1a For the following degrees of freedom, list the critical values for a two-tailed test at a .01, .05, and .10 level of significance.
.01 .05 .10
df = 8 ___ ___ ___
df = 20 ___ ___ ___
df = 40 ___ ___ ___
df = 120 ___ ___ ___
b. As the level of significance increases (from .01 to .10), does the critical value increase or decrease?
c. As the degrees of freedom increase (from 8 to 120), does the critical value increase or decrease?
d. How is this related to power? Hint: If you are having trouble, refer to Sections 8.8 and 8.9 in Chapter 8 for a review of factors that influence power.
In: Statistics and Probability
You first need to compute the demand function associated with the data set and use that demand function to compute the optimal price for the product. You can use 20% of the average price as the cost of the product.
please show excel work
| P | D |
| 1 | 301 |
| 2 | 106 |
| 3 | 58 |
| 4 | 38 |
| 5 | 27 |
| 6 | 20 |
| 7 | 18 |
| 8 | 14 |
| 9 | 13 |
| 10 | 10 |
| 11 | 10 |
| 12 | 7 |
| 13 | 6 |
| 14 | 8 |
| 15 | 7 |
| 16 | 6 |
| 17 | 4 |
| 18 | 3 |
| 19 | 4 |
| 20 | 3 |
| 21 | 2 |
| 22 | 5 |
| 23 | 1 |
| 24 | 3 |
| 25 | 3 |
| 26 | 0 |
| 27 | 1 |
| 28 | 1 |
| 29 | 2 |
| 30 | 2 |
| 31 | 1 |
| 32 | 0 |
| 33 | 2 |
| 34 | 1 |
| 35 | 1 |
| 36 | 3 |
| 37 | 1 |
| 38 | 1 |
| 39 | 1 |
| 40 | 1 |
| 41 | 3 |
| 42 | 0 |
| 43 | 1 |
| 44 | 2 |
| 45 | 2 |
| 46 | 0 |
| 47 | 1 |
| 48 | 3 |
| 49 | 2 |
| 50 | 0 |
| 51 | 2 |
| 52 | 2 |
| 53 | 0 |
| 54 | 1 |
| 55 | 0 |
| 56 | 0 |
| 57 | 0 |
| 58 | 0 |
| 59 | 0 |
| 60 | 0 |
| 61 | 1 |
| 62 | 2 |
| 63 | 0 |
| 64 | 0 |
| 65 | 0 |
| 66 | 0 |
| 67 | 0 |
| 68 | 2 |
| 69 | 0 |
| 70 | 0 |
| 71 | 1 |
| 72 | 1 |
| 73 | 3 |
| 74 | 1 |
| 75 | 0 |
| 76 | 1 |
| 77 | 1 |
| 78 | 2 |
| 79 | 0 |
| 80 | 0 |
| 81 | 1 |
| 82 | 1 |
| 83 | 0 |
| 84 | 2 |
| 85 | 0 |
| 86 | 0 |
| 87 | 2 |
| 88 | 0 |
| 89 | 0 |
| 90 | 0 |
| 91 | 1 |
| 92 | 0 |
| 93 | 2 |
| 94 | 0 |
| 95 | 0 |
| 96 | 0 |
| 97 | 1 |
| 98 | 3 |
| 99 | 0 |
| 100 | 1 |
| 101 | 0 |
| 102 | 1 |
| 103 | 1 |
| 104 | 0 |
| 105 | 0 |
| 106 | 1 |
| 107 | 1 |
| 108 | 0 |
| 109 | 1 |
| 110 | 1 |
| 111 | 0 |
| 112 | 0 |
| 113 | 0 |
| 114 | 0 |
| 115 | 2 |
| 116 | 1 |
| 117 | 1 |
| 118 | 1 |
| 119 | 0 |
| 120 | 1 |
In: Operations Management
Use the information below for questions 37-40
Rocky Mountain Brewery has done an analysis of whether to
continue offering a new product or
to halt operations for $250,000. The new product has expected sales
at the end of this year of
$800,000 and this will continue for two years after that (3 years
total). This product has created
some cannibalization worth $100,000 of sales reduction each year.
COGS is $200,000 per year
and COGS related to the cannibalized product is $60,000 each year.
Based on this analysis the
sales and COGS values will stay consistent for this upcoming
year-end and the next two years.
Interest charges are $70,000 annually. The corporate tax rate is
25%. The equipment cost for the
project is $1,000,000 and was spent at the beginning of this year
(t=0) and it has a 40% CCA
rate. Assume that at the end of year 3 the equipment is sold for $0
and does not bring any tax
consequences.
37. What is the PV of the CCA tax shield?
a. $92,349
b. $100,797
c. $142,583
d. $145,658
38. What is the Net Income in year 3?
a. $270,000
b. $306,000
c. $292,000
d. $276,000
Accounts receivable are expected to account for 7% and accounts
payable are expected to
account for 8% of COGS. The networking capital will be recovered at
the end of year 3. The
firm demands a 12% return on projects such as this.
39. What is the NPV of the new product introduction?
a. $18,014
b. $176,070
c. $136,070
d. $144,109
40. A comparable company for this product, Foothills Brewery Ltd.,
had EBIT of $40,000,
50,000 and 60,000 for the end of this year and the following two
years (years as above).
Depreciation incorporated into each year’s EBIT is $300,000. The
appropriate CCA rate
was also 40% on a $1M investment, there do not have an interest
expense and the tax rate
was also 25%. How would you adjust the values in year 2 to receive
net income that you
are able to compare to the Rocky Mountain Brewery net income in
year 2? That is, what
is the NI in year 2 for the Foothills Brewery Ltd.?
a. $22,500
b. $20,900
c. -$45,500
d. $33,200
In: Finance
| Comprehensive Insurance Company has two products lines: health insurance and auto insurance. | ||||||
| The two products lines are served by three operating departments which are necessary for | ||||||
| providing the two types of products: claims processing, administration, and sales. | ||||||
| These three operating departments are supported by two departments: information | ||||||
| technology and operations. The support provided by information technology and operations | ||||||
| to the other department is shown below. | ||||||
| Support Departments | Operating Departments | |||||
| IT | Operations | Claims Processing | Administration | Sales | ||
| IT | 20% | 20% | 40% | 20% | ||
| Operations | 10% | 10% | 50% | 30% | ||
| The total cost incurred in the five departments are: | ||||||
| IT | 600,000 | |||||
| Operations | 1,800,000 | |||||
| Claims processing | 450,000 | |||||
| Administration | 850,000 | |||||
| Sales | 650,000 | |||||
| Total costs | 4,350,000 | |||||
| Required | ||||||
| Use 4 or more decimals places (e.g., 33.3333%) in your calculations. Allocate the $4,350,000 total | ||||||
| departamental costs to the three operating departments using (a) the direct method, (b) the step | ||||||
| method (once for information technology and once for operations going first in the allocation), and | ||||||
| c) the reciprocal method. | ||||||
In: Accounting
| Quantity | TC | Price of | TR | ATC | AVC | MC | MR | MR-MC | Profit | change in | |
| good | profit | ||||||||||
| 0 | 10 | 5 | 0 | ||||||||
| 1 | 15 | 5 | 5 | 15 | 5 | 5 | 5 | ||||
| 2 | 18 | 5 | 10 | 9 | 4 | 3 | 5 | ||||
| 3 | 20 | 5 | 15 | 6.67 | 3.33 | 2 | 5 | ||||
| 4 | 21 | 5 | 20 | 5.25 | 2.75 | 1 | 5 | ||||
| 5 | 23 | 5 | 25 | 4.6 | 2.6 | 2 | 5 | ||||
| 6 | 26 | 5 | 30 | 4.33 | 2.67 | 3 | 5 | ||||
| 7 | 30 | 5 | 35 | 4.29 | 2.86 | 4 | 5 | ||||
| 8 | 35 | 5 | 40 | 4.38 | 3.13 | 5 | 5 | ||||
| 9 | 41 | 5 | 45 | 4.56 | 3.44 | 6 | 5 | ||||
| 10 | 48 | 5 | 50 | 4.8 | 3.8 | 7 | 5 | ||||
| 11 | 56 | 5 | 55 | 5.09 | 4.18 | 8 | 5 | ||||
This is a firm in a perfectly competitive market. The selling price is $5.
Fill in the table
At what price will you be minimizing losses?
There are 2 ways of calculating the change in total profits. List and explain what information you would use.
In: Economics
| Stock A | Stock B | |
| Year 1 return | 12% | 8% |
| Year 2 return | 7% | 16% |
| Year 3 return | 10% | 12% |
In: Finance
7.4 Chapter 7 HW - Problem Mastery
1) Tommy wishes to determine the return on two stocks she
owned in 2019.
At the beginning of the year, stock X traded for $80per share.
During the year, X paid dividends of $8
At the end of the year, Xstock was worth $62
Calculate the annual rate of return, r, for X
(Enter the answer in % format without % sign -> 20.51 and not
20.51% or 0.2051)
3) Calculate the standard deviation of this
scenario
Outcome 1: Recession. Probability = 40%. Return = 7.38%.
Outcome 1: Recovery. Probability = 60%. Return = 17.27%.
Answer in % terms w/o % sign and to 4 decimal places (1.2345)
11) Your stock has a β = 1.73, the expected
return on the stock market is 17.3%, and the yield on T-bills is
4%.
What is the expected return on your stock?
In: Finance
4. A small airport has flights to only two cities, A and B.
Suppose they get an average of 40 customers per
hour who want to fly to city A and 30 customers per hour who want
to fly to city B. If these are independent
Poisson processes, then find the probability that
a) (3 pts) there are 7 or more customers who want to fly to city A
in the next 6 minutes. Give your answer
to three decimal places.
b) (3 pts) 5 out of the next 8 customers want to fly to city A.
Give your answer to three decimal places.
c) (3 pts) if 15 customers who want to fly to city B arrive in the
next 30 minutes, then find the probability
that exactly four of them arrived in the first 5 minutes. Give your
answer to three decimal places.
In: Statistics and Probability
match Point is a retail sports store carrying tennis apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory has continually increased in the past two years. In the first year of operations, the store assigned inventory costs using LIFO. A loan agreement the store has with its bank, its prime source of financing, requires the store to maintain a certain profit margin and current ratio. The store's owner is currently looking over Match Point’s preliminary financial statements for its second year. The numbers are not favorable. The only way the store can meet the required financial ratios agreed on with the bank is to change from LIFO to FIFO. The store originally decided on LIFO because of its tax advantages. The owner recalculates ending inventory using FIFO and submits those numbers and statements to the loan officer at the bank for the required bank review. The owner thankfully reflects on the available latitude in choosing the inventory costing method.
Required:
In: Accounting
In: Psychology