The Institute of Education Sciences measures the high school dropout rate as the percentage of 16-through 24-year-olds who are not enrolled in school and have not earned a high school credential. Last year, the high school dropout rate was 8.1%. A polling company recently took a survey of 400 people between the ages of 16 and 24 and found that 26 of them are high school dropouts. The polling company would like to determine whether the dropout rate has decreased. Let α = 0.01. What is the decision?

Group of answer choices

Fail to reject Ho; we can conclude that the high school dropout rate has decreased.

Reject Ho; we can conclude that the high school dropout rate has decreased.

Reject Ho; we cannot conclude that the high school dropout rate has decreased

Fail to reject Ho; we cannot conclude that the high school dropout rate has decreased.

A researcher wishes to estimate the percentage of Americans who support abolishing the penny. What size sample should be obtained if he wishes to estimate to be within 4 percentage points with 98% confidence if

a) he uses a 2006 estimate of 14% obtained from another poll?

b) he does not use any prior estimate?

14% of all Americans suffer from sleep apnea. A researcher suspects that a lower percentage of those who live in the inner city have sleep apnea. Of the 307 people from the inner city surveyed, 34 of them suffered from sleep apnea. What can be concluded at the level of significance of αα = 0.01?

1. For this study, we should use Select an answer z-test for a population proportion t-test for a population mean
2. The null and alternative hypotheses would be:
   Ho: ? p μ  ? = > < ≠   (please enter a decimal)   
   H₁: ? p μ  ? = < ≠ >   (Please enter a decimal)

3. The test statistic ? t z  =  (please show your answer to 3 decimal places.)
4. The p-value =  (Please show your answer to 4 decimal places.)
5. The p-value is ? ≤ >  αα
6. Based on this, we should Select an answer fail to reject reject accept  the null hypothesis.
7. Thus, the final conclusion is that ...
   • The data suggest the population proportion is not significantly smaller than 14% at αα = 0.01, so there is sufficient evidence to conclude that the population proportion of inner city residents who have sleep apnea is equal to 14%.
   • The data suggest the populaton proportion is significantly smaller than 14% at αα = 0.01, so there is sufficient evidence to conclude that the population proportion of inner city residents who have sleep apnea is smaller than 14%
   • The data suggest the population proportion is not significantly smaller than 14% at αα = 0.01, so there is not sufficient evidence to conclude that the population proportion of inner city residents who have sleep apnea is smaller than 14%.
8. Interpret the p-value in the context of the study.
   • If the population proportion of inner city residents who have sleep apnea is 14% and if another 307 inner city residents are surveyed then there would be a 6.98% chance fewer than 11% of the 307 residents surveyed have sleep apnea.
   • There is a 14% chance of a Type I error
   • If the sample proportion of inner city residents who have sleep apnea is 11% and if another 307 inner city residents are surveyed then there would be a 6.98% chance of concluding that fewer than 14% of inner city residents have sleep apnea.
   • There is a 6.98% chance that fewer than 14% of all inner city residents have sleep apnea.
9. Interpret the level of significance in the context of the study.
   • There is a 1% chance that the proportion of all inner city residents who have sleep apnea is smaller than 14%.
   • If the population proportion of inner city residents who have sleep apnea is smaller than 14% and if another 307 inner city residents are surveyed then there would be a 1% chance that we would end up falsely concluding that the proportion of all inner city residents who have sleep apnea is equal to 14%.
   • There is a 1% chance that aliens have secretly taken over the earth and have cleverly disguised themselves as the presidents of each of the countries on earth.
   • If the population proportion of inner city residents who have sleep apnea is 14% and if another 307 inner city residents are surveyed then there would be a 1% chance that we would end up falsely concluding that the proportion of all inner city residents who have sleep apnea is smaller than 14%.

Question 3

A. J & B Company uses the percentage of sales approach to estimate its uncollectible accounts. The company’s annual sales for its first financial year of operations ending July 31, 2020 was $500,000, cash sales contributed to 2% of the overall sales and the accounts receivable balance at year end was $75,000. Based on industry expectations, it estimated that 3% of its credit sales would be uncollectible.

Required:

a. Calculate the bad debt expense at July 31, 2020.

b. Calculate the net receivable balance that would be reported in the Statement of Financial Position as at July 31, 2020.

B. Tosh and Sons Inc. uses the percentage of receivables approach to estimate its uncollectible accounts. The company had sales of $100,000 at the end of its financial year on June 30, 2020. The allowance for doubtful debts account had a debit balance of $400, the accounts receivable balance was $30,000 at year end and the company estimates the uncollectible percentages as follows:

Current (1 - 30 days)   $15,000           0.5%

31 - 60 days                 $10,000           2.0%

61 - 90 days                 $3,000             10.0%

Over 90 days               $2000              60.0%

Required:

a. Calculate the bad debt expense at June 30, 2020.

b. Prepare the necessary journal entry to record the bad debt expense for the year.

C. During the financial year ending May 31, 2020 the Board of Directors of Chung Sa Corporation authorised the write off of a $3,000 two-year debt belonging to a previous customer Jap Inc. On July 2, 2020 Chung Sa Corporation received an electronic funds transfer from Jap Inc. in the amount of $3,000.

Required:

Prepare all necessary journal entries to record this transaction.

Financial profiles, expressing the dollar value of financial statement accounts as a percentage of total assets (for balance sheet accounts) and sales (for income statement accounts), are listed from recent financial statements for four well-known companies:

*please note, this is a literal copy and paste*

Link each profile with a company.

Use the procedure outlined in Section 11.6.2 on p.262 of textbook and the annual percentage default rate for all rated companies in Table 11.6 on p.259,

a. Estimate the probability of default (PD) and default correlation (ρ) for the period 1970-1993, and for the period 1994-2016 separately.

b. Plot the probability distribution of default rate (similar to Figure 11.6 on p.263) for the time period 1970-1993 and 1994-2016 together on the same graph.

Textbook Risk Management and Financial Institutions, 5th Edition

A. J & B Company uses the percentage of sales approach to estimate its uncollectible accounts. The company’s annual sales for its first financial year of operations ending July 31, 2020 was $500,000, cash sales contributed to 2% of the overall sales and the accounts receivable balance at year end was $75,000. Based on industry expectations, it estimated that 3% of its credit sales would be uncollectible.

Required: Show all workings

a. Calculate the bad debt expense at July 31, 2020.

b. Calculate the net receivable balance that would be reported in the Statement of Financial Position as at July 31, 2020. (1 mark)

B. Tosh and Sons Inc. uses the percentage of receivables approach to estimate its uncollectible accounts. The company had sales of $100,000 at the end of its financial year on June 30, 2020. The allowance for doubtful debts account had a debit balance of $400, the accounts receivable balance was $30,000at year end and the company estimates the uncollectible percentages as follows:

Current (1 - 30 days)   $15,000           0.5%

31 - 60 days                 $10,000           2.0%

61 - 90 days                 $3,000             10.0%

Over 90 days               $2000              60.0%

Required: Show all workings

a. Calculate the bad debt expense at June 30, 2020.

b. Prepare the necessary journal entry to record the bad debt expense for the year.

B. During the financial year ending May 31, 2020 the Board of Directors of Chung Sa Corporation authorised the write off of a $3,000 two-year debt belonging to a previous customer Jap Inc. On July 2, 2020 Chung Sa Corporation received an electronic funds transfer from Jap Inc. in the amount of $3,000.

Required:

Prepare all necessary journal entries to record this transaction.

1 The percentage of sales method assumes that all corresponding financial statement variables will increase by the percentage amount.

True or False

2 What is the main reason for using accounting information in financial statement analysis?

Multiple Choice

• Accounting information matches the timing of cash inflows and outflows.

• Accounting numbers accurately reflect a company' s financial position.

• Accounting information is relevant and can be easily compared.

• Market value information is difficult to obtain on a consistent basis.

• Market value information is inaccurately measured.

3 Given the following information, calculate the ROE. Sales = $350,000; Net Income = $50,000; Total assets = $500,000; D/E = 1.5

In baseball, is there a linear correlation between batting average and home run percentage? Let x represent the batting average of a professional baseball player, and let yrepresent the player's home run percentage (number of home runs per 100 times at bat). A random sample of n = 7 professional baseball players gave the following information.

a) Use a calculator to verify that Σx = 1.955, Σx2 = 0.552, Σy = 30.1, Σy2 = 151.65 and Σxy = 8.722. Compute r. (Round your answer to three decimal places.)____________

Do larger universities tend to have more property crime? University crime statistics are affected by a variety of factors. The surrounding community, accessibility given to outside visitors, and many other factors influence crime rate. Let x be a variable that represents student enrollment (in thousands) on a university campus, and let y be a variable that represents the number of burglaries in a year on the university campus. A random sample of n = 8 universities in California gave the following information about enrollments and annual burglary incidents.

b) Use a calculator to verify that Σx = 153.0, Σx2 = 3342.50, Σy = 249, Σy2 = 10579 and Σxy = 5580.1. Compute r. (Round to 3 decimal places.)______________

Is the magnitude of an earthquake related to the depth below the surface at which the quake occurs? Let x be the magnitude of an earthquake (on the Richter scale), and let ybe the depth (in kilometers) of the quake below the surface at the epicenter.

(c) Use a calculator to verify that Σx = 23.9, Σx2 = 85.31, Σy = 53.6, Σy2 = 461.36 and Σxy = 190.81. Compute r. (Round to 3 decimal places.)______________