Answer:
MC > AC : AC rise ; MC < AC : AC fall ; MC = AC : AC minimum .
Explanation:
Marginal Cost MC is addition to total cost with an additional production.
∆C/∆Q
Average Cost AC is average cost per unit of production output. C / Q
Relationship between AC & TC : Average move in direction of Marginal .
MC > AC : AC rises
MC < AC : AC falls
MC = AC : AC is minimum
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Gross income - $ 60,746,000 Total sales - 58,538,000 Total credit sales - 31,978,000 Net income - 7,158,000 Cost of goods sold - 30,324,000 Total assets - 15,067,000 Average inventory - 8,211,000 Average receivables - 4,922,000Receivable turnover = _______.Inventory turnover = _______.Asset turnover = ________.
Answer:
Receivable Turnover= 11.89
Inventory Turnover = 3.69
Asset Turnover= 3.885
Explanation:
Receivable Turnover = Net Sales/ Average Account Receivable
Receivable Turnover = 58,538,000/ ( beginning AR + Ending AR)/2
Receivable Turnover = 58,538,000/ 4922,000
Receivable Turnover= 11.89
Inventory Turnover = Cost of Good Sold/ Average Inventories
Inventory Turnover = Cost of Good Sold/ ( beginning Inv + Ending Inv )/2
Inventory Turnover = 30,324,000/8211000
Inventory Turnover = 3.69
Asset turnover= Net Sales/ Average Total Assets
Asset turnover= 58,538,000/ 15,067,000
Asset Turnover= 3.885
The receivable turnover is approximately 6.49, the inventory turnover is approximately 3.69, and the asset turnover is approximately 3.89.
Explanation:The receivable turnover is calculated by dividing the total credit sales by the average receivables. In this case, the receivable turnover is $31,978,000 divided by $4,922,000, which equals approximately 6.49.
The inventory turnover is calculated by dividing the cost of goods sold by the average inventory. In this case, the inventory turnover is $30,324,000 divided by $8,211,000, which equals approximately 3.69.
The asset turnover is calculated by dividing the total sales by the total assets. In this case, the asset turnover is $58,538,000 divided by $15,067,000, which equals approximately 3.89.
The main purpose of project plans is to:__________ a. define project scope b. guide project execution c. schedule management plans d. estimate activity resources
Project plans primarily aim to guide project execution by providing a roadmap for teams to follow.
Explanation:The main purpose of project plans is to guide project execution. Project plans provide a roadmap for project teams, outlining the objectives, activities, and timelines to be followed to successfully complete a project. They help coordinate and align the efforts of all team members, ensuring everyone is working towards a common goal. While project plans may involve scheduling management plan, the primary purpose is to guide the execution of the project.
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The main purpose of project plans is to define the project's scope, guide its execution, manage the schedule, and estimate resources needed. They act as a roadmap for the team and stakeholders, helping direct efforts and manage time and resource use.
Explanation:The main purpose of project plans is to effectively accomplish all of the above: to define project scope, to guide project execution, to establish schedule management plans, and to estimate activity resources. Project plans are integral to any project management process because they serve as a roadmap for the team and stakeholders.
Defining project scope helps to establish the boundaries of the project and to focus the efforts of the team. Guiding project execution allows everyone involved to know the direction of the project and how to arrive at the end goal. Schedule management is necessary for effective time management and in preventing time and cost overruns. Lastly, estimating activity resources ensures that the project can be completed with the resources allocated.
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Multico is a securities dealer whose principal market is with other securities dealers. To take advantage of a perceived opportunity, on December 31, the end of its fiscal year, Multico acquired a financial asset in a market other than its principal market for $50,000. At that date, the identical instrument could be sold in Multico's principal market for $50,100 with a $200 transaction cost. Which of the following amounts would constitute fair value to Multico for the financial asset at December 31?
Answer:
$50,100
Explanation:
Given that
Acquired value of a financial asset other than principal market = $50,000
Sale value of the identical instrument in principal market = $50,100
Transaction cost = $200
For reporting the fair value, we have to exclude the transaction cost i.e $200 and consider that cost which is to be received while exchanging i.e $50,100
This sale value would be equal to the fair value i.e $50,100 should be reported as a fair value
A _____ is an organizational group responsible for coordinating the project management function throughout an organization. Project Management Office Project Management Center PorMColio Group Project Management Professional
Answer:
Project Management Office
Explanation:
Project Management Office ( PMO )-
It refers to the group in the business or any agency , which is responsible for maintaining the standard of the project management in the organisation is referred to as the Project Management Office .
The project management office , is the main source of any documentation regarding the project , all the guidance and information is present with the PMO.
Hence, from the given information of the question,
The correct option is Project Management Office.
Final answer:
A Project Management Office (PMO) is responsible for coordinating project management functions across an organization, ensuring standard practices and successful execution. The project manager plays a key role within a PMO, navigating through five process groups and nine management knowledge areas as outlined by PMI's PMBOK Guide.
Explanation:
A Project Management Office (PMO) is an organizational group responsible for coordinating the project management function throughout an organization. This entity plays a critical role in maintaining project management standards and practices across projects, ensuring alignment and efficient execution of tasks.
Effective project management is an integrative effort that requires alignment of all pieces of a project for its timely completion. Issues at any point in the project timeline can lead to delays or failure, emphasizing the importance of a PMO in preventing such outcomes.
The project manager serves as the hub of communication and tasks, coordinating actions within the PMO. The project manager must navigate through five process groups: initiation, planning, executing, monitoring and controlling, and closing. These groups contain actions applied to nine management knowledge areas including integration, scope, time, cost, quality, human resources, communication, risk, and procurement management. A project manager's proficiency in these areas is vital for the overall success of the project's objectives.
The Project Management Institute (PMI) sets the standards for project management via the PMBOK Guide which outlines the extensive skills and knowledge necessary for effective project management, including the interrelated process groups and knowledge areas required for a project's lifecycle.
Financial statements provide information pertaining to A : an economy as a whole and members of society as consumers, rather than to individual enterprises or industries.
Answer:
b. Individual business enterprises, rather than to industries or an economy as a whole or members of the society as consumers
Explanation:
Financial statements provide information pertaining to
A : an economy as a whole and members of society as consumers, rather than to individual enterprises or industries.
B. Individual business enterprises, rather than to industries or an economy as a whole or members of the society as consumers
C. Individual business enterprises, industries and an economy as a whole or members of the society as consumers
D. Business Industries rather than Individual business enterprises or an economy as a whole and members of society as consumers.
ANSWER
Financial statement by their definition are written reports that communicate the business activities that a firm engages in, and the financial performance of those activities and of the entire company.
From the above definition it is very understandable that financial statements are more pertained to business enterprises than industries or members of the society. It in no way pertains to the economy
Joanne invested $15,000 six years ago. Her arithmetic average return on this investment is 8.72 percent, and her geometric average return is 8.50 percent. What is Joanne's portfolio worth today?
A. $23,989
B.$24,472
C. $26,409
D. $26,514
E. $26,766
Answer:
B) $24,472
Explanation:
To calculate the present value of Joanne's investment, we need to calculate the future value of the investment 6 years ago. The formula we are going to use is:
FV = principal x (1 + r)ⁿ
principal = 15,000n = 6 yearsr = geometric average returnFV = $15,000 x (1 + .085)⁶ = $15,000 x 1.085⁶ = $15,000 x 1.6315 = $24,472
If firms reduce investment spending and the economy enters a recession, which of these contributes to the adjustment that causes the economy to return to its long-run equilibrium?
Answer:
If workers agree to accept lower wages
Explanation:
Recession is a business situation in which economic activities are at a decline as a result of reduction in spending.
When this occurs, it affects firms and their investments and as such firms have to reduce their investment to ensure that the firm stays afloat and also trying to stabilize the economy. As part of trying to stabilize the economy, workers have to agree to accept lower wages till the economy is at equilibrium again. Accepting lower wages returns the economy to long-run equilibrium.
Cheers.
Based on Trompenaars's value dimensions, in which of the following cultures do managers separate their work and private lives, and tend to be open and direct when communicating with coworkers?
A) diffuse-oriented
B) specific-oriented
C) universalistic
D) particularistic
Based on the Trompenaar's value dimensions the culture that separate the work and the private lives of the manager is the specific oriented value
Explanation:
There are seven basic values based on which each of them are defined and the dimension that allow the people to keep their private lives and their work life different is called as specific oriented culture
The other dimensions also includes the difference between the national cultures and they developed the model in each cultures and they can help the people to understand the basic differences
A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships is called______________.
Answer:
Customer database
Explanation:
Customer database is very important to an organisation as it is one of the ingredients that makes an organisation to be successful in its business. Some of the advantages of customer database to an organisation include:
1. It helps in creating customer affinity as most customers prefer to continue to patronize a known business. Special offers and information can then be sent to customers via marketing emails to customers who have accepted to receive them.
2. It improves loyalty of customers and therefore allows the business to give preferential treatment this segment of loyal customers.
3. It allows better customer service to be provided. This is possible because there is available information about customer buying behavior and post-purchase feedback from customers.
4. It allows business to have direct channel to customers that have bought before from the company. Therefore, information about new products can be made directly available to them which will increase sales of the business.
5. Related to number 4 above, customer database gives an organisation the opportunity to roll out new products to some selected customers in the database to test its acceptability before it lunched on larger scale to the general public.
I wish you the best.
Describe four signs that help indicate when ABC systems are likely to provide the most benefits. (Select the four statements that apply.) A. Operations staff is in agreement with the reported costs of manufacturing and marketing products and services. B. All or most direct costs are identified as either batch-level costs or product-sustaining costs. C. Significant amounts of indirect costs are allocated using only one or two cost pools. D. All or most indirect costs are identified as output unit-level costs. E. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity. F. Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
Answer:
C. Significant amounts of indirect costs are allocated using only one or two cost pools.
D. All or most indirect costs are identified as output unit-level costs.
E. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
F. Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
Explanation:
ABC (activity based costs) method focuses on individual activities as the main cost objects. After it determines the cost of individual activities, it uses them as the basis for assigning costs to products and services. ABC method allocates overhead costs based on the main cost objects.
John and Brett have determined that the break-even point for their educational toys business is 60,000 units per month. Any units that John and Brett sell above 60,000 represent ________.
Answer:
Profit
Explanation:
Break-even point is the level of activity that a business must operate to make its total revenue equal to its total cost. At this point, the business makes no profit or loss. It gives an idea of the exact number of units of product to be sold in order to cover its total fixed cost.
Break-even point (BEP) is calculated as follows:
BEP (units) = Total Fixed Costs for the Period/ (Sp - Vc)
SP- selling price, VC- variable cost
For example, if John and Brett has a total fixed cost of $120,000 per month, selling price and variable cost of $8 per unit respectively. The break-even cost is determined as follows:
BEP= 120,000/(10-8)= 60,000units.
This means that selling 60,000 units of toys monthly will make the business to make no profit or loss. We can confirm this as follows:
Profit= Total revenue - Total Variable cost - Total Fixed Cost
Profit= ($10 × 60,000) - ($8× 60,000) - $120,000
= $600,000 - $480,000 - $120,000
Profit = $0
But if they sell 60,500 units in a month, profit for the month will be:
Profit = ($10 *60,500) - $ ($8 × 60,500) - $120,000
= $1000
Any units sold over and above the break-even point will represent profit
The additional cost to a producer of hiring an additional unit of labor is called the marginal cost. True False
Answer:
True
Explanation:
The additional cost to a generator of hiring a supplementary unit of labor is described as marginal cost. The given statement is very true as we know that in economics, the term marginal is some of the times identified as extra or additional. And the added cost that has been connected and then undertaking an action is described as marginal cost.
In a partnership liquidation, a.the last journal entry credits the partners' capital accounts for the remaining cash. b.gains and losses on the sale of assets are allocated to the partners on the basis of their current capital accounts. c.creditors should be paid before partners. d.the partners' accounts are settled on the basis of their stated ratios.
Answer:
Correct answer is C, creditors should be paid before partners
Explanation:
During partnership liquidation, settlement of obligation comes first before distribution of cash to the partners. There two types of creditors, the outside creditors and the partner creditor. The priority as to who shall be paid first is always the outside creditors before partners. After the non-cash asset is sold, or if there is available cash, creditor will be paid first then the partner creditor. Afterwards, the remaining cash will be distributed to partners based on their profit or loss ratio.
Due to the complexity of the incident, the Incident Commander has expanded the Operations Section to include an Evacuation Group. What NIMS Management Characteristic is being demonstrated? Modular Organization
Answer:
Modular Organization
Explanation:
Modular organization is an Incident Command System structure that employs a top-down approach and identify a response organization structure on the basis of the size, complexity, or hazardous effect of an incident. It is the responsibility of the Incident Commander to establish and expand the modular organization as was the case in the example. The ICS organization was expanded to include the Evacuation Group due to the size, complexity, or severity of hazard.
The NIMS Management Characteristic being demonstrated is Modular Organization. This allows for adaptability by adding new sections to the organizational structure as the complexity of the incident grows, such as creating an Evacuation Group for managing and coordinating the safe evacuation of people.
Explanation:The NIMS Management Characteristic being demonstrated when the Incident Commander expanded the Operations Section to include an Evacuation Group is called Modular Organization. This characteristic allows organizations to structure themselves so they can efficiently address the varying levels of an incident. When an incident grows in complexity, the Incident Commander can add new groups, branches or divisions to the Incident Command System's organizational structure, thereby expanding the Operations Section.
This manner of organization not only ensures system flexibility and adaptability, but also improves coordination, expedites information flow, and enhances resource management. In this case, the addition of an Evacuation Group would cater specifically to the task of managing and coordinating the safe evacuation of people in response to the incident.
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One benefit of trade is that it:
A. Allows for increased specialization and mass-production techniques that lower per unit costs of production.
B. Decreases economies of scale, making production more efficient.
C. Increases the division of knowledge because trade makes people more self-sufficient, producing more of what they consume.
D. Lowers productivity, leading to greater domestic employment.
Answer:
The answer to this question is A: Allows for increased specialization and mass production techniques that lower per unit costs of production
Explanation:
First, What is Trade?
Trade is the exchange of goods and services. It is the satisfaction of wants, the next step after goods have been produced.
Trade, whether domestic or international requires firm or an economy to exchange goods and services which they have produced for income. A country usually trades goods which it has abundance raw materials and required resources to produce or focuses on the aspect in which it has comparative advantage.
If a country therefore focuses on trade in which it has abundance of resources or comparative advantage, it automatically become specialized in the production of such goods and begins to develop more techniques and tools that will ensure that it produce such goods at optimum level that will help it in reducing cost of production for such goods or services.
True or false: in a limited partnership, after exhausting all of the funds he invested, the limited partner is personally liable for the remaining debt of the partnership
Answer:
False
Explanation:
A limited partnership is a type of partnership with at least one general and limited partner.
The limited partner is liable for the debt of the company up to the money invested.
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Which of the following group of countries is more likely to lag in terms of green practices, according to the IBM study mentioned in the text?
a.North America
b. All are at about the same level
c.Western Europe
d.None of the above
e.Asia Pacific
Answer:
Correct answer is A. North America
Explanation:
IBM environmental study report the list countries according to their responses to the green practice which indicate that North America is likely to lag in the eco-friendly activities.
The accounting principle that guides accountants, when faced with a recognition dilemma, to choose the alternative that produces the lowest net income is referred to as:___________________.
Answer:
Conservatism
Explanation:
Conservatism also known as the "doctrine of prudence" is a principle where by the accountant plays safe by anticipating future losses without considering future gains.
The Conservatism Principle in accounting encourages professionals to choose the option that results in the lowest net income when faced with a recognition dilemma. The principle aims to prevent the overstatement of income.
Explanation:The accounting principle that guides accountants, when faced with a recognition dilemma, to choose the alternative that produces the lowest net income is referred to as the Conservatism Principle. This principle advises accountants to err on the side of caution when preparing financial statements – if there are two equally-likely estimations, accountants should go with the one that will show less net profit, or a greater loss. It doesn't mean to understate income, but to avoid overstating it. Its purpose is to reduce the risk of overestimation but can result in reporting lower net income.
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A cost system determines the cost of a cost object by ________. assigning and then accumulating costs assigning costs accumulating costs accumulating and then assigning costs
Answer:
Accumulating and then assigning costs
Explanation:
A cost accounting framework (likewise called item costing framework or costing framework) is a system utilized by firms to gauge the expense of their items for painfulness examination, stock valuation and cost control. Evaluating the exact expense of items is basic for productive tasks.
Cost accumulation includes the utilization of a proper cost bookkeeping framework to gather cost data.
A cost system determines the cost of a cost object by assigning costs first and then accumulating them. This process ensures that all relevant costs are considered and provides an accurate representation .
A cost system determines the cost of a cost object by assigning and then accumulating costs.
Let's break down the process step-by-step:
1. Assigning costs: In this step, the cost system identifies and assigns costs to the cost object. A cost object can be a product, service, project, or any other entity for which costs need to be determined. For example, if the cost object is a product, the cost system will identify and assign costs such as direct materials, direct labor, and overhead expenses to that particular product.
2. Accumulating costs: Once the costs are assigned, the cost system accumulates these costs. Accumulation involves gathering and recording all the costs related to the cost object. This includes both direct costs (e.g., direct materials and direct labor) and indirect costs (e.g., overhead expenses).
By assigning and then accumulating costs, the cost system provides a comprehensive view of the total cost incurred for the cost object. This information is crucial for decision-making, budgeting, pricing, and evaluating the profitability of the cost object.
In conclusion, a cost system determines the cost of a cost object by assigning costs first and then accumulating them. This process ensures that all relevant costs are considered and provides an accurate representation of the total cost incurred.
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The cash account has a debit balance of $400. Through the month the account is debited for a total amount of $1500 and credited for a total amount of $900. What is the ending balance?
Answer:
$1,000
Explanation:
The computation of the ending balance of cash is shown below:
Ending balance of cash = Debit balance of cash account + total debited the amount of cash balance - the total credited amount of cash balance
= $400 + $1,500 - $900
= $1,000
Since the cash account has debit balance so it would be added while the credit balance is deducted
Jacob and Marla were both presented with a complex accounting issue that neither had seen before. Marla was able to look at the problem and come up with a reasonable solution, but Jacob was not. What is the difference between Marla and Jacob?
Answer: Generally, when trying to solve a complex accounting problem in which there are obstacles and little knowledge about the subject, the most advisable thing is to work from a conceptual framework which serves as a guide to find a reasonable answer to the problem in question. In this case Marla was clearly working with a conceptual framework, and instead Jacob was not.
econ The presence of secondary markets ______________ the interest rates that firms have to pay on bonds issued by them.
Answer:
decrease
Explanation:
Secondary markets decrease the interest rates that organizations have to pay on issued bonds. With the presence of secondary markets, companies that issue bond can then pay lower rates of interest and still sell the entire bonds needed. What the secondary market does is that it bids up the bonds price above their face values. This therefore makes interest that will be paid a lower percentage, and thus leads to lower ROI and yield.
A software vendor pitches a new sales force automation software product to your company's VP of Sales and Marketing. Before purchasing such a product, it is essential to:
Answer:
Before purchasing such a product, it is essential to:
Consider all five components of the information system
Explanation:
Before making any software purchase, it is always imperative to consider all the five components of the information system(IS). An information system can be defined as an integrated set of components that work in co-ordination to convert raw data to usable information. An information system constitute the following components; hardware, software, database, network and people. All these components have to work as a group to achieve quality output.
1. Hardware
Hardware are all the input and output devices, processor, media devices and operating system.
2. Software
Software is a set of various programs and processes that utilizes the data for processing.
3. Database
Database refers to a group of data that has been organized in a particular fashion. The data in a database has to be structured in a certain way in order to be executed.
4. Network
A network is a system of communication devices that acts as a channel to move the information around.
5. People
The people are the human resource that are to operate the software.
Financial reporting is the process of communicating _____ accounting information to existing and potential future investors, creditors, lenders, and other _____ decision makers.
a.financial,
b. internal
Answer:
Financial reporting is the process of communicating financial accounting information to existing and potential future investors, creditors, lenders, and other internal decision makers.
Explanation:
Financial reporting refers to the process of reporting financial statement which include, cash flow statement, income statement and also the balance sheet to users of accounting information which includes potential investors, creditors, suppliers, shareholders, government, internal auditors and even the general public which will help them to make financial decisions as regards investments, taxes, profitability etc.
Which statement is not correct about the business-society interdependence?
A. Business is a part of society.
B. Business is is separated from the rest of society by clear boundaries.
C. Business activities impact other activities in society.
D. Actions by governments rarely significantly affect business.
Answer:
D. Actions by governments rarely significantly affect business
Explanation:
Business-socciety interdependence points out how business activities impact society and how society impacts business decisions. Government actions play a significant role in business performance. For example, an increase in interest rate increases the cost of borrowing and acts as an investment disncentive. Likewise, an increase in corporation tax stifles the incentive to invest and reduces corporate profit. Other government interventions such as standards and regulations, minumum wage legislations, permits and licenses would not only reduce business profits but could make doing business very cumbersome. Also, the extent to which the government is committed to maintaining political stability could determine the extent to which invesmtent thrives in an economy.
Business is not separated from the rest of society by clear boundaries.
Explanation:B. Business is separated from the rest of society by clear boundaries.
This statement is not correct about the business-society interdependence. Business is not separated from the rest of society by clear boundaries. In fact, business is a part of society and its activities impact other activities in society. Governments also play a significant role in affecting business through laws and regulations.
For example, government regulations can make it harder for businesses to start up or expand by requiring permits, fees, and restricting product types and quality. Zoning laws may also limit where businesses can operate or their operating hours.
Therefore, the correct statement is that business is not separated from the rest of society by clear boundaries.
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An enhancing qualitative characteristic of accounting information that refers to the financial statement users' ability to utilize accounting information to differentiate between companies that are reporting similar events is__________
Answer: Comparability
Explanation:
Comparability describes information that is measured and reported in a similar manner for different companies. It helps users understand the real similarities and differences in economic activities between companies.
"________ products are distributed exclusively in only one or a few outlets per market area and they have unique characteristics or brand identification."
Answer:
Specialty Product.
Explanation:
A specialty product is a type of product that consumers go for because they are loyal to the brand or because of some characteristic feature the product posses. Consumers of such product do everything within their power to get it no matter what it cost them, such consumers do not even consider substitute products. Examples of Specialty product includes luxury cars, Rolex wrist watches, designer wares, high performing photographic equipments, etc.
A schedule or curve that shows the various combinations of two products a consumer can purchase with a specific amount of money income is:____________a) a trade offb) a budget linec) a tangent point
Answer:
budget line
Explanation:
A budget line is a graphical representation that shows all the possible combination of how two products that can be consumed at different prices with a given income. The budget line is downward sloping with the gradient of the slope reflecting the two prices.
A budget line assists in understanding consumer choices and behavior. A budget line may shift due to changes in the consumer's income. It shifts to the left when income decreases and shifts to the right when income increase.
A budget line represents the various combinations of two products a consumer can purchase with a specific amount of money income. It indicates feasible and non-feasible purchases given a specific budget.
Explanation:The schedule or curve that demonstrates the various combinations of two products a consumer can purchase with a specific amount of money income is referred to as a budget line. The budget line depicts the boundary of feasible purchases for a consumer given a specific budget. Any point on the line indicates a bundle of goods that the consumer can afford, any point inside the line indicates a bundle of goods that is affordable but not fully utilizing the income, and any point outside the line is unaffordable.
For example, if a consumer has $20 and the price of apples is $2 per apple and the price of bananas is $1 per banana, the budget line will show all the possible combinations of apples and bananas the consumer can buy with $20.
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The customer care manager at a cell phone company keeps track of how long each help-line caller spends on hold before speaking to a customer service representative. he finds that the distribution of wait times for all callers has a mean of 12 minutes with a standard deviation of five minutes
Answer:
a) [tex]\bar X \sim N(\mu,\frac{\sigma}{\sqrt{n}})[/tex]
Because the sample mean is defined as:
[tex] \bar X = \frac{\sum_{i=1}^n X_i}{n}[/tex]
So then the mean for the sample distibution is [tex] \mu_{\bar X} =\mu=12 min[/tex]
b) [tex] \sigma_{\bar x} =\frac{\sigma}{\sqrt{n}}=\frac{5}{\sqrt{10}}= 1.581[/tex]
c) For this case since the distribution for the random variable [tex]\bar x[/tex] is normal and for the sample mean is also normal so then we can conclude that the distribution for the sample mean is symmetrical and bell shaped with a deviation lower than the deviation for X
Explanation:
Assuming this complete problem:
The customer care manager at a cell phone company keeps track of how long each help-line caller spends on hold before speaking to a customer service representative. He finds that the distribution of wait times for all callers has a mean of 12 minutes with a standard deviation of 5 minutes. The distribution is moderately skewed to the right. Suppose the manager takes a random sample of 10 callers and calculates their mean wait time, [tex]\bar x[/tex] .
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".
Let X the random variable that represent the wait times for all callers of a population, and for this case we know the distribution for X is given by:
[tex]X \sim N(12,5)[/tex]
Where [tex]\mu=12[/tex] and [tex]\sigma=5[/tex]
(a) What is the mean of the sampling distribution of [tex]\bar x[/tex] ?
Since the distribution for the random variable X is normal then the distribution for the random variable [tex]\bar X[/tex] is also normal and given by:
[tex]\bar X \sim N(\mu,\frac{\sigma}{\sqrt{n}})[/tex]
Because the sample mean is defined as:
[tex] \bar X = \frac{\sum_{i=1}^n X_i}{n}[/tex]
So then the mean for the sample distibution is [tex] \mu_{\bar X} =\mu=12 min[/tex]
(b) Is it possible to calculate the standard deviation of [tex]\bar x[/tex] ? If it is, do the calculation. If it isn’t, explain why.
For this case since we knwo that the distribution for the sampel mena is given by:
[tex]\bar X \sim N(\mu,\frac{\sigma}{\sqrt{n}})[/tex]
Then we know that the deviation for the sample mean is given by:
[tex] \sigma_{\bar x} =\frac{\sigma}{\sqrt{n}}=\frac{5}{\sqrt{10}}= 1.581[/tex]
(c) Do you know the approximate shape of the sampling distribution of [tex]\bar x[/tex]? If so, describe the shape and justify your answer. If not, explain why not.
For this case since the distribution for the random variable [tex]\bar x[/tex] is normal and for the sample mean is also normal so then we can conclude that the distribution for the sample mean is symmetrical and bell shaped with a deviation lower than the deviation for X
Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen year loan. What is the maximum commission for Broker Burns?
1. Five percent of the principal of the loan.
2. Ten percent of the principal of the loan.
3. Fifteen percent of the principal of the loan.
4. Two percent of the principal of the loan.
Answer:
The answer is 2. Ten percent of the principal of the loan
Explanation:
By law, maximum commissions for first trust deed loans are at :
- 5% of the principal for loans less than 2 years or less than 3 years
- 10% of the principal for loans 3years and more.
Second trust deed loans, on the other hand, are stated at 5% for loans up to 2years, 10% for loans between 2-3 years and 15% for loans more than 3 years.