This Discussion directs students to analyze a financial plan that realistically portrays a typical budgeting scheme. Students will calculate a mortgage payment and the effects of interest and financing on their budget.

a. Select the first three letters of your last name. Each letter has a numerical place value in the alphabet; for example D is 4, L is 12 and Z is 26. Add the three place values together; for example Wallace would yield WAL which is 23+1+12 = 36. Show your work.

b. Multiply your sum by 1200. This is your yearly income for the Week Four Discussion. Most everyone should have a different yearly income, unless the same last name is shared by two people.

c. Each student has these monthly expenses: Car payment = $236.95, Power bill = $56.77, Water bill = $32 and cell phone bill = $63.42.

d. Each student also has a yearly educational bill of $7800 which includes textbooks and classes.

e. Calculate your monthly income. Round to the nearest cent. Show your work.

f. What percent of your monthly income is the car payment?

g. Subtract your monthly expenses listed in part c. Use this value and calculate what percent of your income is now available to spend for food, clothing and your rent or mortgage.

h. Use the plan at the bottom of Page 454, Mathematics in Our World, and calculate the monthly mortgage payment established by your monthly income.

“Experts suggest that a person can afford to pay 28% of his or her gross monthly income for a home mortgage. Given this assumption and using table 9-1 on page 435, you can figure out how much you can afford to pay for a home as shown.
First find the monthly income.
$36,000.00 Divided by 12 = $3000.00
Next find 28% of the monthly income
0.28 x 3000.00 = $840.00
Hence you can afford a monthly mortgage payment o$840.00.
Now to see what you can afford to borrow, look up the number corresponding to 7% and 25 years in table 9-1 on page 435. It is 7.70. Set up an equation and solve for x.
7.70x = $840
7.70x = 840
7.70 7.70
X =$109.09
Multiply x by 1000 since the monthly parment in Table 9-1 are per $1000.00 of the mortgage.
$109.09 x 1000 =109,090
Hence, you can afford a mortgage of 109,090.
Finally, add your down payment of 10,000.00.
You can purchase a home casting about 119,090.00. “ ( this is what is says in the book)

i. Assume you can afford a down payment equal to 25% of your yearly income. What purchase price can you afford for a home?

Second discussion.

This Discussion will test students’ ability to define and use the various vocabulary words associated with statistics. The results of continued statistical analyses guide our everyday lives. For example, Why do students choose to take online classes instead of classes in a traditional classroom? or What is the most watched television show at 8 p.m. by low-income families? These types of questions allow companies and agencies to make good sound decisions based on mathematical models and scientific outcomes and not on intuition or feelings.

a. In your own words explain the difference between descriptive statistics and inferential statistics. Do not just give definitions.

b. In your own words, define the four different sampling techniques.

c. Develop your own hypothesis about a situation of interest, for example: Middle income families containing four members spend 10% of their gross income on clothing per year.

d. Select one of the four sampling techniques and give a detailed design of how you would gather sampling data to answer your hypothesis.

e. Select a second sampling technique for the same hypothesis and give a second detailed design of how you would gather sampling data.

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