$\text{\textcolor{#4257b2}{General Electric Capital}}$, a division of $\text{\textcolor{#4257b2}{General Electric}}$, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal documents to prepare for another$50 billion long-term debt issue. As a result of the $50 billion filing, the price of the initial$11 billion offering declined (due to higher risk of more debt).

Bill Gross, a manager of a bond investment fund, “denounced a ‘lack in candor’ related to GE’s recent debt deal. ‘It was the most recent and most egregious example of how bondholders are mistreated.’ Gross argued that GE was not forthright when GE Capital recently issued $11 billion in bonds, one of the largest issues ever from a U.S. corporation. What bothered Gross is that three days after the issue the company announced its intention to sell as much as$50 billion in additional debt, warrants, preferred stock, guarantees, letters of credit and promissory notes at some future date.”

$\blacktriangleright$ In your opinion, did GE Capital act unethically by selling $11 billion of longterm debt without telling those investors that a few days later it would be filing documents to prepare for another$50 billion debt offering?

$$\tiny{\textit{Source}: \text{Jennifer Ablan, “Gross Shakes the Bond Market; GE Calms It, a Bit,” \textit{Barron’s}, March 25, 2002.}}$$

Carbon dioxide $\text{(CO}_2)$ is produced by burning fossil fuels such as oil and natural gas, and has been connected to global warming. The following table presents the average amounts (in metric tons) of $\text{CO}_2$ emissions for the years $1997–2013$ per person in the United States and per person in the rest of the world.

$$\begin{array}{ccc} \hline \textbf{Year} & \textbf{Non-U.S.} & \textbf{U.S.}\\ \hline 1997 & 3.4 & 20.0\\ 1998 & 3.3 & 19.5\\ 1999 & 3.2 & 19.6\\ 2000 & 3.3 & 20.0\\ 2001 & 3.3 & 19.6\\ 2002 & 3.3 & 19.6\\ 2003 & 3.5 & 19.4\\ 2004 & 3.7 & 19.6\\ 2005 & 3.8 & 19.5\\ 2006 & 3.7 & 19.0\\ 2007 & 4.7 & 19.2\\ 2008 & 4.7 & 18.5\\ 2009 & 4.6 & 17.2\\ 2010 & 4.6 & 17.5\\ 2011 & 5.0 & 17.0\\ 2012 & 5.0 & 16.3\\ 2013 & 5.0 & 16.4\\ \hline \end{array}$$

$\textbf{a.}\hspace{10pt}$ Construct a scatterplot of U.S. carbon dioxide emissions $(y)$ versus non-U.S. emissions $(x)$.

$\textbf{b.}\hspace{10pt}$ Compute the correlation coefficient between U.S. carbon dioxide emissions and non-U.S. emissions.

$\textbf{c.}\hspace{10pt}$ In a year when U.S. emissions are above average, would you expect emissions in the rest of the world to be above average or below average? Explain.

$\textbf{d.}\hspace{10pt}$ As developing countries modernize, their use of fossil fuels increases. Countries that are already developed strive to reduce emissions. How does this fact explain the relationship between U.S. and non-U.S. emissions?

The row operation shown is not an elementary row operation. If the given operation is the combination of elementary row operations, then provide them. If not, explain why not. (a) $5 R_{1}+R_{2} \rightarrow R_{3}$, (b) $2 R_{4}-R_{5} \rightarrow R_{5}$.