Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a Year $1$ base period, January of Year $3,$ and March of Year $3$ follow. Base-year quantities are set on the basis of historical volumes for the four stocks.

$$\begin{array}{clcccc} & & {\text{ Price per Share (\$) }} \\ \text { Stock } & \text { Industry } & \text { Year 1 } & \text { Base } & \text { January } & \text { March } \\ \text { Quantity } & \text { Year 1 } & \text { Year 3 } & \text { Year 3 } \\ \text { A } & \text { Oil } & 100 & 31.50 & 22.75 & 22.50 \\ \text { B } & \text { Computer } & 150 & 65.00 & 49.00 & 47.50 \\ \text { C } & \text { Steel } & 75 & 40.00 & 32.00 & 29.50 \\ \text { D } & \text { Real estate } & 50 & 18.00 & 6.50 & 3.75 \end{array}$$

Use the Year $1$ base period to compute the Boran index for January of Year $3$ and March of Year $3.$ Comment on what the index tells you about what is happening in the stock market.

An item with a price relative of $132$ cost $\$10.75$ in $2018$. Its base year was $2001.$
a. What was the percentage increase or decrease in cost of the item over the $17$-year period?
b. What did the item cost in $2001?$

Use the price data in above exercise to compute a Paasche index for the shipping cost if Year $5$ quantities are $4000, 3000, 7500$, and $3000$ for the four products, respectively.

Nickerson Manufacturing Company has the following data on quantities shipped and unit shipping costs for each of its four products:

$$\begin{array}{cccc} & & {\text { Mean Shipping Cost }} \\ \text { Products } & \text { Year 1 } & {\text{ per Unit (\$) }} \\ \text { A } & \text { Quantity } & \text { Year 1 } & \text { Year 5 } \\ \text { B } & 2000 & 10.50 & 15.90 \\ \text { C } & 5000 & 16.25 & 32.00 \\ \text { D } & 6500 & 12.20 & 17.40 \\ & 2500 & 20.00 & 35.50 \end{array}$$

a. Compute the price relative for each product.
b. Compute a weighted aggregate price index that reflects the shipping cost change over the four-year period.

On January 1, 2021, Loop Raceway issued 500 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were$487,099. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. Prepare a bond amortization schedule.

2. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 99.

Determine the validity of each of the following arguments. If the argument is one of those listed in the text, name it.Either I wear a red tie or I wear blue socks. I am wearing pink socks. $\mathrm{I}$ am wearing a red tie.

According to the principle of unity of command ____

A) managers should limit their oversight to a maximum of 12 employees.

B) managers should oversee 1-4 employees on average.

C) an individual should be directly responsible to only one supervisor.

D) an organization should be departmentalized on the basis of functions.

E) employees should report directly to two supervisors to maintain task balance.

Either I wear a red tie or I wear blue socks. Either I wear a green hat or I do not wear blue socks. Either I wear a red tie or I wear a green hat.

Quarterly revenue ($millions) for Twitter for the first quarter of 2012 through the first quarter of 2014 are shown below (adexchange.com, April, 2015):$

$$\begin{array}{cc} \text { Quarter } & \text{ Revenue (\$ millions) } \\ 1 & 54 \\ 2 & 68 \\ 3 & 82 \\ 4 & 112 \\ 5 & 114 \\ 6 & 139 \\ 7 & 169 \\ 8 & 243 \\ 9 & 250 \end{array}$$

$

a. Create a time series plot. What kind of pattern can be found in the data? b. Create a linear trend equation for this time series in Excel or Minitab. c. Create a quadratic trend equation for this time series in Excel or Minitab. d. Compare each model's MSE. According to MSE, which model appears to be superior? e. Forecast revenue for the tenth quarter using the models developed in parts (b) and (c). f. Which of the two forecasts in part (e) do you prefer? Explain.

The revenue of Netflix from its streaming subscribers (in millions of dollars) for the five quarters beginning with the first quarter of 2012 are summarized in the following table:

$$\begin{array}{lccccc} \hline& \mathbf{2 0 1 2} & & & & \mathbf{2 0 1 3} \\ \hline \text { Quarter } & \mathrm{Q} 1 & \mathrm{Q} 2 & \mathrm{Q} 3 & \mathrm{Q} 4 & \mathrm{Q} 1 \\ \hline \text { Revenue } & 26.2 & 27.5 & 28.4 & 35.8 & 37.1 \\ \hline \end{array}$$

Find the average quarterly revenue of Netflix from its streaming subscribers for the five quarters in question. What is the standard deviation?

Round all answers to two decimal places unless otherwise indicated.

According to a report in The Wall Street Journal, Wendy's revenue fell 3.2% to $489.5 million in the second quarter of 2015. That represents a quarterly decay rate, as a decimal, of$e^{-0.0325}$. Let R(t) denote Wendy's revenue, in millions of dollars, t quarters after the second quarter of 2015. Suppose that revenue continues to fall at this same rate.

a. Write the equation of change for Wendy's revenue.

b. Find a formula that gives Wendy's revenue t quarters after the second quarter of 2015.

A large corporation sends many of its first-level managers to an off-site supervisory skills training course. Four different management development centers offer this course. The director of human resources would like to know whether there is a difference among the quality of training provided at the four centers. An independent random sample of five employees was chosen from each training center. The employees were then ranked 1 to 20 in terms of supervisory skills. A rank of 1 was assigned to the employee with the best supervisory skills. The ranks are shown. Use $\alpha=.05$ and test whether there is a significant difference among the quality of training provided by the four programs.

$$\begin{array}{rrrrr} &&\text { Course }& &\\\text { A } & \text { B } && \text{C} & \text { D } \\ 3 & 2 && 19 & 20 \\ 14 & 7 && 16 & 4 \\ 10 & 1 & &9 & 15 \\ 12 & 5 && 18 & 6 \\ 13 & 11 && 17 & 8\end{array}$$

$

The human resource (HR) director of a large corporation wishes to study absenteeism among its mid-level managers at its central office during the year. A random sample of 25 mid-level managers reveals the following: Absenteeism: $\bar{X}=6.2$ days, $S=7.3$ days. 13 mid-level managers cite stress as a cause of absence. Construct a 95% confidence interval estimate for the population proportion of mid-level managers who cite stress as a cause of absence.

A large corporation sends many of its first-level managers to an off-site supervisory skills training course. Four different management development centers offer this course. The director of human resources would like to know whether there is a difference among the quality of training provided at the four centers. An independent random sample of five employees was chosen from each training center. The employees were then ranked $1$ to $20$ in terms of supervisory skills. A rank of $1$ was assigned to the employee with the best supervisory skills. The ranks are shown. Use $\alpha$ $= .05$ and test whether there is a significant difference among the quality of training provided by the four programs.

$$\begin{aligned} &\text { Course }\\ &\begin{array}{rrrr} \text { A } & \text { B } & \text { C } & \text { D } \\ 3 & 2 & 19 & 20 \\ 14 & 7 & 16 & 4 \\ 10 & 1 & 9 & 15 \\ 12 & 5 & 18 & 6 \\ 13 & 11 & 17 & 8 \end{array} \end{aligned}$$