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Autie Frannie wants to help pay for her twin nephews to attend a private school. She intends to send a cheque for $2,000 at the end of each of the next eight years to apply to the cost of schooling.
a) If general price inflation, as well as tuition price inflation, is expected to average 5% per year for those eight years, calculate the present worth of the gifts. Assume that the real interest rate will be 3% per year.
b) If Autie Frannie wants her figts to keep pace with inflation, what would be the present worth of her gifts? Again assume inflation is 5% and the real interest rate is 3%.
Examine the charts and correlation tables. Do men or women pay (on average) higher rents? How can you tell?
The theoretical background and hypothesis and the methodology section and What is the theoretical basis for answering the research question? That is, what are the arguments, given the existing theories, about how you key independent variable "X" i..
Overheard at water cooler: My regression model of demand is better than one that the consultant prepared for us because it has a higher R2.
A person buys a $1,000 face value bond 2 years after its issue. He intends to keep it until its maturity date, which is 18 years from now. This bond pays 6% annually. What price can he pay now for the bond so that his investment earns 8%?
What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 5.6%?
A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
A quality control inspector chooses a part to be tested. The part is then declared acceptable, repairable, or scrapped. Then another part is tested.
Derive the law of motion of capital per worker and draw the graph of the law of motion of capital per worker, and indicate the steady state.
Your cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.) Construct a choice table..
Q1 kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 8,000 + 6Q12and C2(Q2) = 6,000 + 3Q22, respectively. Determine the pro..
Calculate the standard error of estimate and the standard error of Coefficient Standard error of estimate = Standard error of Coefficient = 4. Make a prediction of Y when X = 64. Prediction y= 5. Calculate a 95% prediction interval when X = 64. Pre..
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 123034.4703 23311.13897 5.277926165 0.000358709 71094.01589 174974.9248 71094.01589 174974.9248 y 0.238078372 0.017797354 13.37717818 1.04516E-07 0.19842..
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