It is known that 1 year old dogs have a mean gain in weight of 1.0 pound per month with a standard deviation of 0.40 pound. A special diet supplement, Helthpup, is given to a rando sample of 36, 1-year-old dogs for a month; their mean gain in weight is 2.15 pounds. At the 0.01 level of significance, does helthpup affect weight gain in 1-year-old dogs? (a) What is the research problem? (b) State null and alternative hypothesis (c) Is this one or two tail test? why? (d) what is the critical value? (e) what is the decision rule? (f) calculate the statistic (g) what is your decision regarding null hypothesis and why? (h)interpretation of the results?
In: Math
A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed. Seating Zone Seats Available Ticket Price Mean Demand Standard Deviation First Level Sideline 15,000 $1000.00 14,500 750 Second Level 5,000 $90.00 4,750 500 First Level End Zone 10,000 $80.00 9,000 1,250 Third Level Sideline 21,000 $70.00 17,000 2,500 Third Level End Zone 14,000 $60.00 8,000 3,000 Determine the distribution of total revenue under these assumptions using 250 trials. Summarize the statistical results. The question is from following book and from Chapter 12 question 17 Textbook: James Evans, Business Analytics, 3nd edition, 2019, Pearson Education, Pearson. ISBN: 13:978-0-13-523167-8
In: Math
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Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $93 per unit, and variable expenses are $63 per unit. Fixed expenses are $838,200 per year. The present annual sales volume (at the $93 selling price) is 25,300 units.
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In: Accounting
You've identified a project that would require an initial investment this year of $1500, and would generate cash flows of either $2400 or $1200 depending on the economy, with either being equally likely. We're going to use our 'perfect world' approach and assume no taxes and no transaction costs. You demand an 8% market risk premium and the risk-free rate is 4%. What is the value of this project today and the expected return to equity holders? (company has no debt) You are considering borrowing $300 to help finance the project, and can borrow 6%. In this case, what should the price be for the equity portion of the company and what is the expected return to equity holders? You are interested in boosting your risk to earn a higher return, and you are considering borrowing $1200. In this case, what should the price be for the equity portion of the company and what is the expected return to equity holders?
In: Finance
The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016:
| Net cash provided by financing activities | $ | 118,000 | |
| Dividends paid | 18,400 | ||
| Loss from discontinued operations, net of tax savings of $41,367 | 124,100 | ||
| Income tax expense | 27,355 | ||
| Other selling expenses | 12,000 | ||
| Net sales | 649,200 | ||
| Advertising expense | 46,500 | ||
| Accounts receivable | 57,000 | ||
| Cost of goods sold | 370,044 | ||
|
General and administrative expenses |
142,500 |
a. Calculate the operating income for Manahan Co. for the year ended December 31, 2016
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B)
Calculate the company's net income for 2016.
In: Accounting
We consider a population of cars from a given model year. A sample of 24 such cars
has been recently sold. The sale price as a function of the age of the car is in the Excel
file S4.XLSX (Car) in the Excel directory.
a. Try a linear regression and an exponential (non-linear) regression with Excel to
fit these data. Comment your results.
b. Which regression model seems to fit the data better and why?
c. Run the LINEST function in Excel. Provide the result table.
| Car sale price | |
| Age (year) | Price ($) |
| 1 | 119400 |
| 3 | 73200 |
| 5 | 51000 |
| 2 | 91800 |
| 8 | 36600 |
| 2 | 102000 |
| 3 | 73800 |
| 1 | 120600 |
| 6 | 42600 |
| 7 | 39600 |
| 4 | 61800 |
| 8 | 31200 |
| 5 | 48600 |
| 1 | 126000 |
| 5 | 52800 |
| 3 | 70200 |
| 6 | 43200 |
| 6 | 53400 |
| 7 | 40800 |
| 4 | 63400 |
| 7 | 36000 |
| 8 | 33000 |
| 4 | 64800 |
| 2 | 93000 |
In: Math
In: Accounting
A project is expected to create operating cash flows of $37,600 a year for 3 years. The initial cost of the fixed assets is $98,000. These assets will be worthless at the end of the project. Also, $3,200 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of retum is 14 percent?
In: Finance
Consider a project with free cash flows in one year of $143,429 or $190,456, with each outcome being equally likely. The initial investment required for the project is $106,859, and the project's cost of capital is 23 %. The risk-free interest rate is 6 %.
a. What is the NPV of this project?
b. Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way - that is, what is the initial market value of the unlevered equity?
c. Suppose the initial $106,859 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, what is its initial value and what is the initial equity according to MM?
*****please show work*****
In: Finance
Machine A was purchased last year for $10,000 and had an estimated market value of $1,100 at the end of its 6-year life. Annual operating costs are $1,050. The machine will perform satisfactorily for the next five years. A salesman for another company is offering Machine B for $51,000 with an market value of $5,100 after 5 years. Annual operating costs will be $650. Machine A could be sold now for $8,000, and MARR is 13% per year. Using the outsider viewpoint, what is the difference in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to use Machine A; i.e., EUAC(Machine B) – EUAC(Machine A)
In: Economics