A company is considering of a new product line that is believed to be marketable for the next 10 years. An initial investment of $215,000 will be required with an estimated salvage value of $40,000 at the end of 10 years. The annual receipts will start at $53,000, the first year and then increase by $2000 each year thereafter. Disbursements will start at $21,000 the first year and increase by $500 each year thereafter. What is the prospective rate of return of this proposal?
In: Finance
During four years of college, twins Molly and Marty each expect to receive gifts from grandparents at $1000, $2000, $3000, and $4000 for Year 1, 2, 3 and 4, respectively. Each twin plans to save all of the funds in a money market fund expected to return 2% per year. What is the NPV (net present value) of the planned gifts for each twin?
In: Finance
The Nellie Mae organization found that in a random sample of 100 undergraduate students taken in 2004, the average credit card balance was $2169. Suppose sample standard deviation of these credit card balances is $1000. Perform a test to test if the average credit card debt exceeds $2000.
a)
Identify the population
Identify the variable:
Identify the parameter
b)
Calculate T stat
Find P-value with DF
In: Statistics and Probability
Listed below are the amounts (dollars) it costs for marriage proposal packages at different baseball stadiums. Find the range, variance, and standard deviation for the given sample data. Include appropriate units in the results. Are there any outliers, and are they likely to have much of an effect on the measures of variation?
36 50 50 55 55 90 95 115 195 206 250 325 500 2000 2500
In: Statistics and Probability
The manager of a firm announced: “The lightbulbs produced by our firm have a mean lifetime of 2,500 hours, with a standard deviation of 250 hours; thus, it follows that approximately 95 percent of our lightbulbs last between 2000 and 3,000 hours.”
What was the manager assuming?
What if the assumption did not hold – what percentage of the lightbulbs could you expect would last between 2,000 and 3,000 hours?
In: Statistics and Probability
Listed below are the amounts (dollars) it costs for marriage proposal packages at different baseball stadiums. Find the range, variance, and standard deviation for the given sample data. Include appropriate units in the results. Are there any outliers, and are they likely to have much of an effect on the measures of variation?
38
50
50
65
70
95
95
125
185
200
255
375
450
2000
2750
In: Statistics and Probability
A manufacturer estimates marginal revenue to be 300q^(−1/2) dollars per unit when the level of production is q units each hour. The corresponding marginal cost has been found to be 0.6q dollars per unit. If the manufacturer's profit is 2000 dollars when the hourly level of production is 64 units, what is the profit when the level of production is 100 units each hour?
Profit = _____
In: Accounting
The following are the average scores on the mathematics part of the Scholastic Aptitude Test (SAT) for some of the years from 1994 to 2009.
Year, SAT Score
1994 504
1996 508
1998 512
2000 514
2002 516
2004 518
2005 520
2007 515
2009 515
Assuming a simple linear regression model, predict the average scores in 1997, 2006 and 2008
In: Statistics and Probability
Given the following information graphically illustrate the demand and supply curves and solve for the consumer and producer surplus:
a. Q(d)=200-5P Q(s)=50+5P
b. Q(d)=1000-20P Q(s)=200+5P
c. P=400-0.5Q(d) P=100+0.5Q(s)
d. P=2000-2Q(d) P=200+3Q(s)
In: Economics
Four asteroids, of mass M = 3 × 106 kg, are positioned at the corners of an imaginary square of side length s = 2.4 × 108 m. Two other asteroids of mass m = 2 × 106 kg are positioned in the middle of the left and right sides of the square. If a spaceship is positioned at the middle of the bottom side of the square what is the net force on the ship in Newtons? weight of the spaceship is 2000 kg
In: Physics