Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent.

Segmented income statements appear as follows:

Required:

a. Prepare a differential cost schedule.

b. Should Cotrone drop the Strawberry product line?

Students in a biology class have been randomly assigned to one of the two mentors for the laboratory portion of the class. A random sample of final examination scores has been selected from students supervised by each mentor, with the following results:
Mentor A: 78, 78, 71, 89, 80, 93, 73, 76
Mentor B: 74, 81, 65, 73, 80, 63, 71, 64, 50, 80
At the 0.05 significance level, is there a difference in the mean scores?

Q1. Discuss the tools to measure central tendency?

Q2. I need new and unique answers, please.

a) Discuss parametric and nonparametric test used for    hypothesis testing.

b) In a cross sectional study on coronary heart disease (CHD), the smoking and CHD status is summarized below. Use appropriate statistical test to conclude smoking plays any role in CHD.

A national health survey found that men’s heights are normally distributed with mean 69.0 and a standard deviation of 2.8 inches. The same survey found that woman’s heights are normally distributed with a mean of 63.6 and a standard deviation of 2.5 inches. (a) If the International Tall club has a minimum height requirement of 74 inches, what percentage of men meet this requirement? (b) If the International Tall Club accepts the tallest 4% of all women, what is the new minimum height for women?

The height (in inches) of a random sample of 8 National Basketball Association players is shown below.

Please find the Lower AND Upper bound of the above number set:

36, 52, 60, 60, 62, 65, 65, 65, 70, 72, 74, 75, 75, 76, 76, 78, 79, 79, 80, 80, 82, 83, 84, 85, 88, 90, 90, 92, 95, 98, 99

(NOTE: The answer is not 36 nor 42 for low bound nor 81.37 nor 110 for the upper bound. These were incorrect answers.)

A random sample of size n₁ = 14 is selected from a normal population with a mean of 74 and a standard deviation of 6. A second random sample of size n₂ = 9 is taken from another normal population with mean 70 and standard deviation 14. Let X¯1and X¯2 be the two sample means. Find:

(a) The probability that X¯1-X¯2 exceeds 3.

(b) The probability that 4.4 ≤X¯1-X¯2≤ 5.4.

Government is considering building a public park in a small town ìBelleî. The cost of building this park is 120. There are three people in this town, Arnold, Ben, and Carrol. Each personís valuation of the park is 20, 30, and 80 respectively. But, government does not know these valuations.

(a) The government decides whether to build this park by majority voting. If majority supports building the park, then cost will be equally shared. What will be the outcome of majority voting?

(b) Government suggests that the cost of building the park will be financed through the government revenue in other towns. But government will only take this project when the benefit is higher than the cost. Government want survey these three to know the benefit of the park. Do you think this is the right plan to get the benefit of the park? Explain why or why not.

(c) Government suggests another plan. Government will survey these three to get the valuation of the park. If the sum of benefit is greater than the cost, cost will proportionately shared among three according to the reported valuation. For example, the reported valuation is 50, 60, and 70, then each cost share will be 50/(50+60+70), 60/(50+60+70), and 70/(50+60+70). Do you think this is the right plan to get the true valuation? Explain why or why not.

(Q.5 As a student of corporate valuation ,You have been asked to estimated the value of Nomad limited, aprivate company using the discounted cash flow approach .You have been provided with the following information to enable you carry out the assignment.

On 31st December 2016,Nomad Limited earned Kenya shillings Five(5,000,000) million in earnings Before interest and Tax on revenue of Kenya shillings 30 million.The following extracts on data has also been provided for the financial year 2016.

(i) Total amount of debt outstanding in book value terms was three (3) million kenya shillings.The pre-tax interest rate on debt is ten percent.You have also established that book value and market value of debt is same.

(ii)The value of equity shown in the statement of financial position is five (5)million kenya shillings.Market value of equity for this firm should be based on the similar publicly listed companies relationship between book values and market values.

(iii)The amount for capital expenditure and depreciation was two(2)million and one(1)million respectively.

(iv) Amount of working capital investment for 2016 estimated as two percent of total revenue.

You have also been provided with the following information in respect of five comparable companies listed at the Nairobi securities exchange.

(a)The average beta has been estimated at 1.5

(b) The average debt-equity ratio based on the market value of equity is 0.25

(c)It is estimated that:

Market value of equity=3*Book value of equity

(d) Tax rate for all companies is 30%

You have also been provided with the following additional data:

(i)The average return on Nairobi securities exchange all share index(NASI) Is ten percent.

(ii) Average return (yield) on a ten year treasury bond has been estimated as six percent.

(iii) Revenues,Earnings before interest and tax,fixed capital investment,depreciation and working capital investment are expected to grow at an annual rate of five percent for ten years and two percent thereafter,forever except for fixed capital investment and depreciation which will offset each other at the steady state.

Required:

(i) Explain two challenges valuers experience when valueing private companied like Nomad.

(ii) Estimated the enterprise value for Nomad Limited (use three decimal places)

A factorial experiment was designed to test for any significant differences in the time needed to perform English to foreign language translations with two computerized language translators. Because the type of language translated was also considered a significant factor, translations were made with both systems for three different languages: Spanish, French, and German. Use the following data for translation time in hours.

Test for any significant differences due to language translator, type of language, and interaction. Use α = 0.05.

Find the value of the test statistic for language translator. (Round your answer to two decimal places.)

Find the p-value for language translator. (Round your answer to three decimal places.)

p-value =

State your conclusion about language translator.

Because the p-value > α = 0.05, language translator is not significant.Because the p-value ≤ α = 0.05, language translator is not significant.     Because the p-value ≤ α = 0.05, language translator is significant.Because the p-value > α = 0.05, language translator is significant.

Find the value of the test statistic for type of language. (Round your answer to two decimal places.)

Find the p-value for type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of language.

Because the p-value > α = 0.05, type of language is significant.Because the p-value ≤ α = 0.05, type of language is not significant.     Because the p-value > α = 0.05, type of language is not significant.Because the p-value ≤ α = 0.05, type of language is significant.

Find the value of the test statistic for interaction between language translator and type of language. (Round your answer to two decimal places.)

Find the p-value for interaction between language translator and type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between language translator and type of language.

Because the p-value > α = 0.05, interaction between language translator and type of language is not significant.Because the p-value ≤ α = 0.05, interaction between language translator and type of language is significant.     Because the p-value > α = 0.05, interaction between language translator and type of language is significant.Because the p-value ≤ α = 0.05, interaction between language translator and type of language is not significant.