Check if the following data set corresponds to normal distribution or not?
Life Expectancies for Men in European Countries in 2011:
73 79 67 78 69 66 78 74 71 74 79 75 77 71 78 78 68 78 78 71 81 79 80 80 62 65 69 68 79 79 79 73 79 79 72 77 67 70 63 82 72 72 77 79 80 80 67 73 73 60 65 79 66
In: Statistics and Probability
Simulation and Expected Values: Yale Law School says 74% of their students pass the bar exam on their first try.
To simulate passing students, we could assign the random digits as:
00 to 49 = pass first try, 50 to 99 = fail first try
0 to 7 = pass first try, 8 to 9 = fail first try
00 to 73 = pass first try, 74 to 99 = fail first try
0 to 4 = pass first try, 5 to 9 = fail first try
The outcomes for this experiment are __________________, with a probability of ________________, and __________________, with a probability of __________________.
In: Statistics and Probability
Check My Work
|
The National Football League (NFL) polls fans to develop a rating for each football game. Each game is rated on a scale from 0 (forgettable) to 100 (memorable). The fan ratings for a random sample of 12 games follow.
a. Develop a point estimate of mean fan rating
for the population of NFL games (to 2 decimals). b. Develop a point estimate of the standard deviation for the population of NFL games (to 4 decimals) |
In: Math
|
The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also. |
|
ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) |
||||
| 2016 | 2015 | |||
| Assets | ||||
| Cash | $ | 146 | $ | 96 |
| Accounts receivable | 205 | 224 | ||
| Investment revenue receivable | 23 | 19 | ||
| Inventory | 222 | 215 | ||
| Prepaid insurance | 21 | 28 | ||
| Long-term investment | 203 | 140 | ||
| Land | 241 | 165 | ||
| Buildings and equipment | 427 | 430 | ||
| Less: Accumulated depreciation | (109) | (150) | ||
| Patent | 43 | 47 | ||
| $ | 1,422 | $ | 1,214 | |
| Liabilities | ||||
| Accounts payable | $ | 65 | $ | 95 |
| Salaries payable | 23 | 33 | ||
| Bond interest payable | 25 | 19 | ||
| Income tax payable | 27 | 32 | ||
| Deferred income tax liability | 41 | 23 | ||
| Notes payable | 38 | 0 | ||
| Lease liability | 97 | 0 | ||
| Bonds payable | 230 | 305 | ||
| Less: Discount on bonds | (37) | (46) | ||
| Shareholders’ Equity | ||||
| Common stock | 455 | 425 | ||
| Paid-in capital—excess of par | 115 | 100 | ||
| Preferred stock | 90 | 0 | ||
| Retained earnings | 277 | 228 | ||
| Less: Treasury stock | (24) | 0 | ||
| $ | 1,422 | $ | 1,214 | |
| ARDUOUS
COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions) |
||||||
| Revenues and gain: | ||||||
| Sales revenue | $ | 557 |
|
|||
| Investment revenue | 28 | |||||
| Gain on sale of treasury bills | 4 | $ | 589 | |||
| Expenses and loss: | ||||||
| Cost of goods sold | 195 | |||||
| Salaries expense | 88 | |||||
| Depreciation expense | 9 | |||||
| Patent amortization expense | 4 | |||||
| Insurance expense | 22 | |||||
| Bond interest expense | 43 | |||||
| Loss on machine damage | 30 | |||||
| Income tax expense | 51 | 442 | ||||
| Net income | $ | 147 | ||||
| Additional information from the accounting records: | |
| a. |
Investment revenue includes Arduous Company’s $23 million share of the net income of Demur Company, an equity method investee. |
| b. |
Treasury bills were sold during 2016 at a gain of $4 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. |
| c. |
A machine originally costing $100 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $20 million. |
| d. |
Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $18 million. |
| e. |
The preferred stock of Tory Corporation was purchased for $40 million as a long-term investment. |
| f. |
Land costing $76 million was acquired by issuing $38 million cash and a 14%, four-year, $38 million note payable to the seller. |
| g. |
The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $97 million. |
| h. |
$75 million of bonds were retired at maturity. |
| i. | In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. |
| j. |
In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $24 million. |
| Required: | |
|
Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).) |
In: Accounting
An experiment is conducted to determine if classes offered in an online format are as effective as classes offered in a traditional classroom setting. Students were randomly assigned to one of the two teaching methods. Final exam scores reported below. a. Test the claim that the standard deviations for the two groups are equal. What is the p-value of the test? b. Construct a 95% confidence interval on the difference in expected final exam scores between the two groups. Does the data support the claim that there is no difference? Do not use mini tab
| On-line | Classroom |
| 77 | 79 |
| 66 | 64 |
| 70 | 88 |
| 79 | 80 |
| 76 | 66 |
| 58 | 81 |
| 54 | 71 |
| 72 | 84 |
| 56 | 77 |
| 82 | 76 |
| 90 | 89 |
| 68 | 62 |
| 59 | 74 |
| 67 | 68 |
| 71 | 98 |
| 74 | 77 |
| 72 | 65 |
| 62 | 83 |
| 77 | |
| 78 | |
| 76 | |
| 57 | |
| 67 | |
| 69 | |
| 82 | |
| 78 | |
| 80 | |
| 61 | |
| 77 | |
| 65 | |
| 71 | |
| 76 | |
| 58 | |
| 82 | |
| 78 | |
| 74 |
In: Statistics and Probability
Data obtained from the National Center for Health Statistics show that men between the ages of 20 and 29 have a mean height of 69.3 inches, with a standard deviation of 2.9 inches. A baseball analyst wonders whether the standard deviation of heights of major-league baseball players is less than 2.9 inches. The heights (in inches) of 20 randomly selected players are given below.
| 72 | 74 | 71 | 72 | 76 |
| 70 | 77 | 75 | 72 | 72 |
| 77 | 72 | 75 | 70 | 73 |
| 73 | 75 | 73 | 74 | 74 |
Use Minitab Express to perform a Normality Test on this data. Report your answers rounded to three decimal places, where applicable.
a) In the normal probability plot, the data (does / does not) stay relatively close to the reference line.
b) The Anderson-Darling test results in a P-value of . The given data (does /does not) provide significant evidence to claim that it did not come from a normal distribution.
In: Statistics and Probability
QUESTION 5
Use your TI83 (or Excel):
A normally distributed population has a mean of 72 and a standard
deviation of 14. Determine the probability that a random sample of
size 35 has an average of less than 73.
Round to four decimal places.
QUESTION 6
A normally distributed population has a mean of 71 and a standard
deviation of 15. Determine the probability that a random sample of
size 26 has an average greater than 74.
Round to four decimal places.
QUESTION 7
A normally distributed population has a mean of 76 and a standard
deviation of 14. Determine the probability that a random sample of
size 25 has an average of less than 74.
Round to four decimal places.
QUESTION 8
Use your TI83 (or Excel):
A normally distributed population has a mean of 76 and a standard
deviation of 16. Determine the probability that a random sample of
size 36 has an average greater than 74.
Round to four decimal places.
In: Statistics and Probability
Syntonic Limited is an Australian-based company subject to the classical tax system, with a corporate tax rate of 30%. Historically, the company has been successful with its projects and currently generating earnings before interest and taxes (EBIT) of $8 million per year, and this level of earnings is assumed to continue forever. However, due to increased competition in its markets, many of its customers are shifting to new service providers. All of the company’s finance has come from shares issued at a cost of 18%. Due to a boardroom dispute, the company is proposing to buy back shares from a group of dissatisfied shareholders by borrowing $28 million at an interest rate of 15%. (i) What is the value of the company with an all-equity capital structure? [3 points] (ii) According to Modigliani and Miller (MM) approach with corporate taxes, what is the value of the company if it borrows the money and uses it to repurchase shares? [3 points] (iii) Explain the financial distress risk of Syntonic Limited after it had borrowed the money to buy back its shares? [9 points] (provide both workings and answers in the answer box)
In: Finance
A cash budget for the first three quarters of Brister Incorporated is given below (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter?
|
Cash Budget |
Quarter (000 omitted) |
||
|
1 |
2 |
3 |
|
|
Cash balance, beginning |
$8 |
? |
? |
|
Add collections from customers |
88 |
129 |
87 |
|
Total cash available |
? |
? |
? |
|
Less disbursements: |
|||
|
Purchase of inventory |
55 |
65 |
65 |
|
Selling and administrative expenses |
41 |
45 |
49 |
|
Equipment purchases |
7 |
11 |
11 |
|
Dividends |
2 |
2 |
2 |
|
Total disbursements |
? |
? |
? |
|
Excess (deficiency) of cash available over disbursements |
? |
? |
? |
|
Financing: |
|||
|
Borrowings |
? |
? |
? |
|
Repayments |
? |
? |
? |
|
Total financing |
? |
? |
? |
|
Cash balance, ending |
? |
? |
? |
In: Accounting
A cash budget for the first three quarters of Brister Incorporated is given below (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter?
|
Cash Budget |
Quarter (000 omitted) |
||
|
1 |
2 |
3 |
|
|
Cash balance, beginning |
$8 |
? |
? |
|
Add collections from customers |
88 |
128 |
87 |
|
Total cash available |
? |
? |
? |
|
Less disbursements: |
|||
|
Purchase of inventory |
56 |
65 |
65 |
|
Selling and administrative expenses |
40 |
45 |
48 |
|
Equipment purchases |
9 |
10 |
12 |
|
Dividends |
2 |
2 |
2 |
|
Total disbursements |
? |
? |
? |
|
Excess (deficiency) of cash available over disbursements |
? |
? |
? |
|
Financing: |
|||
|
Borrowings |
? |
? |
? |
|
Repayments |
? |
? |
? |
|
Total financing |
? |
? |
? |
|
Cash balance, ending |
? |
? |
? |
Multiple Choice
$16,000
$40,000
$6,000
$50,000
In: Accounting