Question: Siloam Springs Hotel, LLC, operates a Hampton

> There has been much interest in whether the presence of 401(k) pension plans, available to many U.S. workers, increases net savings. The data set 401KSUBS contains information on net financial assets (nettfa), family income (inc), a binary variable for

> Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was w

> Use the data in WAGE1 for this exercise. (i) Use equation (7.18) to estimate the gender differential when educ = 12.5. Compare this with the estimated differential when educ = 0. (ii) Run the regression used to obtain (7.18), but with female (educ - 12.5

> Use the data in SLEEP75 for this exercise. The equation of interest is (i) Estimate this equation separately for men and women and report the results in the usual form. Are there notable differences in the two estimated equations? (ii) Compute the Chow t

> Define a dummy variable, rosneg, which is equal to one if ros Discuss the interpretation and statistical significance of log(salary) = Bo + Bilog(sales) + Brroe + B3rosneg + u.

> Use the data in GPA2 for this exercise. (i) Consider the equation where colgpa is cumulative college grade point average; hsize is size of high school graduating class, in hundreds; hsperc is academic percentile in graduating class; sat is combined SAT

> A model that allows major league baseball player salary to differ by position is where outfield is the base group. (i) State the null hypothesis that, controlling for other factors, catchers and outfielders earn, on average, the same amount. Test this hy

> Use the data in WAGE2 for this exercise. (i) Estimate the model and report the results in the usual form. Holding other factors fixed, what is the approximate difference in monthly salary between blacks and nonblacks? Is this difference statistically s

> Use the data in CHARITY to answer this question. The variable respond is a dummy variable equal to one if a person responded with a contribution on the most recent mailing sent by a charitable organization. The variable resplast is a dummy variable equal

> Use VOTE1 for this exercise. (i) Estimate a model with voteA as the dependent variable and prtystrA, democA, log(expendA), and log(expendB) as independent variables. Obtain the OLS residuals,

> Use the data in APPLE to answer this question. (i) Define a binary variable as ecobuy = 1 if ecolbs > 0 and ecobuy = 0 if ecolbs = 0. In other words, ecobuy indicates whether, at the prices given, a family would buy any ecologically friendly apples. W

> Use the data set in BEAUTY, which contains a subset of the variables (but more usable observations than in the regressions) reported by Hamermesh and Biddle (1994). (i) Find the separate fractions of men and women that are classified as having above aver

> Use the data in 401KSUBS for this exercise. (i) Compute the average, standard deviation, minimum, and maximum values of nettfa in the sample. (ii) Test the hypothesis that average nettfa does not differ by 401(k) eligibility status; use a twosided altern

> Use the data in NBASAL for this exercise. (i) Estimate a linear regression model relating points per game to experience in the league and position (guard, forward, or center). Include experience in quadratic form and use centers as the base group. Report

> Use the data in GPA1 for this exercise. Add the variables mothcoll and fathcoll to the equation estimated in (7.6) and report the results in the usual form. What happens to the estimated effect of PC ownership? Is PC still statistically significant? T

> Use the data in CATHOLIC to answer this question. (i) In the entire sample, what percentage of the students attend a Catholic high school? What is the average of math12 in the entire sample? (ii) Run a simple regression of math12 on cathhs and report the

> Use the data in FERTIL2 to answer this question. (i) Find the smallest and largest values of children in the sample. What is the average of children? Does any woman have exactly the average number of children? (ii) What percentage of women have electrici

> Use the data in BEAUTY for this question. (i) Using the data pooled for men and women, estimate the equation and report the results using heteroskedasticity-robust standard errors below coefficients. Are any of the coefficients surprising in either their

> Use the data in FERTIL2 to answer this question. (i) Estimate the model and report the usual and heteroskedasticity-robust standard errors. Are the robust standard errors always bigger than the nonrobust ones? (ii) Add the three religious dummy variable

> Use the data in MEAP00 to answer this question. (i) Estimate the model by OLS and obtain the usual standard errors and the fully robust standard errors. How do they generally compare? (ii) Apply the special case of the White test for heteroskedasticity.

> Apply the full White test for heteroskedasticity to equation (8.18). Using the chisquare form of the statistic, obtain the p-value. What do you conclude? log(price) –1.30 + .168 log(lotsize) + .700 log(sqrft) + 0.37 bdrms (.093) = (.65) (.038) (.028)

> Jordan Mendelson is interested in purchasing a franchise in a meal-preparation business. Customers will come to the business to assemble gourmet dinners and then take the prepared meals to their homes for cooking. The franchisor requires each store to us

> Two African American plaintiffs sued the producers of the reality television series The Bachelor and The Bachelorette for racial discrimination. The plaintiffs claimed that the shows had never featured a person of color in the lead role. Plaintiffs also

> Go to Appendix G at the end of this text and examine the excerpt of Case No. 4, Dees v. United Rentals North America, Inc. Review and then brief the case, making sure that your brief answers the following questions. 1. issue: What conduct on the part of

> Why has the federal government limited the application of the statutes discussed in this chapter to firms with a specified number of employees, such as fifteen or twenty? Should these laws apply to all employers, regardless of size? Why or why not?

> Nicole Tipton and Sadik Seferi owned and operated a restaurant in Iowa. Acting on a tip from the local police, agents of Immigration and Customs Enforcement executed search warrants at the restaurant and at an apartment where some restaurant workers live

> Dean Brothers Corp. owns and operates a steel-drum manufacturing plant. Lowell Wyden, the plant superintendent, hired Best Security Patrol, Inc. (BSP), a security company, to guard the property and “deter thieves and vandals.” Some BSP security guards, a

> What policy is served by the law that employers do not own the copyrights for works created by independent contractors (unless there is a written “work for hire” agreement)

> Cathy Coleman took out loans to complete her college education. After graduation, Coleman was irregularly employed as a teacher. Eventually, she filed a petition in a federal bankruptcy court under Chapter 13. The court confirmed a five-year plan under w

> Nick Sabol, doing business in the recording industry as Sound Farm Productions, applied to Morton Community Bank for a $58,000 loan to expand his business. Besides the loan application, Sabol signed a promissory note that referred to the bank’s rights in

> Melvin Lyttle told John Montana and Paul Knight about a “Trading Program” that purportedly would buy and sell securities in deals that were fully insured, as well as monitored and controlled by the Federal Reserve Board. Without checking the details or e

> Redford is a seller of electric generators. He purchases a large quantity of generators from a manufacturer, Mallon Corp., by making a down payment and signing an agreement to pay the balance over a period of time. The agreement gives Mallon Corp. a secu

> Big Apple Consulting USA, Inc., provided small publicly traded companies with a variety of services, including marketing, business planning, and Web site development and maintenance. CyberKey Corp. sold customizable USB drives. CyberKey falsely informed

> Three shareholders of iStorage sought to sell their stock through World Trade Financial Corp. The shares were restricted securities—that is, securities acquired in an unregistered, private sale. Restricted securities typically bear a “restrictive” legend

> Dodona I, LLC, invested $4 million in two securities offerings from Goldman, Sachs & Co. The investments were in collateralized debt obligations (CDOs). Their value depended on residential mortgage-backed securities (RMBSs), whose value in turn depended

> Matrixx Initiatives, Inc., makes and sells over-the-counter pharmaceutical products. Its core brand is Zicam, which accounts for 70 percent of its sales. Matrixx received reports that some consumers had lost their sense of smell (a condition called anosm

> David Gain is the chief executive officer (CEO) of Forest Media Corp., which is interested in acquiring RS Communications, Inc. To initiate negotiations, Gain meets with RS’s CEO, Gill Raz, on Friday, July 12. Two days later, Gain phones his brother, Mar

> Langley Brothers, Inc., a corporation incorporated and doing business in Kansas, decides to sell common stock worth $1 million to the public. The stock will be sold only within the state of Kansas. Joseph Langley, the chair of the board, says the offerin

> Lyons incorporated Lyons Concrete, Inc., in Montana, but did not file its first annual report, so the state involuntarily dissolved the firm in 1996. Unaware of the dissolution, Lyons continued to do business as Lyons Concrete. In 2003, he signed a writt

> Jennifer Hoffman took her cell phone to a store owned by R&K Trading, Inc., for repairs. Later, Hoffman filed a suit in a New York state court against R&K, Verizon Wireless, Inc., and others, seeking to recover damages for a variety of torts, including i

> Scott Snapp contracted with Castlebrook Builders, Inc., which was owned by Stephen Kappeler, to remodel a house. Kappeler estimated that the remodeling would cost around $500,000. Eventually, however, Snapp paid Kappeler more than $1.3 million. Snapp fil

> Kids International Corp. produced children’s wear for Walmart and other retailers. Gila Dweck was a Kids director and its chief executive officer. Because she felt that she was not paid enough for the company’s success, she started another firm, Success

> 73-75 Main Avenue, LLC, agreed to lease commercial property to PP Door Enterprise, Inc., if its principal officers executed personal guaranties and provided credit information. Nan Zhang signed the lease as manager of PP Door. The principals of PP Door s

> Stanka Woods is the sole member of Hair Ventures, LLC. Hair Ventures owns 3 million shares of stock in Biolustré Inc. For several years, Woods and other Biolustré shareholders did not receive notice of shareholders’ meetings or financial reports. On lear

> Mark Burnett and Kamran Pourgol were the only shareholders in a corporation that built and sold a house. When the buyers discovered that the house exceeded the amount of square footage allowed by the building permit, Pourgol agreed to renovate the house

> Thomas Persson and Jon Nokes founded Smart Inventions, Inc., to market household consumer products. The success of their first product, the Smart Mop, continued with later products, which were sold through infomercials. Persson and Nokes were the firm’s

> Oxy Corp. is negotiating with the Wick Construction Co. for the renovation of the Oxy corporate headquarters. Wick, the owner of the Wick Construction Co., is also one of the five members of Oxy’s board of directors. The contract terms are standard for t

> Cummings, Okawa, and Taft are recent college graduates who want to form a corporation to manufacture and sell personal computers. Peterson tells them he will set in motion the formation of their corporation. First, Peterson makes a contract with Owens fo

> Blushing Brides, LLC, a publisher of wedding-planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s member-manager, signed a credit agreement that identified the

> Fadal Machining Centers, LLC, and MAG Industrial Automation Centers, LLC, sued a New Jersey–based corporation, Mid-Atlantic CNC, Inc., in federal district court. Ten percent of MAG was owned by SP MAG Holdings, a Delaware LLC. SP MAG had six members, inc

> James Williford, Patricia Mosser, Marquetta Smith, and Michael Floyd formed Bluewater Logistics, LLC, to bid on construction contracts after Hurricane Katrina struck the Gulf Coast. Under Mississippi law, every member of a member-managed LLC is entitled

> Walter Van Houten and John King formed 1545 Ocean Avenue, LLC, with each managing 50 percent of the business. Its purpose was to renovate an existing building and build a new commercial building. Van Houten and King quarreled over many aspects of the wor

> New York resident Esther Braunstein worked as an usher at Lincoln Center, held an administrative position with Citibank, was a school crossing guard, and assisted disabled persons and others as a volunteer on Roosevelt Island and at the New York Foundlin

> Holiday Isle Resort & Marina, Inc., operated four restaurants, five bars, and various food kiosks at its resort in Islamorada, Florida. Holiday entered into a “joint venture agreement” with Rip Tosun to operate a fifth restaurant called Rip’s—A Place for

> Joe, a resident of New Jersey, wants to open a restaurant. He asks his friend Kay, who is an experienced attorney and a New Yorker, for her business and legal advice in exchange for a 20 percent ownership interest in the restaurant. Kay helps Joe negotia

> Faraway Corp. supplies business equipment. Faraway is considering entering into two contracts, one with a joint stock company east of the Mississippi River and the other with a business trust formed by a number of sole proprietors on the West Coast. Both

> John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent

> Elliot Willensky and Beverly Moran formed a partnership to buy, renovate, and sell a house. Moran agreed to finance the effort, which was to cost no more than $60,000. Willensky agreed to oversee the work, which was to be done in six months. Willensky li

> Leisa Reed and Randell Thurman lived together in Spring City, Tennessee. Randell and his father, Leroy, formed a cattle-raising operation and opened a bank account in the name of L&R Farm. Within a few years, Leroy quit the operation. Leisa and Randell e

> Karyl Paxton asked Christopher Sacco to work with her interior design business, Pierce Paxton Collections, in New Orleans. At the time, they were in a romantic relationship. Sacco was involved in every aspect of the business—bookkeeping, marketing, and d

> Dan and Lori Cole operated a Curves franchise exercise facility in Angola, Indiana, as a partnership. The firm leased commercial space from Flying Cat, LLC, for a renewable three-year term. The Coles renewed the lease for a second three-year term. Two ye

> Patricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $30,000 each. Two years later, they purchased an apartment complex. The property was

> Karl Horvath, Hein Rüsen, and Carl Thomas formed a partnership, HRT Enterprises, to buy a manufacturing plant. Rüsen and Thomas leased the plant to their own company, Merkur Steel. Merkur then sublet the premises to other companies owned by Rüsen and Tho

> Victor Nacim had a checking account at Compass Bank. The “Deposit Agreement” required him to report an unauthorized transaction within thirty days of his receipt of the statement on which it appeared to obtain a recredit. When Nacim moved to a new reside

> Dorinda, Luis, and Elizabeth form a limited partnership. Dorinda is a general partner, and Luis and Elizabeth are limited partners. Discuss fully whether each of the separate events below constitutes a dissolution of the limited partnership. (See Limited

> Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Grand Rapids, Michigan. Daniel, by written contract, agrees to pay Rubya a monthly salary and 20 percent of the profits. Without Daniel’s

> In August 2004, Ralph Vilardo contacted Travel Center, Inc., in Cincinnati, Ohio, to buy a trip to Florida in December for his family. Vilardo paid $6,900 to David Sheets, the sole proprietor of Travel Center. Vilardo also paid $195 to Sheets for a separ

> The franchise agreement of Domino’s Pizza, L.L.C., sets out operational standards, including safety requirements, for a franchisee to follow but provides that the franchisee is an independent contractor. Each franchisee is free to use its own means and m

> JTH Tax, Inc., doing business as Liberty Tax Service, provides tax preparation and related loan services throughout the United States in more than two thousand company- owned and franchised stores. Liberty’s agreement with its franchisees reserved the ri

> George Oshana and GTO Investments, Inc., operated a Mobil gas station franchise in Itasca, Illinois. In 2010, Oshana and GTO became involved in a rental dispute with Buchanan Energy, to which Mobil had assigned the lease for the gas station facility. In

> Kubota Tractor Corp. makes farm, industrial, and outdoor equipment. Its franchise contracts allow Kubota to enter into dealership agreements with “others at any location.” Kejzar Motors, Inc., is a Kubota dealer in Nacogdoches and Jasper, Texas. These tw

> C.B. Management, Inc., had a franchise agreement with McDonald’s Corp. to operate McDonald’s restaurants in Cleveland, Ohio. The agreement required C.B. to make monthly payments of certain percentages of the gross sales to McDonald’s. If any payment was

> National Foods, Inc., sells franchises to its fast-food restaurants, known as Chicky-D’s. Under the franchise agreement, franchisees agree to hire and train employees strictly according to Chicky-D’s standards. In addition, Chicky-D’s regional supervisor

> Maria, Pablo, and Vicky are recent college graduates who would like to go into business for themselves. They are considering purchasing a franchise. If they enter into a franchising arrangement, they would have the support of a large company that could a

> Stephen Patterson held an account with Suntrust Bank in Alcoa, Tennessee. Juanita Wehrman —with whom Patterson was briefly involved in a romantic relationship—stole his debit card and used it for sixteen months (well beyond the length of their relations

> Shane Dawson, a male homosexual, worked for Entek International. Some of Dawson’s co-workers, including his supervisor, made derogatory comments about his sexual orientation. Dawson’s work deteriorated. He filed a complaint with Entek’s human resources d

> Jamel Blanton, a male employee at a Pizza Hut restaurant operated by Newton Associates, Inc., in San Antonio, Texas, was subjected to sexual and racial harassment by the general manager, who was female. Newton had a clear, straightforward antidiscriminat

> Cynthia Horn worked for Knight Facilities Management–GM, Inc., in Detroit, Michigan, as a janitor. When Horn developed a sensitivity to cleaning products, her physician gave her a “no exposure to cleaning solutions” restriction. Knight discussed possible

> Beginning in 1986, Paul Rangel was a sales professional for pharmaceutical company Sanofi- Aventis U.S., LLC (S-A). Rangel had satisfactory performance reviews until 2006, when S-A issued new expectations guidelines with sales call quotas and other stand

> Billie Bradford worked for the Kentucky Department of Community Based Services (DCBS). One of Bradford’s co-workers, Lisa Stander, routinely engaged in extreme sexual behavior (such as touching herself and making crude comments) in Bradford’s presence. B

> Burlington Coat Factory Warehouse, Inc., had a dress code that required male sales clerks to wear business attire consisting of slacks, shirt, and necktie. Female salesclerks, by contrast, were required to wear a smock so that customers could readily ide

> Gina Gomez, a devout Roman Catholic, worked for Sam’s Department Stores, Inc., in Phoenix, Arizona. Sam’s considered Gomez a productive employee because her sales exceeded $200,000 per year. The store gave its managers the discretion to grant unpaid leav

> Discuss fully whether either of the following actions would constitute a violation of Title VII of the Civil Rights Act. 1. Tennington, Inc., is a consulting firm with ten employees. These employees travel on consulting jobs in seven states. Tennington

> Beverly Tull had worked for Atchison Leather Products, Inc., for ten years when she began to complain of hand, wrist, and shoulder pain. Atchison recommended that she contact a certain physician. In April 2000, the physician diagnosed the condition as c

> Carol Garcia and Pedro Salgado, bus drivers for Latino Express, Inc., a transportation company, began soliciting signatures from other drivers to certify the Teamsters Local Union No. 777 as the official representative of the employees. Latino Express fi

> Adley Abdulwahab (Wahab) opened an account on behalf of W Financial Group, LLC, with Wells Fargo Bank. Wahab was one of three authorized signers on the account. Five months later, Wahab withdrew $1,701,250 from W Financial’s account to buy a cashier’s ch

> Fior Ramirez worked as a housekeeper for Remington Lodging & Hospitality, a hotel in Atlantic Beach, Florida. After her father in the Dominican Republic suffered a stroke, she asked her employer for time off to be with him. Ramirez’s manager, Katie Berko

> SDBC Holdings, Inc., acquired Stella D’oro Biscuit Co., a bakery in New York City. At the time, a collective bargaining agreement existed between Stella D’oro and Local 50 of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Unio

> Li Li worked for Packard Bioscience, and Mark Schmeizl was her supervisor. In March 2000, Schmeizl told Li Li to call Packard’s competitors, pretend to be a potential customer, and request “pricing information and literature.” Li Li refused to perform th

> As a safety measure, Dynea USA, Inc., required an employee, Tony Fairbanks, to wear steeltoed boots. One of the boots caused a sore on Fairbanks’s leg. The skin over the sore broke, and within a week, Fairbanks was hospitalized with a methicillin-resista

> Misty Cumbie worked as a waitress in Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage, but the servers were required to contribute th

> Denton and Carlo were employed at an appliance plant. Their job required them to do occasional maintenance work while standing on a wire mesh twenty feet above the plant floor. Other employees had fallen through the mesh, and one was killed by the fall.

> Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. The company has five hundred nonunion employees. Representatives of these employees are requesting a four-day, ten-hours-per-day workweek, and Calzoni is concerned

> Jamie Paliath worked as a real estate agent for Home Town Realty of Vandalia, LLC (the principal, a real estate broker). Torri Auer, a California resident, relied on Paliath’s advice and assistance to buy three rental properties in Ohio. Before the sale

> Terry Holden’s stepmother, Rosie, was diagnosed with amyotrophic lateral sclerosis (ALS), and Terry’s wife, Susan, became Rosie’s primary caregiver. Rosie executed a durable power of attorney appointing Susan as her agent. Susan opened a joint bank accou

> Nelson Ovalles worked as a cable installer for Cox Rhode Island Telecom, LLC, under an agreement with a third party, M&M Communications, Inc. The agreement stated that no employer-employee relationship existed between Cox and M&M’s technicians, including

> Debbie Brooks and Martha Tingstrom lived together. Tingstrom handled their finances. For five years, Brooks did not look at any statements concerning her accounts. When she finally reviewed the statements, she discovered that Tingstrom had taken $85,500

> William and Maxine Miller, shareholders of Claimsco International, Inc., filed a suit in an Illinois state court against the other shareholders, Michael Harris and Kenneth Hoxie, as well as John Verchota, the accountant who worked for all of them. The Mi

> Basic Research, L.L.C., advertised its products on television networks owned by Rainbow Media Holdings, Inc., through an ad agency, Icebox Advertising, Inc. As Basic’s agent, Icebox had the express authority to buy ads from Rainbow on Basic’s behalf, but

> Thomas Huskin and his wife entered into a contract to have their home remodeled by House Medic Handyman Service. Todd Hall signed the contract as an authorized representative of House Medic. It turned out that House Medic was a fictitious name for Hall H