A company had a piece of equipment destroyed by a tornado. The equipment originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. Should the company recognize a gain or a loss and for what amount?
In: Accounting
The rising cost of malpractice insurance is a growing
problem. A random sample of thirty-three General Surgery claims
from TN had a mean cost of $47505 with a standard deviation of
$1535.
a. Find a 95% confidence
interval for the mean claim amount of all General Surgery claims in
TN.
b. Interpret the
confidence interval in the words of the problem.
c. Find the error
bound.
d. A senator claims that
mean for all General Surgery claims in TN is more than $45000. Is
there evidence to support or refute this claim? Justify!
In: Statistics and Probability
Actuaries use various parameters when evaluating the cost of a life insurance policy. The variance of the life spans of a population is one of the parameters used for the evaluation. Each year, the actuaries at a particular insurance company randomly sample 30 people who died during the year (with the samples chosen independently from year to year) to see whether the variance of life spans has changed. The life span data from this year and from last year are summarized below:
| Current Year | Last Year |
|---|---|
=x176.2 | =x276.6 |
=s2162.4 | =s2246.2 |
(The first row gives the sample means, and the second row gives
the sample variances.)
Assuming that life spans are approximately normally distributed for
each of the populations of people who died this year and people who
died last year, construct a 99%confidence interval for σ^2/ σ^2 the
ratio of the variance of the life span for the current year to the
variance of the life span for last year. Then complete the table
below.
Carry your intermediate computations to at least three decimal places. Write your final responses to at least two decimal places. (If necessary, consult a list of formulas.)
| What is the lower limit of the 99% confidence interval? | |
| What is the upper limit of the 99% confidence interval? |
In: Statistics and Probability
Rayya Co. purchases and installs a machine on January 1, 2017,
at a total cost of $134,400. Straight-line depreciation is taken
each year for four years assuming a eight-year life and no salvage
value. The machine is disposed of on July 1, 2021, during its fifth
year of service.
Prepare entries to record the partial year’s depreciation on July
1, 2021, and to record the disposal under the following separate
assumptions: (1) The machine is sold for $67,200 cash. (2) An
insurance settlement of $56,448 is received due to the machine’s
total destruction in a fire.
*Record the depreciation expense as of July 1, 2021.
*Record the sale of the machinery for $67,200 cash.
*Record the insurance settlement received of $56,448 due to the machine’s total destruction in a fire.
|
In: Accounting
Rayya Co. purchases and installs a machine on January 1, 2016, at a total cost of $142,800. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2020, during its fifth year of service.
Prepare entries to record the partial year’s depreciation on July 1, 2020.
Record the depreciation expense as of July 1, 2020.
Prepare entries to record the disposal under the following separate assumptions:
1. The machine is sold for $71,400 cash.|
Record the sale of machinery for $71,400 cash.
2. An insurance settlement of $59,976 is received due to the machine’s total destruction in a fire.
Record the insurance settlement received of $59,976 resulting from the total destruction of the machine in a fire.
In: Accounting
1. Marginal cost __________ over the range of increasing marginal returns and ___________ over the range of diminishing marginal returns.
a) increases; decreases
b) decreases; increases
c) is constant; decreases
d) increases; is constant
2. The marginal cost curve intersects the average variable cost curve at:
a) its lowest point.
b) its maximum.
c) its end point.
d) no point; the curves don't intersect.
3. Marginal revenue:
a) is the slope of the average revenue curve.
b) equals the market price in perfect competition.
c) is the change in quantity divided by the change in the total revenue.
d) is the price divided by the change in quantity.
4. In perfectly competitive markets, if the price is _________, the firm will _________.
a) greater than ATC; make an economic profit.
b) greater than the minimum AVC; shut down.
c) greater than the minimum AVC but less than ATC; make an economic profit.
d) less than ATC; make an economic profit.
5. A monopolist is likely to _________ and ___________ than a comparable perfectly competitive firm.
a) produce more; charge more.
b) produce less; charge more.
c) produce more; charge less.
d) produce less; charge less.
6. Which of the following is true?
a) Instead of applying the marginal decision rule, monopoly firms just set the price as high as possible.
b) If demand is downward sloping, P=MR.
c) If demand is downward sloping, P=ATC.
d) If demand is downward sloping, P>MR.
In: Economics
The average production cost for major movies is 61 million dollars and the standard deviation is 18 million dollars. Assume the production cost distribution is normal. Suppose that 7 randomly selected major movies are researched. Answer the following questions. Round all answers to 4 decimal places where possible.
What is the distribution of X?X ~ N(,)
What is the distribution of ¯x? ¯x ~ N(,)
For a single randomly selected movie, find the probability that this movie's production cost is between 56 and 58 million dollars.
For the group of 7 movies, find the probability that the average production cost is between 56 and 58 million dollars.
In: Statistics and Probability
After the company has accessed the cost and benifits of it investment it must compare them. Can you breifly explain any two of the most common approaches and give example of each?
In: Accounting
A canned soup company wishes to design an optimal can for making a profit. The cost of the tin used for the can is 5 cents per cm^2. Suppose each can must contain 500 ml of soup. Find the dimensions of the can that minimize the cost. Justify your answer.
In: Math
Husky Corporation is considering an investment project in Canada. The project has an initial cost of CAD602,000 and is expected to produce cash inflows of CAD220,000 a year for four years. The project will be worthless after four years. The risk-free rate in the United States is 2 percent and the risk-free rate in Canada is 2.4 percent. The current spot rate is CAD1 = $.742. Husky's required return on dollar investments of this type is 12 percent. What is the net present value of this project in U.S. dollars using the foreign currency approach? $52,810 $48,367 $44,491 $40,769 $36,915
In: Finance