The community bank survey asked about net income and reported the percent change in net income...

The community bank survey asked about net income and reported the percent change in net income between the first half of last year and the first half of this year. The mean change for the 120 banks in the sample is 7.6%. Because the sample size is large, we are willing to use the sample standard deviation s = 20.5% as if it were the population standard deviation σ. Does the 7.6% mean increase provide evidence that the net income for all banks has changed? Assumeα= 0.05. You must show all steps as outlined in class to receive full credit.

Expert Solution

Given that,
population mean(u)=7.6
standard deviation, sigma =20.5
sample mean, x =7.6
number (n)=120
null, Ho: μ=7.6
alternate, H1: μ>7.6
level of significance, alpha = 0.05
from standard normal table,right tailed z alpha/2 =1.645
since our test is right-tailed
reject Ho, if zo > 1.645
we use test statistic (z) = x-u/(s.d/sqrt(n))
zo = 7.6-7.6/(20.5/sqrt(120)
zo = 0
| zo | = 0
critical value
the value of |z alpha| at los 5% is 1.645
we got |zo| =0 & | z alpha | = 1.645
make decision
hence value of |zo | < | z alpha | and here we do not reject Ho
p-value : right tail - ha : ( p > 0 ) = 0.5
hence value of p0.05 < 0.5, here we do not reject Ho
ANSWERS
---------------
null, Ho: μ=7.6
alternate, H1: μ>7.6
test statistic: 0
critical value: 1.645
decision: do not reject Ho
p-value: 0.5
we do not have enough evidence to support the claim that mean increase provide evidence that the net income for all banks has changed

orchestra answered 1 year ago

A research group conducted a survey about church attendance. The survey respondents were asked about their...

A research group conducted a survey about church attendance. The survey respondents were asked about their church attendance and asked to indicate their age. The results are as follows: Church Attendance Age 20 to 29 30 to 39 40 to 49 50 to 59 Yes 60 30 68 100 No 87 107 80 50 Answer the following four questions. Use 5% level of significance throughout. 1.We use the sample data above to determine whether church attendance is independent of age....

Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income...

Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. Multiple Choice $22,803. $26,043. $18,963. $42,003.

Effect of net income on a firm’s balance sheet Conrad Air Inc. reported net income of...

Effect of net income on a firm’s balance sheet Conrad Air Inc. reported net income of $1,365,000 for the year ended December 31, 2020. Show how Conrad’s balance sheet would change from 2019 to 2020 depending on how Conrad “spent” those earnings as described in the scenarios that appear below. Conrad Air Inc. Balance Sheet as of December 31, 2019 Assets Cash Marketable securities Accounts receivable Inventories Current assets Equipment Buildings Fixed assets Total assets $ 120,000 35,000 45,000 $...

"Noncontrolling interest": is a component of the parent company's net income and reported on the income...

"Noncontrolling interest": is a component of the parent company's net income and reported on the income statement. is a component of stockholders' equity attributable to the parent company and reported on the balance sheet. is the portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, and reported on the balance sheet within equity, but separate from the parent company's equity. is not reported within the parent company's consolidated financial statements, but instead reported within...

The net income reported on the income statement of CamilloX Inc. for the current year was...

The net income reported on the income statement of CamilloX Inc. for the current year was $150,000. Depreciation recorded on equipment and building amounted to $45,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Account End of Year Beginning of Year Cash 42,875 36,250 Trade Receivables (net) 147,500 137,500 Inventories 109,375 93,750 Prepaid Expenses 9,250 11,875 Accounts Payable 57,000 40,000 Salaries Payable 7,625 10,625 Dividends Payable...

Big Bank is a community bank and its balance sheet is reported below.[1] The “total equity/total...

Big Bank is a community bank and its balance sheet is reported below.[1] The “total equity/total asset ratio” is 10.00 percent ($10.00/$100.00) and is a very important ratio since bank regulators will shut down a bank when there is not enough capital. Assume bank regulators require the “total equity/total asset ratio” to be at least 8.00 percent at all times and if the ratio falls below 8.00 percent, a bank is immediately shut down. Balance Sheet (as of 12/31/2019 and...

4) A magazine reported the results of a survey in which readers were asked to send...

4) A magazine reported the results of a survey in which readers were asked to send their responses to several questions regarding good eating. DataSet for question 4,5,6 is the reported results to the question, How often do you eat chocolate? Based on the data answer the following questions. a) Were the responses to this survey obtained using voluntary sampling technique? Explain b) What type of bias may be present in the response? c) is 13% a reasonable estimate of...

Calculate the Interest Income, Interest Expense, Net Interest Income, and Net Interest Margin for the bank...

Calculate the Interest Income, Interest Expense, Net Interest Income, and Net Interest Margin for the bank listed below. Use Total Assets for ratios (rather than earning assets). "%" denotes the interest rate earned or paid on the designated asset or liability category. Please show your work in order to receive credit. Assets Amount % Liabilities and Equity Amount % Cash 80 0.0% Non-interest deposits 100 0.0% Securities 270 5.5% NOW checking 170 2.0% Loans, net 600 7.5% MMDA 330 4.0% Fed...

The net income reported on the income statement for the current year was $121,900. Depreciation recorded...

The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,050 $42,820 Accounts receivable (net) 33,730 31,640 Inventories 46,060 48,170 Prepaid expenses 5,180 4,070 Accounts payable (merchandise creditors) 44,090 40,510 Wages payable 24,090 26,460 a. Prepare the “Cash...

The net income reported on the income statement for the current year was $121,600. Depreciation recorded...

The net income reported on the income statement for the current year was $121,600. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $49,490 $45,530 Accounts receivable (net) 35,480 33,650 Inventories 48,450 51,220 Prepaid expenses 5,440 4,330 Accounts payable (merchandise creditors) 46,370 43,070 Wages payable 25,340 28,140 a. Prepare the Cash...

Question