The Arkansas Western Gas Company (AWGC) recently filed a rate increase request with the public service...

The Arkansas Western Gas Company (AWGC) recently filed a rate increase request with the public service commission. The rate increase was calculated based on a mean consumption of 6400 cubic feet of natural gas per month per customer. In order to check this usage figure, the Arkansas attorney general’s office obtained a random sample of 21 AWGC customers and recorded the monthly usage for each. The sample mean was 6575 ft3. Assume that the distribution of natural gas consumption is normal with σ = 450. Conduct a one-sided, right-tailed hypothesis test with α = 0.05 and compute the p-value. Is there any evidence to suggest that the true mean usage is greater than 6400 ft3?

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

The New York State Electric and Gas Corporation filed a request for a 10.7% increase in...

The New York State Electric and Gas Corporation filed a request for a 10.7% increase in electric revenues. The reasons given to justify the increase were that the value of the firm’s plant and equipment had increased by $140 million, operating costs had increased, and investors required a higher rate of return. a. Why should an increase in the value of the fi rm’s plant and equipment result in an increase in the amount of revenue allowed by the Public...

1 A: Western Gas & Electric Company (WGC) can borrow funds at an interest rate of...

1 A: Western Gas & Electric Company (WGC) can borrow funds at an interest rate of 12.50% for a period of five years. Its marginal federal-plus-state tax rate is 25%. What is WGC's after-tax cost of debt? Possible Answers: 3.83%, 5.75%, 9.38%, 6.88% 1 B: At the present time, Western Gas & Electric Company (WGC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,050.76 per bond, carry...

Western Gas & Electric Company (WGC) can borrow funds at an interest rate of 7.30% for...

Western Gas & Electric Company (WGC) can borrow funds at an interest rate of 7.30% for a period of seven years. Its marginal federal-plus-state tax rate is 45%. WGC’s after-tax cost of debt is (rounded to two decimal places). At the present time, Western Gas & Electric Company (WGC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and...

Internal Rate of Return Method for a Service Company The Riverton Company, a ski resort, recently...

Internal Rate of Return Method for a Service Company The Riverton Company, a ski resort, recently announced a $368,830 expansion to lodging properties, lifts, and terrain. Assume that this investment is estimated to produce $110,000 in equal annual cash flows for each of the first five years of the project life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3...

Recently a large regulated utility which supplied natural gas to residential customers filed for bankruptcy because...

Recently a large regulated utility which supplied natural gas to residential customers filed for bankruptcy because managers had incorrectly predicted a large increase in the price of natural gas and a large decrease in price occurred. Prior to bankruptcy, they had locked in suppliers to very long contracts, thinking the price would move up. At the time of the filing, this company was still viable but decided to file early to keep from draining the resources of the company. a....

Search the Internet or Strayer databases for a publicly traded company that recently filed for bankruptcy...

Search the Internet or Strayer databases for a publicly traded company that recently filed for bankruptcy protection. Review the most recent financial information for the company and be prepared to discuss. "Financial Risk" Please respond to the following: • Based on the company you researched in the e-Activity, assess the financial “red flags” that would have indicated that the company may be having financial difficulty providing suggestions related to how management should address these problems. Provide support for your rationale....

Search the Internet or Strayer databases for a publicly traded company that recently filed for bankruptcy...

Search the Internet or Strayer databases for a publicly traded company that recently filed for bankruptcy protection. Review the most recent financial information for the company and be prepared to discuss. "Financial Risk" Please respond to the following: • Based on the company you researched that file for bankruptcy,, assess the financial “red flags” that would have indicated that the company may be having financial difficulty providing suggestions related to how management should address these problems. Provide support for your...

Search the Internet or Strayer databases for a publicly traded company that recently filed for bankruptcy...

Public health officials interested in determining the monthly mean rate of suicides in western Massachusetts gathered...

Public health officials interested in determining the monthly mean rate of suicides in western Massachusetts gathered information over a 5-year period. The following table gives the frequency distribution of the number of cases reported each month: Number of Cases, x 0 1 2 3 4 5 6 7 Total Number of months 1 7 19 11 9 6 4 3 60 Construct a 95% confidence interval for the population monthly mean rate. (Hint: The number of cases of suicide in...

WRE Energy Limited is a major oil and gas exploration company in Western Australia. It currently...

WRE Energy Limited is a major oil and gas exploration company in Western Australia. It currently has $300 million of market value debt outstanding, consisting of 9% coupon bonds with a maturity of 15 years. The bonds pay semi-annual coupons. The face value of each bond is $1,000 and are currently priced at $1,024.87 each. The company also has an issue of 2 million preference shares outstanding with a market price of $20 each, paying an annual dividend of $1.20....

Subjects