1. You are a marketing consultant for Duff Brewery and have sampled a number of beer drinkers in different age categories.

Age	beer consumption (litres)
19-25	300	320	280	250	400
26-32	500	800	100	0	150	310
33-39	400	100	600	200	50
40-46	800	120	0	100	230	250

2. Find the mean beer consumption for each group
4. Find the median beer consumption for each group.
6. What is the mode for all the values?
8. Which group would be the best to sell beer to? Why?

Questions 2 and 3 are weighted mean questions there is a lesson on weighted means at:

http://www.youtube.com/channel/UCGXalhCbtzclK2bi06rR7vw

2- The weighted average cost of capital (WACC) is a way of determining what interest rate a firm should use to evaluate its investments. TransCaladonia is a pipeline company that delivers crude oil to refineries in Western Canada. TransCaladonia has the following capital structure: (return to base case after each part)

Component	Market Value	Market Yield (cost of cap.)
Bonds	$2,000,000	6%
Preferred Stock	$500,000	8%
Common Stock	$2,500,000	12%

2. What is the weighted average cost of capital (WACC)?
4. TransCaladonia issued $500,000 in common stock - what is their new WACC?
6. TransCaladonia issued some bonds to fund a new project. How much debt did they issue if their WACC dropped to 9%
8. Trans Caladonia is negotiating a new bank loan to fund a new pipeline. The treasurer would like to get a loan of $600,000. What interest rate on the loan would drop the WACC to 8.75%

3-You have started a stock purchase plan, every quarter you will invest $2,400 in the stock of Transcanada Corporation. Your purchases are summarized below:

Amount invested	Purchase price per share
$2,400	$20.00
$2,400	$24.00
$2,400	$25.00
$2,400	$30.00

Calculate the weighted average cost per share. (hint - what is the weight - write down the formula for cost/share what is the denominator)

4-You are thinking of accepting a position selling real estate. You have narrowed your choice to two companies. Mutton and Associates and ReMin. Your compensation for each position is based on commissions and you ask how much you should expect to receive. Both companies give you a sample of their sales persons' gross earnings for the last three months.

Mutton 12,000 18,000 22,000 8,000 25,000

ReMin 16,000 20,000 16,000 15,000 18,000

2. Calculate the mean, median and mode for each company.
4. Calculate the range of earnings for each company.
6. Assume the data for ReMin is the population of quarterly earnings - calculate the variance and standard deviation.
8. Calculate the sample standard deviation for each sample.

5-You are considering purchasing some shares to add to your vast portfolio. You have narrowed your choice to two companies: Bank of Montreal and Bombardier. A sample of weekly closing prices are provided below.

Bombardier	6	7	8	6	4	5
Bank of Montreal	55	60	56	61	57	58

Which stock is riskier? (use standard deviation and coefficient of variation)

http://www.youtube.com/channel/UCGXalhCbtzclK2bi06rR7vw

Go the address above to find a lesson on chebychev and the empirical rule

6-

The alcohol content of beer was measured at the Campbell Ubrew. The Average alcohol content in a batch of beer was 5% with a standard deviation of 1.5%. The distribution was approximately bell shaped.

2. What proportion of batches would have between 2% and 8% alcohol content?
4. What proportion of batches will have between .5% and 9.5% alcohol content?
6. What proportion of batches will have between 2% and 6.5% alcohol content?
8. What proportion of batches would you expect to have less than 2% alcohol?
10. If 320 batches are being brewed how many would you expect to have more than 8% alcohol volume.

7-You are conducting a study into alcohol consumption among students at BCIT. You have determined the average alcohol consumption is 10 drinks with a standard deviation of three drinks. Assume the distribution of student drinkers is approximately bell shaped.

2. Find the z score for a student who drinks 16 drinks per week.
4. Approximately what percentage of students drink between 4 and 16 drinks?
6. At least what percentage of students drink between 1 and 19 drinks per week if the distribution is not bell shaped?
8. Would you expect this distribution to be bell shaped, explain?
10. What is the minimum number of drinks a student must consume per week to be an outlier on the high side?