1. Many investors and financial analysts believe the Dow Jones
Industrial Average (DJIA) gives a good barometer of the overall
stock market. On January 31, 2006, 9 of the 30 stocks making up the
DJIA increased in price (The Wall Street Journal, February 1,
2006). On the basis of this fact, a financial analyst claims we can
assume that 30% of the stocks traded on the New York Stock Exchange
(NYSE) went up the same day.
A sample of 65 stocks traded on the NYSE that day showed that 28
went up.
You are conducting a study to see if the proportion of stocks that
went up is is significantly more than 0.3. You use a significance
level of α=0.01α=0.01.
What is the test statistic for this sample? (Report answer accurate
to three decimal places.)
test statistic =
What is the p-value for this sample? (Report answer accurate to
four decimal places.)
p-value =
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
2. You are concerned that nausea may be a side effect of
Tamiflu, but you cannot just give Tamiflu to patients with the flu
and say that nausea is a side effect if people become nauseous.
This is because nausea is common for people who have the flu. From
past studies you know that about 30% of people who get the flu
experience nausea. You collected data on 1685 patients who were
taking Tamiflu to relieve symtoms of the flu, and found that 553
experienced nausea. Use a 0.01 significance level to test the claim
that the percentage of people who take Tamiflu for the relief of
flu symtoms and experience nausea is greater than
30%.
a) Identify the null and alternative
hypotheses?
H0 Select an answer p = p ≠ p < p > p ≤ p ≥ μ = μ ≠ μ < μ
> μ ≤ μ ≥
H1: Select an answer p = p ≠ p < p > p ≤ p ≥ μ = μ
≠ μ < μ > μ ≤ μ ≥
b) What type of hypothesis test should you conduct
(left-, right-, or two-tailed)?
c) Identify the appropriate significance
level.
d) Calculate your test statistic. Write the result
below, and be sure to round your final answer to two decimal
places.
e) Calculate your p-value. Write the result below,
and be sure to round your final answer to four decimal
places.
f) Do you reject the null hypothesis?
g) Select the statement below that best represents
the conclusion that can be made.
h) Can we conclude that nausea a side effect of
Tamiflu?
In: Statistics and Probability
1. Many investors and financial analysts believe the Dow Jones
Industrial Average (DJIA) gives a good barometer of the overall
stock market. On January 31, 2006, 9 of the 30 stocks making up the
DJIA increased in price (The Wall Street Journal, February 1,
2006). On the basis of this fact, a financial analyst claims we can
assume that 30% of the stocks traded on the New York Stock Exchange
(NYSE) went up the same day.
A sample of 65 stocks traded on the NYSE that day showed that 28
went up.
You are conducting a study to see if the proportion of stocks that
went up is is significantly more than 0.3. You use a significance
level of α=0.01α=0.01.
What is the test statistic for this sample? (Report answer accurate
to three decimal places.)
test statistic =
What is the p-value for this sample? (Report answer accurate to
four decimal places.)
p-value =
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
2. You are concerned that nausea may be a side effect of
Tamiflu, but you cannot just give Tamiflu to patients with the flu
and say that nausea is a side effect if people become nauseous.
This is because nausea is common for people who have the flu. From
past studies you know that about 30% of people who get the flu
experience nausea. You collected data on 1685 patients who were
taking Tamiflu to relieve symtoms of the flu, and found that 553
experienced nausea. Use a 0.01 significance level to test the claim
that the percentage of people who take Tamiflu for the relief of
flu symtoms and experience nausea is greater than
30%.
a) Identify the null and alternative
hypotheses?
H0 Select an answer p = p ≠ p < p > p ≤ p ≥ μ = μ ≠ μ < μ
> μ ≤ μ ≥
H1: Select an answer p = p ≠ p < p > p ≤ p ≥ μ = μ
≠ μ < μ > μ ≤ μ ≥
b) What type of hypothesis test should you conduct
(left-, right-, or two-tailed)?
c) Identify the appropriate significance
level.
d) Calculate your test statistic. Write the result
below, and be sure to round your final answer to two decimal
places.
e) Calculate your p-value. Write the result below,
and be sure to round your final answer to four decimal
places.
f) Do you reject the null hypothesis?
g) Select the statement below that best represents
the conclusion that can be made.
h) Can we conclude that nausea a side effect of
Tamiflu?
In: Statistics and Probability
Macro Company has the following adjusted accounts and balances at June 30: Accounts Payable $ 300 Accounts Receivable 550 Accumulated Amortization 150 Accumulated Depreciation 250 Cash 1,020 Common Stock 300 Deferred Revenue 100 Depreciation Expense 110 Equipment 1,400 Income Tax Expense 110 Income Tax Payable 30 Interest Expense 180 Interest Revenue 50 Notes Payable (long-term) 1,300 Office Expenses 820 Prepaid Rent 40 Rent Expense 400 Retained Earnings 120 Salaries and Wages Expense 660 Sales Revenue 3,600 Software 200 Supplies 710 Prepare an adjusted trial balance for Macro company at June 30.
In: Accounting
Critical Thinking
The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002).Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).
Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keenindecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.
To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supplytechniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’sleads to improvement of manufacturing performance (Fullerton and McWatters, 2002).
Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.
Question:
In: Operations Management
Critical Thinking
The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002). Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).
Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keen indecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.
To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supply techniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’s leads to improvement of manufacturing performance (Fullerton and McWatters, 2002).
In: Operations Management
1.
Suppose a company called Hongyu F. Inc. is selling a product known as “Josue’s Giant Birthday Candles”. The company has the following table:
q P TR TC Profit MR MC ∆Profit
0 12 4 --- --- ---
1 11 7
2 10 8
3 9 3
4 8 5
5 7 29
What is the quantity produced?
a. 0
b. 2
c. 4
d. 5
2.
Again, suppose a company called Hongyu F. Inc. is selling a product known as “Josue’s Giant Birthday Candles”. As shown above, the company has the following table:
q P TR TC Profit MR MC ∆Profit
0 12 4 --- --- ---
1 11 7
2 10 8
3 9 3
4 8 5
5 7 29
Given this information from the previous problem, what is the relevant market structure?
a. Monopoly
b. Competitive
c. Slava-opoly
d. Raquel-opoly
3. Suppose a firm in the competitive market faces the following cost and revenue conditions: MC=$10; MR=$12. The firm should…
a. change nothing.
b. increase output.
c. increase price.
d. decrease output.
In: Economics
What do we have in common or not?---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
During production - If revenue is recognized during production than the prudence concept of accounting is not followed that is to provide for future losses but not for future incomes. The risk is during production it is not certain that whether goods shall be sold in current period or not so correct revenue recognition shall not be possible. As per accrual basis transaction is not been incurred and revenue must not be recognized.
Production complete -
If revenue is recognized when production is complete than the prudence concept of accounting is not followed that is provide for future losses but not for future incomes. The risk is that it is not certain that whether goods shall be sold in current period or not so correct revenue recognition shall not be possible. As per accrual basis transaction has not been incurred and revenue must not be recognized.
Receiving order from customer - This is also not a correct stage to recognize sale, receiving order do not guarantee that sales will in current accounting period or order might get cancelled too thus it is not good basis to recognize sales. As per accrual basis transaction has not been incurred and revenue must not be recognized.
Point of sales - This is correct stage to recognize sales as per accrual basis transaction has bees incurred and revenue must be recognized.
Cash collections - Cash collection does not guarantee recognition of sales as cash can be collected in different accounting period other than period in which transaction is incurred. Thus it has risk of not recognizing revenue in proper accounting period.
What do we have in common?-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
My role in Professional Services for a SAAS company.
|
Before Service Delivery |
At Service Delivery |
After Service Delivery |
|||
|
Before Scoping of Service Delivery |
During Scoping of Service Delivery |
Scoping of Service Delivery Complete |
Receive Customers’ Order for Scoped Services |
Point of Sale |
Cash Collection |
|
Risk: Items 1-4 do not exist. At this point, our pre-sale team has just been engaged that a prospect has expressed interest in our services. No expectations of us delivering the work or getting paid exists. |
Risk: Items 1-4 do not exist. At this point, we engage the prospect to understand their needs. No expectations of us delivering the work or getting paid exists. |
Risk: Items 1-4 do not exist. At this point, we understand the prospect's need and have scoped the work and quoted a price. There is still no expectations of us delivering the work or getting paid to do the work. Nothing outside a generated quote exists. |
Items 1 -4 exists, with item 4 being a risk. We have received a signed quote from the customer and must countersign the legal document. A risk now is there is a contract issue. Perhaps the prospect has relined something in our contract that we don't agree with. |
Items 1 - 4 exist, with item 4 being a risk Risk: Once we have countersigned the contract, we can begin delivering services. Risks at this point include meeting acceptable customer timelines and delivering acceptable work and ensuring that item 4 is met in that the customer has the cash to pay us on our net 30 terms. |
Item 1 -4 exist; with item 4 being a risk. however, we can only recognize revenue as we do the work. For example. If we scoped a project for 10 hours at 100/hour, the sale is $1000. If we completed 2 hours of work this month, we can only recognize $200 of revenue. We can not recognize the revenue until we complete the work. |
In: Accounting
Pay your bills. In a large sample of 250 customer accounts, a
In a large sample of 250 customer accounts, a utility company determined that the average number of days between when the bill was sent out and when the payment was made is 32 with a standard deviation of 7 days. Assume the data to be approximately bell- shaped.
In: Statistics and Probability
Slow Roll Drum Co. is evaluating the extension of credit to a
new group of customers. Although these customers will provide
$144,000 in additional credit sales, 10 percent are likely to be
uncollectible. The company will also incur $16,000 in additional
collection expense. Production and marketing costs represent 71
percent of sales. The firm is in a 35 percent tax bracket. No other
asset buildup will be required to service the new customers. The
firm has a desired return of 12 percent. Assume the average
collection period is 72 days.
a. Compute the return on incremental investment.
(Input your answer as a percent rounded to 2 decimal
places. Use a 360-day year.)
Return on incremental investment _______________ %
In: Finance
Reg. 1.267(a)-3(b) provides: "Except as provided in paragraph (c) of this section, section 267(a)(3) requires a taxpayer to use the cash method of accounting with respect to the deduction of amounts owed to a related foreign person. An amount that is owed to a related foreign person and that is otherwise deductible under Chapter 1 thus may not be deducted by the taxpayer until such amount is paid to the related foreign person.
F, a French corporation, loaned funds to its US sub. The US sub is on the accrual method and in 2006 it deducted the interest that accrued for the year but not paid until 2007. The IRS says that the reg. disallows the accrual and puts the US sub on the cash basis for this item. F claims that the anti-discrimination article prevents this action by the IRS. Would the anti-discrimination provision apply? See Square D, 118 TC 299.
In: Accounting