Please answer this: David has been working for the government for many years. His expertise is in statistics. He analyzes numerical data to help lawmakers make better decisions. He has now two sets of data in front of him, data set A and data set B. His evaluation finds that data set A is subject to false precision, but data set B is not subject to false precision. He has to decide which data set should be presented to the lawmakers.  Given the paragraph above, please answer correctly the following question:   Would lawmakers make better decisions or worse decisions with data set A when accuracy matters?  Hint: False precision (also called overprecision, fake precision, misplaced precision and spurious precision) occurs when numerical data are presented in a manner that implies better precision than is justified; since precision is a limit to accuracy, this often leads to overconfidence in the accuracy, named precision bias.[1]
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Answer: worse decisions


Please answer this: Company X stopped taking on more debt, and decided to file for bankruptcy, while company Y, kept benefiting from the tax benefits of debt, having a lower debt level.  Given the paragraph above, please answer correctly the following question:   Which company discharged less debt, company X or company Y?  Hint: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]  An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing.
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Answer: company Y


Please answer this: Mark was visiting southern Africa as an exchange student. He was amazed by the beauty of Namib Desert, which is located mostly in Namibia. He kind of enjoyed the hot surface of the desert. Next to Namib desert is the grasslands of  Botswana. He noticed that the surface temperature was much lower there.  Given the paragraph above, please answer correctly the following question:   Which place would have lower surface air pressure, Namibia or Botswana?  Hint: Surface temperature differences in turn cause pressure differences. A hot surface warms the air above it causing it to expand and lower the density and the resulting surface air pressure. The resulting horizontal pressure gradient moves the air from higher to lower pressure regions, creating a wind, and the Earth's rotation then causes deflection of this air flow due to the Coriolis effect. The simple systems thus formed can then display emergent behaviour to produce more complex systems and thus other weather phenomena.  Large scale examples include the Hadley cell while a smaller scale example would be coastal breezes.
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Answer:
Namibia