NAME: Victor Mari C. Baguilat Jr.

EMDA 2020
Take Home Final
March 6-7, 2020

Instructions

1. This as an individual exam. Do not copy the work of others.

2. Deadline: March 7, 2020, 11:59 pm.

3. You can answer two ways: In WORD, write your name at the
header at the top of this page. Your name should seed to the
other sheets. You can highlight the correct answers directly or
put a BIG, BOLD RED LETTER ANSWERS BESIDE THE
QUESTIONS. Save and email this doc file to [email protected]
and [email protected]

4. Or, you can print this exam and write in your answers You
scan your answers and email them to us above. PDF format,
please, and do not use cellphone photographs. They are not
clear.

5. Open notes, open computer. Total points = 100 + 10 points

bonus. Your final score is worth 30% of your final grade for
this one unit module.

6. Assume alpha = .05 unless stated. You have normal and Chi-
square tables in the appendices. When appropriate, you can
simplify and use the empirical rule.

MDM 2020!
NAME: Victor Mari C. Baguilat Jr.

Price and perceptions of quality (for questions 1 through 4)

A marketing researcher asked: Do customers perceive higher price goods as higher

quality? She polled 180 people for their opinions about high priced (3), medium priced
(2), and low-priced (1) beer among 180 people. She captured their corresponding ratings,
on a scale of 0 (very poor quality) to 4 (very high quality).

Numb
er
Qu
alit #resp
Price y onses
3 0 4
2 0 1
1 0 4
3 1 8
2 1 21
1 1 20
3 2 26
2 2 22
1 2 23
3 3 15
2 3 12
1 3 9
3 4 7
2 4 4
1 4 4
 NAME: Victor Mari C. Baguilat Jr.

1. (10 points) Select the correct actual matrix

1.b

2. (10 points) Select the correct expected matrix

2.b
 NAME: Victor Mari C. Baguilat Jr.

c. (5 points) To do the  test, we use these degrees of freedom:

2
3.

a 6 (six) b 9 (nine) c 8 (eight) d 12 (twelve) e. None of the above

b. 4. (5 points) The final  test makes us…

2

a Accept the Ha that high price are perceived to have higher quality
b Accept the Ho that high price are not perceived to have higher quality.
c Accept the Ha that price is related to quality
d Accept the Ho that low quality is unrelated to low prices.
e none of the above

For problems 5-7: You invest in a Christmas ornaments making shop in a medium
security prison. These are the cash flows you experience for 5 years from your annual
Christmas sales:

Year 0: Initial -250,000 investment in second hand sewing machines, raw

materials, training
Y1: -125,000 in losses due to poor quality and returns, poor sales and
marketing
Y2: +75,000 profits
Y3: +145,000 in profits but you must plow back -75,000 more to replace
broken sewing machines
Y4: + 200,000 profits
Y5: + 222,000 profits

5. (5 points) What is your net present value of all cash flows at hurdle rate of 10%?
b.
a +23,079
b +25,386
c -98,581
d +75,671
e None of the above
c. 6. (5 points) What is your NPV at hurdle of 15%

a +18,865
b -125,788
c -31,235
d -27,671
e None of the above
 NAME: Victor Mari C. Baguilat Jr.

a. 7. (5 points) What is your IRR (internal rate of return)

a +12.09% b -2.44% c +17.08% d +19.29% e None of the above

8. (5 points) You buy a retirement policy that will give you a lump payment of P
c. 2,500K (2.5 million) 10 years from now (year 10). It costs you 50K as a
downpayment for the policy now, and then you pay annual premiums of 150K for
the next nine years. What is your NPV at 10%?

a -3.61K b +45.46K c +50K d +52K e None of the above

d. 9. (5 points) Using Rule of 72, when will I double my money, given monthly i= 9%?

a 6.48 years b 648 months c 8 years d 8 months e None of the above

10. (10 points) in an election of a town mayor, you poll 1,500 voters one week before
election day. The candidates receive the following percentages of the polls==mpt
c. not the actual votes, but projections based on your survey:

Candidate A 40.1%, Candidate B 34.9%, Candidate C 25.0%

If the polls are assumed true and people will not change their minds, what is the
right statement?

a Candidate C still has a chance of winning due to margin of error

b Candidate A is a sure winner even with MOE
c Candidates A and B are statistically tied
d Candidates B and C are statistically tied

For problems 11-12. The mean temperature of Manila is 28 C in the month of
May, with sd = 2 C.

11. (5 points) Use the empirical rule. What percentage of the temperatures in May
a. lie between 24 and 30 C?

a. 81.5% b. 84% c. 68% d: 95%

12. (5 points) Use the z-table. What percentage of the temperatures in May are
b. greater than 26 C?

a. 81.5% b. 84.13% c. 68.26% d: 95%

 NAME: Victor Mari C. Baguilat Jr.

FOR PROBLEMS 13-14 and bonus questions 15-16, use the accompanying TOY
HR WORKSHEET.xls

(See the data dictionary tab for an explanation of data.) Briefly, we surveyed 37
employees about their feelings about their employer. On a scale of 1 to 7, we asked if
they were engaged (7 = very excited and focused about work) or not, and satisfied (7 =
happy about their place in the company) or not. We also captured demographics—male
or female, age, manager or employee, years of training, years of tenure at work, etc. (The
fields in yellow are categorical versions of the fields to the left.) Finally we captured
their productivity, from their last ratings by superiors, on a scale of 1 (unproductive) to
10 (productive).

Correlations among variables

13. (10 points) The chart below shows…

a.

a A positive correlation between tenure (X) and training (Y)

b No correlation between tenure and training
c A weak negative correlation between tenure and training
d A strong negative correlation between tenure and training
 NAME: Victor Mari C. Baguilat Jr.

14. (10 points) The chart below shows…

c.

a A weak negative correlation between training and satisfaction

b A strong negative correlation between training and satisfaction
c A weak positive correlation between training (X) and satisfaction (Y)
d No correlation between training and satisfaction
NAME: Victor Mari C. Baguilat Jr.

15.
b. Regression: Productivity
BONUS!
A researcher wanted to show that the
dependent Y variable productivity is related to
engagement and satisfaction. He ran a regression on these
variables, with this output:

(5 points) R2 of 0.44 indicates

a 44% of variation in satisfaction is explained by engagement

b 44% of variation in productivity is explained by engagement and
satisfaction
c 44% of variation in satisfaction and engagement are explained by
the Y variable productivity
d 44% of variation in X’s explain the Y variable productivity
 NAME: Victor Mari C. Baguilat Jr.

a. 16 (5 points) The “plain English” model

Productivity = 2.01 + 0.25 (Satisfaction) + 0.43 (engagement)

indicates that

a When satisfaction is high and engagement is high, productivity

is high.
b When satisfaction and engagement are low, productivity is
high.
c When satisfaction and engagement are high, productivity is
low.
d When satisfaction is high and engagement is low, productivity
is high
NAME: Victor Mari C. Baguilat Jr.

Appendix 1: Z-table
NAME: Victor Mari C. Baguilat Jr.

Appendix 2: Percentage points of the Chi-square distribution

(from http://www.ento.vt.edu/~sharov/PopEcol/tables/chisq.html)

df P = 0 .0 5 P = 0 .0 1 P = 0 .0 0 1

1 3 .8 4 6 .6 4 1 0 .8 3
2 5 .9 9 9 .2 1 1 3 .8 2
3 7 .8 2 1 1 .3 5 1 6 .2 7
4 9 .4 9 1 3 .2 8 1 8 .4 7
5 1 1 .0 7 1 5 .0 9 2 0 .5 2
6 1 2 .5 9 1 6 .8 1 2 2 .4 6
7 1 4 .0 7 1 8 .4 8 2 4 .3 2
8 1 5 .5 1 2 0 .0 9 2 6 .1 3
9 1 6 .9 2 2 1 .6 7 2 7 .8 8
1 0 1 8 .3 1 2 3 .2 1 2 9 .5 9
1 1 1 9 .6 8 2 4 .7 3 3 1 .2 6
1 2 2 1 .0 3 2 6 .2 2 3 2 .9 1
1 3 2 2 .3 6 2 7 .6 9 3 4 .5 3
1 4 2 3 .6 9 2 9 .1 4 3 6 .1 2
1 5 2 5 .0 0 3 0 .5 8 3 7 .7 0
1 6 2 6 .3 0 3 2 .0 0 3 9 .2 5
1 7 2 7 .5 9 3 3 .4 1 4 0 .7 9
1 8 2 8 .8 7 3 4 .8 1 4 2 .3 1
1 9 3 0 .1 4 3 6 .1 9 4 3 .8 2
2 0 3 1 .4 1 3 7 .5 7 4 5 .3 2
2 1 3 2 .6 7 3 8 .9 3 4 6 .8 0
2 2 3 3 .9 2 4 0 .2 9 4 8 .2 7
2 3 3 5 .1 7 4 1 .6 4 4 9 .7 3
2 4 3 6 .4 2 4 2 .9 8 5 1 .1 8
2 5 3 7 .6 5 4 4 .3 1 5 2 .6 2
2 6 3 8 .8 9 4 5 .6 4 5 4 .0 5
2 7 4 0 .1 1 4 6 .9 6 5 5 .4 8
2 8 4 1 .3 4 4 8 .2 8 5 6 .8 9
2 9 4 2 .5 6 4 9 .5 9 5 8 .3 0
3 0 4 3 .7 7 5 0 .8 9 5 9 .7 0
3 1 4 4 .9 9 5 2 .1 9 6 1 .1 0
3 2 4 6 .1 9 5 3 .4 9 6 2 .4 9
3 3 4 7 .4 0 5 4 .7 8 6 3 .8 7
3 4 4 8 .6 0 5 6 .0 6 6 5 .2 5
3 5 4 9 .8 0 5 7 .3 4 6 6 .6 2
3 6 5 1 .0 0 5 8 .6 2 6 7 .9 9
3 7 5 2 .1 9 5 9 .8 9 6 9 .3 5
3 8 5 3 .3 8 6 1 .1 6 7 0 .7 1
3 9 5 4 .5 7 6 2 .4 3 7 2 .0 6
4 0 5 5 .7 6 6 3 .6 9 7 3 .4 1