NO.42 A manager wants to examine the effect of season (Spring, Summer, Autumn or Winter) and time of the game (Morning, Afternoon or Evening) on the number of television viewers for a National Basketball Association game. How many dummy variables should be included in the multipleregression?

NO.43 Many people argue that giving patents for medicines is unfair, because it prevents many people from accessing the products they need to live a healthy life. Why do governments allow patents for medicines?

NO.44 Two years ago, the purchasing manager at a company spent $25,000 on a new machine that would improve production efficiency at the company. The manufacturers of the machine release an updated model that costs $35,000 and that promises to further improve production efficiency. Under what conditions should the purchasing manager upgrade to the new model?

NO.45 Which of the following options is an example of owner’s equity?

NO.46 The only grocery store in a town has recently seen its profits decrease. An executive at the grocery store has been challenged to find a way to reverse this trend without losing significant sales. What is a possible technique the company can use to increase its producer surplus?

NO.47 Which of the following situations is an example of materiality in accounting?

NO.48 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?

NO.49 The owner of a t-shirt store on a beach sells 200 shirts per month in the summer for a price of $15.00. During the winter months, the owner reduces the price to $9.00 and sells 100
shirts per month. The store must be leased in one-year increments at $400 per month in rent. The cost of labor, materials, and utilities are an additional $600 a month. Should the store remain open during the winter months?

NO.50 Which of the following figures does an analyst need to calculate from the income statement in order to calculate free cash flows?

NO.51 A new smartphone is being released at a price of $100. A customer with a willingness to pay (WTP) of $105 walks to the store, sees that there is a long line, and decides to leave. Another customer with a WTP of $113 arrives at the store at the same time and decides to wait in the line. What can an observer deduce from this observation?

NO.52 A professor asks a class of 100 students to spend the weekend sampling the heights of adults. After each student samples 30 adults, the student is then asked to calculate the mean of his or her sample. As the professor collects the individual sample results from each student, which of the options below is the MOST likely to be observed?

NO.53 On an income statement, net sales minus cost of goods sold equals:

NO.54 A government is considering issuing a fixed number of permits allowing firms to pollute. When would this system fail to reduce pollution?

NO.55 A professional football team is considering adding two more games to its season. Which of the following costs should team owners NOT consider when making this decision?

NO.56 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?

NO.57 A company’s Balance Sheet for the year ended Dec. 31, 2013 is as follows:

(In millions)
The company is MOST likely in which of the following industries?

NO.58 A ski coach is interested in estimating the 68% confidence interval around the mean time (in seconds) of all the gold medal winners in Olympic downhill skiing. The coach collects the data, presented below, for all of the winners from 1948 to 2014. The mean of the sample is 122.5 seconds, with a standard deviation of 23 seconds. Which Excel function below is the BEST option for determining the 68% confidence interval?

Please note that the Excel functions for confidence intervals are =CONFIDENCE.NORM(alpha, standard_dev, size) and =CONFIDENCE.T(alpha, standard_dev, size).