Question
In: Finance
Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum...
Hooper Chemical Company, a major chemical firm that uses such
raw materials as carbon and petroleum as part of its production
process, is examining a plastics firm to add to its operations.
Before the acquisition, the normal expected outcomes for the firm
were as follows:
| Outcomes ($ millions) |
Probability | |||||
| Recession | $ | 20 | 0.2 | |||
| Normal economy | 30 | 0.2 | ||||
| Strong economy | 50 | 0.6 | ||||
Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition.
Solutions
Expert Solution
| a | b | c=a*b | d=a*(b-94)^2 | |
| State of economy | Probability | Rate of returns | Expected value | Variance |
| Recession | 0.20 | 20.00 | 4.00 | 1,095.20 |
| Normal economy | 2.00 | 30.00 | 60.00 | 8,192.00 |
| Strong economy | 0.60 | 50.00 | 30.00 | 1,161.60 |
| Total | 94.00 | 10,448.80 | ||
| Expected value = | 94.00 | |||
| Standard deviation = 10448.8^0.5 = | 102.22 | |||
| coefficient of variation = SD/Mean = 102.22/94 | 1.09 |
jeff jeffy answered 2 years agoRelated Solutions
Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum...
Hooper Chemical Company, a major chemical firm that uses such
raw materials as carbon and petroleum as part of its production
process, is examining a plastics firm to add to its operations.
Before the acquisition, the normal expected outcomes for the firm
were as follows: Outcomes ($ millions) Probability Recession $ 40
0.2 Normal economy 60 0.1 Strong economy 80 0.7
Compute the expected value, standard deviation, and coefficient
of variation prior to the acquisition. (Do not round intermediate
calculations....
Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum...
Hooper Chemical Company, a major chemical firm that uses such
raw materials as carbon and petroleum as part of its production
process, is examining a plastics firm to add to its operations.
Before the acquisition, the normal expected outcomes for the firm
were as follows:
Outcomes
($ millions)
Probability
Recession
$
10
0.2
Normal economy
50
0.4
Strong economy
70
0.4
Compute the expected value, standard deviation, and coefficient
of variation prior to the acquisition. (Do not round
intermediate...
Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum...
Hooper Chemical Company, a major chemical firm that uses such
raw materials as carbon and petroleum as part of its production
process, is examining a plastics firm to add to its operations.
Before the acquisition, the normal expected outcomes for the firm
were as follows:
Outcomes
($ millions)
Probability
Recession
$
35
.4
Normal economy
55
.2
Strong economy
75
.4
Compute the expected value, standard deviation, and coefficient
of variation prior to the acquisition. (Do not round
intermediate...
Problem 4: A large firm uses three different types (A, B, and C) of raw materials...
Problem 4: A large firm uses three different types (A, B, and C) of
raw materials to manufacture its product. Previous records show
that 25% of the manufactured products are produced using material
A, 50% using material B, and 25% using material C. If it is known
that 5% of the product made with material A are defective, 2% made
with material B are defective, and 5% made with C are
defective.
What is the probability that a product selected...
Hydrogen gas is a very useful reagent with many uses in the petroleum, food, and chemical...
Hydrogen gas is a very useful reagent with many uses in the
petroleum, food, and chemical industries. Most hydrogen exists in
covalently bonded molecules, and atmospheric air contains less than
1 ppm of diatomic hydrogen. Therefore, hydrogen gas is produced on
a large scale for these uses, where steam reforming with methane
and electrolysis of water are two of the primary methods. The more
economic reaction of steam reforming is the reverse of the reaction
depicted in Carbon Monoxide and...
Hydrogen gas is a very useful reagent with many uses in the petroleum, food, and chemical...
Hydrogen gas is a very useful reagent with many uses in the
petroleum, food, and chemical industries. Most hydrogen exists in
covalently bonded molecules, and atmospheric air contains less than
1 ppm of diatomic hydrogen. Therefore, hydrogen gas is produced on
a large scale for these uses, where steam reforming with methane
and electrolysis of water are two of the primary methods. The more
economic reaction of steam reforming is the reverse of the reaction
depicted in Carbon Monoxide and...
West Texas Chemical Company manufactures a product called Kylon, which requires three raw materials. Production is...
West Texas Chemical Company manufactures a product called Kylon,
which requires three raw materials. Production is in batches of
1,000 gallons of finished product. The firm uses standard costs as
a control device. Its standard costs for materials for each batch
of Kylon have been established as follows:
Material
Quantity
Standard Cost per Gallon
Standard Cost per Batch
Starter
700
gal.
$
1.80
$
1,260.00
Acid
230
gal.
5.00
1,150.00
Activator
70
gal.
7.00
490.00
Total standard cost
1,000
gal....
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The
following transactions occurred in October:
Raw materials purchased on account, $209,000.
Raw materials used in production, $189,000 ($151,200 direct
materials and $37,800 indirect materials).
Accrued direct labor cost of $50,000 and indirect labor cost of
$21,000.
Depreciation recorded on factory equipment, $104,000.
Other manufacturing overhead costs accrued during October,
$129,000.
The company applies manufacturing overhead cost to production
using a predetermined rate of $9 per machine-hour. A total of
76,200 machine-hours...
The Searider Company uses a job-order costing system. The following transactions occurred in April: Raw materials...
The Searider Company uses a job-order costing system. The
following transactions occurred in April:
Raw materials were purchased on account, $180,000.
Raw materials used in production, $148,000 ($130,000 direct
materials and $18,000 indirect materials).
Accrued direct labor cost of $75,000 and indirect labor cost of
$105,000.
Depreciation recorded on factory equipment, $40,000.
Other manufacturing overhead costs accrued during April,
$118,000.
The company applies manufacturing overhead cost to production
using a predetermined overhead rate of $6 per machine-hours. A
total of...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: Raw materials...
The Polaris Company uses a job-order costing system. The
following transactions occurred in October:
Raw materials purchased on account, $209,000.
Raw materials used in production, $191,000 ($152,800 direct
materials and $38,200 indirect materials).
Accrued direct labor cost of $49,000 and indirect labor cost of
$21,000.
Depreciation recorded on factory equipment, $106,000.
Other manufacturing overhead costs accrued during October,
$130,000.
The company applies manufacturing overhead cost to production
using a predetermined rate of $8 per machine-hour. A total of
76,200 machine-hours...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
ADVERTISEMENT