Search & Filtering
Suppose you are interested in examining the effect of 𝑥 on 𝑦. The sample covers the period of 𝑡 = 1, 2, 3, … , 𝑛.
a) Suggest a research question and write the linear regression model that you would estimate. Define the variables.
b) State a hypothesis that you can test for the slope coefficient. Explain all the steps and assumptions.
c) Explain, in your own words, what you understand about using historical data for predictions. Relate your answer to the research question and model in (a).
d) What is a Type I error? How is it related to the level of significance? Use the information in (c) to explain.
b) A government bond that originally cost $5000 with a yield of 6% (simple interest) has 5 years left before redemption.
i. Determine its present value if the prevailing rate of interest is 10%. Briefly explain the steps in your own words.
ii. Is it worth purchasing this bond? Provide your own reasoning.
Cost of debt
Finance markets do not include which of the following?
Banks
Stock Markets
Government Regulatory Agencies
Nonprofit Organizations
Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.
How do I calculate Wacc NPV and IRR
Evans the Steam’ has set up a new business and secured a contract to build 32 locomotives for mountain railways, which are being reopened as tourist attractions. The order is to be fulfilled in two batches of 16. The first locomotive takes 30 days to assemble with seven people working full time on it. The daily rate for a locomotive fitter is £80 and the overheads are estimated to be 50 per cent on top of the labour rate. Evans is confident that an 80 per cent learning curve is possible. The first batch has been priced with a labour estimate of £16000 per locomotive and the last 16 with a labour cost of £10000. Comment on the pricing of the labour content and show whether the rates per locomotive are sufficient to cover the likely actual costs.
- explanation of the public wage bill in SA –(Its advisable to illustrate trends by means of graphs and tables showing
- Why is it a problem in SA
Question 2. It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water:
Value of first bottle $7
Value of second bottle $5
Value of third bottle $3
Value of fourth bottle $1
A)From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water.
B)If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph.
Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80.
What is her willingness to pay?
If she had bought the iPhone on sale for $90, what would her consumer surplus have been?
