While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.47*(age) + 5.67. If a customer is 31 years old and they make an average of 12.02 claims per year, what is the residual?
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In: Statistics and Probability
In: Accounting
Your co-worker, Jim, randomly draws a sample of 16 of your customers and calculates that 95% of the businesses have sales between $38,000,000 and $68,000,000. He bases his conclusion on a 95% confidence interval using the properties of the Central Limit Theorem. Jim estimated the standard deviation of the population from the standard deviation of the sample, and then used the z-distribution to calculate the confidence interval.
You have an understanding of statistics principles and immediately see an error in his calculations; What is the error and how can you correct it?
In: Statistics and Probability
Question 1:
Please describe the major differences between fundamental analysis and technical analysis.
Question 2:
How do you respond to the statement that a firm can improve its P/E ratio by increasing its plowback ratio (i.e., distributing less common stock dividend) so to increase its dividend growth rate?
Question 3:
Suppose a firm’s ability to pass inflation to its customers deteriorates. What will happen to the firm’s P/E ratio, increase, or decrease, and why?
In: Finance
As the network administrator for a growing ISP, you want to make efficient use of your network addresses. One of the networks addresses IANA assigned to you is a Class C network of 192.168.88.0. You have decided to use the addresses in this Class C network to satisfy the IP address requirements of 18 corporate customers who need between 20 and 24 addresses each. calculate a subnet mask that meets their needs. List the subnet mask and the first four subnetwork addresses the mask will create. i need it ASAP
In: Computer Science
The theater of the city of Mayaguez has a popular concert in schedule and has decided to sells tickets by phone. For that, it needs to decide how many operators to hire for the sale. On one hand, it doesn't want the customers to wait too long, but on the other hand the operators are expensive. The data the manager has collected from previous concerts is as follows.
| Operators | Wait Time |
| 4 | 385 |
| 5 | 335 |
| 6 | 383 |
| 7 | 344 |
| 8 | 288 |
Specifically, we want to find whether there is a significant linear correlation between the variables
In: Statistics and Probability
In: Accounting
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Bob Nale is the owner of Nale's Quick Fill. Bob would like to estimate the mean number of gallons of gasoline sold to his customers. Assume the number of gallons sold follows the normal distribution with a population standard deviation of 2.2 gallons. From his records, he selects a random sample of 56 sales and finds the mean number of gallons sold is 8.07. (Round your answers to 2 decimal places.) |
| (a) | The point estimate of the population mean is |
| (b) |
The 99 percent confidence interval for the population mean is between and . |
In: Statistics and Probability
2. Go online and find three definitions of "communication" that are different from the ones provided in your textbook. Provide the three definitions and explain the similarities and differences between them. Finally, explain which one you think does the best job of defining "communication." 3. Name three people who you feel use communication effectively in their jobs and explain what they do that makes them effective communicators.
In: Psychology
Please answer the following questions. Please write all your work. You will be graded on your process, NOT on achieving the correct answer. Please staple all pages together. Include your name on every page.
1) Wacky Widgets, Incorporated is considering a new three-year expansion project to make new Widgets. It requires an initial fixed investment of $2.7 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be sold for $50,000 to a scrapyard. The fixed asset will take 2 years to install, so revenue will begin in year 2.
The project is estimated to generate $2,800,000 in annual sales, with variable costs of 40 percent. There are no fixed costs, and working capital requirements are 5% of annual revenues. The tax rate is 35 percent and the required rate of return is 15 percent. The risk-free rate is 9 percent. Your firm requires a payback period of 3 years to approve a project.
The Widget produced by this product will often go to the same customers as the Bidget, another product produced by Wacky Widgets. They will often be shipped in the same package as another product the firm produces. It will not reduce the overhead on producing Widgets, but it will reduce the cost of shipping Bidgets by $20,000 per year in years 2 - 4.
a) Construct a full pro-forma statement for this project’s projected incremental cash flows.
b) What is the payback period? Based on this decision rule, should you do the project?
c) What is the discounted payback period? Based on this decision rule, should you do the project?
d) What is the NPV? Based on this decision rule, should you do the project?
e) What is the IRR? Based on this decision rule, should you do the project? f) What is the profitability index? Based on this decision rule, should you do the project? g) Should you approve the project? What decision rule are you using to make your final decision?
In: Finance