Question:

The Westhouser Paper Company in the state of Washington currently has an option to purchase a piece of land with good timber forest on it. It is now May 1, and the current price of the land is $2.2 million. Westhouser does not actually need the timber from this land until the beginning of July, but its top executives fear that another company might buy the land between now and the beginning of July. They assess that there is 1 chance out of 20 that a competitor will buy the land during May. If this does not occur, they assess that there is 1 chance out of 10 that the competitor will buy the land during June. If Westhouser does not take advantage of its current option, it can attempt to buy the land at the beginning of June or the beginning of July, provided that it is still available.

Westhouser's incentive for delaying the purchase is that its financial experts believe there is a good chance that the price of the land will fall significantly in one or both of the next two months. They assess the possible price decreases and their probabilities in Tables 1 and 2. Table 1 shows the probabilities of the possible price decreases during May. Table 2 shows the conditional probabilities of the possible price decreases in June, given the price decrease in May. For example, if the price decrease in May is $60,000, then the possible price decreases in June are $0, $30,000, and $60,000 with respective probabilities 0.6, 0.2, and 0.2.

If Westhouser purchases the land, it believes that it can gross $3 million. (This does not count the cost of purchasing the land.) But if it does not purchase the land, it believes that it can make $650,000 from alternative investments. What should the company do?

Experience Position Low Medium High Total Finance Number of Observations 20 20 20 60 Mean Std. Dev. 2 Non-Finance Number of Observations 20 20 20 60 Mean Std. Dev. Total 40 40 40 120 Number of Observations Total Mean Total Std. Dev.According to the authors of the article entitled "Vicarious Liability: The Legal Responsibility of Employers": Select one: O a. The vicarious liability rule does not instill a sense of social responsibility on the part of employers. O b. All employment contracts should contain hold-harmless or indemnity clauses in favour of the employer because these clauses offer significant protection to employers. O c. The purpose of vicarious liability is to obtain a just and practical remedy for the victim so far as possible and to deter future harm. O d. At least one of the reasons for the vicarious liability rule is that most employees have "deeper pockets" than their employers.which is not a legislative body of the People's Republic of China? A. NPC C. CCA B. SCNPC D. The State Council 4. Who of the following persons have sufficient capacity to settle a contract? A. Minors B. Mentally incompetent persons C. University students above 20 years old D. Intoxicated persons 5. In which of the following circumstances the contracting party has no excuse for non-performance? A, flood B. earthquake C. continuous rainfall D. volcano eruption 6. Who could not be a legal representative of a company according to China's Company law? A. chairman of the BOD B. supervisor C. manager D. acting director 7. According to China's Company law, who of the following persons could be eligible for appointment as a director, supervisor or senior manager of a company? A. A person who has been convicted crime of corruption B. A physical disabled person who has full civil capacity C. A former director of a company which has been declared bankrupt where he was personally responsible for the bankruptcy D. A person who has significant unpaid debts. 8. Which of the following FIE forms is not a legal person? A. CJV B.EJV C. Branch office D.IHC 9. According to China's company law, a company may not purchase its own shares in which of the following circumstances! A. to reduce the registered capital B. to merge with another company that holds its shares C. to reward the staff of the company with shares D. to escape some tax Page 2 7 pages in total9. A difference between Pearson correlation and Spearman correlation is that Pearson correlation a. has assumptions the data should meet b. requires larger sample size C. operates on ranks of the data d. produces unreliable results e. is amenable to multiple comparisons f. is more mathematically rigorous g. makes many passes through the data h. none of the above 10. Suppose a correlation is calculated when only a limited range of the possible values on the y variable, is present in the x, y data set. Therefore the correlation result cannot be extended to apply to the entire range of x, y values that might exist among the subjects (the statistical population)- a, optimal experimental design This situation is called b. restriction of range c. sample size too large d. x,y subgroup merger e. clusters of outliers f. rarefaction g. random sampling effect h. none of the above 11. In correlation it's wise to consider statistical power for which of the following reasons? a. to examine relations among sample size, effect size, sidedness, alpha, power b, to understand why results that are not significant may still be important C. to determine the number of subjects to use in an experiment d, to make sense of biological findings in the scientific literature e. all of the above 12. In a two-sided correlation test, p = 0.06 In a one-sided correlation test on the same x, y data, p a. 0.001 b. 0,05 C. 0.03 d. 0.002 e. 0.10 f. none of the above 13. When there's no statistically significant correlation, the computed correlation coefficient is around a. zero b. - 0.9 C. + 0.8 d. + 1.0 e. - 1.0