A movie theater company wants to see if there is a difference in the average movie ticket sales in San Diego and Portland per week. They sample 20 sales from San Diego and 20 sales from Portland over a week. Test the claim using a 5% level of significance. Assume the variances are unequal and that movie sales are normally distributed.

Choose the correct decision and summary based on the p-value.

• A.

  Do not reject H_0. There is evidence that the average movie ticket sales in San Diego and Portland per week differ.

• B.

  Reject H₀. There is no evidence that the average movie ticket sales in San Diego and Portland per week differ.

• C.

  Reject H₀. There is evidence that the average movie ticket sales in San Diego and Portland per week differ.

• D.

  Do not reject H₀. There is no evidence that the average movie ticket sales in San Diego and Portland per week differ.

Please assist with the following question:

A home theater in a box is the easiest and cheapest way to provide surround sound for a home entertainment center. A sample of prices is shown here (Consumer Reports Buying Guide, 2004). The prices are for models with a DVD player and for models with a DVD player.

1

1. Compute the mean price for models with a DVD player and the mean price for models without a DVD player. What is the additional price paid to have a DVD player included in a home theater unit?

2. Compute the range, variance, and standard deviation for the two samples. What does this information tell you about the prices for models with and without a DVD player?

MLB Salaries:

A movie theater company wants to see if there is a difference in the average movie ticket sales in San Diego and Portland per week. They sample 20 sales from San Diego and 20 sales from Portland over a week. Test the claim using a 5% level of significance. Assume the variances are unequal and that movie sales are normally distributed.

Choose the correct decision and summary based on the p-value.

• A.

  Do not reject H_0. There is evidence that the average movie ticket sales in San Diego and Portland per week differ.

• B.

  Reject H₀. There is no evidence that the average movie ticket sales in San Diego and Portland per week differ.

• C.

  Reject H₀. There is evidence that the average movie ticket sales in San Diego and Portland per week differ.

• D.

  Do not reject H₀. There is no evidence that the average movie ticket sales in San Diego and Portland per week differ.

Use the following linear regression equation regarding airline tickets to answer the question. (The dataset collected for Distance was from 500 miles to 5,687 miles) Note: that Distance is the number of miles between the departure and arrival cities, and Price is the cost in dollars of an airline ticket.

(a) Find the slope using the linear regression equation given to you above. Inter- pret the value that you got for the slope in the context of the problem. Predicted Price= 49 + 0.22 (Distance) (b) Find the y-intercept using the linear regression equation given to you. If ap- propriate interpret the value you got for the y-intercept in the context of the problem.

(c) If appropriate predict the Price of an airline ticket if the distance between the departure and arrival cities is 1,752 miles.

Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at the end of its four-year service life, the van will be worth $5,200. During the four-year period, the company expects to drive the van 177,500 miles.

Actual miles driven each year were 46,000 miles in year 1 and 51,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)

  
1. Straight-line.

Year Annual Depreciation

1 ?

2 ?

2. Double-declining-balance.

Year Annual Depreciation

1 ?

2 ?

   
3. Activity-based.

Year Annual Depreciation

1 ?

2 ?

A tire company claims that the lifetimes of its tires average 49750 miles. The standard deviation of tire lifetimes is known to be 4750 miles. You sample 75 tires and will test the hypothesis that the mean tire lifetime is at least 49750 miles against the alternative that it is less. Assume, in fact, that the true mean lifetime is 49250 miles.

It is decided to reject H₀ if the sample mean is less than 49150. Find the level and power of this test. Round the answers to four decimal places.

At what level should the test be conducted so that the power is 0.75?

You are given the opportunity to sample more tires. How many tires should be sampled in total so that the power is 0.75 if the test is made at the 5% level? Round the answer to the next largest integer.

Part 1:
Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.
3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck.

Est. Life … 4 Orig. Cost Basis 26,300.00 Est. Residual Value 1,500.00 Est. total mileage 100,000 miles driven, Yr 1 23,400 miles driven, Yr 2 20,100 miles driven, Yr 3 33,100
miles driven, Yr 4 23,400

Part 2:
Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)
assume it was sold for: 8,750.00

Speedy Delivery Company purchases a delivery van for $41,600. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 222,500 miles.

Actual miles driven each year were 58,000 miles in year 1 and 64,000 miles in year 2.

Required:

Calculate annual depreciation for the first two years of the van using each of the following methods. (Do not round your intermediate calculations.)

  
1. Straight-line.

Year Annual Depreciation

1

2

2. Double-declining-balance.

Year Annual Depreciation

1

2

   
3. Activity-based.

Year Annual Depreciation

1

2

1.) Carrie Heffernan Company purchased a delivery van on January 1, 2016, for $50,000. The van was expected to remain in service 4 years (or 100,000 miles) and has a residual value of $5,000. The van traveled 30,000 miles the first year, 25,000 miles the second year, and 22,500 miles in the third and fourth years.

Required:

1. Prepare a schedule of depreciation expense per year for the first four years of the asset's life using the (a) straight-line method, (b) units-of-production method, and (c) double-declining-balance method.

2. Prepare a schedule of the book value of the van for each of the four years using the (a) straight-line method, (b) units-of-production method and (c) double-declining-balance method.