True or False A qualitative variable such as gender can be included in regression analysis and is referred to as a dummy variable

Indicate whether the statement is true or false


T

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Evidence is reliable if it:

A. relates to the audit assertion being tested. B. is sufficient to justify a conclusion. C. applies to the period being audited. D. signals the true state of a management assertion.

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Atlantic Princess Corporation is considering the purchase of a new ocean-going vessel that could potentially reduce labor costs of its operation by a considerable margin. The new ship would cost $500,000 and would be fully depreciated by the straight-line method over 10 years. At the end of 10 years, the ship will have no value and will be scuttled. Atlantic Princess's cost of capital is 12

percent, and its marginal tax rate is 40 percent. Refer to Atlantic Princess Corporation. If the ship produces equal annual labor cost savings over its 10-year life, how much do the annual savings in labor costs need to be to generate a net present value of $0 on the project? (Round to the nearest dollar.) Present value tables or a financial calculator are required. a. $68,492 b. $115,154 c. $88,492 d. $157,487

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These are problems in which all decision variables must have integer solutions:

A) mixed binary IP problems B) pure binary IP problems C) mixed IP problems D) pure IP problems E) goal programming problems

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The price sensitivity of a bond to a given change in interest rates is generally greater the longer the bond's remaining maturity.

Answer the following statement true (T) or false (F)

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