During the current year, Marsha Engles withdrew $4,000 monthly from the partnership of Engles and Cox Water Management Consultants. Is it possible that her share of partnership net income for the current year might be more or less than$48,000? Explain.

You read a newspaper article that describes a study of whether stress management can help reduce heart attacks. The 107 subjects all had reduced blood flow to the heart and so were at risk of a heart attack. They were assigned at random to three groups. The article goes on to say: One group took a four-month stress management program, another underwent a four-month exercise program, and the third received usual heart care from their personal physicians. In the next three years, only three of the 33 people in the stress management group suffered "cardiac events," defined as a fatal or non-fatal heart attack or a surgical procedure such as a bypass or angioplasty. In the same period, 7 of the 34 people in the exercise group and 12 out of the 40 patients in usual care suffered such events. Do the data provide convincing evidence that the true success rates are not the same for the three treatments?

Palm Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 12 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 40 units per batch, while the bear is assembled in lot sizes of 5 units per batch. Since each product has direct labor time of 12 minutes per unit, management has determined that the lead time for each product is 12 minutes.

Is management correct? What are the lead times for each product?

Why do small firms export? The Journal of Small Business Management (Vol. 40, 2002) published a study of what motivates small firms to export. In a survey of 137 exporting firms, each CEO was asked to respond to the statement "Management believes that the firm can achieve economies of scale by exporting" on a scale of 1 (strongly disagree) to 5 (strongly agree). Summary statistics for the $n=137$ scale scores were reported as $\bar{x}=3.85$ and $s=1.5$. Explain why the researcher will be unable to conclude that the true mean scale score exceeds $3.5$ if the standard deviation of the scale scores is too large.

A member of a firm’s investment committee is very interested in learning about the management of fixed-income portfolios. He would like to know how fixed-income managers position portfolios to capitalize on their expectations concerning three factors that influence interest rates. Assuming that no investment policy limitations apply, formulate and describe a fixed-income portfolio management strategy for each of the following interest rate factors that could be used to exploit a portfolio manager’s expectations about that factor. (Note: Three strategies are required, one for each of the listed factors.) Changes in yield spreads as to a particular instrument.

Coastal Packaging's ROE last year was only 3 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ratio of 60 percent, which will result in interest charges of $300 per year. Management projects an EBIT of$1,000 on sales of $10,000, and it expects to have a total assets turnover ratio of 2.0 times. Under these conditions, the average tax rate will be 30 percent. If the changes are made, what return on equity (ROE) will Coastal earn? What is the ROA?

Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com.

Required:

Comment on Under Armour’s and Columbia’s debt management.

A firm has drawn up plans to expand its business and hire more people. The company's management then sees the leading economic index indicates the economy could slow down. How do you think the firm's plans might change?

The kinematic equations can describe phenomena other than motion through space and time. Suppose x represents a person's bank account balance. The units of x would be dollars ($), and velocity v would give the rate at which the balance changes (in units of, for example,$/month). Acceleration would give the rate at which v changes. Suppose a person begins with ten thousand dollars in the bank. Initial money management leads to no net change in the account balance so that $v_0 = 0$. Unfortunately, management worsens over time so that $a=-2.5 \times 10^{2} \$ / \mathrm{month}^{2}$. Assuming a is constant, find the amount of time in months until the bank account is empty.

The MIT Sloan School of Management is one of the leading business schools in the U.S. The following table contains the tuition data for the masters program in the Sloan School of Management.

$$\begin{array}{|l|c|c|c|c|c|c|} \hline \text { Year } & 2004 & 2005 & 2006 & 2007 & 2008 & 2009 \\ \hline \text { Tuition } & \$ 36,850 & \$ 39,844 & \$ 42,634 & \$ 44,556 & \$ 46,784 & \$ 48,650 \\ \hline \end{array}$$

a. Use $2004$ as the base year to form a simple price index for tuition.

b. Use $2007$ as the base year to form a simple price index for tuition.

c. Compare the percentage tuition increase from $2004$ through $2007$ and $2007$ through $2009.$

Is the statement in the following problem true or false? Give an explanation for your answer.

If $g(x)=k f(x)$, then on any interval the average rate of change of $g$ is $k$ times the average rate of change of $f$.

State whether the percent of change is a percent of increase or a percent of decrease. Then find the percent of change. Round to the nearest whole percent. original: 21 hours, new: 40 hours

Speculative fiction is based on projecting from current trends and facts. Describe two possible scenarios for waste management in the year 2040. Base one on the current trend of ever-increasing waste per person. Base the other on the assumption that people will generate less waste in the future.

Reread the Management Focus, "U.S. Magnesium Seeks Protection." Who gains most from the antidumping duties levied by the United States on imports of magnesium from China and Russia? Who are the losers? A re these duties in the best national interests of the United States?