Indicate whether each of the following characteristics relates to managerial accounting (MA) or financial accounting (FA):

a. Forward looking

b. Publicly reported

c. Complies with accounting standards

d. Usually confidential

e. Reports past performance

f. Uses physical measures as well as monetary ones for reports

g. Driven by user needs

h. Focuses on business decision making

Scores on a midterm and final exam were recorded for 32 students in a statistics class. A scatterplot showing the relationship between the students' midterm scores and their final exam scores is shown at the right.

a) Of the 18 students who were below average on the midterm, what percentage of these students did better on the final?

b) Of the 14 students who were above average on the midterm, what percentage of these students did worse on the final?

c) Explain how your answers to parts (a) and (b) illustrate regression to the mean.

d) Why do you think test scores show regression to the mean? Explain.

The owner of a service station is planning to expand the business. The two options are to build a forecourt to sell petrol or to construct a showroom to sell cars. The estimated building costs are: petrol forecourt - $\$ 100000$; car showroom - $\$ 150000$. The forecast will depend on the level of demand in the economy, as shown in the table below. The probability of demand being low during the lifespan of these investments is $0.2$ and the probability of high demand is $0.8$.

$$\begin{array}{|l|c|r|} \hline \textbf { Demand } & \textbf { Petrol forecourt } & \textbf { Car showroom } \\ \hline \text { High } & \$ 500000 & \$ 800000 \\ \hline \text { Low } & \$ 400000 & \$ 200000 \\ \hline \end{array}$$

Evaluate the usefulness of decision trees to support business decision-making.

What did the results of the midterm elections say about the mood of the country at that time?

Your class's midterm grades are modeled by the equation

$y = -0.0705x^2 + 10.460x - 384.21$,

where x represents the midterm grade (percent) and y represents the number of students who earned the grade.

a. Approximately how many students earned an 80%?

b. Approximately how many students earned a 75%?

Accounting is the information system that

• a. measures business activities.
• b. communicates the results to decision makers.
• c. processes information into reports.
• d. All of the above.

Key risk indicators ….

a. are statistical information on the business risk reporting processes

b. are used to measure a business' health and performance

c. assist in business planning and decision making

d. are useful views of underlying risk profiles, at various levels, to assist in decision making

Why is diffraction more noticeable with sound waves than with light waves?

When does light behave as a wave? When does it behave as a particle?

632.8 nm wavelength of red light from helium neon laser?

Match each of the following characteristics that describe financial accounting, managerial accounting, both financial and managerial accounting, or neither financial nor managerial accounting.

A. Financial accounting B. Managerial accounting C. Both financial and managerial accounting D. Neither financial nor managerial accounting

1. Is future oriented.
2. Is used primarily by external parties.
3. Is relied on for making decisions.
4. Is historical in nature.
5. Reports can be obtained through accounting the company Web site or requested from the company CFO for publicly traded companies.
6. Is reported in aggregate for the company as a whole.
7. Reports may be reported daily or even in real time.
8. Is used mostly by managers with in the company.
9. Must be accurate to help decision makers.
10. Is always available on the Internet to any interested party.

What is the primary difference between financial accounting and managerial accounting?

We expect that students who do well on the midterm exam in a course will usually also do well on the final exam. Gary Smith of Pomona College looked at the relationship between x= midterm score and y= final exam score for all 346 students who took his statistics class over a 10-year period. Assume that both the midterm and final exam were scored out of 100 points.

State the equation of the least-squares regression line if each student's score on the final was equal to that student's score on the midterm.

What characteristic of laser light allows it to be used to measure large distances?