If the vendor is given extension then NPV from year 1 to 13 should be considered, however if the vendor is not given extension then NPV from year 1-10 should be considered. However at the start of the project, we have no idea whether the vendor will be given extension, we can only assign some probability to it. The probabilities are given in Table 2. You need to compute the Weighted (or Expected) NPV of both the proposals. Weighted NPV = Probability of extension * NPV for year 1 to 13+ (1 - Probability of extension) * NPV for year 1 to 10 (c) Write formula in D23 to compute weighted NPV for Proposal 1, copy the formula down to cell D29 and then across till E29. (Create formula such that you can copy down and across and get the correct result, use proper referencing) (d) Write a IF function to decide which proposal to be selected. Note: We should select proposal which has Lower NPV. Probability of Vendor given Extension 65% 70% 75% 80% 85% 90% 95% Weighted (Expected) NPV of Proposal1 1875.07 1891.41 1907.74 1924.07 1940.41 1956.74 1973.08 Table 2 Weighted (Expected) NPV of Proposal2 Which proposal to select? 1865.90 1884.64 1903.39 1922.14 1940.89 1959.63 1978.38 Probability of Vendor given Extension 65% 70% 75% 80% 85% 90% 95% Sample Answer Weighted (Expected) NPV of Proposal1 1875.07 1891.41 1907.74 1924.07 1940.41 1956.74 1973.08 Table 2 Weighted (Expected) NPV of Proposal2 Which proposal to select? 1865.90 Proposal 2 1884.64 Proposal 2 1903.39 Proposal 2 1922.14 Proposal 2 1940.89 Proposal 1 1959.63 Proposal 1 1978.38 Proposal 1

1. Which of the following would be designed to estimate a numerical measurement of a population, such as monetary value?* A. Sampling for variables B. Sampling for attributes C. Sequential sampling D. Discovery sampling E. None of them

Suppose you're given a data set that classifies each sample unit into one of four categories: A, B, C, the data as A = 1, B=2, C = 3, and D=4. Are the data consisting of the classifications A, B, C, and D or quantitative? Are the data consisting of the classifications A, B, C, and D qualitiative or quantitative? OA. Qualitative, because they are measured on a naturally occuring numerical scale. B. Quantitative, because they are measured on a naturally occuring numerical scale. C. Quantitative, because they can only be classified into categories. D. Qualitative, because they can only be classified into categories. *** After the data are input as 1, 2, 3, or 4, are they qualitative or quantitative? OA. Qualitative, because they cannot be meaningfully added, subtracted, multiplied, or divided. B. Qualitative, because they are measured on a naturally occurring numerical scale. OC. Quantitative, because they are measured on a naturally occurring numerical scale. OD. Quantitative, because…

Give an example where researchers have used an event study and what did they find? Was it consistent with the EMH?