STA301 Assignment 2 Solution Fall 2012

Question no 02 part a

If coefficient of skewness is zero then distribution is symmetric or zero skewed.\
\

question no 2 part b
The least squares regression line

The least squares regression line is the line which produces the smallest value of the sum of the squares of the residuals. A residual is the vertical distance from a point on a scatter diagram to the line of best fit. Therefore the least squares regression line can be seen as the best line of best fit.
The equation of the least squares regression line of y on x is:


Where b is:


As you can see there are 3 different ways to calculate the value for b, based on what information you are given in the question
Example

Calculate the least squared regression line of y on x from the following data:

x	20	30	40	50	60	70
y	2.49	2.41	2.38	2.14	1.97	2.03

Firstly draw up a table of the values you need and fill it out. In this example we'll use the third equation for b so we need all the values of x²and x_iy_i:

	x	y	x2	xiyi
	20	2.49	400	49.9
	30	2.41	900	72.3
	40	2.38	1600	95.2
	50	2.14	2500	107
	60	1.97	3600	118.2
	70	2.03	4900	142.1
Sum:	270	13.42	13900	584.7

Next step is to calculate the means of the x and y values:




Now the value of b can be calculated:
Hence the equation is therefore:


Cleaning it up:

PHY101 1st Assignment Solution nov 2012

Q 1: A football player kicks a football straight up in to the air with an initial velocity of 25m/s. What is the approximate maximum height that the ball reaches? Use acceleration due to gravity (g) as 9.8m/s2. Marks = 7

Ans:-

2as = Vf2 – Vi2

Where a = g = 9.8m/s2

Vf2 = 0

Applying the values:

2as = Vf2 – Vi2

2(9.8m/s2) s = 0 – (25m/s)2

(19.6m/s2) s = 625m2/s2

s =625m2/s2 / (19.6m/s2)

s = 31.8m

Q 2: In the classic horse and cart problem, a horse is attached to a cart that can roll along on a set of wheels. Which of the following statement is true? Also explain the reason of your selected choice as well.

a) The horse pulls on the cart with a force, and the cart pulls, back on the horse with an equal force.

b) The horse pulls on the cart with a force greater than the force that the cart pulls back on the horse.

c) The horse pulls the cart forward because the force of friction forward is greater than the force of the wagon backward.

d) The horse pulls the cart forward, because of a time delay between the action and reaction forces.

e) The horse pulls the cart forward, but only if the horse has a mass greater than the mass of the cart. Marks = 6 (2+4)

Ans:-

c) The horse pulls the cart forward because the force of friction forward is greater than the force of the wagon backward.

Reason:-

The forces on the cart include the forward force the horse exerts on the cart and the backward force due to friction at the ground, acting on the wheels. At rest, or at constant velocity, these two are equal in size, because the acceleration of the cart is zero. The forces on the horse include the backward force the cart exerts on the horse and the forward force of the ground on its hooves. At rest, or at constant velocity, these two are equal in size, because the acceleration of the horse is zero. The force the horse exerts on the cart is of equal size and opposite direction to the force the cart exerts on the horse, by Newton's third law. The horse places its feet so as to change the angle of the force its hooves exert on the ground, thereby increasing the backward force of its hooves on the ground.

Q 3: Is it true to say that a projectile has zero acceleration at its peak? If yes explain if not give a reason. Marks = 4

Ans:-

The acceleration due to gravity is constant at 9.8 m/sec^2. One of the variables in projectiles is its speed --- it slows down as it goes up and gains speed as it goes down. When the projectile reaches its maximum height, its velocity is always zero. Acceleration has nothing to do with instantaneous velocity. Acceleration shows the relationship between the velocities of the projectile at 2 different points in time. If acceleration was zero, the difference in velocity of the projectiles between any two points of its trajectory would be 0. However, with an acceleration, even if the velocity of the projectile at one point was 0, but the acceleration would not be zero because the acceleration of a projectile is always equal to the acceleration of gravity.

Q 4: (a) Anna is pushing but the box does not move. What is the force of static friction shown in below figure? Marks = 3

Ans:-

Fs=mu*N

=1*7N

=7N

(b) What is the maximum static friction force shown in below figure? The coefficient of static friction for these materials is 0.31. Marks = 5

Ans:-

=0.31*27N

27 nai only 7 hai

or answer hai 2.17

ECO403 Assignment 1 Solution Fall 2012

Commodities	1986		1987
Price	Quantity	Price	Quantity
Fish	10	50	13	70
Milk	5	100	7	100
Meat	7	150	10	155
Rice	6	70	10	90
Fruits	7	90	14	90

Requirements:
With the help of above data, calculate Togo’s:
Nominal GDP : Y = P x y
y = quantity
P = price
a) Nominal GDP for year 1986

Commodities	Nominal GDP
Fish	500
Milk	500
Meat	1050
Rice	420
Fruits	630

b) Nominal GDP for year 1987

Commodities	Nominal GDP
Fish	910
Milk	700
Meat	1550
Rice	900
Fruits	1260

c) Real GDP for year 1987
Real GDP y = Y/P
Where we multiple each year’s Quantities (y) with the previous year’s Prices (P)

Commodities	Nominal GDP
Fish	700
Milk	500
Meat	1085
Rice	540
Fruits	630

d) GDP deflator for the year 1987
GDP Deflator = (Nominal GDP/Real GDP) x 100

Product	GDP Deflator
Fish	130
Milk	140
Meat	142.86
Rice	166.67
Fruits	200

e) Labor force for year 1986 and 1987
Labor force = employed + unemployed
1986: 90 lac employed and 7 lac unemployed
Labor Force = 97 lac
1987: 87 lac employed and 11 lac unemployed
Labor Force = 98 lac 

Real GDP = Nominal GDP/CPI*100

Nominal GDP = ∑ p_tq_t

BNK603 VU Current Assignment No. 1 Fall 2012 Solution Soon

Scenario:

In Pakistan, average lending rate of banks is reported at 13.06 % while the deposit rate was at 5.82% in first half of FY2012. This higher spread in the banking sector has increased the banks’ income rapidly. But, this increased spread has been discouraging potential savings and also a constraint on investment activities. As a result, this higher cost of funding to the private sector has been reducing the potential growth of the economy with reduction in the business activities. This has an outcome of high rate of unemployment in the country.

According to State Bank of Pakistan (SBP), interest spread in Pakistan has mounted from 4.63% in FY2003 to 7.24% recently. Whereas, this spread is only 2% to 4% in others developed countries. The year-on-year growth in loans to private sector businesses has declined from 22.4 percent in FY08 to 0.7 percent by the end of recent year. Still, an increase of 269% in deposits base and 268% increase in bank assets has increased the banks’ pre-tax profit by 9,991%. A deposit rate of 5.82% and inflation rate of 12% depicts that real rate of return (inflation adjusted) is actually -6%, whereas it was 3% in 2001. This means that the depositors have been forced to lose their money due to the negative returns.

Required:

1. Discuss in detail the three most appropriate measures to be taken by State bank of Pakistan in order to control or bring down the higher spread in Pakistani banking sector.

2. Discuss in details any two factors inducing this higher banking spread in Pakistan.

Fin622 Current Assignment 1 Fall 201 Solution soon

Semester Fall 2012
Corporate Finance (FIN622)
Assignment No. 01
Due Date: 19-11-2012
Marks: 20

Capital Budgeting Techniques for Projects Evaluation

Learning objectives:
Understanding project evaluation techniques used to determine the financial viability of a project.

Learning outcomes:
After attempting this assignment, students will be able to understand how capital budgeting techniques can help in deciding whether to accept or reject a project.

Case

Tyres Manufacturing Incorporation (TMI) – a fast growing tyre manufacturing company in Pakistan has been serving nationally and internationally for the last 40 years. The company is a standard manufacturer of rubber tyres and tubes for all types of light vehicles running on the country’s roads. TMI is reliable name known for its quality products. Major customers of the company include people owing and driving vehicles manufactured by famous vehicle manufacturers in Pakistan.

To meet the rising demand for its products, TMI is thinking to expand manufacturing capacity for which two mutually exclusive investment opportunities named as project Alpha and Project Betaare under consideration.

The management has gathered necessary data which will be helpful in evaluation of the projects. Evaluation will be done through capital budgeting techniques. The company has to choose between these two equally risky and mutually exclusive projects. The expected cash flows of two projects are as follows:

TMI has estimated its required rate of return for each project at 12.3%. It has also estimated internal rate of return (IRR) for project Alpha at 14% and for project Beta at 12%.

Required:

You as financial analyst need to recommend one of the two projects that TMI may add to its assets. Your decision is subject to the following:

1. Calculate Net Present Value (NPV) and profitability Index (PI) for each project. (16 marks)
2. If you apply NPV criterion, which project should be selected and why? (1 mark)
3. If you apply Profitability Index criterion, which project should be selected and why? (1mark)
4. If you apply IRR criterion, which project should be selected and why? (2 marks)