Assignment ContentResource: Pastas R Us, Inc. Database Review the Wk 2 - Apply: Statistical Report assignment. In preparation for writing your report to senior management next week, conduct the following descriptive statistics analyses with Excel®. Answer the questions below in your Excel sheet or in a separate Word document:Insert a new column in the database that corresponds to “Annual Sales.” Annual Sales is the result of multiplying a restaurant’s “SqFt.” by “Sales/SqFt.”Calculate the mean, standard deviation, skew, 5-number summary, and interquartile range (IQR) for each of the variables.Create a box-plot for the “Annual Sales” variable. Does it look symmetric? Would you prefer the IQR instead of the standard deviation to describe this variable’s dispersion? Why?Create a histogram for the “Sales/SqFt” variable. Is the distribution symmetric? If not, what is the skew? Are there any outliers? If so, which one(s)? What is the “SqFt” area of the outlier(s)? Is the outlier(s) smaller or larger than the average restaurant in the database? What can you conclude from this observation?What measure of central tendency is more appropriate to describe “Sales/SqFt”? Why?

1. Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year. Any unused time goes into a sick bank account that they or other employees can use in the case of emergencies. The human resources department has determined that the amount of unused sick time for individual employees is uniformly distributed between 0 and 480 minutes. Based on this information, what is the probability that an employee will have less than 20 minutes of unused sick time?2. Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year. Any unused time goes into a sick bank account that they or other employees can use in the case of emergencies. The human resources department has determined that the amount of unused sick time for individual employees is uniformly distributed between 0 and 480 minutes. Based on this information, what is the probability that three randomly chosen employees have over 400 unused sick minutes at the end of the year?3. Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year. Any unused time goes into a sick bank account that they or other employees can use in the case of emergencies. The human resources department has determined that the amount of unused sick time for individual employees is uniformly distributed between 0 and 480 minutes. The company has decided to give a cash payment to any employee that returns over 400 minutes of sick leave at the end of the year. What percentage of employees could expect a cash payment?4. Employees at a large computer company earn sick leave in one-minute increments depending on how many hours per month they work. They can then use the sick leave time any time throughout the year. Any unused time goes into a sick bank account that they or other employees can use in the case of emergencies. The human resources department has determined that the amount of unused sick time for individual employees is uniformly distributed between 0 and 480 minutes. The company has decided to give a cash payment to any employee that returns over a specified amount of sick leave minutes. Assuming that the company wishes no more than 5 percent of all employees to get a cash payment, what should the required number of minutes be?5. Suppose the time it takes for a customer to be served at a fast-food chain business is thought to be uniformly distributed between 3 and 8 minutes, then the probability that a customer is served in less than 3 minutes is 0.6. If the time it takes for a customer to be served at a fast-food chain business is thought to be uniformly distributed between 3 and 8 minutes, then the probability that the time it takes for a randomly selected customer to be served will be less than 5 minutes is 0.40.7. If a uniform distribution and normal distribution both have the same mean and the same range, the normal distribution will have a larger standard deviation than the uniform distribution8. It has been determined the weight of bricks made by the Dillenger Stone Company is uniformly distributed between 1 and 1.5 pounds. Based on this information, the probability that two randomly selected bricks will each weigh more than 1.3 pounds is 0.16.9. The amount of drying time for the paint applied to a plastic component part is thought to be uniformly distributed between 30 and 60 minutes. Currently, the automated process selects the part from the drying bin after the part has been there for 50 minutes. Based on this, the probability that a part selected will not be dry is approximately 0.33.10. The amount of drying time for the paint applied to a plastic component part is thought to be uniformly distributed between 30 and 60 minutes. Currently, the automated process selects the part from the drying bin after the part has been there for 50 minutes. The probability that none of three parts picked are still wet when they are selected is approximately 0.04.

Question 1 Use Python to answer this question. (a) Select a stock and obtain the stock prices for a one-year period. Create a histogram of its daily returns. (10 marks) (b) Calculate the daily price volatility of the stock and explain its significance. (10 marks) (c) Find the chain of call and put options available on this stock using either Eikon or the internet. Describe what a call option is and explain the information given for each call option. (10 marks) Question 2 Use Excel in your calculations. May purchases a house for $2.5 million and makes a down payment of 40% of the purchase price. She borrows the rest from the bank on a 25-year loan, which charges her 1.2% for the first year and 1-year SIBOR + 0.35% thereafter. The monthly payment of a variable-rate loan is calculated as if it is a fixed-rate loan on the outstanding loan balance and time remaining on the loan, whenever FIN201 Tutor-Marked Assignment SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 4 Question 3 Use Excel in your calculations. The yield on 10 year Singapore Treasury bonds is 3% and the market return is 5%. You are studying UniSUSS stock which has a beta of 1.2. UniSUSS has just paid a dividend of 1.20 and expects dividends to grow at a rate of 4% per annum for the next 5 years, and to slow down to 2% growth per annum thereafter. (a) Calculate the discount rate you should apply to UniSUSS stock. (5 marks) (b) What is the intrinsic value of UniSUSS stock? (10 marks) (c) If dividends stop growing after the first 5 years, what is the intrinsic value of UniSUSS stock? (5 marks) Question 4 Answer the following questions using Python. Trunk Company plans to invest in Project A with the following estimated annual cash flows: Yr 1 $ 20,000 Yr 2 $ 90,000 Yr 3 $ 180,000 Yr 4 $ 220,000 Yr 5 $ 150,000 The project costs $500,000. The required return for this project is 5% compounded quarterly. Trunk Company looks at another Project B which might potentially be better than Project A. Project B has the following cash flows: Yr 1 $ 150,000 Yr 2 $ 220,000 Yr 3 $ 180,000 Yr 4 $ 90,000 Yr 5 $ 20,000 This project also costs $500,000. The required return for this project is 5% compounded quarterly, same as Project A. (a) Compute the IRR of Projects A and B, and propose whether to accept or reject each project, assuming there are unlimited funds. Explain your decision. (10 marks) FIN201 Tutor-Marked Assignment SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 4 (b) Calculate the NPV of each project. Propose whether to accept or reject each project based on NPV, and choose one project, assuming the Company has funds only for one project. Explain your decision. (10 marks) (c) Explain why one of the projects is superior although the cash flows are the same except that they are received in different years. What should the cost of the inferior project be in order to make you indifferent to either project? What is the resulting annual discount rate of the inferior project? (10 marks)