Question
In: Statistics and Probability
An auditor for a government agency was assigned the task of evaluating reimbursement for office visits...
An auditor for a government agency was assigned the task of evaluating reimbursement for office visits to physicians paid by Medicare. The audit was conducted on a sample of 75 reimbursements, with the following results:
- In 12 of the office visits, there was an incorrect amount of reimbursement.
- The amount of reimbursement was xbar = $93.70, s = $34.55.
- At the 0.05 level of significance, is there evidence that the population mean reimbursement was less than $100?
- At the 0.05 level of significance, is there evidence that the proportion of incorrect reimbursements in the population was greater than 0.10?
- Discuss the underlying assumptions of the test used in (a).
- What is your answer to (a) if the sample mean equals $90?
- What is your answer to (b) if 15 office visits had incorrect reimbursements?
Solutions
orchestra answered 2 years agoRelated Solutions
An Auditor for a government agency is assigned the task ofevaluating reimbursement for office visits to...
An Auditor for a government agency is assigned the task
ofevaluating reimbursement for office visits to physicians paid
byMedicare. The audit is conducted on a sample of 75 of
thereimbursements with the follwing results: In 12 of the office
visits, an incorrect amount ofreimbursement was provided. The
Amount of reimbursement was mean = $93.70 andS=$34.55 a) At the
0.05 level of significance, is there evidence thatthe mean
reimbursement is less than $100? b)At the 0.05 level of
significance, is there...
An analyst is assigned the task of evaluating a real estate investment project. Purchase price is...
An analyst is assigned the task of evaluating a real estate
investment project. Purchase price is $700,000. Using the
information in the table below, calculate the after-tax cash flow
for the sale of the property.
After-tax cash flow without property sale
$33 546
Straight-line depreciation
$18 700
Mortgage Payment
$59 404
Cumulative Mortgage principle repayments until year 5
$20 783
80% financing at 10% interest rate
Marginal income tax rate
31%
Capital gains tax rate
20%
Forecasted sales price
$927...
You have been assigned the task of evaluating two mutually exclusive projects with the following projected...
You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
Year
Project A
Cash Flow
Project B
Cash Flow
0
$(110,000)
$(110,000)
1
40,000
0
2
40,000
0
3
40,000
0
4
40,000
0
5
40,000
240,000
If the appropriate discount rate on these projects is 8
percent, which would be chosen and why?
The NPV of Project A is $_____.
The NPV of Project A is $_____.
Which would be chosen...
You have been assigned the task of evaluating two mutually exclusive projects with the following projected...
You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
YEAR PROJECT A CASH FLOW PROJECT B CASH
FLOW
0 ------------- -100,000 --------------- -100,000
1 --------------- 33,000 --------------- 0
2 --------------- 33,000 --------------- 0
3 --------------- 33,000 --------------- 0
4 --------------- 33,000 --------------- 0
5 --------------- 33,000 --------------- 210,000
If the appropriate discount rate on these projects is 12
percent, which would be chosen and why?
1. What is the NPV of...
You have been assigned the task of evaluating two mutually exclusive projects with the following projected...
You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
YEAR PROJECT A CASH FLOW
PROJECT B CASH FLOW
0
-110,000
-110,000
1
30,000
0
2
30,000
0
3
30,000
0
4
30,000
0
5
30,000
210,000
If the appropriate discount rate on these projects is 9
percent, which would be chosen and why?
What is the NPV...
You have been assigned the task of evaluating two mutually exclusive projects with the following projected...
You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
Year
Project A
Cash Flow
Project B
Cash Flow
0
$(102,000)
$(102,000)
1
32,000
00
2
32,000
00
3
32,000
00
4
32,000
00
5
32,000
230, 000
If the appropriate discount rate on these projects is 88
percent, which would be chosen and why?
The NPV of Project A is
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive...
(Mutually exclusive projects and NPV) You have been assigned
the task of evaluating two mutually exclusive projects with the
following projected cash flows: If the appropriate discount rate
on these projects is 11 percent, which would be chosen and why?
What is the NPV of project A? $ nothing (Round to the nearest
cent.) What is the NPV of project B? $ (Round to the nearest
cent.) Which project would be chosen and why? (Select the best
choice.) A....
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive...
(Mutually exclusive projects and NPV)
You have been assigned the task of evaluating two mutually
exclusive projects with the following projected cash flows:
YEAR
PROJECT A
CASH FLOW
PROJECT B
CASH FLOW
0
−$110,000
−$110,000
1
30,000
0
2
30,000
0
3
30,000
0
4
30,000
0
5
30,000
220,000
(Click
on the icon located on the top-right corner of the data table
above in order to copy its contents into a
spreadsheet.)
If the appropriate discount rate on these...
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive...
(Mutually exclusive projects and NPV) You have been assigned
the task of evaluating two mutually exclusive projects with the
following projected cash flows:
YEAR PROJECT A CASH FLOW PROJECT B CASH
FLOW
0 -105,000 -105,000
1 40,000 0
2 40,000 0
3 40,000 0
4 40,000 0
5 40,000 240,000
If the appropriate discount rate on these projects is 8
percent, which would be chosen and why? What is the NPV of
project A? What is the NPV of project...
As an auditor, a common task is to verify that expenditures of a company are properly...
As an auditor, a common task is to verify that
expenditures of a company are properly classified as capital or
revenue expenditures. Discuss the determinants of such
classifications. If an expenditure is capitalized, is such
expenditure ever expensed? If so, how?
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