Chapter 131. A financier whose specialty is investing in rock concerts has observed that, in general, concerts with "big-name" stars seem to generate more revenue than those concerts whose stars are less well known. Toexamine his belief, he records the gross revenue and the payment (in $ millions) given to the two highest-paid performers in the concert for ten concert tours.Concert1·234 56778910Cost of Two Highest PaidPerformers ($mil)5.37.21.31.83.52.68.02.44.56.7Gross Revenue($mil)48651820312673233958(1) Determine the standard error of estimate and describe what this statistic tells you about the regressionline.(2) Determine the coefficient of determination and discuss what its value tells you about the two variables.(3) Calculate the Pearson correlation coefficient. Interpret the results.(4) Conduct a test of the population coefficient of correlation to determine at the 5% significance levelwhether a positive linear relationship exists between payment to the two highest-paid performers andgross revenue.(5) Conduct a test of the population slope to determine at the 5% significance level whether a positivelinear relationship exists between payment to the two highest-paid performers and gross revenue.(6) Do the p and ₁ tests in the previous questions provide the same results? Explain.

Cost of two highest paid performersGross revenue5.3487.2651.3181.8203.5312.6268732.4234.5396.758

Answered: 1. A financier whose specialty is…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 If taxable income is over But not over -- $9,275 37,650 91,150 190,150 413,350 $0 9,275 37,650 91,150 190,150 413,350 ↳ The tax is $0+10% 927.50+15% 5,183.75+25% 18,558.75+28% 46.278.75+33% 119,934.75+35% Use the table above to calculate the federal income tax due for a taxable income of $151,000. Of the amount over- $0 9,275 37,650 91.150 190,150 413,350
5. How is the flow of investors' money into stock mutual funds related to the flow of money into bond mutual funds? Data are collected on the net new money flowing into stock and bond mutual funds in the years 1985 to 2000, in billions of dollars. "Net" means that funds flowing out are subtracted from those flowing in. If more money leaves than arrives, the net flow will be negative. To eliminate the effect of inflation, all dollar amounts are in "real dollars" with constant buying power equal to that of a dollar in the year 2000. Below is Minitab output for a regression line using the stock values as the explanatory variable. Regression Analysis: Bonds versus Stocks The regression equation is Bonds = 53.4 - 0.196 Stocks Predictor Coef SE Coef T P Constant 53.41 22.99 2.32 0.036 Stocks -0.1962 0.1550 -1.27 0.226 S= 59.8813 R-Sq = 10.3% R-Sq(adj) = 3.9% (a) What is the conclusion from a test of the slope of the regression line at the 0.05 significance level? Recall that the hypotheses…
3. An investment broker wants to invest up to $20,000. She can purchase type A bond yielding a 10% return and she can purchase a riskier type B bond yielding a 15% return. She wants to invest at least as much in the type A bond as in the type B bond to reduce her risk. The minimum investment for the type A bond is $5,000, and there are only $8,000 worth of type B bonds available. How much should the broker invest in each type of bond to maximize her returns?
12. Zea has a credit limit of $2,000 on her credit card. Each month, she charges about $200 and makes a payment of $125. a. Estimate the number of months that Zea can continue this pattern until she reaches her credit limit. b. Consider that part of the $125 Zea pays each month will be for finance charges. How will the number of months from part a be affected by these charges?
4. Gursoy Furnitures sells office chairs ordered from its flagship store. It costs $100 to place an order, and the lead time is two weeks. Demand during lead time is N(40, 1.96). Gursoy Furnitures estimates that each stockout causes a loss of $50 in future goodwill. It pays $60 for each chair and sells it for $100. The annual holding a chair inventory is 30% of its purchase cost. a) Assuming that all demand is backlogged, what are the reorder point and the safety stock level? b) To meet 99% service objective, what should be the safety stock level for Type 1 Service? For Type 2 Service?
Discuss two extensions to the original GARCH (p,q) model and explain additional characteristics of financial data they might be able to capture.
1. Redback Industries is a relatively small but successful and fast-growing maker of peripheral devices for cell phones including battery chargers, enhanced antennas, SIM cards, and custom carrying cases. Costco is considering purchasing Redback in order to sell the devices as private label offerings. However, Costco has set an offer price of $ 600M that depends on whether Redback’s current Annual Net Income is higher and significantly different from its 14-year average of $ 104.5M per year; Redback has indicated it is willing to sell itself to Costco at the $600M price. Use the following information to determine at the 95 % Level Of Confidence whether Costco will proceed with the purchase at the planned price of $ 600M or will lower its offering price if Redback’s current Annual Net Income is not greater than $ 104.5M per year. Redback Industries Normalized Yearly Annual Net Income over the last 14 years is $ 104.5M Redback Industries is currently reporting Yearly Annual Net…
.08 and -.12 are NOT the right answers for the receive order.
1. Suppose that you estimate a model of house prices to determine the impact of having beach frontage on the value of a house.14 You do some research, and you decide to use the size of the lot instead of the size of the house for a number of theoretical and data availability rea- sons. Your results (standard errors in parentheses) are: PRICE; = 40 + 35.0 LOT¡ – 2.0 AGE; + 10.0 BED; – 4.0 FIRE; (1.0) (5.0) (10.0) (4.0) (10) N = 30 R2 =.63 where: PRICE¡ =the price of the th house (in thousands of dollars) =the size of the lot of the th house (in thousands of square feet) = the age of the th house in years =the number of bedrooms in the th house =a qualitative/dummy variable for a fireplace (1 = yes for the th house) LOT; AGE; BED; FIRE; a. You expect the variables LOT and BED to have positive coefficients. Create and test the appropriate hypotheses to evaluate these expectations at the 5-percent level. b. You expect AGE to have a negative coefficient. Create and test the appropriate…
2. The following situation arises in various situations such as when you are a homeowner. Suppose you face a random loss L in the coming year. You can purchase insurance against the loss L; the premium is double what the insurance company expects to pay out. (This price is in the ballpark of what reputable insurance companies charge. When you're offered an extended warranty or similar product, e.g., when purchasing an electronic device, the premium can be worse; e.g., 15 or 20 times your expected loss.) Let's assume that your loss L will be $1000 with probability 1/10, $100,000 with probability one in ten thousand, and $1,000,000 with probability one in a million; otherwise, your loss is 0. (a) If you purchase full coverage against the loss L, what is your premium? (b) Usually, the expensive part of insurance is insuring against small losses, and I've selected the p.m.f. of L to reflect this behavior. Assume that a loss of $5,000 would be painful to you and much more than $5,000 would…
21. The income statement for Otto Construction Company appear below: Net sales (all credit sales) $180000 Cost of goods sold 100000 Gross margin 80000 Operating expenses 30000 Interest expense 12000 Income before taxes 38000 Income tax 9500 Net income $28500 Average total assets total $240000. Otto’s income tax rate is 25%.What is the gross margin percentage? (a) 12.5% (b) 15.8% (c) 33.3% (d) 44.4%

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