Question
In: Finance
A rent-to-own agreement allows the renter to either return the merchandise after a specified period of...
A rent-to-own agreement allows the renter to either return the merchandise after a specified period of time or apply the monthly payments toward purchasing the item(s) (or clearly, the renter could default on the agreement). A rent-to-own company reports that nationally 62% of the agreements result in the merchandise being returned, 29% of the agreements result in the merchandise being purchased, and the remaining agreements are defaulted on (consumer does not make required payments specified in the contract). At a local rent-to-own company, a sample of 210 agreements finds that 110 result in the merchandise being returned, 78 agreements result in the merchandise being purchased and the remaining agreements are defaulted upon. When testing (at the 5% level of significance) whether the proportions of the local company are different than the proportions nationally, what is the test statistic (please round your answer to 3 decimal places)
Solutions
jeff jeffy answered 11 months agoRelated Solutions
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax's sales are for credit (no cash is
collected at the time of sale). The company began 2021 with a
refund liability of $320,000. During 2021, Halifax sold merchandise
on account for $11,700,000. Halifax's merchandise costs is 75% of
merchandise selling price. Also during the year, customers returned
$460,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax's sales are for credit (no cash is
collected at the time of sale). The company began 2021 with a
refund liability of $360,000. During 2021, Halifax sold merchandise
on account for $12,100,000. Halifax's merchandise costs is 70% of
merchandise selling price. Also during the year, customers returned
$594,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after dellvery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund Hability of $340,000. During 2021, Halifax sold merchandise on account for $11,600,000. Halifax's merchandise costs it 75% of merchandise selling price. Also during the year, customers returned $575.000 in sales for credit with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $300,000. During 2018, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $460,000. During 2021, Halifax sold merchandise on account for $13,100,000. Halifax's merchandise costs is 60% of merchandise selling price. Also during the year, customers returned $650,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax’s sales are for credit (no cash is
collected at the time of sale). The company began 2018 with a
refund liability of $300,000. During 2018, Halifax sold merchandise
on account for $11,500,000. Halifax's merchandise costs it 65% of
merchandise selling price. Also during the year, customers returned
$450,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax’s sales are for credit (no cash is
collected at the time of sale). The company began 2021 with a
refund liability of $300,000. During 2021, Halifax sold merchandise
on account for $11,500,000. Halifax's merchandise costs is 65% of
merchandise selling price. Also during the year, customers returned
$450,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax's sales are for credit (no cash is
collected at the time of sale). The company began 2018 with a
refund liability of $380,000. During 2018, Halifax sold merchandise
on account for $12,300,000. Halifax's merchandise costs it 70% of
merchandise selling price. Also during the year, customers returned
$603,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax’s sales are for credit (no cash is
collected at the time of sale). The company began 2021 with a
refund liability of $300,000. During 2021, Halifax sold merchandise
on account for $11,500,000. Halifax's merchandise costs is 65% of
merchandise selling price. Also during the year, customers returned
$450,000 in sales for credit, with...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise
for any reason up to 90 days after delivery and receive a credit to
their accounts. All of Halifax's sales are for credit (no cash is
collected at the time of sale). The company began 2018 with an
allowance for sales returns of $410,000. During 2018, Halifax sold
merchandise on account for $12,600,000. This merchandise cost
Halifax $8,190,000 (65% of selling prices). Also during the year,
customers returned $491,000 in sales for...
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