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Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $27,000 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 15 years at an estimated cost of $693,000. Third, after he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $700,000 to his nephew Frodo. He can afford to save $2,000 per month for the next 15 years. |
| Required: |
| If he can earn a 11 percent EAR before he retires and a 8 percent EAR after he retires, how much will he have to save each month in years 16 through 30? |
In: Finance
5. The head football coach is concerned about high
cholesterol level of the assistant coaches. In an
attempt to improve the situation a sample of seven coaches is
selected to take part in a special program
in which each coach is given a special diet by the school trainer.
After six months each coach’s
cholesterol level is checked again. At the .01 level of
significance, can we conclude that the program led
to a change in the cholesterol levels?
Coach Before After
1.
225. 210
2.
230. 225
3.
290. 215
4.
242. 215
5.
300. 240
6.
250. 235
7.
215.
190.
1. State the hypotheses:
2. Determine the critical values and diagram.
3. Identify the test statistic:
4. What is the decision rule?
5. Calculate the test statistic:
6. Conclusion and justification
Type of error:
7. p-value:
In: Statistics and Probability
Calculating Annuity Values Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $23,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $320,000. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $1,000,000 to his nephew Frodo. He can afford to save $2,100 per month for the next 10 years. If he can earn an 11 percent EAR before he retires and an 8 percent EAR after he retires, how much will he have to save each month in Years 11 through 30?
In: Finance
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Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $30,000 per month for 15 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 15 years at an estimated cost of $675,000. Third, after he passes on at the end of the 15 years of withdrawals, he would like to leave an inheritance of $800,000 to his nephew Frodo. He can afford to save $2,300 per month for the next 15 years. |
| Required: |
| If he can earn a 9 percent EAR before he retires and a 7 percent EAR after he retires, how much will he have to save each month in years 16 through 30? |
In: Finance
Question # 3
Perform the following hypothesis test on the paired data below:
HO: µd = 0 (Please recall that µd is read ~ and also known as ~ Mu-sub-d) HA: µd ≠ 0 Test at α = 0.05
Before
30
75
92
69
61
57
57
89
92
After
53
68
98
62
67
71
68
96
98
a) Is this an upper tail, lower tail, or two-tail test? (5
points)
b) Are we testing means or proportions? (5 points)
c) State the rule of rejection (in terms of p-value and level of
significance) (5 points)
d) Find the p-value (5 points)
e) Should you reject or not reject HO? (5 points)
f) Do the data provide sufficient evidence to suggest the After
scores are indeed higher? Why or why not? (5 points)
In: Statistics and Probability
A group of businessmen formed a corporation to lease for 5 years a piece of land at the intersection of two busy streets. The corporation has invested $50,000 in car-washing equipment. They will depreciate the equipment by sum-of-years’ digits depreciation, assuming a $5,000 salvage value at the end of the 5-year useful life. The corporation is expected to have a before-tax cash flow, after meeting all expenses of operation (except depreciation), of $20,000 the first year, declining $3,000 per year in future years (second year = $17,000; third year = $14,000; etc.). The corporation is taxed at a combined corporate tax rate of 20%. If the projected income is correct, and the equipment can be sold for $5,000 at the end of the 5 years, what after-tax rate of return (to the nearest 1%) would the corporation receive from the venture?
**Please post a unique answer, not an old one. Thank you!
In: Accounting
A statistics teacher wants to assess whether her remedial tutoring has been effective for her five students. She decides to conduct a related samples t-test and records the following grades for students prior to and after receiving her tutoring. Tutoring Before After 2.4 3.0 2.5 2.9 3.0 3.6 2.9 3.1 2.7 3.5 (a) Test whether or not her tutoring is effective at a 0.05 level of significance. State the value of the test statistic. (Round your answer to three decimal places.) t = Incorrect: Your answer is incorrect. State the decision to retain or reject the null hypothesis. Retain the null hypothesis. Reject the null hypothesis. Correct: Your answer is correct. (b) Compute effect size using estimated Cohen's d. (Round your answer to two decimal places.) d =
In: Statistics and Probability
The amount of spreading of light after it goes through an opening
a. would be larger if the opening got narrower, just as would happen to sound.
b. the amount of interference after two slits that are as wide as this opening.
c. predicted by the law of refraction applied to openings instead of materials.
d. is independent of the width of the opening and dependent on the wavelength of light.
e. is independent of the wavelength of light and depedent on the width of the opening.
The inability to distinguish two distant light sources looked at through a circular aperture is due to
a. the diffraction pattern of light going past the edges of the circular aperture.
b. a well-known flaw in the psychological perception of distant light.
c. the multiple refractions the two light rays experience on their path to the observer.
d. the excessive nearsightedness of the observer looking through the aperture.
e. the destructive interference of the two light waves before they reach the aperture.
In: Physics
A given share is sold for $30 just before time t0. If the firm
pays a $3 dividend per share, the price will immediately drop to
$27. Suppose you own 100 shares. If the firm decides not to
distribute dividends, you would need to sell 10 shares (at$30 a
share) since you need to have a $300 cash income (pre tax) Assume
that the shares were originally bought for $20 each.
1. If both ordinary personal tax rate and capital gains tax are
28%, what is your after-tax wealth under the two alternative
situations?
2. Suppose now the tax rates for capital gains are lower, you pay
40% tax on ordinary income, and 16% tax on capital gains. What is
your after-tax wealth under the two alternative situations?
In: Finance
When a pink aqueous solution of potassium permanganate, faintly acidified with dilute sulfuric acid was treated with 10% aq. hydrogen peroxide, the reaction took place with the evolution of gas bubbles, and the pink solution was turned colorless. Further chemical analysis revealed that the evolved gas was oxygen, and the resulting solution contains potassium sulfate and manganese (II) sulfate; water was also formed during the same reaction. Please answer the followings: 1) Write down the proper chemical equation for this reaction. 2) Balance the chemical equation. 3) Define the type/types of the reaction, and offer an explanation for the color change. 4) Write down the ions (and define types) present in the solution before & after the reaction. 5) If initially 5.65 g of potassium permanganate was taken for the reaction, calculate the total number of moles of manganese (II) sulfate present in the solution after the completion of the reaction
In: Chemistry