A academic adviser wants to assess whether her remedial training has been effective for her five students. She decides to conduct a related samples t-test and records the following grades for students prior to and after receiving her training.
| Tutoring | |
|---|---|
| Before | After |
| 2.5 | 3.1 |
| 2.6 | 2.9 |
| 3.1 | 3.7 |
| 3.0 | 3.2 |
| 2.8 | 3.7 |
(a) Test whether or not her tutoring is effective at a 0.05
level of significance. State the value of the test statistic.
(Round your answer to three decimal places.)
t =
State the decision to retain or reject the null hypothesis.
Retain the null hypothesis.Reject the null hypothesis.
(b) Compute effect size using estimated Cohen's d. (Round
your answer to two decimal places.)
d =
In: Statistics and Probability
Down Under Boomerang, Inc., is considering a new 7-year project that requires an initial investment in a fixed asset of $2.376 million. The fixed asset will be depreciated straight-line to zero over its 7-year life. After Year 0, the project is expected to generate $2,112,000 in annual sales per year, with operating costs of $844,800 per year. The tax rate is 34 percent and the appropriate discount rate is 9 percent. The project requires an increase in net working capital of $264,000 in Year 0. Net working capital will not change after Year 0 until the last year of the project, at which time net working capital will be completely recovered. The fixed asset will have a salvage value (before-tax) of $184,800 in the last year of the project.
What is the NPV of the project?
In: Finance
Hudson contracted with Ripley to install solar panels on her boat. The installation went well, seemingly. Unfortunately, two days after the installation the panels stopped working. Ripley claimed that the problem was Hudson's fault, and demanded that he make the system work; Hudson denied responsibility. Ripley had paid Hudson by properly executed check, and Hudson still had not deposited the check at the time of Ripley's demand. The day after receiving the demand, Hudson negotiated the apparently-regular, unaltered check to Bishop. Hudson suspected that Ripley's claim was valid and was glad to have negotiated the check before Ripley dishonored it. Bishop sought payment from Ripley for the check. Ripley refused to pay. Bishop sues at a time within the applicable statute of limitations. In what two circumstances will Ripley win?
In: Finance
Mr. Brown the CEO of a corporate company wants to know if a new method of rewarding employees influences morale. He gives 12 employees an anonymous survey measuring morale, implements the new method, and then measures morale again after four weeks.
|
Employee |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
|
Before |
4 |
7 |
1 |
6 |
6 |
3 |
5 |
6 |
6 |
2 |
8 |
7 |
|
After |
6 |
6 |
5 |
7 |
8 |
6 |
9 |
7 |
8 |
4 |
9 |
9 |
a. State the null and alternative hypotheses
b. State the rejection region
c. Conduct a sign test on the above data
d. What can you conclude?
In: Statistics and Probability
Please summarize or rewrite the following passage in at least 200 words
A display system in which subsequent failures of plant equipment and plant systems are predicted to occur and in which the probability of failure before a specified date and the probability of failure after a specified date is determined and displayed and in which the calendar date is determined and displayed when the desired probability that the equipment not fail prior to the calendar date is specified. The system includes an Equipment Failure And Degradation Module that determines the remaining equipment/system life; a Probability-of-Failure Predictor Module that determines the probability of the equipment/system failing prior to a specified date and the probability of the equipment/system failing after a specified date; and a Date-of-Failure Predictor Module that determines the calendar date that corresponds to a specified probability that equipment not fail prior to the date.
In: Operations Management
Perry P. (the logistics manager for the Company PTP) is woken by a phone call in the middle of the night because one of the ships carrying 5 containers of light bulbs just sank after hitting some ice in the northern pacific ocean. The crew made it out alive in the new unsinkable life boats, and have been picked up by the Coast Guard. Talk about the risks that this points out. Talk about costs involved and by whom and how they are incurred. What kinds of reaction plans would you try to put in place after the fact, and what strategies would have helped before?
Value of inventory in a container= $500,000 =1,000,000 lightbulbs
5 containers per ship,
30 days of supply transit time.
Factory has 900 workers a day, at an average wage of $25 an hour.
In: Operations Management
A 20kW rated motor has an average loading of 75% of rated power and has an efficiency of 80%. The motor has a peak loading of 100% of rated power. The motor operates 1000 hours a year. The cost of electricity is $0.10/kWh and $7/kW-month of demand. Assume the motor operates at periods of peak demand at the facility (i.e. the motor power impacts the billing demand). An energy efficiency upgrade reduces the average power consumed to an average loading of 50% of rated power and reduces the peak power to 75% of rated power, but increases the operating hours to 1500 hours per year. There is no change in the efficiency of the motor after the upgrade. The cost of the energy efficiency project is $10,000. What is the annual electricity cost of running the motor before and after the energy efficiency upgrade? What is the simple payback of the project?
In: Finance
A car of mass 1110 kg enters a banked turn with a banking angle of 11.1° and a radius of 300 m at a speed of 30.0 m/s. The coefficient of static friction between the car’s wheels and the pavement is 0.0881. The turn covers a total of 1 45°.
(a) If the car experiences a drag force that of D=kv where k=32.0kg/s, how much thrust must the car provide to maintain constant velocity in the turn?
(b) If the engine of the car suddenly cuts out at 2.10 s after entering the curve, and the only tangential force acting on the car is the drag force, how fast will the car be traveling by the time it exits the curve?
(c) Will the car begin to slip before it exits the curve in this case above where the engine fails after 2.10 s?
In: Physics
Given the following information:
Nominal Initial Cost = $68,000; Nominal Before-tax Net Return = 11,000
Marginal Tax Rate = 20%; Required rate of return = 12%
Real Terminal Value = $60,000; Investment Life = 3 years
Inflation Rate = 4%; Risk Premium = 2%
Suppose that IRS will allow the investor to depreciate the investment using straight-line over 12 years.
(iv) What is the nominal after-tax terminal value?
a. $60,120 b. $64,600
c. $64,193 d. $64,005
(v) What is the present value of the nominal after-tax terminal value?
a. $41,446 b. $44,534
c. $46,685 d. $44,124
(vi) What is the NPV of this investment?
a. $4,571.32 b. $4,754.17
c. $4,388.17 d. $3,657.06
In: Finance
Boston Cube Inc. currently has no debt, annual free cash flows of $52 million and an average tax rate of 34%. Free cash flows are expected to grow by 7% per year forever.
Using the CAPM, the firm estimates that its cost of equity is 12%. The risk-free rate is 2% and the expected equity market risk premium is 7%. There are 8 million shares outstanding.
The firm is considering a new capital structure with a debt-to-capital ratio of 50%. The company would issue bonds to repurchase its own shares at the current market price. An investment bank has estimated that the yield to maturity on the company's bonds would be 6%.
1.) What is the stock price before the recapitalization?
2.) What will be the WACC after the recapitalization?
3.) What will be the stock price after the recapitalization?
In: Finance