Are medical students more motivated than law students? A randomly selected group of each were administered a survey of attitudes toward Life, which measures motivation for upward mobility. The scores are summarized below. The researchers suggest that there are occupational differences in mean testosterone level. Medical doctors and university professors are two of the occupational groups for which means and standard deviations are recorded and listed in the following table.

Let us denote:

• μ1:μ1: population mean testosterone among medical doctors,
• μ2:μ2: population mean testosterone among university professors,
• σ1:σ1: population standard deviation of testosterone among medical doctors,
• σ2:σ2: population standard deviation of testosterone among university professors.

If the researcher is interested to know whether the mean testosterone level among medical doctors is higher than that among university professors, what are the appropriate hypotheses he should test?
H0:x¯1=x¯2H0:x¯1=x¯2 against Ha:x¯1<x¯2Ha:x¯1<x¯2 .
H0:μ1=μ2H0:μ1=μ2 against Ha:μ1≠μ2Ha:μ1≠μ2 .
H0:x¯1=x¯2H0:x¯1=x¯2 against Ha:x¯1>x¯2Ha:x¯1>x¯2 .
H0:μ1=μ2H0:μ1=μ2 against Ha:μ1<μ2Ha:μ1<μ2 .
H0:x¯1=x¯2H0:x¯1=x¯2 against Ha:x¯1≠x¯2Ha:x¯1≠x¯2 .
H0:μ1=μ2H0:μ1=μ2 against Ha:μ1>μ2Ha:μ1>μ2 .

Case 1: Assume that the population standard deviations are unequal, i.e. σ1≠σ2σ1≠σ2 .
What is the standard error of the difference in sample mean x¯1−x¯2x¯1−x¯2 ? i.e. s.e.(x¯1−x¯2)=s.e.(x¯1−x¯2)= [answer to 4 decimal places]

Rejection region: We reject H0H0 at 5% level of significance if:
|t|>2.13|t|>2.13 .
t>1.75t>1.75 .
t<−1.75t<−1.75 .
t<−2.13t<−2.13 .
t>2.13t>2.13 .
None of the above.

The value of the test-statistic is: Answer to 3 decimal places.

If α=0.05α=0.05 , and the p-value is 0.2820, what will be your conclusion?
There is not enough information to conclude.
Reject H0H0 .
Do not reject H0H0 .

Case 2: Now assume that the population standard deviations are equal, i.e. σ1=σ2σ1=σ2 .
Compute the pooled standard deviation, 8pooled [answer to 4 decimal places]

Rejection region: We reject H0H0 at 5% level of significance if:
t<−1.73t<−1.73 .
t<−2.10t<−2.10 .
t>1.73t>1.73 .
t>2.10t>2.10 .
|t|>2.10|t|>2.10 .
None of the above.

The value of the test-statistic is: Answer to 3 decimal places.

If α=0.05α=0.05 , , and the p-value is 0.3095, what will be your conclusion?
Reject H0H0 .
Do not reject H0H0 .
There is not enough information to conclude.

PART 1:

When bonding teeth, orthodontists must maintain a dry field. A new bonding adhesive has been developed to eliminate the necessity of a dry field. However, there is a concern that the new bonding adhesive is not as strong as the current standard, a composite adhesive. Tests on a sample of 26 extracted teeth bonded with the new adhesive resulted in a mean breaking strength (after 24 hours) of 2.33 MPa, and a standard deviation of 4 MPa. Orthodontists want to know if the true mean breaking strength is less than 4.06 MPa, the mean breaking strength of the composite adhesive. Assume normal distribution for breaking strength of the new adhesive.

1. The p-value of the test is (answer to 4 decimal places):

PART 2:

Are medical students more motivated than law students? A randomly selected group of each were administered a survey of attitudes toward Life, which measures motivation for upward mobility. The scores are summarized below. The researchers suggest that there are occupational differences in mean testosterone level. Medical doctors and university professors are two of the occupational groups for which means and standard deviations are recorded and listed in the following table.

Let us denote:

• μ₁: population mean testosterone among medical doctors,
• μ₂: population mean testosterone among university professors,
• σ₁: population standard deviation of testosterone among medical doctors,
• σ₂: population standard deviation of testosterone among university professors.

1. If the researcher is interested to know whether the mean testosterone level among medical doctors is higher than that among university professors, what are the appropriate hypotheses he should test?
H₀: μ₁ = μ₂   against   H_a: μ₁ < μ₂.
H₀: μ₁ = μ₂   against   H_a: μ₁ > μ₂.
H₀: [(x)]₁ = [(x)]₂   against   H_a: [(x)]₁ ≠ [(x)]₂.
H₀: [(x)]₁ = [(x)]₂   against   H_a: [(x)]₁ > [(x)]₂.
H₀: [(x)]₁ = [(x)]₂   against   H_a: [(x)]₁ < [(x)]₂.
H₀: μ₁ = μ₂   against   H_a: μ₁ ≠ μ₂.

Case 1: Assume that the population standard deviations are unequal, i.e. σ₁ ≠ σ₂.
1. What is the standard error of the difference in sample mean [(x)]₁ − [(x)]₂? i.e. s.e.([(x)]₁−[(x)]₂) = [answer to 4 decimal places]

2. Rejection region: We reject H₀ at 10% level of significance if:
t < −1.89.
t > 1.41.
t < −1.41.
|t| > 1.89.
t > 1.89.
None of the above.

3. The value of the test-statistic is: Answer to 3 decimal places.

Case 2: Now assume that the population standard deviations are equal, i.e. σ₁ = σ₂.
1. Compute the pooled standard deviation, s_pooled [answer to 4 decimal places]

2. Rejection region: We reject H₀ at 10% level of significance if:
t > 1.78.
t < −1.36.
t > 1.36.
|t| > 1.78.
t < −1.78.
None of the above.

3. The value of the test-statistic is: Answer to 3 decimal places.

The researchers suggest that there are occupational differences in mean testosterone level. Medical doctors and university professors are two of the occupational groups for which means and standard deviations are recorded and listed in the following table.

Let us denote:

• μ1:μ1: population mean testosterone among medical doctors,
• μ2:μ2: population mean testosterone among university professors,
• σ1:σ1: population standard deviation of testosterone among medical doctors,
• σ2:σ2: population standard deviation of testosterone among university professors.

Case 1: Assume that the population standard deviations are unequal, i.e. σ1≠σ2σ1≠σ2.
What is the standard error of the difference in sample mean x¯1−x¯2x¯1−x¯2? i.e. s.e.(x¯1−x¯2)=s.e.(x¯1−x¯2)= [answer to 4 decimal places]

Which of the following options gives the formula for 95% confidence interval for μ1−μ2μ1−μ2?
−0.39∓1.86×s.e.(x¯1−x¯2)−0.39∓1.86×s.e.(x¯1−x¯2)
−0.39∓3.36×s.e.(x¯1−x¯2)−0.39∓3.36×s.e.(x¯1−x¯2)
−0.39∓2.9×s.e.(x¯1−x¯2)−0.39∓2.9×s.e.(x¯1−x¯2)
−0.39∓2.31×s.e.(x¯1−x¯2)−0.39∓2.31×s.e.(x¯1−x¯2)
−0.39∓1.4×s.e.(x¯1−x¯2)−0.39∓1.4×s.e.(x¯1−x¯2)

Are there significant difference between mean testosterone levels of medical doctors and university professors?
no, because x¯1=x¯2x¯1=x¯2
yes, because x¯1≠x¯2x¯1≠x¯2
yes, because the entire 95% confidence interval for μ1−μ2μ1−μ2 does not contain 0
no, because the 95% confidence interval for μ1−μ2μ1−μ2 contains 0

Case 2: Now assume that the population standard deviations are equal, i.e. σ1=σ2σ1=σ2.
Compute the pooled standard deviation, spooledspooled [answer to 4 decimal places]

Which of the following options gives the formula for 95% confidence interval for μ1−μ2μ1−μ2 for pooled situation?
−0.39∓1.38×1.8922−0.39∓1.38×1.8922
−0.39∓3.25×1.8922−0.39∓3.25×1.8922
−0.39∓2.26×1.8922−0.39∓2.26×1.8922
−0.39∓1.83×1.8922−0.39∓1.83×1.8922
−0.39∓2.82×1.8922−0.39∓2.82×1.8922

What is the margin of error of the 95% pooled confidence interval of μ1−μ2μ1−μ2? [answer to 4 decimal places]

Lafayette Corporation is a leading manufacturer of sports apparel, shoes, and equipment. The company’s 2021 financial statements contain the following information ($ in millions):

A note disclosed that the allowance for doubtful accounts had a balance of $23 million and $47 million at the end of 2021 and 2020, respectively. Bad debt expense for 2021 was $44 million. Assume that all sales are made on a credit basis.

Required

1. What is the amount of gross (total) accounts receivable due from customers at the end of 2021 and 2020?
2. Record the summary journal entry for Sales Revenue for 2021.
3. Record the journal entry to recognize Bad Debt Expense for 2021.
4. Write-offs of Accounts Receivable:
   1. What is the amount of bad debt write-offs during 2021?
   2. Record the journal entry for the bad debt write-offs for 2021.
5. Collections of Accounts Receivable:
   1. Analyze changes in the gross accounts receivable account to calculate the amount of cash received from customers during 2021.
   2. Record a summary journal entry to record collections of all receivables for 2021.

You are a CPA working for a local firm and have been assigned the 2020 tax return of Bobby Crosser. In going over the data that Bobby gave the firm, you are surprised to see that he has reported no dividend income or gains from the sale of stock. You recently prepared the 2020 gift tax return of Bobby’s aunt Ester. In that return, Ester reported a gift of stock to Bobby on January 6, 2020. The stock had a fair market value of $50,000, and Ester’s basis in the stock (which became Bobby’s basis) was $5,000.

1. What are your obligations under the Statements on Standards for Tax Services? In your discussion, state which standard(s) may apply to this situation and what might result from applying the standard(s). This can be done in approximately one single spaced page.

2. Based on your findings, write an appropriate one-page single spaced letter to Bobby Crosserthat explains your findings and requests any additional information.

Skim The Statements on Standards for Tax Services to determine which have applicability to this case and then include references to those statements in your memo.

Ms. Taylor is 21 years old and she just obtained her MBA degree. She is considering the following two career options:

(a)Start working now, earning an annual salary of $60,000 in each of next 44 years.

(b)Enroll in a PhD program, in 4 years and subsequent work for 40 years, earning each year the salary of $120,000.

Assume that her educational expenses at the end of each of 4 years will be $30,000. Also, assume that the relevant annual interest rate is 6% throughout, and all the annuities in the question are ordinary annuities. Based on the above information, find the implied or imputed monetary value of her PhD as of now.

Suppose the market demand and supply functions are Qd= 32,000-20P and Qs=30P+750. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product.
a. Determine the equilibrium price and quantity in this market.

b. TC=5000+1000Q-12Q^2+0.08Q^3. Determine whether or not you should enter this market.

c. Due to unforeseen delays, you don’t enter the market. However, a year later the market supply has changed to Qs=30P+1500. Are you surprised at this shift in supply?

d. Given the new supply conditions, determine whether or not you should enter the market.

On February 1, 2018, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $50 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $50,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:
1. Determine the price of the bonds issued on February 1, 2018.
2-a. Prepare amortization schedules that indicate Cromley’s effective interest expense for each interest period during the term to maturity.
2-b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity.
3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2018.
4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020.

Problem 20-17 Integrating problem; error; depreciation; deferred taxes [LO20-6]

George Young Industries (GYI) acquired industrial robots at the beginning of 2015 and added them to the company’s assembly process. During 2018, management became aware that the $2.2 million cost of the machinery was inadvertently recorded as repair expense on GYI’s books and on its income tax return. The industrial robots have 10-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method for financial reporting purposes and for tax purposes it is considered to be MACRS 7-year property. Cost deducted over 7 years by the modified accelerated recovery system as follows:

The tax rate is 40% for all years involved.

Required:
1. & 3. Prepare any journal entry necessary as a direct result of the error described and the adjusting entry for 2018 depreciation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

The stockholders’ equity accounts of Carla Company have the following balances on December 31, 2020. Common stock, $10 par, 326,000 shares issued and outstanding $3,260,000 Paid-in capital in excess of par—common stock 1,110,000 Retained earnings 5,930,000 Shares of Carla Company stock are currently selling on the Midwest Stock Exchange at $36.

Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a) A stock dividend of 6% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A 2-for-1 stock split is (1) declared and (2) issued.