Q129. A music executive is trying to determine the effect that advertising expenditures (in dollars) have on digital music sales. After gathering sales data from the previous 12 quarters, the executive finds the effect that advertising expenditures have on digital music sales can be described by the following equation:
Digital music sales = 9,500 + 0.15*(advertising expenditures)
Based on this equation, which of the statements below is correct?

Q130. In order to predict an employee’s probability of success at work, a company requires employees to complete a test that measures Intelligence Quotient (IQ) and Emotional Intelligence Quotient (EQ). A new manager at the company believes that the probability of being successful at work is closely related to an employee’s Reputation Quotient (RQ).

Based on the two regressions outputs below, does adding the RQ component help forecast the probability of being successful at work?

Q131. A high school teacher believes that the poverty rate in each U.S. state can be explained by the percentage of the population who do not have a high school diploma or equivalent. The teacher collects data from each of the 50 U.S. states; a portion of the data is given below.

Which of the following Excel dialog boxes correctly runs the regression described? A)

B)

C)

D)

Q132. Topic 1, Business Analytic
Exhibit:

Based on the scatterplot below, which of the following correlation coefficients BEST describes the relationship between undergraduate GPA and beginning annual salary?

Q133. The government decides to set a price ceiling on corn. The price ceiling is set 10% above the equilibrium price. What would be the result of this government action?

Q134. A recent recession greatly reduced income for many people. Which of the following goods likely saw the greatest reduction in willingness to pay (WTP)? (Select all that apply.)

Q135. Which of the following activities will cause assets and owner’s equity to decrease?

Q136. Which of the following options would increase the willingness to pay for new cars in a country?

Q137. An individual surveys 15 people under the age of 40 and asks for their current salary. The resulting histogram is shown below.

How many of those surveyed earn less than or equal to $50,000 a year?

Q138. A company reported pretax financial statement income of $420,000 for Year 1. Taxable income for Year 1 was $300,000 due to a temporary timing difference in depreciation expenses. The income tax rate is 30 percent. In its Year 1 balance sheet, the company should record a deferred tax:

Q139. A company sold a piece of equipment to another party for $150,000. The equipment was originally purchased for $300,000. Depreciation of $200,000 had been recognized against the equipment. How would the accounting equation for the company be impacted upon the disposal of the equipment?

Q140.

Which of the following situations requires dummy variables to be used in the regression model?

Q141. Company A has been profitable for the past five years but the Retained Earnings reported on the financial statements has not grown. Which of the following statements could explain the situation?

Q142. A DVD manufacturer is considering shutting down its production facility and only selling its movies through digital downloads. The company has signed a contract to pay $3,000 a month for its production facility for the next three years. If the company continues to sell its movies as DVDs, it is projected to earn $8,500 in revenue and spend $3,500 in variable costs each month. Variable costs for the digital downloads are 0. Under what circumstances should the company switch to selling digital downloads?

Q143. A trainer believes that a new workout regimen has helped athletes score more points per game. If the previous mean for points scored per player per game was 5.3, which alternative hypothesis below is the trainer trying to substantiate?

Q144. A restaurant that sells hamburgers is considering lowering prices to gain market share. The restaurant pays $3,000 a month for the building it occupies, and ingredients and labor cost $2.50 per hamburger. If the restaurant expects to sell 2,000 hamburgers a month, what is the minimum price it could charge?

Q145. Which of the following activities will NOT cause net cash provided by investing activities to increase under US Generally Accepted Accounting Principles (GAAP)?

Q146. A mutual fund manager believes that a new research method will provide better returns for clients. The manager’s historical monthly return prior to the new research method was 0.46%. After the manager began using the new method the monthly return was 0.57%. After running a hypothesis test, the manager saw that the one sided p-value was 0.029. Assuming a 95% confidence level, which of the conclusions below would be correct?

Q147. A company is considering a project to develop a nascent technology to harness energy from ocean waves but wants to determine its economic viability. This 10-year project will cost the company $10 million in research and development costs and $25 million to build infrastructure. Each megawatt of energy costs $60 to produce, but the government offers a subsidy of $5 permegawatt. The price per megawatt of energy will be $56 for the next five years, and the company expects to produce 1 million megawatts per year. Ignoring the time value of money (i.e. assuming cash flows across different years are directly comparable), if costs, output, and subsidies remain constant, what will the market price of a megawatt of energy need to be in years six through ten to make this project economically viable?

Q148. A company designs and sells premium jewelry primarily to wealthy professionals living in urban centers. This market is very competitive, and consumers often develop strong brand loyalty. The CEO of the company wants to increase sales. What is the MOST effective advertising strategy?

Q149. A doctor wants to predict the probability that a woman develops breast cancer based on her age, race, and diet. Which of the following statistical tools is the MOST suitable for this study?