Of all the companies on the New York Stock Exchange, profits are normally distributed with a mean of $6.54 million and a standard deviation of $10.45 million. In a random sample of 73 companies from the NYSE, what is the probability that the mean profit for the sample was between 3.0 million and 6.0 million?

Answers

Answer 1

Answer:

[tex]P(3.0<\bar X<6.0)= P(-2.894< Z< -0.442) = P(Z<-0.442) -P(Z<-2.894) = 0.329 -0.0019=0.327[/tex]

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Solution to the problem

Let X the random variable that represent the profits of a population, and for this case we know the distribution for X is given by:

[tex]X \sim N(6.54,10.45)[/tex]  

Where [tex]\mu=6.54[/tex] and [tex]\sigma=10.45[/tex]

We are interested on this probability :

[tex]P(3.0<\bar X<6.0)[/tex]

And the best way to solve this problem is using the normal standard distribution and the z score given by:

[tex]z=\frac{x-\mu}{\frac{\sigma}{\sqrt{n}}}[/tex]

And we can find the z score for the two limits 3.0 and 6.0 and we got:

[tex] z_1 = \frac{3-6.54}{\frac{10.45}{\sqrt{73}}} = -2.894[/tex]

[tex] z_2 = \frac{6- 6.54}{\frac{10.45}{\sqrt{73}}} =-0.442 [/tex]

So then we can calculate the probability on this way:

[tex]P(3.0<\bar X<6.0)= P(-2.894< Z< -0.442) = P(Z<-0.442) -P(Z<-2.894)[/tex]

And we can use the normal standard distribution or excel to calculate the probabilities and we got:

[tex]P(3.0<\bar X<6.0)= P(-2.894< Z< -0.442) = P(Z<-0.442) -P(Z<-2.894) = 0.329 -0.0019=0.327[/tex]


Related Questions

For those who are trying to make moral decisions,A. it is impossible to make progress on controversial ethical issues unless everyone shares the same moral theory.B. endorsing a moral principle doesn't require you to apply it in all similar situations.C. moral judgments don't have to be related to some general moral principles.D. in a moral discussion, clarifying the facts and spelling out the principles to which people are appealing can help us to reach a solution.

Answers

Answer:

option D : in a moral discussion, clarifying the facts and spelling out the principles to which people are appealing can help us to reach a solution.

Explanation:

Facts clarification and sorting according to the principles in terms of making it known the principles to which is people are appealing can definately help to reach an effective and sustainable solution in making a moral decision.

Final answer:

In moral decision-making, D. In a moral discussion, clarifying the facts and spelling out the principles to which people are appealing can help us reach a solution.

Explanation:

In moral decision-making, it is not necessary for everyone to share the same moral theory to make progress on controversial ethical issues. Endorsing a moral principle does not require applying it in all similar situations. Moral judgments can be related to general moral principles, and in moral discussions, clarifying the facts and principles can help in reaching a solution.

Thus, in a moral discussion, clarifying the facts and spelling out the principles to which people are appealing can help us reach a solution. This option recognizes that in moral decision-making, it's often essential to clarify the facts and understand the moral principles being used to address controversial ethical issues. It emphasizes the importance of reasoned discussion and analysis in reaching moral conclusions.

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Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria. A. ​3; 1 B. 3 or​ 4; 2 or fewer C. 3 or​ 4; 0 D. ​4; 0 E. ​All; none

Answers

Answer:

Option B) 3 or​ 4; 2 or fewer

Explanation:

A high quality factor will not meet 3 or 4 and low quality factor will not meet 1 or 0 so option A, C and D are incorrect.

The correct option is B. 3 or 4; 2 or fewer as a high quality factor will meet three or four of the AQCD criteria; a low quality factor will meet two or fewer of the AQCD critieria.

Actions firms take to gain competitive advantages in a single market or industry are known as A. business level strategies. B. corporate level strategies. C. functional level strategies. D. sustainable strategies.

Answers

Answer:

A. business level strategies

Explanation:

Business level strategies -

It refers to the strategy taken by the business or organisation , in order to satisfy the needs of the human being , is referred to as business level strategies.

The method is adapted for the betterment of the business or firm , by making the consumers happy and satisfied.

Hence , from the given information of the question,

The correct option is  A. business level strategies .

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes. The manufacturer of Topik considers this group to be its:

(A) population
(B) sample
(C) target market(D) demand group(E) utility market(F) package group

Answers

Answer:

(C) target market

Explanation:

The group of people for which a product is designed and aimed to is the product's target market. In this case, Topik is a product that aims to sell to blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes, which is the product's target market.

The answer is (C).

Final answer:

The manufacturer of Topik considers blue-collar workers earning less than $30,000 per year, who are divorced, and fancy themselves as weekend athletes, as its target market option C.

Explanation:

The manufacturer of Topik, which is a product used to make thinning hair appear thicker, considers the group of blue-collar workers earning less than $30,000 per year, who are divorced, and like to think of themselves as weekend athletes to be its target market. A target market is a specific group of consumers at which a company aims its products and services. Understanding the target market is crucial for effective marketing strategies and product positioning.

"A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as__________

Answers

Answer:

Recession.

Explanation:

Recession is a time of slow economic activity.Businesses decrease production,unemployment rises and many consumers have less to spend.

A marketing researcher is most likely to serve as a _____ in a new product development team. functional representative process manager scientific advisor project leader

Answers

Answer:

The correct answer is letter "A": functional representative.

Explanation:

Market Research is the process a company uses to assess the viability of a new product or service. It reveals the details of a company's target market and what consumers think about a product before it is widely released. Researchers are the key functional characters in this process because thanks to them the information needed to know consumers' preferences and behaviors is unveiled by them.

What is the present worth of these future payments? (a) $25,500 eight years from now at 12% com-pounded annually. (b) $58,000 twelve years from now at 4% com-pounded annually. (c) $25,000 nine years from now at 6% compounded annually. (d) $35,000 four years from now at 9% compounded annually.

Answers

Answer:

a. PV        =  $10,299.02

b. PV        =  $36,226.63

c. PV        =   $14,797.46

d. PV        =   $24,794.88

Explanation:

To solve this question, we use present value formula

           PV          =  C/(1+r)^n

Where PV          = Present value of a lump sum

              C         = Future amount to be discounted

               r          = Interest rate

               n         = Number of years

             

a.            PV        =  C/(1+r)^n

               C         = $25,500

               r          = 12%

               n         =  8

             PV        = $25,500 /(1+12%)^8

             PV        = $25,500 /(1+0.12)^8

             PV        = $25,500 /(1.12)^8

             PV        = $25,500 /2.475963176

              PV        = $10,299.02231

              PV        = $10,299.02

b.            PV        = C/(1+r)^n

               C         = $58,000

               r          =  4%

               n         =  12

             PV        =  $58,000 /(1+4%)^12

             PV        =  $58,000 /(1+0.04)^12

             PV        =  $58,000 /(1.04)^12

             PV        =   $58,000 /1.601032219

              PV        =  $36,226.62888

              PV        =  $36,226.63

c.            PV        = C/(1+r)^n

               C         = $25,000

               r          =  6%

               n         =  9

             PV        =  $25,000 /(1+6%)^9

             PV        =  $25,000 /(1+0.06)^9

             PV        =  $25,000 /(1.06)^9

             PV        =  $25,000 /1.689478959

              PV        = $14,797.46159

              PV        = $14,797.46

c.            PV        = C/(1+r)^n

               C         = $35,000

               r          =  9%

               n         =  4

             PV        =  $35,000 /(1+9%)^4

             PV        =  $35,000 /(1+0.09)^4

             PV        =  $35,000 /(1.09)^4

             PV        =  $35,000 /1.41158161

              PV        = $24,794.88239

              PV        = $24,794.88

During the Zhou Dynasty, merchants were Group of answer choices independent operators who were vital to the economy. interested only in trading domestic goods. the property of the local lord and could sometimes be bought and sold. were originally slave owners but later freed their slaves. the funders and sponsors of massive irrigation projects.

Answers

The property of the local lord and could sometimes be bought and sold

Answer: Option 3.

Explanation:

The Zhou dynasty expanded economic production by developing new iron tools that helped produce more food. They grew new crops and organized large-scale irrigation works. They expanded commerce by using money.

During the Eastern Zhou Dynasty ancient shamanist practices were forged into a system of moral beliefs for daily life that later became Confucianism (See Confucianism, Religion). The Zhou also refined writing. It said people in the Zhou Dynasty had also learned to grow fruit trees in orchards.

If countries are first ranked by level or real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different? Explain Shocks to an economy, such as wars, famines, or the unification of two economies. often generate large one-time flows of workers across borders. What are the short-run and long-run effects on an economy of a one-time permanent increase in the stock of labor? Use a diagram to guide your arguments.

Answers

Answer:

pol'k]pkp

p'm

Explanation:

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The ranking of countries by real GDP per capita may differ from their ranking by Human Development Index as HDI considers broader development indicators. Short-run effects of an increased labor stock may include lower wages and higher unemployment, while long-run effects could lead to economic growth if paired with sufficient capital and technology.

When countries are ranked by real GDP per capita and then by the value of the Human Development Index (HDI), the rankings might differ because real GDP per capita is a measure of economic output adjusted for population, while HDI considers more nuanced aspects of development such as education, life expectancy, and income levels. An economy's performance in terms of GDP per capita may not fully capture the well-being of its people, which is why HDI rankings can diverge from GDP per capita rankings.

Shocks to an economy such as wars, famines, or unifications can lead to significant migration, impacting the labor market. A one-time permanent increase in the stock of labor in the short-run may cause wages to fall due to increased supply, potentially leading to higher unemployment if labor demand is static. In the long-run, however, the economy may adjust, and the additional labor can contribute to economic growth if accompanied by adequate capital and technological advancement.

Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. Cost of goods sold is $6 per unit. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit. Compute Naple's net income under absorption costing.

Answers

Answer:

Net operating profit= $490,000

Explanation:

Giving the following information:

Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. The cost of goods sold is $6 per unit. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit.

Income statement:

Revenue= 500,000*10= 5,000,000

COGS= 500,000*6= 3,000,000

Gross profit= 2,000,000

Fixed expenses= 10,000

Variable selling nd administrative= (500,000*3)= 1,500,000

Net operating profit= $490,000

Final answer:

In absorption costing, the net income is calculated by deducting the cost of goods sold and total selling expenses from the total sales revenue.

Explanation:

In absorption costing, fixed manufacturing costs are allocated to each unit produced, therefore, net income is calculated by deducting the cost of goods sold and total selling expenses from the total sales revenue.

Calculate the total manufacturing cost per unit: $6 (cost per unit)Calculate the total variable selling expenses: $3 (variable selling and administrative expenses per unit) multiplied by 500,000 (units sold) = $1,500,000Calculate the cost of goods sold: $6 (cost per unit) multiplied by 500,000 (units sold) = $3,000,000Calculate the total fixed manufacturing costs: $3,000,000 (cost of goods sold) - $500,000 (units produced) multiplied by $6 (cost per unit) = $1,500,000Calculate the total selling expenses: $10,000 (fixed selling expenses) + $1,500,000 (variable selling expenses)Calculate the net income: $5,000,000 (total sales revenue) - $3,000,000 (cost of goods sold) - $1,500,000 (total selling expenses) = $500,000

Calculate the future value in six years of $5,000 received today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Future Value
a. 5 percent compounded annually $
b. 7 percent compounded annually
c. 9 percent compounded annually
d. 9 percent compounded semiannually
e. 9 percent compounded quarterly

Answers

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The future value in six years of $5,000 received today:

A) i=0.05 annually

FV= PV*(1+i)^n

FV= 5,000*(1.05)^6= $6,700.48

B) i=0.07 annually

FV= 5,000*(1.07)^6= $7,503.65

C) i=0.09 annually

FV= 5,000*(1.09)^6= $8,385.50

D) i= 0.09 semiannually= 0.045

FV= 5,000*(1.045)^12= $8,479.41

E) i=0.09 quaterly= 0.0225

n= 6*4= 24

FV= 5,000*(1.0225)^24= $8,528.83

The opportunity cost of attending college is likely to be highest for a high school graduate _______A. who can immediately take over the family business.B. who has access to student loans.C. who is very intelligent.D. whose family is extremely wealthy.

Answers

Answer:

who can immediately take over the family business.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

For a student who chooses to go to college, his opportunity cost is the opportunity of running the family business he forgoed when he decided to go to college.

I hope my answer helps you

An In the News article titled "Perpetuating Poverty: Lotteries Prey on the Poor" reports that poor people spend a larger percentage of their income on government-promoted gambling than do rich people. On the basis of this information, we can conclude that lotteries function as:_________.
A) An income tax.
B) A progressive tax.
C) A property tax.
D) A regressive tax.

Answers

Answer:

D) A regressive tax.

Explanation:

A regressive tax is one in which as the amount being taxed increases the tax on it reduces. Being regressive implies that there is reduction in the tax as the taxable amount increases.

In this case poor people are spending a larger percentage of their income on government promoted gambling than the percentage spent by rich people. So lotteries function as regressive tax tool.

. Due to a car accident you receive a settlement from insurance of $50 a month for the next ten years. What is that worth to you today, assuming a 3% inflation rate?

Answers

Answer:

Worth  of Insurance settlement $426.5

Explanation:

Present value of Insurance settlement = P [ ( 1 - ( 1+r )^-n ) / r ]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 3% )^-10 ) / 3%]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 0.03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - 0.7441 ) / 0.03]

Present value of Insurance settlement = 50 [ 0.2559 / 0.03]

Present value of Insurance settlement = 50 x 8.53

Present value of Insurance settlement = 426.5

g MC Qu. 87 When is a goodwill impairment loss... When is a goodwill impairment loss recognized?

Answers

Answer:

Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.

An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.

Explanation:

Final answer:

A goodwill impairment loss is recognized when the carrying amount of goodwill is greater than its fair value, usually during an annual test by the company following IFRS or GAAP standards.

Explanation:

A goodwill impairment loss is recognized when the carrying amount of goodwill exceeds its fair value. This typically occurs during a company's annual impairment test, which is a requirement by accounting standards such as the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in the United States.

Under these standards, companies are required to assess whether there is any indication that goodwill might be impaired. If the carrying value of a reporting unit, including goodwill, exceeds its fair value, the company must recognize an impairment loss. The loss is calculated as the difference between the carrying value and the fair value of the goodwill.

Goodwill impairment testing and loss recognition is a complex financial process involving valuation assessments and judgment calls by management, often assisted by valuation professionals. It is an important aspect of financial reporting, as it can have a significant impact on a company's financial statements and indicate underlying business issues.

The information below should be used to prepare (in proper form in Excel) a Public Transportation column for the proprietary fund Statement of Revenues, Expenses, and Changes in Fund Net Position for the fiscal year ending May 31, 2018.

Operating Revenue (Services) $25,705,000
Interest Revenue $36,000
Intergovernmental Revenue $140,000
Capital Contributions $1,200,000

Operating Expenses:

Employee Wages $8,654,000
Temporary Labor $750,000
Repairs and Maintenance $6,425,000
Depreciation $4,532,000
Utilities $948,000
Interest Expense $475,000
Transfer to General Fund $315,000
Net position, June 1, 2017 $3,820,000

Please also answer the following questions in MS Word:

What observations can you make about the fund’s activity from June 1, 2017-May 31, 2018?

Identify the other proprietary fund statements and what measurement focus and basis for accounting are used in those statements.

What reports and schedules are included in the CAFR as required supplementary information?

Answers

Answer:

find attached excel file as well as the word document

Explanation:

The computations are on excel while the theory answers are on word document as required by the question

Answer:

Explanation:

Kindly find attached the solution.

Big Thumbs Company manufactures portable flash drives for computers. Big Thumbs incurs monthly depreciation costs of $15,000 on its plant equipment. Also, each drive requires materials and manufacturing overhead resources. On average, the company uses 10,000 ounces of materials to manufacture 5,000 flash drives per month. Each ounce of material costs $3.00. In addition, manufacturing overhead resources are driven by machine hours. On average, the company incurs $22,500 of variable manufacturing overhead resources to produce 5,000 flash drives per month.In your calculations, round variable rate per flash drive to the nearest cent.Required:1. Create a formula for the monthly cost of flash drives for Big Thumbs.Total cost of flash drives = Fixed cost + (Variable rate x Number of flash drives)Total cost of flash drives = $ + ($ x Number of flash drives)2. If the department expects to manufacture 6,000 flash drives next month, what is the expected fixed cost (assume that 6,000 units is within the company's current relevant range)?$What is the total variable cost (assume that 6,000 units is within the company's current relevant range)?$What is the total manufacturing cost (i.e., both fixed and variable) (assume that 6,000 units is within the company's current relevant range)?$

Answers

Answer:

1.TC = $15,000 + (10.50 x number of of drives)

2.TFC = $15,000

3.Total Variable Cost = $63,000

4. Total Manufacturing. Cost = $78,000

Explanation:

Big Thumbs incurs monthly depreciation costs of $15,000 on its plant equipment

-it uses 10000 ounces of materials to manufacture 5000 flash drives

-

total cost

1.TC = $15,000 + (10.50 x number of of drives)

2. The total fixed cost will still be

TFC = $15,000

3.Total variable cost

10.5*6000 units of flash drives

Total Variable Cost = $63,000

4. total manufacturing cost

fixed cost +variable cost

$15000+$63000

Total Manufacturing. Cost = $78,000

Final answer:

The total monthly cost for flash drives at Big Thumbs consists of a fixed cost of $15,000 and a variable cost of $10.50 per flash drive. If the company plans to produce 6,000 flash drives, the total variable cost is $63,000 and the total manufacturing cost is $78,000.

Explanation:

The total cost of flash drives for Big Thumbs consists of fixed and variable costs. The fixed cost, which includes the monthly depreciation costs of the plant equipment, is $15,000. This amount remains the same regardless of the number of flash drives manufactured.

To calculate the variable rate per flash drive, we first identify the variable costs. The company uses 10,000 ounces of materials per month to manufacture 5,000 flash drives, and each ounce of material costs $3.00, yielding a material cost of $30,000. The variable manufacturing overhead resources amount to $22,500. Therefore, the total variable cost per month is the sum of these two costs, which equals $52,500. Since this cost is incurred to produce 5,000 flash drives, the variable cost per flash drive is $52,500 divided by 5,000, or $10.50.

If the department expects to manufacture 6,000 flash drives next month, the fixed cost remains at $15,000, while the total variable cost increases to $10.50 times 6,000, or $63,000. Thus, the total manufacturing cost, which is the sum of the fixed and variable costs, is $15,000 plus $63,000, totaling $78,000.

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​Boulevard, Inc. uses the direct method to prepare its statement of cash flows. Use the following information reported for​ 2019: Sales​ Revenue, $ 40 comma 000 Interest​ Revenue, $ 700 Accounts​ Receivable, beginning​ balance, $ 13 comma 500 Accounts​ Receivable, ending​ balance, $ 30 comma 000 There were no amounts reported for Interest Receivable. Compute the total cash receipts.A.$25,900B.$53,200C.$28,000D.$13,200

Answers

Answer:

Total cash receipts is $24,200. This is not given as an option.

Explanation:

The accounts receivable balance represents the balance from sales yet to be settled by the customer. Interest receivable is the interest yet to be received from investment.

Given that for 2019:

Sales​ Revenue = $40,000

Interest​ Revenue = $700

Accounts​ Receivable(beginning​ balance) = $13,500

Accounts​ Receivable (ending​ balance) = $30,000

There were no amounts reported for Interest Receivable.

Since there is an Accounts receivable balance at the end of the year, it means that not all revenue was collected from customers. Similarly, since the interest receivables ending balance is nil, all the interest was collected.

Let the cash collected from sales to customers be t

As such,

$13,500 + $40,000 - t = $30,000

t = $13,500 + $40,000 - $30,000

t = $23,500

Total cash receipt = $23,500 + $700  = $24,200

Suppose that the price of food increases by 2%, the price of clothing increases by 4%, and food and clothing each account for half of expenditures; therefore, the overall inflation rate is 3%. A 3% increase in income is necessary to achieve the same level of utility.true/false

Answers

Answer:

True

Explanation:

Since the overall inflation is 3%, a rise in income of 3% is necessary to balance off the rise in inflation.

A portfolio management organization analyzes 60 stocks and constructs a mean-variance efficient portfolio using only these 60 securities.How many estimates of expected returns, variances, and covariances are needed to optimize this portfolio?If one could safely assume that stock market returns closely resemble a single-index structure, how many estimates would be needed?

Answers

Answer:

In a single index model:

ri - rf = α i + β i (r M - rf ) + e i

Equivalently, using excess returns:

R i = α i + β i R M + e i

The variance of the rate of return can be decomposed into the components:

The variance due to the common market factor

Bi^2stdvm^2

The variance due to firm specific unanticipated events

STDV^2(ei)

In this model

Cov(ri,rj) =BiBjSTDV

The number of parameter estimates is:

n = 60 estimates of the mean E(ri )

n = 60 estimates of the sensitivity coefficient β i

n = 60 estimates of the firm-specific variance σ2(ei )

1 estimate of the market mean E(rM )

1 estimate of the market variance

Therefore, in total, 182 estimates.

The single index model reduces the total number of required estimates from 1,890 to 182. In general, the number of parameter estimates is reduced from:

(n^2 +3n / 2) to (3n+2)

To optimize a portfolio with 60 stocks, 1890 estimates of expected returns, variances, and covariances are required. However, if a single-index model is assumed, only 121 estimates are needed. Portfolio diversification is crucial in optimizing returns while minimizing risk.

To construct a mean-variance efficient portfolio with 60 securities, there are three types of estimations needed: expected returns, variances, and covariances. The number of expected returns estimates matches the number of securities, thus we need 60 estimates for the expected returns. For variances, we also need 60 estimates, as there is one variance per stock. The covariance estimates, however, are required for each pair of stocks. In a portfolio of 60 stocks, the number of unique pairs can be calculated using the combination formula C(n, 2) = n(n-1)/2, where 'n' is the number of stocks. Therefore, we need 60(60-1)/2 = 1770 covariance estimates. In total, optimizing this portfolio requires 60 (expected returns) + 60 (variances) + 1770 (covariances) = 1890 estimates.

If we assume that stock market returns follow a single-index structure, the calculations simplify. In a single-index model, each stock's return is related to the return of a common index, and the unique risk for each stock. Hence, each security would require one estimate for sensitivity to the index (beta), one estimate for the expected return of the index, and one estimate for the individual stock's variance not explained by the index (unique or idiosyncratic variance). Therefore, 60 beta estimates, one index return estimate, and 60 unique variance estimates are needed, totaling to 121 estimates when the single-index model is applied.

Investing in a diversified portfolio is a fundamental principle of Optimal Portfolio Theory to minimize risk and optimize returns.

At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8 percent compounded annually. (a) How much is in the account today? (b) How much would be in the account if the deposits were made at the beginning each year rather than at the end of each year?

Answers

Answer:

a) = $10,896.71

b) = $11,768.45

Explanation:

The question is divided into 2 parts

Part a) Amount in the account today

The formula to use is as follows:

FV of Annuity= P(1+r)∧n - 1)/r

P= Periodic Payment = $450

r= Rate of each period= 8%

n= the number of periods= 14

The account today is as follows:

FV = 450 x (1+0.08)∧14-1]/0.08

= $10,896.71

Part b) The formula to use is as follows:

FV = Future value = (1+r) * P * [ (1+r)n -1] / r

P= Periodic Payment = $450

r= Rate of each period= 8%

n= the number of periods= 14

= Fv= (1+0.08) * 450 * [ (1+0.08)^14 - 1] / 0.08

= $11,768.45

A learning organization is an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge. According to Senge from MIT, learning organizations are places "where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together." This activity is important because learning is a key component of organizational success. The goal of this exercise is to challenge your knowledge of what learning organizations are and how to build them.

Answers

Answer:

As it is said in the text, Learning Organizations are organization that enables people to build their knowledge and capacity.

Explanation:

A learning organization creates in people more value around their skills and motivates them. They are essential and the key to success. In order to build them there’s a huge need of having a training plan so people in it keep on studying and challenging theirselves. To track these trainings there must be an evaluation and monitoring plan so that we can be aware of the changes needed.

Final answer:

A learning organization consistently creates and acquires knowledge, transferring it among its members, and adapts behavior based on this new knowledge. The building of such an organization involves continual learning, nurturing collective aspiration, and creating an environment for learning. This concept is vital for organizational success.

Explanation:

A learning organization is a type of organization that constantly seeks to create, acquire, and transfer knowledge amongst its members, and can adapt its behavior in light of new knowledge. They are defined by their capability to nurture new and expansive ways of thinking and to set collective aspirations free, according to Peter Senge from MIT.

Building a learning organization requires a focus on encouraging continual learning, fostering abilities for employees to create the results they desire, nurturing collective aspiration, and fostering an environment where everyone is learning to learn together.

Learning organizations are vital because they foster an environment that encourages progressive learning and knowledge sharing, which are integral to the overall success of an organization.

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_____ are the dimensions or attributes of a product that are used to compare different alternatives.

Answers

Answer:

The correct answer is letter "A": Evaluative criteria.

Explanation:

In Marketing, evaluative criteria are the set of features individuals use to compare one good or service from another. According to this approach, individuals tend to select other product than the one that was on their minds based on price or quality.

Final answer:

Criterion are the dimensions or attributes of a product used to compare different alternatives, including both physical and intangible aspects.

Explanation:

The dimensions or attributes of a product that are used to compare different alternatives are known as criterion. Criteria are essential as they provide a way to evaluate the quality of design, whether by comparing physical attributes like color, contrast, depth, texture, shape, and dimensions (height, width, length), or intangible aspects such as a guarantee of satisfaction, a reputation for high quality, and services like free delivery. These criteria help consumers and engineers focus on product attributes and make decisions regarding which products better solve their problems or meet their needs.

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The King Corporation has ending inventory of $483,824, and cost of goods sold for the year just ended was $4,233,460. a. What is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) b. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

a. 8.75 times

b. 41.71 days

c. 41.71 days

Explanation:

The computation is shown below:

a. Inventory Turnover = Cost of Goods Sold ÷  Inventory

                                    = $4,233,460 ÷ $483,824

                                    =  8.75 times

b. Days' sales in inventory = 365 ÷ Inventory Turnover

                                            = 365 ÷ 8.75 times

                                            = 41.71 days

c. Number of days for the unit of inventory sit on the shelf would be equal to the days' sales in inventory i.e 41.71 days

Final answer:

The inventory turnover of the King Corporation is 8.75 times. The days' sales in inventory or how long on average did a unit of inventory sit on the shelf before it was sold is roughly 41.71 days.

Explanation:

To calculate the inventory turnover, we use the formula Inventory Turnover = Cost of Goods Sold / Average Inventory. However, in this case, we are only given the ending inventory, so we will use that as an approximation for the average inventory. Therefore, Inventory Turnover = $4,233,460 / $483,824 = 8.75 times. This suggests that the inventory turned over 8.75 times in the year.

Next, to calculate days' sales in inventory, we use the formula Days' Sales Inventory = 365 days / Inventory Turnover. Using the inventory turnover we calculated, Days' Sales in Inventory = 365 / 8.75 = 41.71 days. This suggests that on average, inventory stays in stock for about 41.71 days before it is sold.

Finally, the answer to the third question on how long an average unit of inventory sat on the shelf before being sold is the same as the days' sales in inventory, which is 41.71 days.

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You just signed a business consulting contract with one of your clients. The client will pay you $50,000 a year for five years for the service you will provide over this period. You anticipate the general inflation rate over this period to be 6%. If your desired inflation-free interest rate (real interest rate) is to be 4%, what is the worth of the fifth payment in present dollars? The client will pay the consulting fee at the end of each year.

Answers

Final answer:

The worth of the fifth payment in present dollars, given a 6% inflation rate and a 4% desired real interest rate, is approximately $31,046 after accounting for the effect of nominal interest of 10% over five years.

Explanation:

To calculate the worth of the fifth payment in present dollars considering an inflation rate of 6% and a real interest rate of 4%, we use the formula for the present value of a future payment:

Begin with the future value of the payment: $50,000.

Calculate the nominal interest rate, which is the sum of the real interest rate and the expected inflation rate. This gives us a nominal interest rate of 4% + 6% = 10%.

Adjust the future payment to present value using the formula Present Value = Future Value / (1 + Nominal Interest Rate)^Number of Periods.

For the fifth payment, Number of Periods is 5. Therefore, the present value of the fifth $50,000 payment is $50,000 / (1 + 0.10)^5.

Perform the calculation: Present Value = $50,000 / (1.10)^5 = $50,000 / 1.61051 ≈ $31,046.

Therefore, the worth of the fifth payment in present dollars is approximately $31,046.

ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract? A. $5,784,000 B. $5,387,000 C. $6,184,000 D. $8,356,000

Answers

Answer:

The answer is A. $5,784,000

Explanation:

[(1.08)/(1.11)] -1 = -3.6%

Thus one year forward rate is 0.60*[1 +(0.036)] = $5784

$5784 * 10 000 000= $5,784,000

On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $580,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Required:
1. If the market interest rate is 8%, the bonds will issue at $580,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. 2. If the market interest rate is 9%, the bonds will issue at $542,277. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.3. If the market interest rate is 7%, the bonds will issue at $621,216. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.

Answers

Answer:

cash                 580,000 debit

  note payable            580,000 credit

interest expense 23,200 debit

        Cash                     23,200 credit

--interest payment June 30th 2021--

interest expense 23,200 debit

         Cash                    23,200 credit

--interest payment Dec 31th 2021--

2)

cash                542,277 debit

discount on BP 37,723‬ debit

     bonds payable    580,000 credit

interest expense 24,402.46 debit

       discount on BP         1,202.46 credit

       cash                       23,200.00 credit

--interest payment June 30th 2021--

interest expense 24,456,58 debit

          discount on BP         1,256.58 credit

          cash                        23,200.00 credit

--interest payment Dec 31th 2021--

3)if issued at 7%  then

cash          621,261 debit

     premium on BP      41, 261   debit

     bonds payable    580,000 credit

interest expense  21,744.13 debit

premium on BP      1,455.87 debit

          cash                        23,200.00 credit

--interest payment June 30th 2021--

interest expense  21,693.18 debit

premium on BP      1,506.82 debit

          cash                        23,200.00 credit

--interest payment Dec 31th 2021--

Explanation:

1)

the bond are issued at par thus it matches the amount recieved with the bonds payable liability

580000 x 4% = 23,200

2) if issued at 9%  then

542,277 x 0.045 = 24.402,465‬ interest expense

                              23,200 cash payment

 amortization     1.202,46‬

second payment

(542,277+1,202.46) x 0.045 = 24.456,5757 interest expense

                      cash payment  23,200  

                     amortization         1,256.58‬

3) if issued at 7%  then

621,261 x 0.035 = 21.744,13 interest expense

                              23,200 cash payment

 amortization      1.455,87

second payment

(621,261 - 1,455.87) x 0.035 = 21.693,18 interest expense

                      cash payment  23,200  

                     amortization         1,506.82‬

Final answer:

Twister Enterprises issues bonds due in 10 years at different market interest rates and records the bond issue and the first two semiannual interest payments.

Explanation:

1. Bond Issue at 8% Market Interest Rate:

On January 1, 2021, Twister Enterprises records the bond issue at $580,000. They debit Cash and credit Bonds Payable for the same amount. Then, on June 30, 2021, they make the first interest payment of $23,200 by debiting Interest Expense and crediting Cash. They repeat the same process on December 31, 2021, for the second interest payment.

2. Bond Issue at 9% Market Interest Rate:

On January 1, 2021, Twister records the bond issue at $542,277 by debiting Cash and crediting Bonds Payable. The first interest payment of $24,408.47 is made on June 30, 2021, and recorded by debiting Interest Expense and crediting Cash. The second interest payment follows the same process on December 31, 2021.

3. Bond Issue at 7% Market Interest Rate:

On January 1, 2021, Twister records the bond issue at $621,216 by debiting Cash and crediting Bonds Payable. The first interest payment of $21,738.72 is made on June 30, 2021, and recorded by debiting Interest Expense and crediting Cash. The second interest payment follows the same process on December 31, 2021.

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By the late 1800s, soft coal miners earned a higher hourly wage than other industrial workers of similar skill levels. The mining wage is an example of a. wage discrimination. b. a monopsony market. c. a compensating wage differential. d. an efficiency wage.

Answers

Answer: c. a compensating wage differential

Explanation: since different jobs in the labour market are characterised by different wages, workers do have different preferences as do firms who employ these workers have different conditions wherein they work. Soft coal miners earned a higher hourly wage than other industrial workers of similar skill levels due to compensating wage differentials. This is the additional amount of income that a worker must be offered in order to motivate them to accept a given job (often undesirable and collectively known as nonwage characteristics of the job), relative to other jobs that the same worker could perform.

For unpleasant jobs, firms often offer higher wages in order to attract workers. The reverse is also true.

Marigold Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Marigold $5 each. Marigold estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows: 2020 2021 Bags of dog food sold 480000 590000 Leashes purchased 19000 22000 Coupons redeemed 100000 150000 The premium liability at December 31, 2021 is

Answers

Answer:

Explanation:

Premium liability of 2020

(480000 x .4 - 100000)x 1/8 x 5

= 57500

Premium liability of 2021

(590000 x .4 - 150000) x 1/8 x 5

= 53750

Total liability at 2021

= 57500 + 53750

= 111250

Inc. has a net profit margin of 5% on sales of $50 million. It has book value of equity of $40 million and total liabilities with a book value of $30 million. What is Ladders’ ROE? ROA?

Answers

Answer:

ROE = 6.25%

ROA = 3.57%

Explanation:

Sales = 50 million

Net Profit margin = 5%

Net profit = 50 million x 5% = 2.5 million

Total Assets = Total Equity + Total Liabilities

Total Assets = 40 million + 30 million = 70 million

Return on Equity = Net Profit / Total equity

Return on Equity = $2.5 million / $40 million = 0.0625 = 6.25%

Return on Assets = Net profit / total Asset

Return on Assets = 2.5 million / 70 million = 0.0357 = 3.57%

Final answer:

Inc.’s ROE would be approximately 6.25%, while the ROA would be about 3.57%. This is calculated by finding the net income first and then using appropriate formulas for ROE and ROA.

Explanation:

The net income of Inc. can be calculated by multiplying its net profit margin of 5% with its sales of $50 million. Hence, the net income would be $2.5 million (0.05 * 50 million).

The Return on Equity (ROE) is calculated by dividing the net income by the book value of equity. Therefore, ROE would be 0.0625 or 6.25% (2.5 million / 40 million).

The Return on Assets (ROA) is calculated by dividing the net income by total assets. The total assets can be calculated by adding the book value of equity and total liabilities. Hence, total assets amount to $70 million (40 million + 30 million). The ROA hence would be approximately 0.0357 or 3.57% (2.5 million / 70 million).

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