Question

In: Statistics and Probability

The daily net cash flows in the table below represent a 5-day sample. Use the Data...

The daily net cash flows in the table below represent a 5-day sample. Use the Data Analysis tool in Excel to calculate the 95% and 99% confidence intervals for the daily net cash flows. Along with your calculation, interpret the meaning behind your confidence interval estimates and discuss why the 99% confidence interval is wider.

Day

Net Cash Flow

1

15,000

2

17,000

3

13,000

4

20,000

5

14,000

Solutions

Expert Solution

Solution :

Interpretation of 95 % confidence interval.

The 95 % confidence interval of mean denote that if we drawn 1000 random sample then the value of 950 sample mean lies within that 95% confidence interval.

Excel provide us confidence level ,

Lower limit = mean - confidence level.

Upper limit = mean + confidence level.

orchestra answered 1 year ago
Next > < Previous

Related Solutions

The daily net cash flows in the table below represent a 5-day sample. Use the Data...
The daily net cash flows in the table below represent a 5-day sample. Use the Data Analysis tool in Excel to calculate the 95% and 99% confidence intervals for the daily net cash flows. Along with your calculation, interpret the meaning behind your confidence interval estimates and discuss why the 99% confidence interval is wider. Day Net Cash Flow 1 15,000 2 17,000 3 13,000 4 20,000 5 14,000
The cash flows in the table below represent the potential annual savings associated with two different...
The cash flows in the table below represent the potential annual savings associated with two different types of production​ processes, each of which requires an investment of ​$38,000. Assume an interest rate of 9​%. n   Process A   Process B 0   -$38,000 -$38,000 1   $17,510 $17,150 2   $15,750 $17,150 3   $13,990 $17,150 4   $12,230 $17,150 ​(a) Determine the equivalent annual savings for each process. The equivalent annual savings for process A are $_____ ​(Round to the nearest​ dollar.)
Calculate the Net Present Value of the cash flows depicted in the table below using a...
Calculate the Net Present Value of the cash flows depicted in the table below using a cost of capital of {r81d}percent. year Cash Flow 0 -60 1 40 2 40 3 0
Which of the following statements is false about cash flows? Net cash flows represent cash inflows...
Which of the following statements is false about cash flows? Net cash flows represent cash inflows minus cash outflows. They are based on when they occur, not when they accrue. Net cash flows equal net income. None of these are false.
Question 5 The data in the incomplete table below represent annual Savings (in thousands of dollars)...
Question 5 The data in the incomplete table below represent annual Savings (in thousands of dollars) and annual Income (in thousands of dollars) for a sample of 7 families in Brisbane: Annual Income X ('000 dollars) Annual Saving Y ('000 dollars) X2 Y2 XY 60 10 80 40 100 30 120 49 140 57 180 50 200 70 Total= Total= Total= .    Total= Total=    a. Complete the necessary additional columns on the above table to calculate the required...
5-38 Consider the two mutually exclusive projects in the table below. Salvage values represent the net...
5-38 Consider the two mutually exclusive projects in the table below. Salvage values represent the net proceeds​ (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available​ (or can be​ repeated) with the same costs and salvage values for an indefinite period. B1 B2 n Cash Flow Salvage Value Cash Flow Salvage Value 0 −​$15,000 — −​$30,000 — 1 −2,500 7,500 −2,700 6,500 2 −2,500...
Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 0...
Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 0 Year 1 Year 2 Years 3–10 Investment 180 Production (millions of pounds per year) 0 0 48 88 Spread ($ per pound) 1.03 1.03 1.03 1.03 Net revenues 0 0 49.44 90.64 Production costs 0 0 38.00 38.00 Transport 0 0 0 0 Other costs 0 28 28 28 Cash flow –180 28 –16.56 –24.64 NPV (at r = 7%) = 0 Assume the...
Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 0...
Use the cash flows and competitive spreads shown in the table below. ($ millions) Year 0 Year 1 Year 2 Years 3–10 Investment 180 Production (millions of pounds per year) 0 0 59 99 Spread ($ per pound) 1.14 1.14 1.14 1.14 Net revenues 0 0 67.26 112.86 Production costs 0 0 49.00 49.00 Transport 0 0 0 0 Other costs 0 39 39 39 Cash flow –180 39 –20.74 –24.86 NPV (at r = 6%) = 0 Assume the...
Please use Excel to analyze the statement of cash flows for the table below. 1) What...
Please use Excel to analyze the statement of cash flows for the table below. 1) What is the correlation between net income and operating cash flow? 2) Explain the trends of cash flow from the table below. 3) What is the free cash flow from the table below? Cash Flow All numbers in thousands Period Ending 1/31/2018 1/31/2017 1/31/2016 1/31/2015 Net Income 9,862,000 13,643,000 14,694,000 16,363,000 Operating Activities, Cash Flows Provided By or Used In Depreciation 10,529,000 10,080,000 9,454,000 9,173,000...
The data in the table represent the number of pods on a random sample of soybean...
The data in the table represent the number of pods on a random sample of soybean plants for various plot types. An agricultural researcher wants to determine if the mean numbers of pods for each plot type are equal. Plot Type # of Pods Liberty 32 31 36 35 41 34 39 37 39 No-Till 32 30 31 27 40 33 37 42 39 Chisel-Plow 34 37 24 23 32 31 27 34 30 Use Minitab Express to determine the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT