NO.110 Which of the following measures can reduce multicollinearity in multiple regression? (Select all that apply.)

NO.111 What denominator amounts does an analyst use to calculate the common size balance sheet and income statement?

NO.112 A student gathers information and performs a regression analysis comparing a person’s undergraduate GPA to that person’s starting salary after college graduation.

Based on this regression, what would a student with a GPA of 3.67 expect to earn on average upon college graduation?

NO.113 An athletic shoe company is trying to establish a stronger brand identity with consumers. Its objective is to first understand, broadly, how consumers value its brand compared to its
competitors and then determine how much consumers value specific features of its competitors’ products. Which of the following approaches would be MOST effective in gathering this information?

NO.114 Which of the following methods for valuing and expensing inventory is NOT allowed under the International Financial Reporting Standards (IFRS)?

NO.115 Although they may vary, cash flows from financing activities in a mature company are usually:

NO.116 In determining free cash flows, how is the change in net working capital calculated?

NO.117 A city planner believes that as people’s income rises, they are less likely to travel to work using public transportation or carpools. To see whether this belief is substantiated, the city planner gathers data from the 50 U.S. states on mean household income (in thousands of dollars) as well as the percent of people who take public transportation or carpool to work. The results for this regression are given below.

Which of the following Excel formulas would correctly forecast the dependent variable for a state with a mean household income of $37,000?

NO.118 Which of the following scatterplots shows the strongest positive linear relationship? A)

B)

C)

D)

NO.119 A researcher wants to know the impact that obesity and universal health care have on the amount a country spends on healthcare as measured by the percentage of gross domestic product (GDP). The researcher collects data from 30 countries on the percentage of the population considered to be obese and whether that country offers universal health care to their citizens. A dummy variable is constructed to measure the latter: the variable is set to equal 1 for countries that offer universal health care and 0 for those that do not. The researcher wishes to set up a regression analysis to measure the effects these two variables have on health care spending. A partial view of the data is shown below.

Based on the available data, what ranges should be entered into the Excel regression dialog box for the dependent and independent variables?

NO.120 A regulatory agency decides to enforce a price ceiling equal to marginal cost for a local utility provider which acts as a monopoly. Which of the following observations is true?

NO.121 In a two-sided hypothesis test for a population mean, which of the following statements provides sufficient evidence to reject the null hypothesis at the 5% significance level?

NO.122 A study is conducted to determine what factors drive used car prices. The study initially examined two variables: the make of the car and the number of miles driven on the car. Not surprisingly, the group commissioning the study found that there was a strong relationship between these two variables and price. In an attempt to explain more of the variation in price the researcher added a thirdvariable:the car’s age (in years).A prior study had shown that age was a significant factor in explaining used car selling prices. When added to the new model, however, the group found that although adding age explained more of the variation in price, age was no longer significant when combined with the car’s make and miles. This problem is an example of:

NO.123 A company reported the following information for 2013:

During 2013, the company purchased new inventory of $160,000. What amount should the company report as cost of goods sold on its 2013 income statement?

NO.124 Which of the following items would be considered a relevant cash flow for capital budgeting purposes?

NO.125 A company paid $150,000 of income tax for 2013. During the year, the company recognized $80,000 of interest revenue from municipal bonds. Income from municipal bonds are tax exempt. The company’s net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report as its pretax accounting income for 2013?

NO.126 Which of the following options is an example of an implicit transaction?

NO.127 A college has recently finished building a new dining hall on campus. School administrators wish to survey students regarding their thoughts on the new dining hall. Which of the options below represents a correct sampling method?

NO.128 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.129 A local restaurant owner decides to poll individuals randomly regarding how much they would be willing to spend on a romantic dinner for two. The owner takes a preliminary sample of 32 people and finds that the average amount those surveyed were willing to pay is $35 with a standard deviation of $10. The owner is not satisfied, however, because the owner wants to be 95% sure that the mean of the new sample falls within $2 of the true mean. What is the minimum number of people the owner should interview? Note that z=1.96 for a 95% confidence interval.

NO.130 Which of the following statements is characteristic of all assets?

NO.131 A student is deciding whether to attend a two-year graduate school program. The tuition is $12,500 per year and the cost of books and supplies is an additional $1,000 per year. The studentcould work instead of going to graduate school and earn $50,000 per year. What is the economic cost of attending graduate school for the student?