Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
University Celiega cfw_seem
An Caliste Ollswi le, Baile Ath (math
SEMESTER 2 EXAMINATION 2009
BACHELOR OF COMMERCE DEGREE
FIN30100
Investment and Portfolio Management
Professor Philip Molyneaux
Professor Tom Begley
Professor Philip Bourke
Lee Gagan* C/O
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
CHAPTER 15 Exercise 15.1
1. (a) With a = 4 and b = 12, we have yc = Ae4t , yp = The denite solution is y(t) = e4t + 3. (b) yc = Ae(2)t , yp =
0 2
12 4
= 3.
The general solution is
y(t) = Ae4t + 3. Setting t = 0, we get y(0) = A + 3, thus A = Y (
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
CHAPTER 11 Exercise 11.2 1. The derivatives are: fx = 2x + y, fy = x + 4y, fxx = 2, fyy = 4, and fxy = 1. The rstorder condition requires that 2x + y = 0 and x + 4y = 0. Thus we have x = y = 0 implying z = 3 (which is a minimum)
2. The derivatives
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 19: Statistical Decision Theory
149
Chapter 19: Statistical Decision Theory
191 192 No, all actions are admissible D is dominated by C. Therefore, D is inadmissible.
193 a. The Maximin criterion would select the Certificate of Deposit:
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 18: Additional Topics in Sampling
137
Chapter 18: Additional Topics in Sampling
181 through 5 Answers should refer to each of the steps outlined in Figure 18.1 Steps in a sampling study 186 through 8. Answers should deal with issues such
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
96
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 17: Time Series Analysis and Forecasting
17.1 Various answers. A price index of a market basket of goods and services could be compiled to measure how pric
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
72
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 16: Introduction to Quality
161 thru 5. Various answers. 16.6 a. = s / c4 = 5.42 / .959 = 5.6517 b. CL = X = 192.6 3 LCL = X A3 s , where A3 = = 192.6
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
26
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 14: GoodnessofFit Tests and Contingency Tables
14.1 H 0 : first preferences are evenly distributed across the three books. H1 : otherwise
Made Easy 17 0.
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Nonparametric Statistics
17
Chapter 13: Nonparametric Statistics
131 H 0 : = .5 (there is no preference for one stock over the other) H1 : .5 (otherwise) n = 11 For stock 2 and a twosided test, P(2 X 9) = 2P(X 1) = 2[.0005 + .0054] = .0118 T
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 12: Additional Topics in Regression Analysis
247
Chapter 12: Additional Topics in Regression Analysis
121 Yi 0 1 X 1i 2 X 2i 3 X 3i 4 X 4i i where Yi = College GPA X1 = SAT score X2 = 1 for sophomore, 0 otherwise X3 = 1 for juni
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
190
Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 11: Multiple Regression
11.1 The estimated regression slope coefficients are interpreted as follows: b1 = .661: All else equal, an increase in the planes top speed by
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 10: Simple Regression
153
Chapter 10: Simple Regression
10.1 Let x = Project and y = Examination. n = 10, x = 767, X = 767 /10 = 76.7, x 2 = 59497
y = 786, Y = 786 /10 = 78.6, y
r=
2
60862 (10)(76.7)(78.6)
= 62604, xy = 60862 =.77
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
132
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 9: Hypothesis Testing
9.1 a. European perspective: H 0 : Genetically modified food stuffs are not safe : They are safe b. U.S. farmer perspective: H 0 : G
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 8: Estimation
113
Chapter 8: Estimation
8.1 a. An unbiased point estimator of the population mean is the sample mean: X i = 520.95 X= n
N 100 Minimum 504.70 Mean 520.95 Maximum 544.80 Median 518.75 Q1 513.80 TrMean 520.52 Q3 527.28 StDev 9
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
98
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 7: Sampling and Sampling Distributions
71 a. Probability distribution for one die: Die outcome Probability 1 1/6 2 1/6 3 1/6 4 1/6 5 1/6 6 1/6 b. Sampling
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
84
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 6: Continuous Random Variables and Probability Distributions
6.1 a.
Probability Density Function: f(x)
1.5 f(x)
1.0
0.5
0.0 0
X
1
b.
Cumulative dis
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
58
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 5: Discrete Random Variables and Probability Distributions
5.1 a. b. c. d. Discrete Discrete Discrete Discrete
52
Discrete
53 Various answers includin
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 4: Probability
45
Chapter 4: Probability
4.1. a. The complement of event A is that it will take 4 days or less before the machinery becomes operational. b. The intersection of A and B will be the event that it takes 5 days before the machin
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 3: Summarizing Descriptive Relationships
25
Chapter 3: Summarizing Descriptive Relationships
3.1 Information on the scatter plot includes; direction & type of relation, strength, slope or rate of response and outliers:
Tax Rate vs. % Comme
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 2: Describing Data
3
Chapter 2: Describing Data
21 a. b. c. d. Numerical discrete Numerical discrete Numerical discrete Categorical
2.2
a. Categorical data. The measurements levels are qualitative  ordinal. b. Categorical data. The m
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 14 THE STATEMENT OF CASH FLOWS
BRIEF EXERCISES
BE141
BE142
million billion million million
BE143
million billion million million
million million million million
BE144
Agilent Lucent
EXERCISES
E141
E142
Wrote off uncollectible account
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 13 THE COMPLETE INCOME STATEMENT
BRIEF EXERCISES
BE131
To accurately compare a companys performance from one year to the next, nonrecurring items such as restructuring charges and gains on sale of assets should be excluded from results. An an
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 12 STOCKHOLDERS' EQUITY
BRIEF EXERCISES
BE121
a. 67.5% of net income was paid in dividends during the year ($293/$434). b. The issuance of common stock affected the basic accounting equation by increasing assets (cash) and increasing stockhol
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 11 LONGTERM LIABILITIES: NOTES, BONDS, AND LEASES
BRIEF EXERCISES
BE111
a. During 2003 Radio Shack paid down $20 million of the mediumterm notes. At the same time during 2003 Radio Shack incurred a small amount of capital lease obligations.
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 10
INTRODUCTION TO LIABILITIES: ECONOMIC CONSEQUENCES, CURRENT LIABILITIES, AND CONTINGENCIES
BRIEF EXERCISES
BE101
a. Dividends declared during a year and the actual cash paid for dividends during the year may be different because dividends
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 9 LONGLIVED ASSETS
BRIEF EXERCISES
BE91
BE92
BE93
EXERCISES
E91
E92
Lot 1 Lot 2 Lot 3 Lot 4
E93
Item
Land
Land Improvements Building
Land:
Land Improvements:
Depreciated land improvements. Building:
Depreciated building.
E9
Korea Advanced Institute of Science and Technology
Financial Accounting
FIN FIN504

Spring 2009
CHAPTER 8 INVESTMENTS IN EQUITY SECURITIES
BRIEF EXERCISES
BE81
a. Comprehensive income includes the change in value assets that have been sold and in certain assets that the company has not sold. Net income only includes the changes in assets that h