In: Statistics and Probability

. The ABC company estimates that its employees are currently averaging $100 or less per month in tax-deferred savings. A sample of 50 employees will be used to test ABC's hypothesis about the current level of savings activity among the population of its employees. Assume that the employee tax-deferred savings amounts have a standard deviation of $80 and that a 5% level of significance will be used for the test. What is the probability of making a Type II error if the "True" monthly savings average $125? What is the probability of making a Type I error?

At alpha = 0.05, the critical value is z_{0.95} =
1.645

z_{crit} = 1.645

or, ( - )/() = 1.645

or, ( - 100)/(80/) = 1.645

or, = 1.645 * 80/ + 100

or, = 118.611

P(Type II error) = P( < 118.611)

= P(( - )/() < (118.611 - )/()

= P(Z < (118.611 - 125)/(80/))

= P(Z < -0.56)

= 0.2877

P(Type I error) = 0.05

A company would like to estimate how much its employees pay in
childcare costs per month in order to decide whether it would be
worthwhile to provide day care facilities to its employees. The
company was advised by a statistician that childcare cost per month
historically follows a normal distribution. A random sample of 25
employees who use childcare services revealed that on average they
paid $300 per month in childcare costs with
3|Page
a standard deviation equal to $10....

A company would like to estimate how much its employees pay in
childcare costs per month in order to decide whether it would be
worthwhile to provide day care facilities to its employees. The
company was advised by a statistician that childcare cost per month
historically follows a normal distribution. A random sample of 25
employees who use childcare services revealed that on average they
paid $300 per month in childcare costs with
3|Page
a standard deviation equal to $10....

ABC Company estimates the following data for the coming month:
total variable costs $60,000.00, income tax rate 30%, contribution
margin percentage 60%. Find the estimated total sales for the
coming month.
a.
$100,000
A GUESS b.
$60,000 / 40%
c.
$60,000 / 60%
d.
$60,000 X 60%
Type or paste question here

salary(in lakh per annum)
no of employees in
no of employees in
less than
organization 1
organization 2
5
655
950
10
872
1657
15
1033
2108
20
1144
2488
25
1189
2645
30
1204
2769
35
1212
2825
40
1217
2858
45
1220
2870
50
1222
2877
55
1224
2882
60
1225
2885
65
2888
70
2890
from the above data please find the mean,variance,standrad
deviation and coefficient of variation
and also conclude that Which organisation has more equitable...

The ABC Consulting Firm currently has 7 employees. The
best-case situation is for the employees to be at 75% utilization.
At 210 hours per month and a billing rate of $87 per hour, what is
the maximum revenue that can be achieved in 1 month? Show
calculations (2 points)

ABC, Inc. provides its employees with a defined benefit pension
plan. In 2020, the company made the mistake of not amortizing the
cost of prior period services (PSC). Which of the following
statements is correct?
a. Total equity is underestimated.
b. The company's net income is overstated.
c. Total debt is overstated.
d. The company's net income is underestimated.

A
company is currently trading at $100 per share. After examining the
stock, determined that in each 3 month period, its price will
either increase to 25% or decrease by 20%. The interest rare is 3%
every 3 months.
a) A six month Europrean call option on this company has an
exercise price of $90. What is the value of this call option?
b) What is the value of a six month European put option on
this company with an...

Hillfast produces bicycles, and is currently selling 260 per
month of a particular model. Its total costs are £180,000 per
month. It is currently charging a price of £1000, but this has
recently been reduced from £1120, because sales were only reaching
225 units per month. The increase in sales has also increased costs
by £21,000 per month. The firm has estimated that it has a linear
total cost function and that its price elasticity of demand is
constant.
a)...

Franco Company has 20 employees, each of whom earns $2,600 per
month and is paid on the last day of each month. All 20 have been
employed continuously at this amount since January 1. Franco uses a
payroll bank account and special payroll checks to pay its
employees. On March 1, the following accounts and balances exist in
its general ledger:a.FICA—Social Security Taxes Payable, $7,800; FICA—Medicare Taxes
Payable, $1,770. (The balances of these accounts represent total
liabilities for both the...

MLS Company has five employees, each of whom earns $1,600 per month and is paid on the last day of each month. All five have been employed continuously at this amount since January 1. On June 1, the following accounts and balances exist in its general ledger:
a. FICA—Social Security Taxes Payable, $992; FICA—Medicare Taxes Payable, $232. (The balances of these accounts represent total liabilities for both the employer’s and employees’ FICA taxes for the May payroll only.)
b. Employees’...

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