Question

In: Statistics and Probability

A magazine is considering the launch of an online edition. The magazine plans to go ahead...

A magazine is considering the launch of an online edition. The magazine plans to go ahead only if it is convinced that more than

25​%

of current readers would subscribe. The magazine contacted a simple random sample of

500

current​ subscribers, and

134

of those surveyed expressed interest. What should the company​ do? Test appropriate hypotheses and state your conclusion

Find the Z and P Value of the test statistic

Solutions

Expert Solution


Related Solutions

A magazine is considering the launch of an online edition. The magazine plans to go ahead...
A magazine is considering the launch of an online edition. The magazine plans to go ahead only if it is convinced that more than 29.1% of current readers would subscribe. The magazine contacted a simple random sample of 464 current subscribers, and 141 of those surveyed expressed interest. Test the appropriate hypotheses using a significance level of 0.05 to determine if the magazine should launch an online edition.    H0: Select an answer p < ? > =       Ha: Select...
A magazine is considering the launch of an online edition. The magazine plans to go ahead...
A magazine is considering the launch of an online edition. The magazine plans to go ahead only if it is convinced that more than 20​% of current readers would subscribe. The magazine contacted a simple random sample of 400 current​ subscribers, and 90 of those surveyed expressed interest. What should the company​ do? Test appropriate hypotheses and state your conclusion. Are the assumptions and the conditions to perform a​ one-proportion z-test​ met? Yes No State the null and alternative hypotheses....
A magazine is considering the launch of an online edition. The magazine plans to go ahead...
A magazine is considering the launch of an online edition. The magazine plans to go ahead only if it is convinced that more than 20​% of current readers would subscribe. The magazine contacted a simple random sample of 400 current​ subscribers, and 102 of those surveyed expressed interest. What should the company​ do? Test appropriate hypotheses and state your conclusion. Are the assumptions and the conditions to perform a​ one-proportion z-test​ met? Yes or No State the null and alternative...
Following his decision not to go ahead with either of the expansion plans you discussed with...
Following his decision not to go ahead with either of the expansion plans you discussed with him before, Mark has clarified with you that financial position of the business has remained unchanged and is outlined below. Assets                 – 298,000 Liabilities                   – 148,000 (this consists 116,000 borrowed from the bank and the remainder being existing liabilities held by the studio) Owners Equity           – 150,000 Mark’s cousin Randy is still very keen to be involved in the business and...
Hightech Plc is considering whether or not to go ahead with the production of an innovative...
Hightech Plc is considering whether or not to go ahead with the production of an innovative product. The project (called ‘Project A’) requires an initial investment (at time 0) of £10 million, while the company expects the future cash flows to depend on market demand. If demand is high, starting from next year (time 1) the project will produce a perpetual cash flow of £800,000. In case of low demand, the perpetual cash flow will amount to just £300,000. The...
Corporation A plans to launch a new project and the financial manager is considering whether this...
Corporation A plans to launch a new project and the financial manager is considering whether this is a valuable investment for the corporation. Consider: The initial cost of this project is $197.92, and it offers cash flows in the next 3 years, with an estimated cash flow of $ 50 in the first year, $100 in the second year and $150 in the third year. Questions: 1. What is the Internal Rate of Return (IRR) of this project? 2. If...
The Panhandle Corporation is considering whether to go ahead with a small-scale trial project that requires...
The Panhandle Corporation is considering whether to go ahead with a small-scale trial project that requires an initial outlay of $900,000 and, if successful produce cash inflows of $450,000 in year one followed by $540,000 per year in perpetuity starting at the end of year two. If not successful, the project will produce no cash flows. The probability of success is 38%. Given the extreme riskiness of this project the company decides to use 28% as a risk-adjusted discount rate...
The Panhandle Corporation is considering whether to go ahead with a small-scale trial project that requires...
The Panhandle Corporation is considering whether to go ahead with a small-scale trial project that requires an initial outlay of $900,000 and, if successful produce cash inflows of $450,000 in year one followed by $540,000 per year in perpetuity starting at the end of year two. If not successful, the project will produce no cash flows. The probability of success is 38%. Given the extreme riskiness of this project the company decides to use 28% as a risk-adjusted discount rate...
The Waterhouse Group is considering whether to go ahead with a small-scale trial project that requires...
The Waterhouse Group is considering whether to go ahead with a small-scale trial project that requires an initial outlay of $1,440,000 and, if successful produce cash inflows of $720,000 in year one followed by $864,000 per year in perpetuity starting at the end of year two. If not successful, the project will produce no cash flows. The probability of success is 38%. Given the extreme riskiness of this project the company decides to use 30% as a risk-adjusted discount rate...
Hollow Truth Publishers is considering whether to launch a new e-magazine. The annual percentage rate of...
Hollow Truth Publishers is considering whether to launch a new e-magazine. The annual percentage rate of return (APR) on a similar risk project is 8%, the cash flows occur semi-annually (at the end of the 6th and 12th month for each year), and the publishing company requires a payback period of 2 years. The finance department has calculated that the required rate of return for all projects that it will consider is 14%. The costs of the project are: Advertising...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT