Acct Stat final
A weakness of 'ordinal data' is that we cannot interpret the difference between the ranked value; For example, if someone finishes first, second, or third in a foot race, there is not necessarily the same 'difference in time' between first place and second place, as there is between second place and third place.
true
Knowledge and information result from using DATA;
true
The difference between cross-sectional and time series data is whether the data is evaluated at a single point in time or multiple points in time
true
True or false: The Holt exponential smoothing method incorporates long-term upward or downward movements of a time series
true
Which of the following is true regarding the graph depicting the normal probability density function f(x)?
s symmetric around the mean Is often referred to as the normal curve Is often referred to as the bell curve
he _____ _____ is the average squared deviation between the observed and predicted values
sample variance (s sub e ^2
Finally, another common transformation of categorical variables is to create category _________________
scores
SST=
sigma(y-ybar)^2
SSE=
sigma(y-yhat)=sigma e^2
If a linear regression model uses only one predictor variable, then the model is referred to as a
simple linear regression model
n the log-log regression model, both the response variable and the predictor variable are transformed into natural logs. We can write this model ln(y)=β0+β1ln(x)+ε. For 0 < β1 < 1, the log-log regression model implies a positive relationship between x and E(y); as x increases, E(y) increases at a '
slower rate
the sample regression equation provides a good fit when the dispersion of the residuals is relatively _________
small
______________ is a procedure for continually revising the forecast in the light of more recent observations.
smoothing
real life randomness, commission of relevant factors (may not be measurable) that influence response
stochastic
Which of the following defines a probability that is based on an individual's personal judgment or experience?
subjective probability
For a Poisson process, we define the number of '________' achieved in a specified time or space interval as a Poisson random variable.
successes
For a Poisson process, we define the number of ___________ achieved in a specified time or space interval as a Poisson random variable.
successes
a test of the overall usefullness of a regression
test of joint significance
determines whether the predictor variables have a joint statistical influence on the response
test of joint significance
measures how well the sample regression equation explains the variablility in the response
test statistic
Corporations issue convertible debt for two main reasons. One is the desire to raise equity capital that, assuming conversion, will arise when the original debt is converted. The other is
that many corps can obtain financing at lower rates
What is the most widely used continuous probability distribution?
the normal distribution.
the common stock account in a company's balance sheet is measures as?
the number of common shares outstanding multiplies by the stock's par value per share
When you sale treasury stock what increases
total assets and stockholders equity
The accuracy rate is calculated as the number of correct predictions divided by the
total number of observations
Data ______________ is the data conversion process from one format or structure to another
transformation
Which of the following is correct regarding the recording of long-term debt in an enterprise fund?
Both of the choices are correct.
Which of the following is correct with respect to rainy day funds?
Both of the choices are correct.
what effect does the issuance of a 2-for-1 stock split have of each of the following
par value per share - decreaseretained earnings- no effect
The natural logarithm converts changes in a variable into
percentage changes
including all dummy variables creates ________ _______
perfect multicollinearity
consists of all observations or items of interest in an analysis.
population
B1>0
positive linear relationship
we cannot use R^2 for model comparison when the competing models do not include the same number of __________ variables
predictor
A standard normal table, also referred to as the z-table, provides what information that is under the z curve?
probabilities
what are the methods of allocating proceeds from stock issures with other securities
proportional method incremental method
Business analytics translates data into decisions to improve business performance through
quantitative tools qualitative reasoning
the coefficient of determination
r^2
for a given sample size, increasing the number of predictors _______ the numerator and denominator
reduces
captures the relationship between two or more variables
regression analysis
If sampleevidence is inconsistent with the null hypothesis, we ' ' the null hypothesis.
reject
a larger test statistic provides us with more evidence to _______ the null hypothes
reject
the cumulative feature of preferred stock?
requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders
_______________plots are used to detect some of the common violations to the regression model assumptions. These graphical plots are easy to use and provide informal analysis of the estimated regression models.
residual
the difference between the observed and the predicted values is the
residual
standard deviation of the residuals (standard error of the estimate) has the same units of measurement as the _________
response
two primary sources of equity
retained earnings and contributed capital (paid in capital)
standard error of the estimate
s sub e
when comparing models with the same response, the model with the smaller ________ is preferred
s sub e
The degrees of freedom determine the extent of the broadness of the tails of the distribution; If there are fewer degrees of freedom, the tail of the distribution is more:
Broad
Manchester Corporation had 100,000 shares of common stock outstanding and 5% bonds with a face value of $1,000,000 outstanding throughout the current year. The bonds are convertible into 150,000 common shares. Net income for the current year was $212,500 with a 25% tax rate. What is the amount of the diluted EPS for the current year? (Round your answer to 2 decimal places.)
$1
'' " plots are used to detect some of the common violations to the regression model assumptions. These graphical plots are easy to use and provide informal analysis of the estimated regression models.
Residual
Whereas the moving average technique weighs all recent observations equally, the method called simple exponential smoothing assigns exponentially decreasing weights as the observations get ________________
older
a simple linear regression model uses _____ predictor variable(s)
one
d=1 for one of the categories, d=0 for the
others
cash dividends are paid on the basis of the number of shares?
outstanding
Monroe County operates a landfill as an enterprise fund. The closure and post-closure care costs are estimated to be $45,000,000. It is estimated that the capacity of the landfill is 15 million tons of waste and that waste will be accepted for 5 years. During 2020, 4 million tons of waste was accepted. The charge for closure and post-closure care costs for 2020 would be:
$12,000,000.
Werth Company has 100,000 shares of $10 par value common stock and 5,000 shares of $100 par value 5% cumulative preferred stock outstanding. No dividends had been paid in either year 6 or year 7. Werth Company is planning to pay a cash dividend in year 8.If the cash dividend is for $200,000 in total, how much will be received by common stockholders?
$125,000 The annual preferred dividend is 5% of par value or $5 per share x 5,000 shares or $25,000. Since the preferred stock is cumulative, preferred dividends in arrears for 2015 and 2016, amounting to $50,000, will be paid first. Current preferred dividends of $25,000 will be paid next. The remaining $125,000 will be paid to common shareholders in its entirety.
The z value associated with a probability of .5040 is
.01
The Town of Riverside reported appropriations in the amount of $17,000,000 for its General Fund for the fiscal year ended December 31, 2020. During that year, expenditures amounted to $16,200,000 (related to current year purchase orders that have been filled). In addition, $600,000 in encumbrances had been issued this year, but not filled.The amount that Riverside would report for expenditures (and encumbrances, if applicable) in its 2020 General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances (GAAP Basis) would be:
$16,200,000.
The City of Thomasville had the following debt outstanding:General obligation bonds to be paid from a debt service fund$1,500,000General obligation bonds to be paid from utility revenues$1,100,000Revenue bonds to be paid from utility revenues$1,400,000The amount that should be shown as debt in the utility (enterprise) fund would be:
$2,500,000.
On October 1, 2019, the City of Thomasville issued $5,000,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $4,968,750 was used to construct the addition, which was completed prior to June 30, 2020. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2019, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1, 2020. The fiscal year for Thomasville is July 1 - June 30.What amount would be reported as debt service expenditures in the year ended June 30, 2020 and 2021?
$200,000.$450,000
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2016, 29 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$13 per share. Options vest on January 1, 2020. They cannot be exercised before that date and will expire on December 31, 2022. The fair value of the 29 million options, estimated by an appropriate option pricing model, is $47 per option. Ignore income tax.Wilson's compensation expense in 2016 for these stock options was: (Round your answer to nearest whole dollar amount.)
$341 million. $47× 29 million= $1,363 million 1363/4=341
He offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he has an expected value of the annual bonus of $4,000. What is the total annual amount that Brad can expect to pay in bonuses if he has 10 employees?
$40,000 $4000*10 = $40,000
The Township of Thomasville's General Fund has the following net resources at year end:$69,000 of prepaid insurance$410,000 rainy day fund approved by the township governing board with specific conditions for its use$2,500 of supplies inventory$49,000 state grant for snow removal$190,000 contractual obligations for the purchase of equipmentOutstanding encumbrance of $105,000 for the purchase of furniture & fixtures (assume no contractual obligation)Total Fund Balance is $1,010,500What would be the total Restricted fund balance?
$49,000
Greene Corporation reported net income of $300,000. The company had 60,000 common shares outstanding, which remained unchanged during the current year. What is the company's basic EPS? (Round your answer to 2 decimal places.)
$5 300,000/60,000=5
At a University of California campus, data were collected on the starting salary of business graduates (Salary in $1,000s) along with their cumulative GPA, whether they have an MIS concentration (MIS = 1 if yes, 0 otherwise), and whether they have a statistics minor (Statistics = 1 if yes, 0 otherwise). Use the estimated equation Salary = 44.0073 + 6.6227GPA + 6.6071MIS + 6.7309Statistics. What is the additional salary a graduate would earn with an MIS degree?
$6,607
Using the estimated equation Salary = 44.0073 + 6.6227GPA + 6.6071MIS + 6.7309Statistics. For a graduate with a GPA of 3.5, compute the predicted salary (in $1,000s) for a business graduate with neither an MIS concentration nor a Statistics minor.
$67,187 44.0073 + 6.6227 × 3.5 + 6.6071 × 0 + 6.7309 × 0 = $67,187
The Fire Department of the Town of Little River received an appropriation in the amount of $9,000,000 for the fiscal year ended June 30, 2020. During the month ended July 31, 2020, the following transactions occurred: (a) purchase orders were issued in the amount of $800,000; (b) purchase orders, related to (a) above, were filled in the amount of $790,000; the related invoice amount was $795,000; invoices were paid in the amount of $750,000; (c) salaries were accrued and paid in the amount of $775,000. The balance available for the fire department as of July 31, 2020 is:
$7,420,000 9,000,000-800,000-795,000+790,000-775,000
Prompt Co. is calculating earnings per share amounts for inclusion in the annual report to shareholders. Prompt has obtained the following information from the controller's office as well as shareholder services:Net income from January 1 to December 31$110,000Corporate income tax rate 30%Number of outstanding shares: January 1 to April 30 12,000May 1 to July 31 10,000August 1 to December 31 12,000In addition, Prompt has $1,000,000 face value 10-year convertible bonds outstanding on January 1. The bonds were issued three years ago at a discount, which is being amortized in the amount of $7,000 per year. The stated rate of interest on the bonds is 8%, and the bonds were issued to yield 9%. Each $1,000 bond is convertible to 30 shares of Prompt's stock.Assuming the bonds are antidilutive securities, what amount is Prompt's diluted earnings per share for the year ended December 31?
$9.57 equal to 12,000 ×4/12 or 4,000 + 10,000 × 3/12 or 2,500 + 12,000 × 5/12 or 5,000 for a total of 11,500. As a result, basic EPS is $110,000/11,500 shares or $9.57 per share.
Net Position: Net Investment in Capital Assets is calculated as:
(Capital Assets − Accumulated Depreciation) − the balance of debt issued to finance capital assets.
For the 99% confidence interval, what is α/2?
.005
A frequency distribution for a categorical variable groups the data into categories and records the number of observations that fall into each category. In a survey, we asked 1000 respondents which car they would purchase if they had a choice between an Audi, a Mazda, a Toyota, or a Subaru. Of the 1000 respondents, 116 chose the Audi. What is the relative frequency of Audi respondents?
.116 (Point 116)
For the binomial distribution, px(1 − p)n − x, represents the probability of any particular sequence with x successes and n − x failures. Use this formula to answer the following: In the Southern area of the United States, approximately 20% of adults have a college degree. We randomly ask four adults whether they have a college degree. What is the probability that none of the adults have a college degree?
.4096 Reason: (.2)0 (.8)4 =.4096
A manager believes that 20% of consumers will respond positively to the firm's social media campaign. Also, 24% of those who respond positively will become loyal customers.Find the probability that the next recipient of their social media campaign will react positively and will become a loyal customer?
.48 P(R ∩ L) =P(L∣R)P(R) = 0.24 × 0.20 =.048
Raguel Corporation reported net income of $101,000 during the current calendar year. As of January 1, the company had 200,000 shares of common stock outstanding and 1,000 shares of 10% preferred stock with a par value of $10 per share. The preferred stock is nonconvertible and cumulative. The board of directors did not declare the preferred dividend of $1,000 for the current year. What is the company's basic EPS?
.50 101,000-1,00=100,000/200,000=.50
For z =.11, what is the corresponding probability?
.5438
For z =.11, what is the corresponding probability? Multiple choice question
.5438
An economist predicts a 70% chance that country A will perform poorly and a 35% chance that country B will perform poorly. There is also a 20% chance that both countries will perform poorly. What is the probability that country A performs poorly given that country B performs poorly?
.57 .20/.35 =.57
Johnny feels that he has a 85% chance of getting an A in Marketing and a 45% chance of getting an A in Managerial Economics. He also believes he has a 35% chance of getting an A in both classes.What is the probability that he gets an A in at least one of these courses?
.95 .85+.45-.35=.95
Johnny feels that he has a 85% chance of getting an A in Marketing and a 45% chance of getting an A in Managerial Economics. He also believes he has a 35% chance of getting an A in both classes. What is the probability that he does not get an A in either of these courses?
05 Reason: 1 - (0.85+0.45−0.35)=0.05
Adjusted R^2=
1-(1-R^2)((b-1)/(n-k-1)
Two main reasons corporations issue convertibles
1. raise equity capital without giving up more ownership control than necessary 2. to obtain debt financing at cheaper rates
Suppose we want to find the value tα,df with α = 0.010 and df = 10; that is, t0.0.10,10. Using Table 5.2, The value X suggests that P(T10 ≥ x) = 0.010; what is X?
1.372
Coy, Inc., initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2011. In 2012, the company repurchased 20,000 shares for $200,000. In 2013, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated December 31, 2013, Coy, Inc.'s treasury stock account shows a balance of:
100,000
Long Co. had 100,000 shares of common stock issued and outstanding at January 1, 2016. During 2016, Long took the following actions:March 15Declared a 2-for-1 stock split, when the fair value of the stock was $80 per share.December 15Declared a $0.50 per share cash dividend.In Long's statement of shareholders' equity for 2016, what amount should Long report as dividends?
100,000 100,000*2(stock split)200,000*.50 (dividend)=100,000
On May 1, Year 3, the board of directors of Boxer Industries declared a property dividend of 4,500 shares of King Corporation common stock that Boxer had purchased as an investment (book value: $58,500). The market value of the 4,500 King shares was $121,500 (or $27 per share) on the date of declaration and $180,000 (or $40 per share) on the date of distribution. What amount will be debited to Retained earnings in the journal entry recorded on the declaration date?
121,500
Whitney Corporation granted stock options that permit certain executives to buy 10,000 common shares at an exercise price of $10 per share. The fair value of an option was $5 at the grant date. Forty percent of the options were vested. What is the total amount of the "proceeds" from exercise of the hypothetical stock options that Whitney would assume in calculating diluted EPS?
130,000 (10,00010)+(10,000.60*5) =100,000+30,000 130,000
On January 1, Year 2, the Arlington Company had 100,000 shares of common stock issued and outstanding. On July 1, Year 2, the company sold 20,000 additional shares for cash. On August 1, a 25% stock dividend was distributed. What is the weighted-average number of common shares outstanding during Year 2?
137500 100,000/2+120,000/2=110,000 110,000+(110,000*.25)=137500
Mansfield Corporation granted 4,200 of its $2 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $10 per share on the grant date of the restricted stock award. Ignoring taxes, what is the compensation expense pertaining to the restricted shares in the first full year after the grant?
14000 10*4200=42000/3=14000
At January 1, Year 1, Edwards Company issued 10,000 stock options permitting employees to buy 10,000 shares of stock for $50 per share. The vesting schedule (graded-vesting) and value of the options that vest over the 3-year period is estimated at January 1, Year 1, as set forth in the following table.Vesting Date Amount Vesting Fair Value per OptionDec. 31, Year 1 10% $2 Dec. 31, Year 2 30% $3 Dec. 31, Year 3 60% $4What is the compensation cost for Year 1 relating to these stock options?
14500 1000*2=2000/1=2000 3000*3=9000/2=4500 6000*4=24000/3=8000 2000+4500+8000=14500
The compensation associated with restricted stock units (RSUs) under a stock award plan is:
Allocated to expense over the service period which usually is the vesting period.
A marketing firm is looking for a candidate with a business degree and at least five years of work experience.
An intersection
On January 1, Year 2, Zook Company had 26,000 shares of $1 par common stock outstanding. During October, Year 2, the company's board of directors declared and distributed a 1% common stock dividend when the market value of its common stock was $56 per share. In recording this transaction, what amount will be debited to Retained earnings in the journal entry to record the stock dividend?
14560 26,000*.1%=260 260*56=14560
Horton Industries' shareholders' equity included 150 million shares of $1 par common stock and a balance in paid-in capital - excess of par of $1,350 million. Assuming that Horton retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Horton's total paid-in capital decline if it reacquires 2 million shares at $7.50 per share? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
15 million 2*7.50
On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner than December 31, Year 3, and expire on January 1, Year 7. Each option can be exercised to acquire one share of $1 par common stock for $14. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What is the amount of compensation expense for Year 1? (Round your answer to the nearest dollar amount.)
153,333 92000*5=460000/3=153333
Important risk factors for high blood pressure reported by the National Institute of Health include weight and ethnicity.High blood pressure is common in adults who are overweight and are African American.a public policy researcher in Atlanta surveyed 150 adult men about 5′10″ in height and in the 55-60 age group. Data were collected on their systolic pressure, weight (in pounds), and race (Black = 1 for African American, 0 otherwise). The resulting regression equation is: Systolic = 80.2085 + 0.3901Weight + 6.9082Black. What is the expected Systolic blood pressure for a 170 pound black male?
153.44
The Township of Thomasville's General Fund has the following net resources at year end:$69,000 of prepaid insurance$410,000 rainy day fund approved by the township governing board with specific conditions for its use$2,500 of supplies inventory$49,000 state grant for snow removal$190,000 contractual obligations for the purchase of equipmentOutstanding encumbrance of $105,000 for the purchase of furniture & fixtures (assume no contractual obligation)Total Fund Balance is $1,010,500What would be the total Unassigned fund balance?
185,000
Hamilton Boats issued 138,000 shares of its no-par common stock to Sudoku Motors in exchange for 1,150 four-stroke outboard motors that normally sell in quantity for $2,400 each. By what amount should Hamilton's shareholders' equity increase as a result of this transaction?
2,760,000 1150*2400
Paul Corporation reported net income of $260,000 during the current calendar year. The company had 10,000 common shares outstanding on January 1 and sold an additional 6,000 shares on July 1. What is the company's basic EPS? (Round your answer to 2 decimal places.)
20 10000/1=10000 6000/2=3000 10000+3000=13000 260,000/13,000=20
The following information pertains to J Company's outstanding stock for 2016:Common stock, $1 parShares outstanding, 1/1/2016 10,000 2 for 1 stock split, 4/1/2016 10,000 Shares issued, 7/1/2016 5,000 Preferred stock, $100 par, 7% cumulative Shares outstanding, 1/1/2016 4,000What is the number of shares J should use to calculate 2016 basic earnings per share?
22,500.
Edge Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During year 8, Edge Company had the following transactions involving its own stock:On March 6, acquired 12,000 shares of treasury stock at a cost of $12 per shareOn April 18, resold 4,000 shares of treasury stock at $15 per share.On June 11, resold an additional 2,000 shares of treasury stock at $18 per shareIf Edge uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?
24,000 4000(15-12)+2000(18-12)=
We asked 1000 respondents whether they preferred Online teaching, hybrid teaching, or attending class in person. The relative frequency of the Online teaching proponents was point 252 or (.252). How many respondents preferred online teaching?
252
Four years ago, Wade Corporation granted incentive stock options to purchase 28,000 of its common shares at $7 each. The options are exercisable beginning this year. The market price of common shares averaged $10 per share during the year. There was no change in the 250,000 shares of outstanding common stock during the year. What is the number of shares to be used in computing diluted earnings per share for the year?
258,400 10-7=3/10=.30*28000=8400 250,000+8,400=258,400
Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had originally cost the other party $250,000 and had a fair value of $300,000 on the date of the exchange. The retail value of the inventory is $520,000. Toussaint Company is not publicly traded and cannot precisely determine the fair value of its stock. It has used some industry averages, however, and applied Black-Scholes-Merton and estimates the fair value of its stock to be about $28 per share. At what amount should the inventory be recorded?
280,000 28*10,000
The Holt-Winters exponential smoothing method uses _____________ recursive equations to smooth the series for level, L; trend, T; and seasonality, S.
3
He offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. Calculate the expected value of the annual bonus amount
3,700
An educational researcher is trying to analyze the determinants of the applicant pool for the specialized Master of Science in Accounting (MSA) program.Two important determinants are the marketing expense of the business school and the percentage of the MSA alumni who were employed within three months after graduation.For a given marketing expense of $80,000, predict the number of applications received if Marketing equals 80 and Employed equals 50 using the equation Applicantŝ=−49.5490+0.3550Marketing+1.0149Employed.
30 −49.5490 + 0.3550 × 80 + 1.0149 × 50 = 30
Which of the following examples violates the 'mutually exclusive' guideline for interval construction?
300 < x ≤ 400 and 400 < x ≤ 500
Schaeffer Corporation reports $67 million accumulated other comprehensive income in its balance sheet as a component of shareholders' equity. In a related statement reporting comprehensive income for the year, the company reveals net income of $550 million and other comprehensive income of $30 million. What was the balance in accumulated other comprehensive income in last year's balance sheet? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
37 67-30
f a bar chart depicts the relative frequency for type of occupations (with options as Doctor, Professor, Athlete, or Actor) as the categorical variable as a series of vertical bars, and the Doctor vertical bar has a value of .4, and there are 10 employeed individuals responding, how many Doctors were in the group of 10?
4
At December 31, 2016, Hansen Corporation had 48,000 shares of common stock and 5,100 shares of 10%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2016. Net income was reported as $250,000. What is basic EPS?
4.15
On December 31, Year 1, the Reba Company had 120,000 shares of common stock issued and outstanding. On July 1, Year 2, the company sold 23,000 additional shares for cash. Reba's net income for the year ended December 31, Year 2, was $568,000. What is the basic earnings per share? (Round your answer to 2 decimal places.)
4.32 568000/131500=4.32 120000+(23000*.5)=131500
Lewelling Company issued 103,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 4,300 hours of legal services performed. Morgan's usual rate is $120 per hour. By what amount should Lewelling's paid-in capital - excess of par increase as a result of this transaction?
413,000 4300*120= 516000 516000-103000=413000
Dab Corporation was organized on January 1, Year 1. During Year 1, Dab had the following transactions relating to shareholders' equity:Issued 28,000 shares of common stock in exchange for cash of $442,400Reported net income of $98,000Reported net holding gains on available-for-sale investments in debt securities of $1,000Paid dividends of $54,000What is total shareholders' equity at the end of Year 1?
487,400 442400+98000+1000-54000
According to interviews and expert estimates, analytics professionals spend from ________________ of their time in the mundane task of collecting and preparing unruly data, before analytics can be applied (The New York Times ,August 17, 2014).
50-80%
On January 1, Year 1, Sterling Corporation issued stock options for 260,000 shares to its CEO. The options have an estimated fair value of $6 each. To provide additional incentive, the options are not exercisable unless revenue increases by 4% in three years. Sterling initially estimates that it is probable the goal will be achieved. What is compensation expense for Year 1?
520,000 260,000*6=1,560,000/3=520,000
At January 1, Year 1, under its restricted stock unit (RSU) plan, Label Corporation grants RSUs representing 10,000 of its $1 par common shares to executives. The shares are subject to forfeiture if employment is terminated within a five-year vesting period. Shares have a current market price of $10 per share and their average market price during Year 1 was $20 per share. What is the number of shares that will be added to the denominator of diluted EPS for Year 1?
6,000
An educational researcher is trying to analyze the determinants of the applicant pool for the specialized Master of Science in Accounting (MSA) program. Two important determinants are the marketing expense of the business school and the percentage of the MSA alumni who were employed within three months after graduation. Using the equation Applicantŝ = −49.5490 + 0.3550Marketing + 2.0Employed, answer the following question. If the number employed increased by 30, how many more applicants would there have been?
60
On January 1, Year 2, the Feather Company had 50,000 shares of common stock issued and outstanding. On May 1, Year 2, the company sold 12,000 additional shares for cash. On August 1, a 10% stock dividend was distributed. On November 1, 12,000 shares were reacquired as treasury stock. What is the weighted-average number of common shares outstanding during Year 2 and included as the denominator of the earnings per shares calculation?
61,800
On January 1, Year 1, Manning Company granted 97,000 stock options to certain executives. The options are exercisable no sooner than December 31, Year 3, and expire on January 1, Year 6. Each option can be exercised to acquire one share of $1 par common stock for $8. An option-pricing model estimates the fair value of the options to be $4 on the date of grant. At the time of issuance, no estimate of forfeitures is made. If unexpected turnover in Year 2 caused the company to now estimate that 20% of the options would be forfeited, what amount should Manning recognize as compensation expense for Year 2? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
77600 9700*4=388000/3=129333.333 88000.80=314002/3=206933.33 206933.33-129333.33=77600
At December 31, 2016 and 2015, Gow Corp. had 100,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2016 or 2015. Net income for 2016 was $1,000,000. For 2016, basic earnings per common share amounted to
9.50
On December 29, year 7, Almond Company granted 100,000 stock options to a group of 100 employees, enabling each employee to buy 1,000 shares for $20 per share. On the grant date, the shares had a market value of $16 per share and the options had a market value of $3.00 per option. The options vest over a 3-year period and become exercisable on January 1, year 11. Almond Company expects that, based on historical turnover, they will lose approximately 3 of the employees receiving the options per year during the vesting period. Compensation expense will be recognized uniformly over the vesting period. How much compensation expense will Almond Company recognize in year 8?
91,000 Number of Options Granted (-) Market of Option over Vesting Period= 100,000 (-) [ Market Value x N. of options x Vesting peiod]= 100,000 (-) [ $3 x 1,000 shares x 3 ]= 100,000 (-) 9,000= 91,000 OptionsCompensation expense will Almond Company recognize in year 8= [ Number of Options Exercised x Market Value of Options ] / Vesting Period= 91,000 x 3 / 3= $91,000
Lakeview Corporation had 100,000 shares of common stock outstanding and 200,000 shares of 10% preferred stock that are convertible into 150,000 common shares. Net income for the current year was $500,000 with a 25% tax rate. What is the amount of the diluted EPS for the current year?
= $500,000 / (100,000 + 150,000) shares = $500,000 / 250,000 shares = $2 per share
Which of the following would be accounted for as a permanent fund?
A gift of $500,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city cemetery.
The result of a stock split is:
A larger number of less valuable shares.
Examples of common necessary mathematical data transformations include:
A retail company might convert customers' birth dates into agesTransformation of date values is often performed to help bring useful information out of the dataIn order to analyze trend, we often transform raw data values into Percentages
A family has decided to purchase Toyota or Honda.
A union
Which of the terms or phrases listed below is more associated with balance sheets prepared using U.S. GAAP than with balance sheets prepared using IFRS?
Accumulated other comprehensive income
It is common to assess the performance of linear probability and logistic regression models on the basis of the
Accuracy rates defined as the percentage of correctly classified observations
In 2014, Fogg, Inc., issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, 2016, when Fogg acquired some of the issued shares for $20 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?
Additional paid-in capital is decreased.
The Holt-Winters exponential smoothing method is further divided into ___________ and multiplicative structures depending on the type of seasonality exhibited by the series.
Additive
Why might it be desirable for an enterprise fund to operate at a surplus?
All of the choices are correct.
Which of the following statements is true regarding earnings per share (EPS) disclosures under GAAP?
All public companies are required to report EPS amounts related to income from continuing operations, income from discontinued operations, and net income.
On October 1, 2019, the City of Thomasville issued $5,000,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $4,968,750 was used to construct the addition, which was completed prior to June 30, 2020. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2019, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1, 2020. The fiscal year for Thomasville is July 1 - June 30.In addition to a $5,000,000 liability in the government-wide Statement of Net Position, how would the bond sale be reported?
As a $5,050,000 other financing source in the capital projects fund, a $50,000 other financing use in the capital projects fund, and a $50,000 other financing source in the debt service fund.
On October 1, 2019, the City of Thomasville issued $5,000,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $4,968,750 was used to construct the addition, which was completed prior to June 30, 2020. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2019, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1, 2020. The fiscal year for Thomasville is July 1 - June 30.How would the construction costs be reported at year-end?
As an expenditure of the capital projects fund and a capital asset in the government-wide Statement of Net Position.
How would the government account for the unused bond proceeds upon completion of a capital project?
As an other financing source in the debt service fund and as an other financing use in the capital projects fund.
For 0 < β1 < 1, the log-log regression model implies a positive relationship between x and E(y); as x increases, E(y) increases at a slower rate. This may be appropriate in the food expenditure example where we expect food expenditure to react positively to changes in income, with the impact diminishing at higher income levels. If β1 < 0, what is the relationship between x and E(y)?
As x increases, E(y) decreases at a slower rate
Equity
Assets - Liabilities
Which of the following is incorrect with respect to fund balances?
Assigned fund balances are resources that the governing body has specified for a particular use through ordinance or resolution by the government's highest level of authority.
Which of the following is true of qualitative forecast methods? Select all that apply!
Attractive when historical data are not available Used when future results are suspected to depart markedly from results in prior periods
the unknown slope
B1
Which 'tool' depicts the frequency or the relative frequency for each category of the categorical variable as a series of horizontal or vertical bars, the lengths of which are proportional to the values that are to be depicted.
Bar chart
What are some commonly used terms for the normal distribution?
Bell-shaped distribution Gaussian distribution
is the process of transforming numerical variables into categorical variables by grouping the numerical values into a small number of groups
Binning
The sampling distribution of ̄P is closely related to which distribution?
Binomial
Which of the following statements about 'binning' is accurate?
Bins must be consecutive Binning reduces the noise in the data
the unknown intercept
Bo
the deterministic component
Bo + B1x1
y=
Bo + B1x1+ E
E(y)=(expected value of y for a given value of x1 lies on a straight line
Bo+B1x1
Which of the following is an example of a Type II Error?
Can occur when the null hypothesis is false
expresses the risk adjusted return of an asset as a function of the risk adjusted market return
Capital Asset Pricing Model (CAPM)
The Town of St. John decided to establish an internal service fund to account for the operations of a Print Shop. The Print Shop is to begin operations on October 1, 2020 the first day of the City's fiscal year. During the fiscal year ended September 30, 2021 the following transactions occurred:The General Fund made a permanent contribution of $100,000 and a long-term advance of $250,000 to the Print Shop Fund. The advance is to be repaid by the Print Shop Fund in four equal annual installments; the first installment is due September 30, 2021. The advance is non-interest bearing and is considered issued for the purchases of equipment.The journal entry to record this event would be:
Cash350,000Advance from General Fund 250,000Transfers in from General Fund 100,000
The assumption of constant variability of observations often breaks down in studies with cross-sectional data. Consider the model y = β0 + β1x + ɛ, where y is a household's consumption expenditure and x is its disposable income. It may be unreasonable to assume that the variability of consumption is the same across a cross-section of household incomes. This violation is called:
Changing variability
A vertical bar chart is often referred to as which of the following?
Column chart
Are the following examples; the return on a mutual fund, time to completion of a task, or the volume of beer sold as 16 ounces, examples of continuous or discrete random variables?
Continuous
A simple probability distribution for a continuous random variable is called the:
Continuous uniform distribution
Researchers were interested in the season records of the Major League baseball teams, including the Los Angeles Dodgers, and the Cincinnati Reds Baseball team. Researchers collected the data at the end of the season. This sample data collection method is considered to be:
Cross-sectional data
Higher-order polynomial functions can be estimated also. The __________ trend model allows for two changes in the direction of a series.
Cubic
if the specifies dividend is not paid in a given year the unpaid dividends must be made up in a later dividend year before any dividends are paid on common shares
Cumulative
Forecasting smoothing techniques are used when the time series represent ________________ fluctuations with no discernible trend or seasonal fluctuations.
Random
Maholm Company declared a cash dividend payable to common stockholders of record as of December 24, year 7. The dividend was declared on December 10, year 7 and will be paid on January 7, year 8. On what date or dates will stockholders' equity decrease as a result of the dividend?
December 10, year 7 only
We can use residual plots to gauge changing variability. The residuals are generally plotted against each predictor variable xj. There is a violation if the variability increases or
Decreases over the values of xj.
A company has cumulative preferred stock. When computing earnings per share, the current year's dividends not declared on the preferred stock should be:
Deducted from earnings for the year.
If the value of the response variable is uniquely determined by the values of the predictor variables, we say that the relationship between the variables is: (Choose the correct response)
Deterministic
What type of variable assumes a countable number of distinct values such as x1, x2, x3, and so on?
Discrete
We are conducting a hypothesis test using α = 0.05. H0:Do not build brick-and-mortar store. HA:Build brick-and-mortar store. We determine that the p-value is .20. What is our decision?
Do not reject the null hypothesis
we are conducting a hypothesis test using α = 0.05.H0:Do not build brick-and-mortar store.HA:Build brick-and-mortar store.We determine that the p-value is .20. What is our decision?
Do not reject the null hypothesis
Consider the following linear regression model, which links the response variable y with k predictor variables x1, x2,..., xk:y=β0+β1x1+β2x2+... +βkxk+ε. If, for example, the slope coefficient β1 equals zero, then the predictor variable x1 does what and implies what? Choose all that answer the 'does what?' and 'Implies what?' questions!
Drops out of the equation Implying that x1 does not influence y
On September 30, year 8, Saucier Company declared a 5% stock dividend when its stock was selling for $10 per share. As a result, Saucier Company will issue 20,000 additional shares of its $2 par value common stock. All outstanding shares were originally issued for $6 per share. What will be the decrease to stockholders' equity as a result of the declaration and distribution of the stock dividend?
Due to this there is no change in Stockholders equity.S answer is $0.
A ____________ variable, also referred to as an indicator or a binary variable, is commonly used to describe two categories of a variable.
Dummy
With seasonal data, we estimate a linear trend model that also includes _________________variables to capture the seasonal variations.
Dummy
If the linear regression model includes an intercept, the number of dummy variables representing a categorical variable should be one less than the number of categories of the variable. This solution helps avoid which problem?
Dummy variable trap
the stochastic component or the random error term
E
In many instances, we calculate probabilities by referencing data based on the observed outcomes of an experiment. Which probability category is defined as the observed relative frequency with which an event occurs?
Empirical probability
When a government orders equipment which is to be used by an activity accounted within the General Fund, it should be recorded in the General Fund as a(an):
Encumbrance.
An entity-relationship diagram (ERD) is a graphical representation used to illustrate the structure of the data. An _____________is a generalized category to represent persons, places, things, or events about which we want to store data in a database table. A single occurrence of an entity is called an ________________.
Entity Instance
In-sample and out-of-sample criteria are based on the forecast
Error
What do we refer to events which include all outcomes in the sample space?
Exhaustive
In the semi-log regression model not all variables are transformed into logs.The semi-log model that transforms only the response variable is often called:
Exponential regression model
Although a linear relationship can be adequate, there are many cases in which a nonlinear functional form is more suitable. Which of the following are trend models that use a nonlinear functional form? Select all that apply!
Exponential trend model Quadratic trend model Cubic trend model
Which of the following is true of the Holt-Winters exponential smoothing method? Please select all that apply!
Extends the Holt exponential smoothing model to include seasonality The Holt-Winters methods is also called triple exponential smoothing
What does XML stand for?
Extensible Markup Language
True or false: The exponential trend model is attractive when the expected increase in the series gets smaller over time.
False Larger
In the case of a dummy variable categorizing a person's gender, we can define 1 for male and 0 for female. In this case, what would the reference category be?
Female
In which data format does each column start and end at the same place in every row?
Fixed-width
Which of the following are described as valid methods for visualizing a numerical variable?
Frequency distribution Histogram
What are some measures that summarize how well the sample regression equation fits the data?
Goodness-of-fit
Which of the following is incorrect with respect to encumbrances?
Governments may commit resources and record encumbrances in anticipation of appropriations.
For the linear regression model, y = β0 + β1x1 + β2x2 + . . . + βkxk + ɛ, which of the following are the competing hypotheses used for a test of joint significance? Choose both the correct test for the null and alternative hypotheses.
H0:β1=β2=... =βk=0 HA:At least one βi≠0
Which of the following is incorrect with respect to the determination of the appropriate fund in which to report the trust activities?
If the trust benefits private organizations or other governments and the principal must be maintained, the appropriate fund would be a custodial fund.
Important risk factors for high blood pressure reported by the National Institute of Health include weight and ethnicity.High blood pressure is common in adults who are overweight and are African American.a public policy researcher in Atlanta surveyed 150 adult men about 5′10″ in height and in the 55-60 age group. Data were collected on their systolic pressure, weight (in pounds), and race (Black = 1 for African American, 0 otherwise). The resulting regression equation which includes the interaction between weight and race is: Systolic = 70.8312 + 0.4362Weight + 30.2482Black − 0.1118(Weight × Black). The interaction variable is negative and statistically significant at the 5% level. Interpret what a negative interaction implies in this example:
Implies that black men carry their weight better in terms of the systolic pressure than their non black counterparts.
What is the term in regression models when a predictor variable has a different partial effect on the outcome depending on the values of another predictor variable?
Interaction effect
A simple linear regression model and is represented as y = β0 + β1x1 + ɛ,; What do β0and β1 (the Greek letters read as betas) represent? (They must be shown in the correct order!)
Intercept, slope
Activities that produce goods or services to be provided to other departments or other governmental units would most commonly be reported in which fund?
Internal service fund.
Which of the following is true regarding the graph depicting the normal probability density function f(x)?
Is often referred to as the bell curve Is often referred to as the normal curve Is symmetric around the mean
Which of the following is true of the Holt-Winters exponential smoothing method? Please select all that apply!
It is an extension of the Holt exponential smoothing method Also referred to as the triple exponential smoothing method It is appropriate when the time series exhibits trend and seasonality.
Which of the following statements about accumulated other comprehensive income is true?
It is reported as part of stockholders' equity in the balance sheet.
Which markup language is used for transmitting human readable data in compact files?
JSON
The exponential trend model is attractive when the expected increase in the series gets
Larger over time.
In the semi-log regression model not all variables are transformed into logs. A semi-log model that transforms only the predictor variable is often called:
Logarithmic regression model
When several types of potential common shares exist, the one that enters the computation of diluted EPS first is the one with the:
Lowest incremental effect.
Note that for the exponential model, we compute y ̂ t in regular units and not in natural logs. The resulting y ̂ t also enables us to compare the linear and the exponential models in terms of which of the following? (Select all that apply!).
MAPE MSe MAD
Data ______________ is a process that an organization uses to acquire, organize, store, manipulate, and distribute data
Management
What is the term used in a confidence interval that accounts for the standard error of the estimator and the desired confidence level of the interval?
Margin of error
Recall that we use nominal and ordinal measurement scales to represent categorical variables. Which of the examples below represent a nominal scale representation of a categorical variable?
Marital status (single, married, widowed, divorced, separated)
The logistic regression model cannot be estimated with standard ordinary least squares (OLS) procedures. Instead, we rely on which method?
Maximum likelihood estimation (MLE)
How are companies currently required to measure the value of stock options on the date they are issued?
Measure at fair value at time granted
Which of the following is an example of machine-generated data?
Meteorological data
The journal entry to write off an uncollectible account receivable by a city water department would include:
Neither of the choices would be included in the journal entry.
The categories of Net Position for a proprietary fund are classified within which of the following categories?
Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position
if the specified dividend is not declared in any given year it need never be paid
Noncumulative
preferred shareholders dividends are limited to the stated amount
Nonparticipating
What is the most widely used continuous probability distribution? the '_____ ' distribution.
Normal
For making statistical inferences, it is essential that the sampling distribution of ̄X is
Normally distributed.
On November 1, the board of directors of Castle Industries declares a cash dividend of $1 per share on its 1 million shares, payable to shareholders of record November 15, to be paid December 1. The ex-dividend date is two days before the date of record. On which of the following dates will journal entries be recorded?
Nov. 1, and Dec 1
There are two common strategies for dealing with missing values: '______________ and _________________
Omission and Imputation
If we include as many dummy variables as there are categories, then their sum will equal
One
The variance inflation factor (VIF) is another measure that can detect a high correlation between three or more predictor variables even if no pair of predictor variables has a particularly high correlation. What is the smallest possible value of VIF? (absence of multicollinearity).
One
Which of the following is true of a data warehouse?
One of its primary purposes is to support decision making Data in a data warehouse are usually organized around subjects such as sales, customers, or products that are relevant to business decision making
How many types of potential common shares must a corporation have in order to be said to have a complex capital structure?
One.
chooses the sample regression equation by minimizing the error sum of squares
Ordinary least squares (OLS)
An effective strategy for dealing with these issues is category reduction, where we collapse some of the categories to create fewer nonoverlapping categories. The first guideline states that categories with very few observations may be combined to create the _____________ category
Other
Proceeds of tax supported bonds are recognized in a capital projects fund as a(an):
Other Financing Source.
When an estimated model begins to describe the quirks of the data rather than the real relationships between variables, this is called:
Overfitting
Scores on a management aptitude exam are normally distributed with a mean of 72 and a standard deviation of 8. If we are trying to find the probability that a randomly selected manager will score above 75, what is the corresponding Z value?
P(Z >.375)
Stock that had a fixed per-share amount printed on each stock certificate is called?
Par value stock
preferred shareholders are allowed to receive additional dividends beyond the stated amount
Participating
What is the condition called when two or more predictor variables have an exact linear relationship?
Perfect multicollinearity
Wiler City receives a trust donation for the purpose of maintaining flower beds in city parks, but the donor specifies that the principal must be maintained. This type of trust would be most appropriately accounted for in a:
Permanent Fund.
Which of the following is true of structured data?
Point-of-sale and financial data are examples of structured data
Sometimes a time series reverses direction, due to any number of circumstances. A common method for forecasting this type of series is
Polynomial trend model
Sometimes a time series reverses direction, due to any number of circumstances. A common method for forecasting this type of series is: Select the correct answer!
Polynomial trend model
There is only one population, but many possible samples of a given size can be drawn from the population. Which of the following is a constant, even though its value may be unknown?
Population Parameter
Which of the analytic techniques answers the question 'What could happen in the future'?
Predictive
Which of the analytic techniques answers the question 'What should we do'?
Prescriptive
Which nonlinear regression model is appropriate when the slope, capturing the influence of x on y, changes in magnitude as well as sign?
Quadratic regression model
________________________forecasting methods are based on the judgment of the forecaster, who uses prior experience and expertise to make forecasts.
Qualitative
might allow preferred shareholder the option to return their shares for a predetermines pric
Redemption privilege
If residual plots exhibit strong nonlinear patterns, the inferences made by a linear regression model can be quite misleading. In such instances, we should employ nonlinear regression methods based on simple transformations of the ' ' and the predictor variables.
Response
If residual plots exhibit strong nonlinear patterns, the inferences made by a linear regression model can be quite misleading. In such instances, we should employ nonlinear regression methods based on simple transformations of the
Response and the predictor variables.
The most popular query language used today is '_____________ This popular query language is used for manipulating data in a relational database using relatively simple and intuitive commands.
SQL
s sub e=
SQRT((SSE)/(n-k-1))
SST=
SSR+SSE
r^2=
SSR/SST=1-(SSE/SST)
When determining the value tα.df, we need which two pieces of information:
Sample size or degrees of freedom and Alpha
Which of the following is a common graphical method that allows us to determine whether two numerical variables are related in some systematic way?
Scatter plot
Which of the time series methods shows repetitions over a one-year period. For example, every year, sales of retail goods increase during the holiday season, and the number of vacation packages sold goes up during the summer?
Seasonal component
event if it contains a single outcome.
Simple
Smoothing techniques are employed to reduce the effect of random fluctuations. Which of the following are two distinct smoothing techniques discussed in the book?
Simple exponential smoothing Moving average technique
__________________ data also allows us to review the range of values for each variable.
Sorting
In the presence of changing variability, the estimated standard errors of the OLS estimators are inappropriate. What does this imply about using standard testing?
Standard t or F tests are not valid as they are based on these estimated standard errors.
Which financial statements are required for a proprietary fund?
Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position, and Statement of Cash Flows.
Another standardized statistic, which uses the estimator S in place of σ, is computed as T= ̄X−μ/S/√n. Which distribution does the random variable T follow?
T distribution
When we assess a linear regression model, there are several tests we can use. What is the test called that determines whether the predictor variables x1, x2,..., xk have a joint statistical influence on y?
Test of joint significance
Which of the following statements is correct?
The General Fund and Special Revenue fund provide budget to actual comparisons and the Capital Projects, Debt Service and Permanent Funds do not.
What is used to evaluate how well the sample regression equation fits the data?
The coefficient of determination, R²
Time series forecasting models consist of which components? the trend, the seasonal, the cyclical, and the random components.
The cyclical components The trend components The seasonal components
Which of the following statements about the reporting of earnings per share are true?
The differences between the earnings per share requirements under U.S. GAAP and IFRS result, in part, from differences in the application of the treasury stock method.
corporations are formed in accordance with?
The laws of individual states.
What is the linear regression model applied to a binary response variable called?
The linear probability regression model
With quarterly data, an exponential trend model with seasonal dummy variables is specified as ln(y) = β 0 + β 1 d 1 + β 2 d 2 + β 3 d 3 + β 4 t + ε.. What does the d2 represent?
The quarter 2 dummy variable
With quarterly data, an exponential trend model with seasonal dummy variables isspecified as ln(y) = β 0 + β 1 d 1 + β 2 d 2 + β 3 d 3 + β 4 t + ε.. What does the d2 represent?
The quarter 2 dummy variable
Which of the following is NOT a correct statement about entity-relationship diagram (ERD) attributes?
The relationships between entities can only be one-to-many
We can use residual plots to gauge changing variability.The residuals are generally plotted against each predictor variable xj Which of the following indicates there is no violation?
The residuals are randomly dispersed across the values of xj
We can plot the residuals sequentially over time to look for correlated observations. If there is no violation, then what would you see?
The residuals should show no pattern around the horizontal axis.
Which of the following statements properly describes a preemptive right?
The right to maintain one's percentage share of ownership when new shares are issued
Recall that the population proportion p is the essential descriptive measure for a qualitative variable, and that it is estimated on the basis of its sample counterpart. What is its sample counterpart?
The sample proportion ̄P
Instead of se2,we generally report the standard deviation of the residual, denoted se, more commonly referred to as
The standard error of the estimate
_____________series is a sequence of observations that are ordered in time.
Time
What is the probability theory rule that is a tool for breaking the computation of a probability into distinct cases?
Total probability rule
We use analysis of variance (ANOVA) in the context of the linear regression model to derive R2.We denote the total variation in y as Σ(yi−y ̄)2, which is the numerator in the formula for the variance of y. What is this total variation called?
Total sum of squares
What type of analysis extracts long-term upward or downward movements of time series?
Trend
A 'variable' is defined as when a characteristic of interest differs in kind or degree among various observations.
True
A relational database consists of one or more logically related data files, where each data file is a two-dimensional grid that consists of rows and columns.
True
In most applications, we require some form of the equality sign in the null hypothesis
True
There are many standards for file formats. Two common layouts for simple text files are fixed-width and delimited format.
True
True or false: Data in a data mart are organized using a multidimensional data model called a star schema, which includes dimension and fact tables.
True
True or false: In a business setting, we might use a 1:1 relationship to describe a situation where each department can have only one manager and each manager can only manage one department.
True
True or false: In-sample criteria do not help us assess how well an estimated model will predict in an unseen sample.
True
A few years ago, it came as a surprise when Apple's iPhone 4 was found to have a problem. Users complained of weak reception, and sometimes even dropped calls, when they cradled the phone in their hands in a particular way. A survey at a local store found that 2% of iPhone 4 users experienced this reception problem.a. Determine whether the following statement is true or false. The population is all iPhone 4 users.TrueFalseb. Does 2% denote the population parameter or the sample statistic?Population parameterSample statistic
True Sample Statistic
Which of the following statements is correct?
Unassigned Fund balance represents the net resources of the fund that are currently available for future spending.
Which of the following statements about the accounting for options with graded vesting are true?
Under U.S. GAAP, the company must recognize at least the amount of the award that has vested by that date.
Which of the following statements is false?
Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end.
When making forecasts in an exponential model It is advisable to use what type of values for making forecasts?
Unrounded values
An important first step before running a regression model is to compile a comprehensive list of potential predictor variables. How can we reduce the list to a smaller list of predictor variables?
Use the adjusted R2 criterion to reduce the list
Sometimes nominal or ordinal variables come with too many categories. This presents a number of potential problems. Which of the following are potential problems highlighted in the text?
Variables with too many categories pull down model performance If a variable has some categories that rarely occur, it is difficult to capture the impact of these categories accurately
Which of the following 'V's" are considered to be the 3 V's which are characteristics of big data?
Variety Volume Velocity
A crucial assumption in a linear regression model is that the error term is not correlated with the predictor variables. In general, when does this assumption break down?
When important predictor variables are excluded.
We can plot the residuals sequentially over time to look for correlated observations. How are violations indicated
When positive residuals and negative residuals alternate over a few periods, sometimes positive or negative for a couple of periods.
When is the use of the Holt exponential smoothing method appropriate?
When the time series exhibits trend but no seasonality When the time series has been deseasonalized.
The basic structure of a SQL statement is relatively simple and usually consists of three keywords: Which of the following is a SQL keyword? Select all that apply!
Where From Select
When calculating basic earnings per share, net income is reduced by dividends on nonconvertible cumulative preferred stock:
Whether declared or not.
cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as?
a footnote
Scores on a management aptitude examination are normally distributed with a mean of 72 and a standard deviation of 8.We want to find the lowest score that will place a manager in the top 10% (90th percentile) of the distribution. Which of the following is true to solve this problem?
a score of 82.24 or higher will place a manager in the top 10% of the distribution z = 1.28 The 90th percentile is a numerical value x such that P(X < x) = 0.90
accounts for the sample size n and the number of predictor variables k.
adjusted R^2
when comparing models with the same response, the model with the higher ________ _____ is preferred
adjusted R^2
the adjusted coefficient of determination
adjusted r^2
all of the slope coefficients equal zero
all of the predictors drop out, none of the preddictors have a linear relationship with the response
How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?a. As ordinary earnings shown on the income statement.b. As paid-in capital from treasury stock transactions.c. As an increase in the amount shown for common stock.d. As an extraordinary item shown on the income statement.
as paid-in capital from treasury stock transactions
at least one of the slope coefficients does not equal zero:
at least one predictor influences the response
Retire treasury stock
cancellation of the treasury stockand reduce amount of share of issued stock
may be defined by more than two categories
categorical variable
quantifies the sample variation in the response that is explained by the sample regression equation
coefficient of determination
The residual interest in a corporation belongs to the?
common stockholders
We use hypothesis testing to resolve conflicts between two competing hypotheses on a particular population parameter of interest. Which of the following corresponds to the null hypothesis?
corresponding to a presumed default state of nature or status quo denoted H0
Which term describes a compilation of facts, figures or other contents, both numerical and nonnumerical?
data
Todd Corporation sold 4 million of its $1 par common shares at $6 per share. The company received net proceeds from the public offering of $23,600,000, after deducting legal, promotional, and accounting services necessary to effect the sale. Prepare the appropriate journal entry for the sale of the stock.
debit cash 23,600,000 credit common stock 4,000,000 credit PIC excess of par 19,600,000
Penne Pharmaceuticals sold 15 million shares of its $1 par common stock to provide funds for research and development. If the issue price is $12 per share, what is the journal entry to record the sale of the shares? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
debit cash for 180 (15*12) credit common stock 15 (15*1) credit PIC excess par 165 (180-15)
As of the end of Year 1, the shareholders' equity of Philip Corporation consisted of:Common stock, 80,100 shares at $1 par$80,100 Paid-in capital—excess of par 168,210 Retained earnings 121,000At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal entry for the repurchase and retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
debit common stock 1100 debit PIC excess of par 2310 (168210/80100)*1100 debit retained earnings 5500 (8910-1100-2310) credit cash 8910 (1100*8.10)
R^2 never _________ as we add more variables
decreases
the declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding?
decreases retained earnings but does not change total stockholders equity
are the three broad categories of analytics techniques designed to extract value from data?
descriptive predictive prescriptive
ther response is uniquely determined by the predictors
deterministic
The example of momentum p is the product of the mass m and the velocity v of an object; that is, p = mv, is an example of a
deterministic relationship.
used to describe two categories of a categorical variable, denoted d
dummy variable
use multiple _____ _____ capture all categories, one for each category
dummy variables
stockholders equity is generally classified into two major categories
earned capital and contributed capital
SSE
error sum of squares
When a statistic is used to estimate a parameter, it is referred to as an
estimator
True or false: For quarterly data, we need to define only two dummy variables, using the other two quarters as reference.
false
When defining the 3 Vs which are defining characteristics of big data, 'velocity' refers to the immense amount of data compiled from a single source or a wide range of sources.
false that is volume
The linear trend model is used for a time series that is expected to grow by a
fixed amount each time period.
measures summarize how well the sample regression equation fits the data
goodness of fit
The ________ the adjusted R^2 the better the model
higher
sometimes we may find joint significance when only one, or sometimes even none, of the predictor variables is ______ _________
individually significant
the number of predictors
k
Oftentimes, a categorical variable is defined by more than two categories. For example, the mode of transportation used to commute may be described by three categories: Public Transportation, Driving Alone, and Car Pooling. Given k categories of a variable, the general rule is to create how many dummy variables?Multiple choice question.k
k-1
if E is not normally distributed, the tests are valid only for _______ sample sizes
large
When comparing models with the same response variable, we prefer the model with a smaller se. A smaller se implies that there is _____________________ dispersion of the observed values from the predicted values.
less
postulates that the relationship between the response and the predictors is linear
linear regression model
a dividend which is a return to stockholders of a portion of their original investments is a
liquidating dividend
In addition to binning, another common approach is to create new variables through ______________ transformations of existing variables
mathematical
Which of the following is not a common approach for transforming categorical data?
mathematical transformations
a numerical variable assumes _______ numeric variables
meaningful
a model with more than one predictor is reffered to as a
multiple linear regression model
sample size
n
For the binomial distribution, px(1 − p)n − x, represents the probability of any particular sequence with x successes and n − x failures. Use this formula to answer the following: In the Southern area of the United States, approximately 20% of adults have a college degree. We randomly ask four adults whether they have a college degree. Which of the following statements is true?
n=4P robability that one adult will have a college degree = 10.24%
B1<0
negative linear relationship
B1=0
no linear relationship
In customer satisfaction surveys, we often use ordinal scales, such as very dissatisfied, somewhat dissatisfied, neutral, somewhat satisfied, and very satisfied, to indicate the level of satisfaction. In such cases, we can recode the categories using numbers 1 through 5, with 1 being very dissatisfied and 5 being very satisfied. This transformation allows the categorical variable to be treated as a _______________ variable in certain analytical models.
numerical
a regression model treats all predictor variables as
numerical
An accounting professor wants to know the average GPA of the students enrolled in her class. She looks up information on Blackboard about the students enrolled in her class and computes the average GPA as 3.29.a. Determine whether the following statement is true or false. The population is all students enrolled in the accounting class.TrueFalseb. Does the value 3.29 represent the population parameter or the sample statistic?Population parameterSample statistic
true population parameter
In the presence of changing variability, the OLS estimators are ' ', but their estimated standard errors are inappropriate
unbiased
a larger test statistic indicates that a large portion of the sample variation in the response is explained by the regression model, thus the model is _________
useful
input/predictor variables denoted as
x1, x2, x3, etc.
Suppose the competing hypotheses in testing for individual significance are H0: βj = 0 versus HA: βj ≠ 0. What would rejecting the null hypothesis imply?
xj is significant in explaining y
target or respnse is denoted as
y
the predicted value of the response variable given specified values of the predictor variables
y hat
e=
y-yhat
The standard normal distribution is a special case of the normal distribution with a mean equal to '
zero
statistical packages report test statistics and p-values for a two tailed test that assesses whether the coefficient differs from
zero
In the case of simple exponential smoothing,forecasts are weighted averages of past observations, with the weights decaying exponentially as the observations get older. Recall the smoothing parameter α: which of the following is true of α? Select all that apply!
α is a smoothing parameter With larger values of α, we pay attention mainly to the most recent observations With smaller values of α, greater emphasis is on past observations
The simple linear regression model y = β0 + β1x + ɛ implies that if x goes up by one unit, we expect y to change by how much? (irrespective of the value of x),
β1
Random variables can also be defined in terms of their cumulative distribution function, or, equivalently, P(X ? x). What is the correct mathematical sign (instead of the ?) in the P(X ? x) for the cumulative distribution function?
≤ (less than or equal)
