2. A clinical lab wants to evaluate the resistance power of its new medicine. It has provided the new medicine to a random sample of 300 rats and retained the old drug for the remaining (200 rats). Three months after the dosage of the new drug, the group with the new medicine has a resistance of 40.2 with a s.d of 6.5 while the group with the old drug had an average of 35 with a s.d of 4.5.

NOTE: Follow all the steps in hypothesis testing. You can use Graphpad for this one.

1. What is your Null and Alternate Hypothesis. (0.5 point)

2. Did the new medicine result in significantly higher resistance of the dogs? State the value of the test-statistic, the p-value and the 95% confidence interval. (1 point)

(c)What do you mean by saying that this is the confidence interval in this case? (0.5 point)

Marion Dexter Company is evaluating a proposal to purchase a new machine that would cost $100,000 and have a salvage value of $10,000 in four years. It would provide annual operating cash savings of $10,000, as follows:

Old Machine      New Machine

Salaries $ 40,000              $ 36,000

Supplies 7,000                   5,000

Maintenance 9,000                   5,000

Total $56,000              $46,000

​

If the new machine is purchased, the old machine will be sold for its current salvage value of $20,000. If the new machine is not purchased, the old machine will be disposed of in four years at a predicted salvage value of $2,000. The old machine's present book value is $40,000. If kept, in one year the old machine will require repairs predicted

to cost $35,000. Marion Dexter's cost of capital is 14 percent.

Required:

Should the new machine be purchased? Why or why not?

An automotive manufacturer wants to know the proportion of new car buyers who prefer foreign cars over domestic.

Step 1 of 2:

Suppose a sample of 1046 new car buyers is drawn. Of those sampled, 355 preferred foreign over domestic cars. Using the data, estimate the proportion of new car buyers who prefer foreign cars. Enter your answer as a fraction or a decimal number rounded to three decimal places.

Step 2 of 2:

Suppose a sample of 1046 new car buyers is drawn. Of those sampled, 355 preferred foreign over domestic cars. Using the data, construct the 85% confidence interval for the population proportion of new car buyers who prefer foreign cars over domestic cars. Round your answers to three decimal places.

A company is considering an 8-year project to expand into a new geographical area. The project requires a new machine, which would cost $230,000 FOB San Francisco, with a shipping cost of $8,000 to the new plant location. Installation expenses of $13,000 would also be required. This new machine would be classified as 7-year property for MACRS depreciation purposes. The project engineers anticipate that this equipment could be sold for salvage for $40,000 at the end of theproject. If the corporate tax rate is 31%, what is the after tax salvage cash flow for this new machine at the end of the project? (Answer to the nearest dollar.)
MACRS percentages for depreciation each year are as follows:
Year %
1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45

) A researcher recruited 2100 men in his research and followed up every year for 4 years to find out the incidence rate of respiratory disease.

After 1 year, there was not a new diagnosis of respiratory disease, and 100 lost to follow up,

After 2 years, found one new case of respiratory disease and 99 lost to follow up,

After 3 years, found 7 new cases of respiratory diseases and seven hundred ninety three lost to follow up.

After 4 years, found eight new cases of respiratory diseases and three hundred ninety two lost to follow up.

Calculate the incidence rate of respiratory disease

(**new cases of respiratory disease and men lost to follow up were disease-free for six months) ** and contribute ½ years to the denominator)

A firm is considering an investment in a new machine with a price of $18.02 million to replace its existing machine. The current machine has a book value of $6.02 million and a market value of $4.52 million. The new machine is expected to have a four-year life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $6.72 million in operating costs each year over the next four years. Both machines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $252,000 in net working capital. The required return on the investment is 10 percent and the tax rate is 35 percent. What is the NPV of the decision to purchase a new machine?

015824 A systems analyst tests a new algorithm designed to work faster than the currently-used algorithm. Each algorithm is applied to a group of 89 sample problems. The new algorithm completes the sample problems with a mean time of 17.64 hours. The current algorithm completes the sample problems with a mean time of 17.75 hours. Assume the population standard deviation for the new algorithm is 4.561 hours, while the current algorithm has a population standard deviation of 4.210 hours. Conduct a hypothesis test at the 0.05 level of significance of the claim that the new algorithm has a lower mean completion time than the current algorithm. Let μ1 be the true mean completion time for the new algorithm and μ2 be the true mean completion time for the current algorithm. Step 1 of 5: State the null and alternative hypotheses for the test.

Newsoft is a computer software company that is setting up a new program design facility in a nation that the company has not had any relationship with before. Yusuf is the Human Resource manager for the entire company. He is considering two different candidates to be the Operations manager of the new facility, Maria (who is a woman) and Raj (who is a man). Maria is better qualified than Raj for this new opportunity and is Jared’s preferred choice. Jared then learns from the Property manager, who has just returned from building the new facility, that this nation has a culture and laws that favour males in the workplace. Yusuf realizes that if he chooses Maria to be the new Operations manager, he will certainly be altering local customs and possibly violating the law. Who should Yusuf send to be the Operations manager of the new facility? [Who should Yusuf send if the local customs and laws promoted a particular race and Raj was a member of that race? Who should Yusuf send if the local customs and laws promoted right-handed people and Maria was left-handed?]

A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high so that the property will appear more valuable. Therefore, the store has been offered a "great deal" (owner's words) on a new 5-year lease. The new lease calls for no rent for 9 months, then payments of $2,600 per month for the next 51 months. The lease cannot be broken, and the store's WACC is 12% (or 1% per month). Should the new lease be accepted? The store owner is not sure of the 12% WACC—it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases? f the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and old leases?

D&R Corp. has annual revenues of $276,000, an average contribution margin ratio of 33%, and fixed expenses of $117,500.  

Required:

a. Management is considering adding a new product to the company's product line. The new item will have $8.3 of variable costs per unit. Calculate the selling price that will be required if this product is not to affect the average contribution margin ratio. (Round your answer to 2 decimal places.)

b. If the new product adds an additional $32,100 to D&R's fixed expenses, how many units of the new product must be sold at the price calculated in part a to break-even on the new product? (Do not round intermediate calculations.)

c. If 20,100 units of the new product could be sold at a price of $13.6 per unit, and the company's other business did not change, calculate D&R's total operating income and average contribution margin ratio. (Round your intermediate calculations to 2 decimal places. Round "Average contribution margin ratio" to 2 decimal places.)