The data below are the final exam scores of 10 randomly selected statistics students The data below are the final exam scores of 10 randomly selected statistics students Question The data below are the final exam scores of 10 randomly selected statistics students and the number of hours they studied for the exam. Find the equation of the regression line for the given data. Predict the final exam score for students who studied 4 hours. Predict the final exam score for students who studied 6 hours.Hours (X) 3 5 2 8 2 4 4 5 6 3Score (Y) 75 90 70 98 76 88 95 99 98 81
marketing quiz test bank marketing quiz test bank Question 1. In developing an advertising program, marketing managers can make five major decisions known as “the five Ms. Which of the following is NOT part of “the five Ms.” a. mission b. money c. message d. media e. minimum 2. Today, advertising agencies are redefining themselves as ________. a. communications companies b. direct marketing companies c. marketers d. full-service companies e. none of the above 3. Advertising objectives can be classified according to whether their aim is to inform, persuade, remind, or ________. a. create interest b. purchase c. create demand d. reinforce e. introduce 4. When setting the advertising budget, marketers must consider five specific factors. Which of the following is one of the “factors” that must be considered? a. Message details. b. Cost of television time. c. Cost of new product’s development. d. Stage in the product life cycle. e. Buyer’s reaction to the campaign. 5. In designing and evaluating an ad campaign, it is important to distinguish the message strategyor positioning of an ad from its ________. a. brand strategy b. creative strategy c. test strategy d. medium strategy e. corporate strategy 6. A creative briefis an elaboration of the positioning statement and includes such items as ________. a. key brand benefits b. detail instructions for the director of the commercial c. detailed instructions for the print ads d. key actors to be used in the commercial e. none of the above 7. Television is the most powerful advertising medium. Television can be an effective means of vividly demonstrating product attributes and persuasively explaining their corresponding consumer benefits. Second, TV advertising can be a compelling means for dramatically portraying user and usage imagery, brand personality, and other brand ________. a. sounds b. sights c. intangibles d. tangibles e. components 8. Print media provides much ________ product information and can also effectively communicate user and usage imagery. a. detailed b. specific c. informational d. historical e.. usage 9. Radio’s main advantage lies in its ________. a. disk jockeys b. flexibility c. format d. age of audience e. none of the above 10. Advertisers prepare a copy strategy statementdescribing the ________, content, support, and tone of the desired ad. a. frequency b. size c. opinions d. demographics e. objective 11. Under U.S. law, advertisers must not ________. a. copy other’s ads b. make false claims c. advertiser to children d. advertise after 3 a.m. e. demonstrate a product 12. “Puffery” is defined as ________. a. a description of a bakery product b. used in sales brochures to tout the benefits of a product c. simple exaggerations d. lies e. non-truths but legal 13. In choosing the proper media to carry the message, advertisers must decide on ________. a. strategy, users, media b. target markets, users, heavy users c. markets, target markets, consumers d. reach, impact, television stations e. reach, frequency, impact 14. ________ is most important when launching new products, flanker brands, or extensions of well-known brands. a. Media selection b. Weighted exposures c. Impact d. Reach e. Frequency 15. One of the advantages of television is that it combines sight, sound, and motion, appealing to the senses, high attention, and high reach. One of the disadvantages of television is its ________. a. use of the “remote control” to zap through commercials b. high clutter c. cable channels d. fragmented markets e. censorship possibilities 16. In deciding on an ad budget, marketers must also recognize that consumer response can be ________-shaped: An ad threshold effect exists where some positive amount of advertising is necessary before any sales impact can be detected, but sales increases eventually flatten out. a. T b. M c. S d. Y e. C 17. Marketers are using creative and unexpected ad placements to grab consumers’ attentions in ________ advertising. a. market specific b. customer specific c. space d. nontraditional e. place 18. Marketers pay fees so that their products make cameo appearances in movies and on television. This is called ________. a. branded entertainment b. point-of-purchase c. advertorials d. product placement e. individualization 19.In-store advertising including ads on shopping carts, in aisles, on shelves, ads on the floor, and “talking” shelves are all examples of ________ advertising. a. point-of-decision b. product placement c. point-of-purchase d. branding e. advertising 20. The main advantage of nontraditional media is that a very precise and—because of the nature of the setting involved—captive audience often can be reached in a ________ manner. a. new b. effective c. cost-effective d. targeted e. individualized 21. Television audience size has several possible measures. These include circulation, audience, and ________. a. non-exposed audience b. total circulation c. exposed audience d. listening audience e. effective audience 22. The ________ involves scheduling the advertising in relation to seasons and the business cycle. a. effective ad-exposed audience b. editorial quality c. ad placement policies d. macro scheduling problem e. micro scheduling problem 23. In launching a new product, the advertiser has to choose among continuity, concentration, flighting, and ________. a. reflective b. periodic c. continuous d. pulsing e. running 24. A company has to decide on how to allocate its advertising budget over space as well as over time. A company makes “spot buys” when it buys TV time in just a few markets or in regional editions of magazines. These markets are called ________. a. areas of dominant influence b. trading areas c. short term marketing opportunities d. SMSA e. none of the above 25. ________ seeks to determine whether an ad is communicating effectively. a. Targeted marketing research b. Customer feedback c. Copy testing d. Marketing research e. Communication-effects research 26. There are three major methods of pretesting ads. These are consumer feedback, ________, and laboratory test. a. pre-launch testing b. copy testing c. direct testing d. telephone inquiries e. portfolio testing 27. One of the “tips” provided by Nike’s ad agency, Weiden and Kennedy, about what works in good economic times as well as bad is to ________. a. make noise b. get noticed c. hit the “TV” hard d. cut back on promotions e. none of the above 28. A company’s “share of advertising” expenditures should produce an ultimate ________. a. share of business b. share of heart c. share of voice d. share of market e. share of mind 29. Sales promotion consists of a collection of incentive tools, mostly short term, designed to ________ quicker or greater purchase of particular products or services by consumers or the trade. a. intensify b. foster c. demand d. stimulate e. create 30. Sales promotions include tools for ________ promotion, trade promotion, and business, and sales-force promotions. a. incentive b. reasons c. target d. prospects e. consumer
accounts data bank accounts data bank Question 61. Economic value added is calculated from: A. Average total assets, current liabilities, net income, and the cost of capital. B. EVA net income and EVA invested capital. C. Net income, cost of capital, and net assets. D. Net income and the cost of capital. E. EVA net income, the cost of capital, and EVA invested capital. 62. Performance shares grant stock for achieving certain performance goals: A. In the following year. B. In two years or more. C. In the current period. D. When stock prices improve. 63. There is a current tax deduction for the firm for which of the following types of compensation? A. Qualified stock options. B. Nonqualified stock options. C. Deferred bonus. D. Current bonus. E. Performance shares. 64. There is a current tax for the manager when which of the following types of compensation is received? A. Qualified stock options B. Nonqualified stock options C. Deferred bonus D. Current bonus E. Performance shares 65. Which of the following types of compensation does not provide a deduction to the firm for tax purposes? A. Perks B. Qualified stock options C. Retirement plans D. Current bonus E. Performance shares 66. Bonus payment options include all of the following except: A. Perks. B. Current bonus. C. Deferred bonus. D. Stock options. E. Performance shares. 67. A CFO whose compensation plan may have had the effect of creating an incentive for unethical actions includes: A. Kenneth Lay B. Scott Sullivan C. Bernie Madoff D. Dennis Kozlowski 68. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The accounts receivable turnover ratio for 2010 is: A. 11.2 B. 12.7 C. 13.7 D. 14.9 69. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The inventory turnover ratio for 2010 is (rounded): A. 11.2 B. 12.7 C. 13.7 D. 14.9 70. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The current ratio for 2010 is: A. 1.8 B. 2.0 C. 3.9 D. 4.7 71. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The gross margin percentage for 2010 is (rounded): A. 11.2% B. 12.7% C. 13.7% D. 14.9% 72. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. Return on assets for 2010 is: A. 9.2% B. 16.4% C. 13.7% D. 19.2% 73. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. Return on equity for 2010 is (rounded): A. 11.6% B. 14.6% C. 15.5% D. 18.9% 74. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The value of the company, calculated using the earnings multiple for 2010 is: A. $1,220,000 B. $1,620,000 C. $2,520,000 D. $8,335,000 75. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010. The value of the company, calculated using the free cash flow multiple for 2010 is: A. $1,220,000 B. $1,620,000 C. $2,520,000 D. $8,400,000
ow four laws or U.S. Supreme Court decisions that your feel affected equal opportunity employment the most ow four laws or U.S. Supreme Court decisions that your feel affected equal opportunity employment the most Question Prepare a 900- to 1,050-word paper describing how four laws or U.S. Supreme Court decisions that your feel affected equal opportunity employment the most. Include:1.) The name of the law or Supreme Court Case.2.) The year the law was passed, or the year the Supreme Court decision was decided.3.) How it affected human resource management.4.) Who or what group benefitted the most from the outcome.Use at least five different references from the reading assignment, Internet articles, Electronic Reserve Readings articles, or HR journal articles to support your paper.
ASh Inf340 week 1-5 all assignments ASh Inf340 week 1-5 all assignments Question Hoosier Burger Case:Part 1. Read the Hoosier Burger scenario on page 28 in Chapter 1 of the text and address the following in a 1 to 3 page APA style paper: a. Apply the SDLC approach to Hoosier Burger. b. Using the Hoosier Burger scenario, identify an example of each system characteristic. c. Decompose Hoosier Burger into its major subsystems. d. Briefly summarize the approaches to systems development discussed in this chapter. Which approach do you feel should be used by Hoosier Burger? Hoosier Burger Case: Part 2. Read the Hoosier Burger scenario on page 128 in Chapter 4 of the text and address the following in a 1 to 3 page APA style paper: a. How was the Hoosier Burger project identified and selected? What focus will the new system have? b. Identify the Hoosier Burger project’s scope. c. Using the six feasibility factors presented in the chapter, assess the Hoosier Burger project’s feasibility. d. Using Figure 3-8 as a guide, develop a Project Scope Statement for the Hoosier Burger Project. Hoosier Burger Case: Part 3. Read the Hoosier Burger scenario on page 161 in Chapter 5 ofthe text and address the following in a 1 to 3 page APA style paper: a. Assume you are preparing the customer satisfaction questionnaire. What types of questions would you include? Prepare five questions that you would ask. b. What types of questions would you ask the waiters? What types of questions would you ask the cooks? Prepare five questions that you would ask each group. c. What types of documents are you likely to obtain for further study? What types of documents will most likely not be available? Why? d. What modern requirements determination methods are appropriate for this project? Hoosier Burger Case: Part 4. Read the Hoosier Burger scenario on page 199 in Chapter 6 of the text and address the following (you only need to complete parts a through c) in a 1 to 3 page APA style paper: a. Modify the Hoosier Burger context-level data-flow diagram (Figure 6-4) to reflect the changes mentioned in the case. b. Modify Hoosier Burger’s level-0 diagram (Figure 6-5) to reflect the changes mentioned in the case. c. Prepare level-1 diagrams to reflect the changes mentioned in the case. Hoosier Burger Case: Part 5. Read the Hoosier Burger scenario on page 242 in Chapter 7 ofthe text and address the following in a 1 to 3 page APA style paper: a. Based on the information provided in the case scenario, what entities will Hoosier Burger need to storeinformation about? b. For the entities identified in part a, identify a set of attributes for each entity. c. Specify an identifier for each entity. What rules did you apply when selecting the identifier? d. Modify Figure 7-10 to reflect the addition of these new entities. Be sure to specify the cardinalities for each relationship. INF 340 Final Paper (Hoosier Burger Case Analysis) Using your weekly analyses of the Hoosier Burger Case that serve as the focus of the written assignments in the course, construct a 6-8 page final case analysis paper. Focus of the Final Paper Compile the weekly assignment responses into one cohesive paper that addresses the key issues and questions posed in the case scenarios. Make sure you have a new introduction and new conclusion that supports the entire paper as developed. The paper will be the summation of your research and recommendations for Hoosier Burger. Be specific with examples and supporting rationale. Cite any sources used in your analysis. Writing the Final Paper The Final Paper: Must be six to eight double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide. Must include a cover page that includes: - Title of paper - Student’s name - Course name and number - Instructor’s name - Date submitted -Must include an introductory paragraph with a succinct thesis statement. Must address the topic of the paper with critical thought. -Must conclude with a restatement of the thesis and a conclusion paragraph. -Must use APA style as outlined in the approved APA style guide to document all sources. -Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide
Genesis Capital Plan Recommendation Genesis Capital Plan Recommendation Question The operations management team evaluated, ranked, and recommended a set of capital projects, using evaluation tools, such as NPV, payback, and IRR. The evaluation, ranking, and recommendations were by category of expenditures with the intent of establishing the cost of fully equipping a facility in compliance with the planned expansion. The fully equipped facility cost was then evaluated using tools, such as payback, NPV, and IRR.As part of the operations management team, you will do the following:Explain your recommendations about the choice of capital projects to the business owners, comprising the two founders and private investors.Consider the following points while providing your recommendations:What factors will you consider before planning the recommendations?How did the use of tools, such as payback, NPV, and IRR, help you in evaluating the fully equipped facility cost?Write your initial response in 4–5 paragraphs. Apply APA standards to citation of sources.
The condensed financial statements of Westward Corporation for 2006 are presented below. The condensed financial statements of Westward Corporation for 2006 are presented below. Question The condensed financial statements of Westward Corporation for 2006 are presented below.Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2006 For the Year Ended December 31, 2006Assets Revenues $2,000,000Current assets ExpensesCash and temporary Cost of goods sold 1,080,000investments $ 30,000 Selling and administrativeAccounts receivable 70,000 expenses 495,000Inventories 120,000 Interest expense 30,000Total current assets 220,000 Total expenses 1,605,000Property, plant, and Income before income taxes 395,000equipment (net) 780,000 Income tax expense 140,000Total assets $1,000,000 Net income $ 255,000Liabilities and Stockholders' EquityCurrent liabilities $ 80,000Long-term liabilities 300,000Common stockholders' equity 620,000Total liabilities andstockholders' equity $1,000,000Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2005 For the Year Ended December 31, 2005Assets Revenues $2,500,000Current assets ExpensesCash and temporary Cost of goods sold 1,750,000investments $ 40,000 Selling and administrativeAccounts receivable 90,000 expenses 500,000Inventories 150,000 Interest expense 30,000Total current assets 280,000 Total expenses 2,280,000Property, plant, and Income before income taxes 220,000equipment (net) 800,000 Income tax expense 77,000Total assets $1,080,000 Net income $ 143,000Liabilities and Stockholders' EquityCurrent liabilities $ 140,000Long-term liabilities 320,000Common stockholders' equity 620,000Total liabilities andstockholders' equity $1,080,0002. Perform horizontal and vertical analysis on Westward both income statement and balance sheet, show your results.3. Assess the financial performance of Westward, given the analysis tools used above.
Eco365 Final Exam Eco365 Final Exam Question Eco365 Final Exam 1) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about: 2) A basic difference between microeconomics and macroeconomics is that microeconomics 3) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in 4) After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil prices. What best describes these events? 5) Price elasticity of demand is the: 6) The distinction between supply and the quantity supplied is best made by saying that 7) When labor is the variable input, the average product equals the 8) The increase in output obtained by hiring an additional worker is known as 9) Which of the following is the best example of a long-run decision?. 10) Other things being equal, when average productivity falls, 11) According to economist Colin Camerer of the California Institute of Technology, many New York taxi drivers decide when to finish work by setting an income goal for themselves. If this is true, then on busy days when the effective hourly wage is higher, taxi drivers will 12) A firm's demand for labor is derived from the 13) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. This will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day 14) Expected economic profit per unit is equal to 15) If a firm in a perfectly competitive market experiences a technological breakthrough, 16) A significant difference between monopoly and perfect competition is that 17) A monopoly firm is different from a competitive firm in that 18) The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a 19) As long as marginal cost is below marginal revenue, a perfectly competitive firm should 20) Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal 21) In the Flint Hills area of Kansas, proposals to build wind turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local chapters of the Nature Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbines 22) When negative externalities are present, market failure often occurs because 23) A merger between a textile mill and a clothing manufacturing company would be considered a 24) A merger between a baby food company and a life insurance company would be considered a 25) The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to 26) Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case? 27) The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is 28) Countries can expect to gain from international trade as long as they 29) Which of the following is an example of the law of one price? 30) From the point of view of consumer and producer surplus, what problem may be created when a country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?
general business data bank general business data bank Question 101. Dramatic changes in the way consumers interact with media have eroded the effectiveness of the mass media. What two forces are to blame for the reduced effectiveness of mass media? 102. List the major ways that marketing communications activities contribute to brand equity. 103. The macromodel of the communications process includes nine elements. Diagram the nine elements in the communications process. 104. Micromodels of marketing communications concentrate on consumers’ specific response to communications. List the four classic response hierarchy models. . 105. Consumers are more likely to recognize Stouffer’s distinctive orange packages than recall the brand. When is brand recall important and when is brand recognition important? 106. John Maloney saw buyers as expecting one of four types of reward from a product: rational, sensory, social, or ego satisfaction. Crossing these four types of rewards with the three types of experience generates 12 types of messages. Explain the phrase “Real beer taste in a great light beer.” 107. In describing the experience of using Coast soap for the first time (“The Eye Opener!”), we are describing a nonproduct benefit or image. This is the definition of what type of appeal? 108. Communications that use cute babies, puppies, or provocative sex appeals are often employed to attract consumer attention and raise their involvement with an ad. What are some of the usages for “borrowed-interest” devices? 109. In terms of source credibility, why would a medical doctor have greater source credibility as a spokesperson speaking about the effects of a new drug than a retired actor would? What are the three characteristics of source credibility? . 110. A well-chosen celebrity can draw attention to a product or brand but also poses certain risks. Identify three of those risks. 111. Personal communications channels derive their effectiveness through individualized presentation and feedback. Within this category, we can distinguish between three channels: advocate channels, expert channels, and social channels. How would you characterize a seminar directed to retirees on buying real estate with no money down? 112. How do opinion leaders mediate the affect of mass communications? 113. In introducing a new liquid dog treat to the market, you have been asked to prepare a promotion budget using the objective-and-task method. What would be your first step in this process? 114. The objective-and-task method of promotions budgeting calls upon marketers to develop promotion budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks. What is the major advantage of using this method? 115. Relate the concept of marginal profit to the communications budgeting decision. 116. The repetition of the local car dealers’ commercials on late night television, besides being universally terrible, are examples of what characteristic of the advertising component of the communications mix. 117. Your sales force is efficient and effective. What are the four contributions that an effective sales force can make to the marketing communications mix? 118. After implementing the communications plan, how might marketing managers communicate the outcomes of their efforts? 119. List some of the benefits of a working integrated marketing communications program. 120. Integrated marketing communications has been slow to take hold for several reasons. List these reasons.
accounts data bank accounts data bank Question 1. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are useful for visualizing complex problems prior to doing actual calculations. c. Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly. d. Time lines cannot be constructed for annuities where the payments occur at the beginning of the periods. e. Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts. 2. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are not useful for visualizing complex problems prior to doing actual calculations. c. Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly. d. Time lines can be constructed for annuities where the payments occur at either the beginning or the end of the periods. e. Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts. 3. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are not useful for visualizing complex problems prior to doing actual calculations. c. Time lines can be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly. d. Time lines can only be constructed for annuities where the payments occur at the end of the periods, i.e., for ordinary annuities. e. Time lines cannot be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity. 4. Which of the following statements is CORRECT? a. A time line is not meaningful unless all cash flows occur annually. b. Time lines are not useful for visualizing complex problems prior to doing actual calculations. c. Time lines cannot be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly. d. Time lines can only be constructed for annuities where the payments occur at the end of the periods, i.e., for ordinary annuities. e. Time lines can be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity. 5. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment? a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000. b. The discount rateincreases. c. The riskiness of the investment’s cash flows decreases. d. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years. e. The discount rate decreases. 6. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000. b. The discount rate decreases. c. The riskiness of the investment’s cash flows increases. d. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years. e. The discount rate increases. 7. Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? a. The periodic rate of interest is 1.5% and the effective rate of interest is 3%. b. The periodic rate of interest is 6% and the effective rate of interest is greater than 6%. c. The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. d. The periodic rate of interest is 3% and the effective rate of interest is 6%. e. The periodic rate of interest is 6% and the effective rate of interest is also 6%. 8. Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? a. The periodic rate of interest is 2% and the effective rate of interest is 4%. b. The periodic rate of interest is 8% and the effective rate of interest is greater than 8%. c. The periodic rate of interest is 4% and the effective rate of interest is less than 8%. d. The periodic rate of interest is 2% and the effective rate of interest is greater than 8%. e. The periodic rate of interest is 8% and the effective rate of interest is also 8%. 9. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. d. The last payment would have a higher proportion of interest than the first payment. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments. 10. A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c. The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower. d. The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments. 11. Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.) a. The remaining balance after three years will be $125,000 less one third of the interest paid during the first three years. b. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant. c. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant. d. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year. e. The outstanding balance declines at a slower rate in the later years of the loan’s life.