In December​ 2004, 44​% of students in high school were satisfied with the lunches supplied through the school. In May​ 2010, an organization conducted a poll of 766 students in high school and asked if they were satisfied with the lunches supplied through the school. Of the 766 ​surveyed, 299 indicated they were satisfied. Does this suggest the proportion of students satisfied with the quality of lunches has​ decreased? ​(a) What does it mean to make a Type II error for this​ test? ​(b) If the researcher decides to test this hypothesis at the alpha=0.10 level of​ significance, compute the probability of making a Type II​ error, beta​, if the true population proportion is 0.39. What is the power of the​ test? ​(c) Redo part​ (b) if the true population proportion is 0.43.

In December​ 2004, 54​% of students in high school were satisfied with the lunches supplied through the school. In May​ 2010, an organization conducted a poll of 1045 students in high school and asked if they were satisfied with the lunches supplied through the school. Of the 1045 ​surveyed, 502 indicated they were satisfied. Does this suggest the proportion of students satisfied with the quality of lunches has​ decreased? ​

(a) What does it mean to make a Type II error for this​ test?

​(b) If the researcher decides to test this hypothesis at the alpha equals 0.10 level of​ significance, compute the probability of making a Type II​ error, beta​, if the true population proportion is 0.48. What is the power of the​ test?

​(c) Redo part​ (b) if the true population proportion is 0.52.

1. What accounting standard in 2004 caused stock options to decline as the primary source of non-cash compensation? Why?

2. Does compensation expense from stock options meet the definition of an expense as discussed in SFAC 6? Why?

3. Do you think compensation expense from stock options should be recognized as an expense? Choose one position, and support it.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2004 by two talented engineers with little business training. In 2016, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2016 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.

a. A five-year casualty insurance policy was purchased at the beginning of 2014 for $34,000. The full amount was debited to insurance expense at the time.

b. Effective January 1, 2016, the company changed the salvage value used in calculating depreciation for its office building. The building cost $592,000 on December 29, 2005, and has been depreciated on a straightline basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.

c. On December 31, 2015, merchandise inventory was overstated by $24,000 due to a mistake in the physical inventory count using the periodic inventory system.

d. The company changed inventory cost methods to FIFO from LIFO at the end of 2016 for both financial statement and income tax purposes. The change will cause a $950,000 increase in the beginning inventory at January 1, 2017

. e. At the end of 2015, the company failed to accrue $15,300 of sales commissions earned by employees during 2015. The expense was recorded when the commissions were paid in early 2016.

f. At the beginning of 2014, the company purchased a machine at a cost of $700,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2015, was $448,000. On January 1, 2016, the company changed to the straight-line method.

g. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2016. Credit sales for 2016 are $3,800,000; in 2015 they were $3,500,000. Required: For each situation:

The dataset ToyotaCorolla.jmp contains data on used cars on sale during the late summer of 2004 in the Netherlands. It has 1436 records containing details on 38 attributes, including Price, Age, Kilometers, HP, and other specifications. (a.) Explore the data using the data visualization (e.g., Graph > Scatterplot Matrix and Graph > Graph Builder) capabilities of JMP. Which of the pairs among the variables seem to be correlated? (three or four correlations please).

Multivariate Correlations

A polling organization conducted telephone surveys in March of 2004, 2005 and 2006. In each year, 1001 people age 18 or older were asked about whether they planned to use a credit card to pay federal income taxes that year. The data are given in the accompanying table. Is there evidence that the proportion falling in the three credit card response categories is not the same for all three years? Test the relevant hypotheses using a 0.05 significance level. (Round your answer to two decimal places.)

χ² =

P-value interval

p < 0.001

0.001 ≤ p < 0.01   

0.01 ≤ p < 0.05

0.05 ≤ p < 0.10

p ≥ 0.10

Conclusion

The proportion falling in the three credit card response categories is the same for all three years.

The proportion falling in the three credit card response categories is not the same for all three years.    

You may need to use the appropriate table in Appendix A to answer this question.

1. In recent years, a growing array of entertainment options competes for consumer time. By 2004, cable television and radio surpassed broadcast television, recorded music, and the daily newspaper to become the two entertainment media with the greatest usage (The Wall Street Journal, January 26, 2004). Researchers used a sample of 15 individuals and collected data on the hours per week spent watching cable television and hours per week spent listening to the radio.

    Individual     Television          Radio

           1                      22                    25

2                      8                      10

3                      25                    29

4                      22                    19

5                      12                    13

6                      26                    28

7                      22                    23

8                      19                    21

9                      21                    21

10                    23                    23

11                    14                    15

12                    14                    18

13                    14                    17

14                    16                    15

15                    24                    23

1. Use a .05 level of significance and test for a difference between the population mean usage for cable television and radio. What is the p-value? (You must state H₀and Ha, and compute the test statistic.)
2. Provide a 95% confidence interval estimate of the difference between the population mean usage for cable television and radio.