Finance 380: Financial Modelling

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f380.fall19.hwk1.docx

Finance 380

Fall, 2019

Homework 1 – Due Wednesday, September 18th

Homework is due BEFORE the start of class on the above date. You are to submit your homework via email to: [email protected] I use the time stamp on the email as the determinant of when the homework was submitted; late homeworks receive a grade of “0.”

BREW This tab contains data on beer for all fifty states plus the District of Columbia. The variables are :

BCPC: Beer consumption (in gallons), per capita.

INC: Per capita annual income

MB: total number of microbreweries in the state

TAX: Tax per gallon assessed on beer

FPCT: Proportion of the state’s population that is female

POP: State population in millions

TEMP: Mean state temperature

Calculate the number of microbreweries per million population. For each numeric variable, calculate mean, median, maximum, minimum. 25th percentile, 75 percentile and standard deviation. Without sorting, determine Rhode Island’s rank in each category, ranked from highest to lowest. Report the correlation matrix. Graph the histogram of beer taxes using bin increments of $0.10 from 0 to $1.30.

SAT This worksheet contains data concerning average SAT scores for the 50 states and Washington DC including participation rate (% of seniors taking SAT), per pupil expenditure and per capita income. Calculate mean medians, maxima, minima, and standard deviations for each variable. Report the correlation matrix.

TAXES I have included 3 tabs relating to taxes. The first is a spreadsheet that allows the user to enter his/her gross income and state of residence. TAXES2 is the spreadsheet we wrote in class that calculates federal tax liability (you can copy the classwork directly into this tab). TAXES3 contains information on MA, CT, and RI tax tables. Write a spreadsheet so that the user (on tab TAXES1) enters gross income and state of residence. The spreadsheet returns (also on tab TAXES1) federal tax liability, social security tax, medicare tax, state tax liability, total tax liability, average tax rate and marginal tax rate.

GRADES This worksheet contains grades (attendance, eight quizzes, two mid-terms and a final) for 34 students in my Nostalgic Spreadsheets class. Attendance is worth 10% of the overall grade and is based purely on the proportion (out of 42) of classes attended. Homework is worth 15% and is based on the average score of eight homework assignments, each of which was worth 10 points. The remaining 75% will be allocated thusly: 30% to the highest of the three exam grades, 25% to the middle grade, and 20% to the lowest. Students will receive an additional point added to their average for attending all classes, and an additional point if they turned in all eight homework assignments. Write a spreadsheet that calculates averages and assigns letter grades based on the following grade distribution: (HINT: See if you can figure out how to do this with the VLOOKUP function; it’s easier than a billion imbedded IF statements.

93

A

90-92

A-

87-89

B+

83-86

B

80-82

B-

77-79

C+

73-76

C

70-72

C-

67-69

D+

60-66

D

<60

F