If employees are averaging $120 or less per month in tax-deferred investments. A sample of 80...

If employees are averaging $120 or less per month in tax-deferred investments. A sample of 80 employees will be used to test the hypothesis about the current level of investment activity among the population of employees. Assume the employee monthly investment has a std deviation of $75 and a 0.01 level of significance. what is the probability of the type II error? what is the probability if the monthly investment mean is $140?

Solutions

Expert Solution

true mean ,    µ =    140

hypothesis mean,   µo =    120
significance level,   α =    0.01
sample size,   n =   80
std dev,   σ =    75.0000

δ=   µ - µo =    20

std error of mean,   σx = σ/√n =    75.0000   / √    80   =   8.38525

P(type II error) , ß =   P(Z < Zα - δ/σx)
= P(Z <    2.326   - (   20   /   8.3853   ))
=P(Z<   -0.059   ) =   0.4766   [excel fucntion: =normsdist(z)

orchestra answered 1 year ago

Next > < Previous

Related Solutions

. The ABC company estimates that its employees are currently averaging $100 or less per month...

. 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...

salary(in lakh per annum) no of employees in no of employees in less than organization 1...

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...

Why must we account for deferred tax in financial statements? (as per IFRS)

A survey of 120 randomly selected employees of a large insurance company shows that the sample...

A survey of 120 randomly selected employees of a large insurance company shows that the sample proportion of employees which feel secure about their job is 0.35 and the standard error of this estimate is 0.044. Construct a 99% confidence interval for the proportion of all this company’s employees who feel secure about their jobs. Round your bounds to 2 decimal places.

Sparr Investments, Inc., specializes in tax-deferred investment opportunities for its clients. Recently Sparr offered a payroll...

Sparr Investments, Inc., specializes in tax-deferred investment opportunities for its clients. Recently Sparr offered a payroll deduction investment program for the employees of a particular company. Sparr estimates that the employees are currently averaging $100 or less per month in tax-deferred investments. A sample of 35 employees will be used to test Sparr's hypothesis about the current level of investment activity among the population of employees. Assume the employee monthly tax-deferred investment amounts have a population standard deviation of $75...

What are the steps to calculate deferred income tax liability? Thanks The Sample Corporation prepared the...

What are the steps to calculate deferred income tax liability? Thanks The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4. Income Statement Year 1 Year 2 Year 3 Year 4 Sales $1,000 $1,000 $1,000 $1,000 Operating expenses 650 650 650 650 Pretax net income $350 $350 $350 $350 Provisions for income taxes 140 140 140 140 Net income $210 $210 $210 $210 Income Tax Return Year 1 Year 2 Year 3...

Employees earn vacation pay at the rate of one day per month. During the month of...

Employees earn vacation pay at the rate of one day per month. During the month of June, 10 employees qualify for one vacation day each. Their average daily wage is $150 per day. Which of the following is the necessary adjusting journal entry to record the June vacation benefits?

The following example describes the expenditure (in dollars) on recreation per month by employees at a...

The following example describes the expenditure (in dollars) on recreation per month by employees at a certain company, and their corresponding monthly incomes: Using R cloud and provide the codes Expenditure($): 2400,2650,2350,4950,3100,2500,5106,3100,2900,1750 Income($): 4120,50100,52000,66000,44500,37700,73500,37500,56700,35600 Using the equation for the linear regression that you calculated, estimate the monthly income of an employee at this company who spends 5000 dollars per month on recreation. What is the accuracy of your prediction?

If the government announces today that a tax increase of 80 cents per pack of cigarettes...

If the government announces today that a tax increase of 80 cents per pack of cigarettes is to take place in two weeks, what would you expect to happen today to the current market for cigarettes?

Cowboy Company's sales employees earn a total of $41,000 per month and are paid on the...

Cowboy Company's sales employees earn a total of $41,000 per month and are paid on the last working day of the month. Each employee’s wages are subject to FICA Social Security taxes of 6.2% and Medicare taxes of 1.45% on all wages. Withholding for each employee also includes federal income tax of 14% and monthly medical insurance premiums of $2,200 for the employees. Prepare the general journal entry to accrue the monthly sales salaries expense at January 31.

Subjects