A new fuel injection system has been engineered for pickup trucks. The new system and the old system both produce about the same average miles per gallon. However, engineers question which system (old or new) will give better consistency in fuel consumption (miles per gallon) under a variety of driving conditions. A random sample of 41 trucks were fitted with the new fuel injection system and driven under different conditions. For these trucks, the sample variance of gasoline consumption was 53. Another random sample of 27 trucks were fitted with the old fuel injection system and driven under a variety of different conditions. For these trucks, the sample variance of gasoline consumption was 34.6. Test the claim that there is a difference in population variance of gasoline consumption for the two injection systems. Use a 5% level of significance. How could your test conclusion relate to the question regarding the consistency of fuel consumption for the two fuel injection systems?

(a) What is the level of significance?


State the null and alternate hypotheses.

H_o: σ₁² = σ₂²; H₁: σ₁² > σ₂²

H_o: σ₁² > σ₂²; H₁: σ₁² = σ₂²   

H_o: σ₂² = σ₁²; H₁: σ₂² > σ₁²

H_o: σ₁² = σ₂²; H₁: σ₁² ≠ σ₂²

(b) Find the value of the sample F statistic. (Round your answer to two decimal places.)


What are the degrees of freedom?

What assumptions are you making about the original distribution?

The populations follow dependent normal distributions. We have random samples from each population.

The populations follow independent normal distributions.    

The populations follow independent chi-square distributions. We have random samples from each population.

The populations follow independent normal distributions. We have random samples from each population.

(c) Find or estimate the P-value of the sample test statistic.

P-value > 0.200

0.100 < P-value < 0.200   

0.050 < P-value < 0.100

0.020 < P-value < 0.050

0.002 < P-value < 0.020

P-value < 0.002

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.  

   At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Fail to reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.

Reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.   

Reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.

Fail to reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.

Judson Industries is considering a new project. The project will initially require $749,000 for new fixed assets, $238,000 for additional inventory, and $25,000 for additional accounts receivable. Accounts payable is expected to increase by $70,001. The fixed assets will belong in a 30% CCA class. At the end of the project, in four years' time, the fixed assets can be sold for 40% of their original cost. The net working capital will return to its original level at the end of the project. The project is expected to generate annual sales of $944,000 with related cash expenses of $620,000. The tax rate is 35% and the required rate of return is 14%.

What is the amount of the earnings before interest and taxes for the first year of this project?

A, -$276

B. -$425,000

C. $32,900

D. $211,650

E. $113,400

1. A bank has recently acquired a new branch and thus has customers in this new region. They are interested in the default rate in their new region. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At the 10% significance level can we say that the default rates are different?

As the new vice-president of finance, you are
considering refinancing existing bonds with a new issue.
You note in particular a bond issue that has the following details:

Maturity value of bond issue $ 67,000,000
Time to maturity (in years) 10
Time since initial bond issue (in years) 8
Annual coupon rate on existing bond 12.0%
Call Premium
No call allowed during the first 5 years
Starting call premium in year 6 11%
Call premium declines by 0.5% per year staring in year 7
Current long-term interest rates on similar bonds 8.500%
Current short-term interest rates 6.0%
Overlap period (in months) 1
Corporate tax rate 34%
Underwriting and other issue costs $ 900,000

Should the old issue be refunded and replaced with a debt issue with a comparable
maturity and a coupon rate equal to that currently in effect on similar bonds? Show
your calculations.

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy?

Critique Trumps "America First" policy in regards to tariffs specifically and debate different viewpoints(competing ideas) in regards to it. How do the arguments relate?

Use credible sources to back up claims and bring different viewpoints

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy?

Critique Trumps "America First" policy in regards to tariffs specifically and debate different viewpoints(competing ideas) in regards to it. How do the arguments relate?

Use credible sources to back up claims and bring different viewpoints

The quality of new Ferrari cars is assessed by sending each new car through a certifier who examines every part of the car’s interior and exterior for defects and counts the number of defects. The number of defects averages 0.1 per car.

Note: Make sure to specify the random variables and their distributions. Use the appropriate cumulative distribution tables to compute the probabilities.

(a) Find the probability the next inspected car will have more than 1 defects. (5 pts.)

President Trump proposed the new “America First” policy, in regards to the trade agenda. This new policy may backfire and hurt the economy rather than protect it. A specific part of this new policy are the tariffs Trump imposed on Chinese products, and there are several articles arguing how these tariffs are backfiring and hurting our economy.

****However, if these tariffs are so bad, why are we using them? What can they accomplish-potential value they hold- how can we use them to benefit us with this new trade policy??*****

Critique Trumps "America First" policy IN REGARDS TO TARIFFS SPECIFICALLY and debate different viewpoints(competing ideas)

Use credible sources to back up claims and bring different viewpoints- cite courses where you use them

Talk about the PLUS SIDE of tariffs in regards to (SPECIFICALLY) the US-China trade war. There are plenty of articles degrading these tariffs and how they are bad for the economy, but can you discuss the potential value they hold and how we can use them to benefit in regards to the US-China trade war.

Worldwide Widget Manufacturing, Inc., is preparing to launch a new manufacturing facility in a new location. The company has a capital structure that consists of debt and common and preferred stock. The company is considering changing this capital structure in conjunction with the launch of the new manufacturing facility. The manufacturing facility project is slated to be funded with 30 percent debt, 30 percent preferred stock, and 40 percent common stock. Worldwide Widget Manufacturing has 15 million shares of common stock outstanding. The shares sell at $24.63 per share. The company expects to pay an annual dividend of $1.50 one year from now, after which future dividends are expected to grow at a constant 7 percent rate. Worldwide Widget Manufacturing’s debt consists of 30-year, 9-percent annual coupon bonds with a face value of $180 million and a market value of $185 million. The company’s capital mix also includes 200,000 shares of 12-percent preferred stock trading at par. If Worldwide Widget Manufacturing has a marginal tax rate of 32 percent, what weighted average cost of capital (WACC) should it use as it evaluates this project?

please explain how to get each step. I have seen this question answered but not in a way that I understand it.