Kindly help me on these.
1 A new computerised ultrasound scanning technique has enabled doctors to monitor the weights of unborn babies. The table below shows the estimated weights for one particular baby at fortnightly intervals during the pregnancy. Gestation period (weeks) 30 32 34 36 38 40 Estimated baby weight (kg) 1.6 1.7 2.5 2.8 3.2 3.5 [x=210 _x2 =7,420 _v=15.3 _y? =42.03 _xy =549.8 (i) Show that 5xx =70, 5yy =3.015 and Sxy = 14.3. (ii) Show that the (Pearson's) linear correlation coefficient is equal to 0.984 and comment. (Wi) Explain why the Spearman's and Kendall's rank correlation coefficients are both equal to 1. (iv) Carry out a test of Ho : p=0 vs Hj : p>0 using Pearson's correlation coefficient and: (a) the t-test (b ) Fisher's transformation. (v) Test whether Pearson's sample correlation coefficient supports the hypothesis that the true correlation parameter is greater than 0.9. 2 A schoolteacher is investigating the claim that class size does not affect GCSE results. His observations of nine GCSE classes are as follows: Class X1 X2 X3 X4 Y1 Y2 Y3 Y4 Y5 Students in class ( c ) 35 32 27 21 34 30 28 24 7 Average GCSE point 5.9 4.1 2.4 1.7 6.3 5.3 3.5 2.6 1.6 score for class ( p ) [c=238 [c2 -6,884 [p=33.4 _p? =149.62 _cp=983 (a) Calculate Pearson's, Spearman's and Kendall's correlation coefficients. (b) Use Pearson's correlation coefficient to test whether or not the data agrees with the claim that class size does not affect GCSE results. [10] (ii) Following his investigation, the teacher concludes, 'bigger class sizes improve GCSE results'. Comment on this statement. [2] [Total 12]Which of the following could NOT result in a company obtaining a stock exchange listing? an introduction a rights issue an offer for subscription a placing [2] 2 An arrangement whereby a company's shares obtain a quotation on the London Stock Exchange, and the shares that are made available are bought by a small number of institutional investors, is known as: a placing. an offer for subscription. an introduction. an offer for sale. [2] 3 The main significance of the par value of an ordinary share is that: A it is the minimum price at which shares can be traded on the Stock Exchange. it is the minimum price at which shares can be issued by the company. it is the amount at which the shares will be redeemed. at prices above the par value a company must have a scrip issue. [2] The next two questions relate to Company XYZ. The statement of financial position of XYZ prior to a rights issue is given below (all figures in EO00s): Non-current assets 400 Share capital 120 Current assets 100 (Ordinary shares of f1) Other reserves 50 Retained earnings 330 500 500 The market price of the company's shares is currently $7 per share. 4 If XYZ has a 1-for-3 rights issue at $5, the expected ex-rights price of the shares will be: A 17.00 E6.50 65.50 O E5.00 [2]5 Following the rights issue, XYZ's other reserves will be: A E330,000 B E250,000 C (210,000 D 650,000 [2] 6 Explain the role of the underwriters of a share issue. [5] 7 Piron pic is a large manufacturing company that produces electronic products for the world market and has branches in Europe and Asia. It is financed by a mixture of equity and debt finance. The company now wishes to expand its range of products and needs further funds for investment. The directors are considering the various financial options open to the company. (1) One of the options being considered is a rights issue. Discuss the advantages and disadvantages for Piron of undertaking a rights issue. [6] (ii) The Finance Director has suggested that the company could issue Eurobonds. Discuss the advantages and disadvantages of Eurobonds for Piron pic relative to other forms of debt. [5] (iii) List the other borrowing options available for Piron plc. [3] (iv) Describe the factors the directors should consider when making their decision. [6] [Total 20]
