Question 1
What is the present value today of these annual cash flows: $1,000, $2,000, $3,000? Assume the first cash flow occurs 1 year from today and an interest rate of 10% per year, compounded annually.
Question 2
Of the following statements:
I). The level of significance of a hypothesis test is the probability of rejecting the null hypothesis when it is actually true.
II). Type II error is failing to reject the null hypothesis when it is actually false.
I). The level of significance of a hypothesis test is the probability of rejecting the null hypothesis when it is actually true.
II). Type II error is failing to reject the null hypothesis when it is actually false.
Question 3
The following dataset shows the change of a consumption basket over time:
2 010 (price/quantity)- Bread: $0.77/50; Milk: $1.22/30. 2011 (price/quantity)- Bread: $0.80/52; Milk:
$ 1.24/28. The denominator of the Paasche index should be calculated as:
2 010 (price/quantity)- Bread: $0.77/50; Milk: $1.22/30. 2011 (price/quantity)- Bread: $0.80/52; Milk:
$ 1.24/28. The denominator of the Paasche index should be calculated as:
Question 4
What does the fixed asset turnover ratio measure?
Question 5
If the alternative hypothesis states that u > 6,700, what is the rejection region for the hypothesis test?