David Jetter graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Prentice University or Mount Alliance College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program. David currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $50,000 per year, and his salary expected to increase at 3 % per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 %. David has savings account with enough money to cover the entire cost of his MBA program. The Ritt College of Business at Prentice University is one of the top MBA programs in the country. The MBA degree requires two years of full time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 % per year. Because of the higher salary, his average income tax rate will increase to 31 %. The Bradel School of Business at Mount Alliance College began its MBA program 16 years ago. The Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated, one – year program, with a tuition cost of $80,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $4,500. David thinks that he will receive an offer of $92,000 per year upon the graduation, with an $18,000 signing bonus. The salary at this job will increase at 3.5 % per year. His average tax rate at this level of income will be 29 %. Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. David also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.5 percent. 3. Assuming all salaries are paid at the end of each year, what is the best option for David – from a strictly financial standpoint? Explain why in detail with calculations. 4. David believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? So what is the future value of each option? 5. What initial salary would David need to receive to make him indifferent between attending Prentice University and staying in his current position? Explain in detail with calculations.

In this problem, you will calculate mean values for four independent samples and then explain the observed differences (please read the entire problem before beginning). Using the SWC data (SWC tab) in dataset DS2.xls, do the following:Select a 10% random sample of all cases and calculate the Mean for the IMR (infant mortality rate) for this sample. Record the mean. (2 points)Select a second 10% random sample and calculate the Mean for the IMR for this sample. Record the mean. (2 points)Select a third 10% random sample and calculate the Mean for the IMR for this sample. Record the mean. (2 points)Select a fourth 10% random sample and calculate the Mean for the IMR for this sample. Record the mean. (2 points)Create a table that displays the four means calculated above in parts a-d. Calculate the average of the four means (Mean-1, Mean-2, Mean-3, Mean-4) and add this figure to the table. Describe the mean values calculated and offer an explanation for any differences observed. That is, explain why the four means calculated in parts a-d are not exactly the same. Include a comment about the “fifth mean” (the average of the means calculated in parts a-d). (2 points)In the next two problems, you will calculate frequency distributions and express them in different kinds of charts. Using the Hospital Charges data in dataset DS2.xls, do the following:Compute the minimum and maximum age for the cases in the spreadsheet. (1 point)Create a frequency distribution of age using the following categories of age (<50, 50-64, 65-79, 80+). Compute percent and cumulative percent for each age category. (4 points)Label all elements in the frequency table. (2 points)Create a column chart of age (showing the number of cases in each age category). (1 point)Create a line chart of age (showing the number of cases in each age category). (1 point)Create a pie chart of age (showing the percent of cases in each age category). (1 point)Using Late Delivery data in dataset DS2.xls , do the following:Use the pivot table to create a frequency distribution for the reasons for the late delivery of the meal. (4 points)Sort the frequency distribution so that the reason with the most occurrences is first, the second next, and so on, and create a column chart showing the reasons from most to least. (3 points)Compute the cumulative frequency (%) for the data in (a) and construct a Pareto chart of the result. That is, create a line chart for cumulative frequency (%) and add this to the chart created in part 6.b. (3 points)