17. Which of the following describes a positive linear relationship between X and Y?

a. As the X values increase, the Y values increase in a linear manner.
b. As the X values decrease, the Y values decrease in a linear manner.
c. The X and Y values move uphill together in a linear manner.
d. All of these choices are true.

28. Which of the following is a property of the slope, b1?

a. The slope equals one if X and Y have the same variance.
b. The slope has the same sign as r, the coefficient of correlation.
c. The slope equals one if r equals one.
d. All of these choices are true.

53. Dividends per share:

a. increase as the net income increases as long as the number of shares outstanding remains constant.
b. decrease as the number of shares outstanding decrease, all else constant.
c. are inversely related to the earnings per share.
d. are based upon the dividend requirements established by Generally Accepted Accounting Procedures.
e. are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.

61. What is the present value of 10 annual payments of $500 at a discount rate of 12%?

a. $1,332
b. $1,761
c. $1,840
d. $2,825
e. $3,040


86. It's the end of the accounting period and no electric bill has been received (but the expense has been incurred) you should record an entry that:

a. increases the total assets and increases the total expenses.
b. decreases the total liabilities and increases the total expenses.
c. increases the total liabilities and increases the total expenses.
d. decreases the total assets and increases the total expenses.


87. Equipment with a cost of $150,000 has an accumulated depreciation of $50,000. What is the historical cost of the equipment?

a. $50,000 b. $200,000
c. $150,000 d. $100,000


88. Accumulated Depreciation is found on which of the following financial statements?

a.Statement of Owner's Equity
b. income statement
c. Balance sheet
d. All of these answers are correct.



95. Mark's Tree Service depreciation for the month is $500. The adjusting journal entry is:

a. Depreciation Expense 500 Equipment 500
b. Depreciation Expense 500 Accumulated Depreciation 500
c. Accumulated Depreciation 500 Depreciation Expense 500
d. Equipment 500 Accumulated Depreciation 500



99. Which of the following entries would record the payment of a utility bill?

a. Accounts Payable, debit; Utilities Expense, credit
b. Utilities Expense, debit; Accounts Payable, credit
c. Utilities Expense, debit; Cash, credit
d. Cash, debit; Utilities Expense, credit

GPA and Class

A statistics professor classifies his students according to their grade point average (GPA) and their class rank. GPA is on a 0.0-4.0 scale, and class rank is defined as the under class (freshmen and sophomores) and the upper class (juniors and seniors). One student is selected at random.

GPA

Class Under 2.0 2.0 - 3.0 Over 3.0
Under 0.05 0.25 0.10
Upper 0.10 0.30 0.20

106. {GPA and Class Narrative} If the student selected is in the upper class, what is the probability that her GPA is between 2.0 and 3.0?

107. {GPA and Class Narrative} What is the probability that the student is in the lower class and has GPA over 3.0?


Real Estate

The joint probability distribution of variables X and Y is shown in the table below. Amber and Bianca are real estate agents. Let X denote the number of houses that Amber will sell in a month, and let Y denote the number of houses Bianca will sell in a month.

X

Y 1 2 3
1 0.30 0.18 0.12
2 0.15 0.09 0.06
3 0.05 0.03 0.02


108. {Real Estate Narrative} Determine the marginal probability distribution of X.

109. {Real Estate Narrative} Calculate E(X) and E(Y).


Lamps Lifetime

A certain brand of flood lamps has a lifetime that has a normal distribution with a mean of 3,750 hours and a standard deviation of 300 hours.

110. {Lamps Lifetime Narrative} What proportion of these lamps will last less than 3,600 hours?

111. {Lamps Lifetime Narrative} What proportion of these lamps will last between 3,800 and 4,100 hours?

Senior Citizens

A sample of 50 senior citizens is drawn at random from a normal population whose mean age and standard deviation are 75 and 6 years, respectively.

112. {Senior Citizens Narrative} What is the probability that the mean age is at most 73 years?

113. In a given year, the average annual salary of a NFL football player was $205,000 with a standard deviation of $24,500. If a simple random sample of 50 players was taken, what is the probability that the sample mean will exceed $210,000?