Economics Answers

Employment and Social Development Canada (ESDC) reported that the Canada mean

unemployment insurance benefit was $573 per week (Government of Canada, 2020). A

researcher in the state of Manitoba anticipated that sample data would show evidence that mean

weekly unemployment insurance benefit in Manitoba was below the national average.

a) Develop appropriate hypotheses such that rejection of H 0 will support the researcher’s

contention.

b) For a sample of 100 individuals, the sample mean weekly unemployment insurance

benefit was $566 with a sample standard deviation of $80. What is the p-value?

c) At α = 0.05, what is your conclusion?

d) Repeat the preceding hypothesis test using the critical value approach.

Smokeless cigarettes may be replacing conventional cigarettes in the future. Discuss pros and cons of e-cigarettes and offer reasons for their merits and disadvantages.

Assuming the economy was in a recession which was taken care of by the monetary sector through monetary expansion. Consider the short and long run effects of the policy on output, employment, interest rate and price level.

Outside Magazine tested 10 different models of day hikers and backpacking boots. The

following data show the upper support and price for each model tested. Upper support

was measured using a rating from 1 to 5, with a rating of 1 denoting average upper sup-

port and a rating of 5 denoting excellent upper support (Outside Magazine Buyer’s

Guide, 2001).

a. Use these data to develop an estimated regression equation to estimate the price of a

day hiker and backpacking boot given the upper support rating.

b. At the .05 level of significance, determine whether upper support and price are

related.

c. Would you feel comfortable using the estimated regression equation developed in

part (a) to estimate the price for a day hiker or backpacking boot given the upper sup-

port rating?

d. Estimate the price for a day hiker with an upper support rating of 4.

Brief Discussion Questions

a) Why is accounting considered a language of business? How is it related to management

process?

b) Discuss about the four basic financial statement (income statement, statement of owners’

equity, balance sheet, and statement of cash flows); comparing and contrasting their

differences in merchandising firms Vs. service providing entities

c) Discuss about the four finance functions (financial management decisions)

The following data are the monthly salaries y and the grade point averages x for students

who obtained a bachelor’s degree in business administration with a major in information

systems. The estimated regression equation for these data is ? 1790.5 ? 581.1x.

yˆ

yˆ

yˆ

a. Compute SST , SSR , and SSE .

b. Compute the coefficient of determination r 2 . Comment on the goodness of fit.

Years of Annual Sales

Salesperson Experience ($1000s)

1 1 80

2 3 97

3 4 92

4 4 102

5 6 103

6 8 111

7 10 119

8 10 123

9 11 117

10 13 136

a. Develop a scatter diagram for these data with years of experience as the independent

variable.

b. Develop an estimated regression equation that can be used to predict annual sales

given the years of experience.

c. Use the estimated regression equation to predict annual sales for a salesperson with

9 years of experience.

a) Assume the following data extracted from accounting records of XYZ Company, a

merchandising firm

Gross Purchase Br. 400,000Sales returns and allowance 5,000Sales discount 1,000Purchase returns and allowance 2,000Purchase discount 500Gross sales 800,000Ending inventory 40,000Beginning inventory 50,000Transportation in 1500Operating expenses 150,000Non-operating Expenses 10,000Income Tax 30%Required: Compute Net income (net loss) for the period

b) Assume that assets and liabilities increased by Br.240,000, and Br. 120,000 respectively

during a given year. Assume the following additional particulars further

▪ Revenues generated during the year….Br.80,000

▪ Additional investment made by the owner during the year ……….Br. 70,000

▪ Amount withdrawn by the owner during the year….. $10,000

Required: Determine the amount of expense incurred during the year

If the consumption function of a given individual is given C= 44+0.86Yd and the individual’s disposable income for a specific period was birr 3600, then calculate the

Given the following information answer each of the following questions: - Ca=20 c=MPC=3⁄4 Ia =I=20