ‘A’ range, the firm should avoid the lower of each scale.
Fixed Charge Coverage = 3.40 – 4.30 (Scale 3.00 – 4.30)
Total Debt = 55 – 65 (45 - 65)
Long-Term Debt = 25 – 32 (22 – 32)
B. Other factors to consider include net present value (NPV), foreign tax credits, and the price of stock.
C. Bixton must resolve the research and development, and foreign tax credits. The target ranges listed are suitable only for a...

...Practice Problems
Ch. 7, Practice Problem: 14
Evolutionary theories often emphasize that humans have adapted to their physical environment. One such theory hypothesizes that people should spontaneously follow a 24-hour cycle of sleeping and waking—even if they are not exposed to the usual pattern of sunlight. To test this notion, eight paid volunteers were placed (individually) in a room in which there was no light from the outside and no clocks or other...

...today. Each loan has a 5% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $100 million outstanding, which it also expects will be repaid today. It also has a 5% probability of not being repaid. Explain the difference between the type of risk each bank faces. Which bank faces less risk? Why?
The expected payoffs are the same, but bank A is less risky. (See...

...Complete the problemsets and show all steps in your work:
• Ch. 17: Problem B1
• Ch. 18: Problems A10 & B2
• Ch. 20: Problem A2
• Ch. 21: Problem C2
Chapter 17 (p. 500)
B1:
A. The goal is for Bixton to remain comfortably in the “A” range. For this to work properly, the firm must avoid ratings on the low end of the scale.
Fixed Charge Coverage = 3.40 – 4.30
Total Debt = 55 – 65...

...Econ 214
ProblemSet5
1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain.
The money supply in an economy is the benchmark by which interest rates are determined. The supply of money is directly tied into the amount of money that can be loaned and borrowed in...

...C: 2-8 What items are considered to be property for purposes of Sec. 351(a)? What items are not considered to be property?
Items that are considered property include all types of property, such as cash, accounts receivable, inventories, patents, installment obligations, equipment, and buildings. Services, certain debt of the corporation, and certain accrued interest on debt are not treated as property.
C: 2-43 Liabilities in Excess of Basis.
Barbara transfers $10,000 cash and machinery...

...MBAC 512
Prof. Silke Forbes
Fall 2013
ProblemSet5
DUE DATE: November 6, 2013
Question 1:
At the Portland Fish Exchange, each day some amount of cod is brought to market. Supply is
perfectly inelastic at that amount. How much cod is caught and brought to market varies day to
day. Assuming the demand curve does not vary over time, use a supply and demand diagram to
illustrate how the price is determined on different days. Explain how this...