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I need the answers and the steps for the 2 questions below I would need the answer in the next 30 minutes if possible ASSIGNMENT

I need the answers and the steps for the 2 questions below

I would need the answer in the next 30 minutes if possible

image text in transcribed ASSIGNMENT 5 2. Willco is a manufacturer in a mature cyclical industry. During the most recent industry cycle, its net income averaged $30 million per year with a standard deviation of $10 million (n = 6 observations). Management claims that Willco's performance during the most recent cycle results from new approaches and that we can dismiss profitability expectations based on its average or normalized earnings of $24 million per year in prior cycles. A. With as the population value of mean annual net income, formulate null and alternative hypotheses consistent with testing Willco management's claim. B. Assuming that Willco's net income is at least approximately normally distributed, identify the appropriate test statistic. C. Identify the rejection point or points at the 0.05 level of significance for the hypothesis tested in part A. D. Determine whether or not to reject the null hypothesis at the 0.05 significance level. 3. Use calculator to complete the following problems: t 1 2 3 Ri 0.11 0.15 0.2 Rm 0.14 0.09 0.22 (Ri-Ribar)^2 0.001156 3.6E-05 0.003136 (Rm-Rmbar)^2 0.000324 0.004624 0.003844 (Ri-Ribar)(Rm-Rmbar) 0.000612 -0.000408 0.003472 1 1 Error Error^2 Rm^2 -0.018450185 0.000340409 0.0196 0.064743747 0.004191753 0.0081 0.002439524 0.000005951 0.0484 4 5 6 7 8 9 10 sum Mean 0.16 0.24 -0.1 0.13 0.25 0.08 0.22 1.44 0.144 0.18 0.17 -0.08 0.2 0.23 0.12 0.31 1.58 0.158 0.000256 0.009216 0.059536 0.000196 0.011236 0.004096 0.005776 0.09464 0.000484 0.000144 0.056644 0.001764 0.005184 0.001444 0.023104 0.09756 0.000352 0.001152 0.058072 -0.000588 0.007632 0.002432 0.011552 0.08428 Consider the linear regression model: Ri = i + i Rm + i 1) The estimate of i 2) The estimate of i 3) The estimate of total risk of security i 4) The estimate of systematic risk of security i 5) The estimate of unsystematic risk of security i 6) Estimate the coefficient of determination of ( 2) 7) Test the significance of alpha (level of significance @ 1%) 8) Test the significance of beta (level of significance @ 1%) 9) Obtain a 99 % confidence interval on beta. 2 2 -0.00300533 0.085633456 -0.038396884 -0.050282903 0.043800738 -0.031172612 -0.055309553 (0.0000) 0.000009032 0.007333089 0.001474321 0.00252837 0.001918505 0.000971732 0.003059147 0.021832308 0.0324 0.0289 0.0064 0.04 0.0529 0.0144 0.0961 0.3472 3 3

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