A pediatrician wants to determine the relation that may exist between a​ child's height and head circumference. She randomly selects 5 children and measures their height and head circumference. The data are summarized below. Complete parts​ (a) through​ (f) below.

Height_(inches)_-_x   Head_Circumference_(inches)_-_y
25   16.9
27   17.5
27.75   17.6
27.5   17.5
26.5   17.3

a) Treating height as the explanatory​ variable, x, use technology to determine the estimates of

beta 0β0

and

beta 1β1.

beta 0β0almost equals≈b 0b0equals=nothing

​(Round to four decimal places as​ needed.)

beta 1β1almost equals≈b 1b1equals=nothing

​(Round to four decimal places as​ needed.)

​(b) Use technology to compute the standard error of the​ estimate,

s Subscript ese.

s Subscript eseequals=nothing

​(Round to four decimal places as​ needed.)

​(c) A normal probability plot suggests that the residuals are normally distributed. Use technology to determine

s Subscript b 1sb1.

s Subscript b 1sb1equals=nothing  

​(Round to four decimal places as​ needed.)

​(d) A normal probability plot suggests that the residuals are normally distributed. Test whether a linear relation exists between height and head circumference at the

alphaαequals=0.010.01

level of significance. State the null and alternative hypotheses for this test.

Choose the correct answer below.

A.

Upper H 0H0​:

beta 0β0equals=0

Upper H 1H1​:

beta 0β0greater than>0

B.

Upper H 0H0​:

beta 0β0equals=0

Upper H 1H1​:

beta 0β0not equals≠0

C.

Upper H 0H0​:

beta 1β1equals=0

Upper H 1H1​:

beta 1β1not equals≠0

D.

Upper H 0H0​:

beta 1β1equals=0

Upper H 1H1​:

beta 1β1greater than>0

Determine the​ P-value for this hypothesis test.

​P-valueequals=nothing

​(Round to three decimal places as​ needed.)

What is the conclusion that can be​ drawn?

A.

Do not rejectDo not reject

Upper H 0H0

and conclude that a linear relation

does not existdoes not exist

between a​ child's height and head circumference at the level of significance

alphaαequals=0.010.01.

B.

Do not rejectDo not reject

Upper H 0H0

and conclude that a linear relation

existsexists

between a​ child's height and head circumference at the level of significance

alphaαequals=0.010.01.

C.

RejectReject

Upper H 0H0

and conclude that a linear relation

existsexists

between a​ child's height and head circumference at the level of significance

alphaαequals=0.010.01.

D.

RejectReject

Upper H 0H0

and conclude that a linear relation

does not existdoes not exist

between a​ child's height and head circumference at the level of significance

alphaαequals=0.010.01.

​(e) Use technology to

construct

a​ 95% confidence interval about the slope of the true​ least-squares regression line.

Lower​ bound: nothing

Upper​ bound: nothing

​(Round to three decimal places as​ needed.)

​(f) Suppose a child has a height of 26.5 inches. What would be a good guess for the​ child's head​ circumference?

A good estimate of the​ child's head circumference would be

nothing

inches.

​(Round to two decimal places as​ needed.)

Barrett Corporation manufactures leather products. The corporation uses a non-contributory, defined benefit pension plan for its 230 employees.

The footnote to the financial statements relating to the pension plan, in part, stated:

Note J. The company has a defined benefit pension plan covering substantially all of its employees. The benefits are based on years of service and the employee’s compensation during the last four years of employment. The company’s funding policy is to contribute annually the maximum amount allowed under the tax law. Contributions are intended to provide for benefits expected to be earned in the future as well as those earned to date.

The net periodic pension expense on Barrett Corporation’s comparative income statement showed an increase between 2016 and 2017.

The corporation provided the following information related to its defined benefit pension plan at December 31, 2018:

The new CEO, Patricia Wright, while reviewing the previous three year’s financial statements with the Controller, Helen Stewart, had some concerns. Given that Barrett Corporation’s work force has been stable for the last 6 years, Patricia could not understand the increase in the net periodic pension expense between 2016 and 2017. Helen explained that the net periodic pension expense consists of several elements, some of which may increase or decrease the net expense.

Prepare the note disclosing the components of pension expense for the year 2018.

Net income for 2018 is $35,000. Determine the amounts of other comprehensive income and comprehensive income for 2018.

Compute accumulated other comprehensive income reported at December 31, 2018.

The probability is 0.4 that a traffic fatality involves an intoxicated or​ alcohol-impaired driver or nonoccupant. In nine traffic​ fatalities, find the probability that the​ number, Y, which involve an intoxicated or​ alcohol-impaired driver or nonoccupant is

a. exactly​ three; at least​ three; at most three.

b. between two and four​, inclusive.

c. Find and interpret the mean of the random variable Y.

d. Obtain the standard deviation of Y.

The probability is 0.3 that a traffic fatality involves an intoxicated or​ alcohol-impaired driver or nonoccupant. In eight traffic​ fatalities, find the probability that the​ number, Y, which involve an intoxicated or​ alcohol-impaired driver or nonoccupant is a. exactly​ three; at least​ three; at most three. b. between two and four​, inclusive. c. Find and interpret the mean of the random variable Y. d. Obtain the standard deviation of Y.

The probability is0.45 that a traffic fatality involves an intoxicated or​ alcohol-impaired driver or nonoccupant. In

seven traffic​ fatalities, find the probability that the​ number, Y, which involve an intoxicated or​ alcohol-impaired driver or nonoccupant is

a. exactly​ three; at least​ three; at most three.

b. between two and four​, inclusive.

c. Find and interpret the mean of the random variable Y.

d. Obtain the standard deviation of Y.

1- Clever Computers has a five-day work week and pays the office staff $3,050 each week. If the month ends on a Thursday, the adjusting entry will credit Wages Payable for

a.$610.

b.$3,050.

c.$1,220.

d.$2,440.

2-

A month-end review of work performed during the month at an accounting firm for tax clients indicates there are a total of 50 tax returns completed for which customers owe $196 each. They remain unbilled at the end of the period. The adjusting journal entry should include a

a.credit to Cash for $9,800.

b.debit to Cash for $9,800.

c.credit to Tax Preparation Revenue for $9,800.

d.debit to Tax Preparation Revenue for $9,800.

3- The cash payment for accrued revenues occurs __________ the adjusting entry to record the accrued revenue.

a.before

b.after

c.at the same time

d.concurrently with

4- Barry Company received $8,000 full payment in advance for services that are 60% complete at the end of the period. The adjusting entry will

a.debit Service Revenue for $4,800 and credit Unearned Revenue for $4,800.

b.debit Unearned Revenue for $4,800 and credit Service Revenue for $4,800.

c.debit Unearned Revenue for $8,000 and credit Service Revenue for $8,000.

d.debit Cash for $4,800 and credit Service Revenue for $4,800.

5- When recording an adjusting entry for a prepaid expense,

a.an asset account is debited.

b.a liability account is debited.

c.an expense account is credited.

d.an asset account is credited.

6-

If an entry to adjust unearned rent and rent revenue is not recorded at the end of the period, Rent Revenue and Net Income on the income statement will be

a.understated.

b.overstated.

c.unaffected because these items are not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out.

7-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

8-

The accumulated depreciation account is called a(n)

a.contra asset account.

b.prepaid asset account.

c.expense account.

d.liability account.

9-

If an entry to adjust depreciation is not recorded at the end of the period, Depreciation Expense on the income statement will be

a.understated.

b.overstated.

c.unaffected because Depreciation Expense is reported on the balance sheet, not on the income statement.

d.unaffected because the omitted entry affects two accounts that cancel each other out

10 -

If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry for depreciation on the equipment for $2,500 is omitted at the end of the period, Accumulated Depreciation on the income statement will

a.be understated by $2,500.

b.be overstated by $2,500.

c.be overstated by $10,000.

d.not be impacted because Accumulated Depreciation is reported on the balance sheet.

11-

If an adjustment for $7,500 in accrued revenues is omitted, how will this affect the financial statements?

a.Net income will be understated by $7,500.

b.Net income will be overstated by $7,500.

c.There will be no effect on the financial statements.

d.Accounts Receivable will be overstated by $7,500.

12-

If the following adjusting entry is omitted, what effect will it have on the financial statements?

a.Revenues will be overstated by $1,900.

b.Revenues will be understated by $1,900.

c.There will be no effect on liabilities.

d.There will be no effect on net income.

13-

An adjusting entry debiting Supplies Expense and crediting Supplies is an example of adjusting a(n)

a.prepaid expense.

b.accrued expense.

c.deferred revenue.

d.prepaid revenue.

14-

The adjusted trial balance is prepared

a.to determine the net income or loss.

b.to verify the equality of total debit and credit balances.

c.to determine whether the balance sheet is in balance.

d.for all of these reasons.

15 -

Once the adjusted trial balance is balanced, it can be used to prepare

a.the income statement, the statement of owner's equity, and the classified balance sheet.

b.the classified balance sheet only.

c.the classified balance sheet and the income statement only.

d.None of these financial statements are prepared with the adjusted trial balance.

16 -

The adjusted trial balance

a.does not have a date.

b.is at a specific date.

c.is for a period of time.

d.None of these choices are correct.

(1) What do we mean by revenue recognition? What does GAAP say about proper revenue recognition?

(2) Why is the audit of revenue recognition riskier for a new company?

(3) What are some justifications for not using confirmations of accounts receivable on a particular audit?