A comptroller was preparing to analyze the distribution of balances in the various accounts receivable for...

A comptroller was preparing to analyze the distribution of balances in the various accounts receivable for her firm. She knew from studies in previous years that the distribution would be normal with a standard deviation of $1500, but she was unsure of the mean µ. She thought carefully about her uncertainty about this parameter and assessed a normal distribution forµ with mean m0 = $10,000 and cr0 = $800. Over lunch, she discussed this problem with her friend, who also worked in the accounting division. Her friend commented that she also was unsure of µ but would have placed it somewhat higher. The friend said that "better" estimates for m0 and cr0 would have been $12,000 and $750, respectively.

a Find P(µ > $11,000) for both prior distributions.

b That afternoon, the comptroller randomly chose nine accounts and calculated x = $11,003. Find her posterior distribution forµ. Find the posterior distribution ofµ for her friend. Calculate P(µ > $11,000) for each case.

c A week later the analysis had been completed. Of a total of 144 accounts (including the nine reported in part b), the average was x = $11,254. Find the posterior distribution for µfor each of the two prior distributions. Calculate P(µ > $11,000) for each case.

d Discuss your answers to parts a, b, and c. What can you conclude?

Expert Solution

orchestra answered 1 year ago

Which of the following groups contain only accounts that normally have credit balances? Accounts Receivable and...

Which of the following groups contain only accounts that normally have credit balances? Accounts Receivable and Fees Income b. Salaries Expense and Accounts Payable c. Fees Income and Notes Payable d. Accounts Payable and Equipment The Chef Manager received a vendor shipment on the last day of the accounting period, after submitting the period’s ending inventory. What should be done to make sure the financials are correctly stated? Nothing Adjust the ending inventory Adjust the ending inventory and process the...

Start with the beginning balances for these T-accounts: Accounts Receivable, $ 102 comma 000$102,000, Allowance for...

Start with the beginning balances for these T-accounts: Accounts Receivable, $ 102 comma 000$102,000, Allowance for Uncollectible Accounts, $ 11 comma 000$11,000. Post the following 20182018 transactions to the T-accounts: a. Service revenue of $ 704 comma 000$704,000, all on account b. Collections on account, $ 718 comma 000$718,000 c. Write-offs of uncollectible accounts, $ 6 comma 000$6,000 d. Uncollectible-account expense (allowance method), $ 12 comma 000$12,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?...

Metlock Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $...

Metlock Company has the following balances in selected accounts on December 31, 2022. Accounts Receivable $ 0 Accumulated Depreciation—Equipment 0 Equipment 7,840 Interest Payable 0 Notes Payable 11,200 Prepaid Insurance 2,352 Salaries and Wages Payable 0 Supplies 2,744 Unearned Service Revenue 33,600 All the accounts have normal balances. The following information has been gathered at December 31, 2022. 1. Metlock Company borrowed $11,200 by signing a 12%, one-year note on September 1, 2022. Interest will be paid when the note...

ARCH began the year with the following balances Accounts Payable ................$ 27,000 Accounts Receivable, net .............26,000...

ARCH began the year with the following balances Accounts Payable ................$ 27,000 Accounts Receivable, net .............26,000 Cash .....................10,000 Inventory ...................25,000 Notes Payable .................270,000 Permanently Restricted Net Assets ........100,000 Pledges Receivable ...............350,000 Property, Plant, and Equipment, net .........350,000 Temporarily Restricted Net Assets .........30,000 Unrestricted Net Assets .............302,000 Wages Payable ................32,000 Transactions 1. January 12. Received a $300,000 payment from a pledge made last year. 2. February 4. Placed an order for new cubible partitions with five-year useful lives, for $15,000. ARCH...

ABC reports the following accounts and balances at December 31, 2017: Accounts Payable $22,800 Accounts Receivable &nb

ABC reports the following accounts and balances at December 31, 2017: Accounts Payable $22,800 Accounts Receivable 18,800 Cash 24,400 Land 82,400 Machine 129,200 Merchandise Inventory 63,600 Long-term Note Payable 79,200 Short-term Note Payable 14,400 Paid-in Capital 200,000 Retained Earnings ? Sales Revenue 122,000 Cost of Goods Sold 80,000 Operating Expenses 40,000 Required: Prepare a balance sheet at December 31, 2017 Also, prepare an income statement for the year ended December 31, 2017. Ignore depreciation expense and interest expense.

At the beginning of the current period, Marin Corp. had balances in Accounts Receivable of $213,500...

At the beginning of the current period, Marin Corp. had balances in Accounts Receivable of $213,500 and in Allowance for Doubtful Accounts of $8,500 (credit). During the period, it had net credit sales of $878,100 and collections of $704,650. It wrote off as uncollectible accounts receivable of $7,543. However, a $3,093 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,950 at the end of the period. (Omit...

A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and...

A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and accounts payable detail at September 30, 2014, their fiscal year end. ACCOUNTS RECEIVABLE Receivables denominated in U.S. dollar $426,000 Receivable denominated in 40,000 Australian dollar 43,000 Receivable denominated in 70,000 Canadian dollar 71,750 $ 540,750 ACCOUNTS PAYABLE Payables denominated in U.S. dollar $ 107,000 Payable denominated in 50,000 Canadian dollar 51,250 Payable denominated in 200,000 Hong Kong dollar 26,500 $ 184,750 As...

At the beginning of the current period, Kingbird Corp. had balances in Accounts Receivable of $211,000...

At the beginning of the current period, Kingbird Corp. had balances in Accounts Receivable of $211,000 and in Allowance for Doubtful Accounts of $8,910 (credit). During the period, it had net credit sales of $777,300 and collections of $764,980. It wrote off as uncollectible accounts receivable of $8,009. However, a $2,977 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,630 at the end of the period. (Omit...

At the beginning of the current period, Vaughn Manufacturing had balances in Accounts Receivable of $210,000...

At the beginning of the current period, Vaughn Manufacturing had balances in Accounts Receivable of $210,000 and in Allowance for Doubtful Accounts of $12,000 (credit). During the period, it had net credit sales of $665,000 and collections of $592,000. It wrote off as uncollectible accounts receivable of $5,700. However, a $3,300 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $21,000 at the end of the period. (...

At the beginning of the current period, Swifty Corporation had balances in Accounts Receivable of $195,100...

At the beginning of the current period, Swifty Corporation had balances in Accounts Receivable of $195,100 and in Allowance for Doubtful Accounts of $9,350 (credit). During the period, it had net credit sales of $745,500 and collections of $835,120. It wrote off as uncollectible accounts receivable of $7,831. However, a $3,184 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,100 at the end of the period. (Omit...

Question