Questions
You wish to test the claim that the average IQ score is less than 100 at...

You wish to test the claim that the average IQ score is less than 100 at the .05 significance level. You determine the hypotheses are:

Ho: μ=100

H1:μ<100

You take a simple random sample of 38 individuals and find the mean IQ score is 95.8, with a standard deviation of 15.2. Let's consider testing this hypothesis two ways: once with assuming the population standard deviation is not known and once with assuming that it is known.

Round to three decimal places where appropriate.

Assume Population Standard Deviation is NOT known Assume Population Standard Deviation is 15
Test Statistic: t = Test Statistic: z =
Critical Value: t = Critical Value: z =
p-value: p-value:
Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
 Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
 Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.

Is there a significant difference between when we know the population standard deviation and when we don't? Explain.

In: Statistics and Probability

You wish to test the claim that the average IQ score is less than 100 at...

You wish to test the claim that the average IQ score is less than 100 at the .05 significance level. You determine the hypotheses are:

Ho: μ=100

H1:μ<100

You take a simple random sample of 38 individuals and find the mean IQ score is 95.8, with a standard deviation of 15.2. Let's consider testing this hypothesis two ways: once with assuming the population standard deviation is not known and once with assuming that it is known.

Round to three decimal places where appropriate.

Assume Population Standard Deviation is NOT known Assume Population Standard Deviation is 15
Test Statistic: t = Test Statistic: z =
Critical Value: t = Critical Value: z =
p-value: p-value:
Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
 Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
 Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.

Is there a significant difference between when we know the population standard deviation and when we don't? Explain.

In: Statistics and Probability

You wish to test the claim that the average IQ score is less than 100 at...

You wish to test the claim that the average IQ score is less than 100 at the .01 significance level. You determine the hypotheses are:

Ho: μ=100

H1:μ<100

You take a simple random sample of 79 individuals and find the mean IQ score is 96.1, with a standard deviation of 14.8. Let's consider testing this hypothesis two ways: once with assuming the population standard deviation is not known and once with assuming that it is known.

Round to three decimal places where appropriate.

Assume Population Standard Deviation is NOT known Assume Population Standard Deviation is 15
Test Statistic: t = Test Statistic: z =
Critical Value: t = Critical Value: z =
p-value: p-value:
Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
 Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
 Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.

Is there a significant difference between when we know the population standard deviation and when we don't? Explain.

In: Statistics and Probability

You wish to test the claim that the average IQ score is less than 100 at...

You wish to test the claim that the average IQ score is less than 100 at the .05 significance level. You determine the hypotheses are:

Ho: μ=100Ho: μ=100

H1:μ<100H1:μ<100

You take a simple random sample of 48 individuals and find the mean IQ score is 97.3, with a standard deviation of 14.6. Let's consider testing this hypothesis two ways: once with assuming the population standard deviation is not known and once with assuming that it is known.

Round to three decimal places where appropriate.

Assume Population Standard Deviation is NOT known Assume Population Standard Deviation is 15
Test Statistic: t = Test Statistic: z =
Critical Value: t = Critical Value: z =
p-value: p-value:
Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
 Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
 Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.

Is there a significant difference between when we know the population standard deviation and when we don't? Explain.

In: Statistics and Probability

You wish to test the claim that the average IQ score is less than 100 at...

You wish to test the claim that the average IQ score is less than 100 at the .025 significance level. You determine the hypotheses are:

Ho: μ=100

H1:μ<100

You take a simple random sample of 96 individuals and find the mean IQ score is 96.2, with a standard deviation of 15.7. Let's consider testing this hypothesis two ways: once with assuming the population standard deviation is not known and once with assuming that it is known.

Round to three decimal places where appropriate.

Assume Population Standard Deviation is NOT known Assume Population Standard Deviation is 15
Test Statistic: t = Test Statistic: z =
Critical Value: t = Critical Value: z =
p-value: p-value:
Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
 Conclusion About the Null:
  • Reject the null hypothesis
  • Fail to reject the null hypothesis
Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
 Conclusion About the Claim:
  • There is sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to support the claim that the average IQ score is less than 100.
  • There is sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.
  • There is NOT sufficient evidence to warrant rejection of the claim that the average IQ score is less than 100.

Is there a significant difference between when we know the population standard deviation and when we don't? Explain.

In: Statistics and Probability

I do not understand question number three. However, I belive the answers to questions number 1...

I do not understand question number three. However, I belive the answers to questions number 1 and 2 are already on chegg I just need clarification with how to do question number 3. PLEASE HELP

Q. 1.    Prepare a budgeted income statement for Premium Grade Ovenware for 2007 if the engineers’ redesign efforts had worked as originally planned. Use these assumptions:

First quarter sales of 1,500,000 units will be achieved each quarter in 2007.

The selling price for 2007 will remain 10% below the price charged from 2002-2006, and there were no sales price increases during the 2002-2006 period.

Variable cost of goods sold averaged about $5.55 per unit of ovenware from 2002-2006.

Variable production costs will be reduced by 35% due to the new design.

The fixed cost of production in 2006 contained one-time, increased costs (about $4,000,000) for the design changes. For 2007, fixed costs are expected to be about 3.5% higher than 2005.

Marketing costs contain both fixed and variable elements, however, it is budgeted based on spending 7% of expected sales revenue.

Other fixed costs are expected to increase about 2.5% over 2006.

Would the product manager have met his profit target of 25% return on sales in 2007 for the product line with the redesign?

Q. 2.    Prepare the budgeted 2007 income statement for Premium Grade Ovenware that the production, quality, and product managers considered when they discussed the first option available to them.

a.   Under that option, shipment would be delayed and about one third of the year’s sales of 6,000,000 units would be lost.

  

Product would be sold at the 10% price reduction but produced under the old cost structure for six months (variable production costs of $5.55 per unit). After the six months the variable cost savings of 35% would be achieved.

Assume that recycling the current production would add $500,000 to the fixed production costs originally budgeted for 2007. In addition, the product line will incur an additional $2,000,000 in design engineering to solve the problem within a 6-month period (this will involve the use of overtime and consultants).

Other cost items would stay as originally budgeted for 2007.

What would the product line’s profit be under this alternative? What would the return on sales for the product line be?

Q. 3.     The production, quality and product managers considered their second option to be producing and selling flawed units for 6 months while engineers corrected the problem. Under this option, the company would not disclose the problem and hope for the best. Perhaps none of the product claims would involve any injury; only product replacement would be required at a cost of about $12 per unit.

a.    Adjust the 2007 budget for an assumed defect rate of .25% for 6 months production. (Note this is a defect rate in addition to the normal rate faced in each year, 2002-2006, which is already accounted for in marketing cost.)

b.   Adjust the fixed production cost for 2007 for an additional $2,000,000 in design engineering to solve the problem within a 6-month period. (This will involve the use of overtime and consultants).

What would the budgeted profit and return on sales be if option two were selected?

If the engineer’s redesign efforts had worked originally, the Budgeted Income Statement for Premium Grade Overnware in 2007 would have been:

a.)

Expected Sales Revenue

1,500,000 ×4 Quarters×($15-10%)

$81,000,000

b.)

Variable cost of goods sold

1,500,000 ×4 Quarters×($5.55-35%)

$21,450,000

c.)

Fixed cost of production

($23,221,033 + 3.5%)

$24,033,769

d.)

Gross Profit

$81,000,000 - ($21,450,000 + $24,033,769)

$35,516,231

e.)

Attributable Costs

$35,516,231 - $27,265,756

$8,250,475

i.)

Marketing Costs

$81,000,000 x 7%

$5,670,000

ii.)

Other Fixed Costs

$2,517,537 + 2.5%

$2,580,475

f.)

Product line profit before G&A allocation

[35,516,231 - 8,250,475)

$27,265,756

g.)

Return on sales

($27,265,756 / $81,000,000) x 100

33.66%

Since the budgeted profit target is 33.66%, the product manager met his profit target of 25% return on sales in 2007 for the product line with the redesign.

The production, quality, and product managers used this budgeted income statement to consider the first option that was given:

2)

2007

Sales

$ 54,270,000

Sales Units

4,020,000

COGS

   Variable

14,502,150

   Fixed

26,533,769.16

Gross Profit

$13,234,080.84

Attributable Cost

    Market

5,798,900

    Other

580,475.425

Prod. Line Profit

Before G&A allocation

$6,854,705.415

Return of Sales

12.63%

In: Accounting

2. Why is it that the consumer can maximize total net utility only if the purchase...

2. Why is it that the consumer can maximize total net utility only if the purchase quantity brings marginal utility as close as possible to equality with price?

3. Use the law of diminishing marginal utility to explain why Domino's and Pizza Hut allow the purchase of a second pizza for only $5 when one pays full price (around $10) for the first pizza. Why not simply charge $7 a pizza instead?

  1. Explain why the long-run average cost is typically U-shaped. Explain the connection between the shape of long-run average cost curve and returns to scale.

  

  1. "Assuming the long-run average cost curve is U-shaped, a firm will always seek to operate at the lowest point on the long-run average cost curve." True or false? Explain your answer.
  1. Why is the total profit curve shaped like a hill? Is it a good thing to go to a point where marginal profit is zero? Explain. What is the value of marginal profit at the profit-maximizing output?

Expert Answer

In: Economics

Obtain monthly close prices of Microsoft (symbol: MSFT) adjusted for stock splits and dividends during December...

Obtain monthly close prices of Microsoft (symbol: MSFT) adjusted for stock splits and dividends during December 1989 – December 2019 from Yahoo Finance (finance.yahoo.com). Using Excel, compute monthly returns during January 1990 – December 2019. From these returns, compute arithmetic and geometric return averages over the entire period. Report your answers and confirm that arithmetic average is greater than geometric average.

Guideline:

1. Yahoo Finance allows you to download the data in a spreadsheet.

2. At Yahoo Finance, go to Historical Prices and use Adj. Close to compute returns.

3. When you download monthly data from Yahoo Finance, you will see first days of each month appearing under the "Date" variable. The Adj. Close on the same row is the adj. close at the end of that month. For example, the adj. close price for Microsoft that appears in the row where the Data is 2019-12-01 is the adj. close price for December 2019

In: Finance

Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price,...

Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price, and holds these investments in its trading portfolio. The company’s fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear’s trading account occurred during December 2021 and the first week of 2022. 2021 Dec. 17 Purchased 130 Grocers’ Supply Corporation bonds at par for $585,000. 28 Received interest of $3,200 from the Grocers’ Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers’ Supply Corporation bonds. The market price of the bond was $5,000 per bond. 2022 Jan. 5 Sold the Grocers' Supply Corporation bonds for $617,500. Required:

1. Prepare the appropriate journal entry or entries for each transaction.

2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment.

In: Accounting

Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price,...

Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price, and holds these investments in its trading portfolio. The company’s fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear’s trading account occurred during December 2021 and the first week of 2022.

2021
Dec. 17 Purchased 130 Grocers’ Supply Corporation bonds at par for $585,000.
28 Received interest of $3,200 from the Grocers’ Supply Corporation bonds.
31 Recorded any necessary adjusting entry relating to the Grocers’ Supply Corporation bonds. The market price of the bond was $5,000 per bond.
2022
Jan. 5 Sold the Grocers' Supply Corporation bonds for $617,500.


Required:
1. Prepare the appropriate journal entry or entries for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment.

In: Accounting