The mean cost of domestic airfares in the United States rose to an all-time high of $385 per ticket.† Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $110.
(a)
What is the probability that a domestic airfare is $561 or more? (Round your answer to four decimal places.)
(b)
What is the probability that a domestic airfare is $230 or less? (Round your answer to four decimal places.)
(c)
What is the probability that a domestic airfare is between $300 and $480? (Round your answer to four decimal places.)
(d)
What is the minimum cost in dollars for a fair to be included in the highest 3% of domestic airfares? (Round your answer to the nearest integer.)
In: Statistics and Probability
For many years businesses have struggled with the rising cost of health care. But recently, the increases have slowed due to less inflation in health care prices and employees paying for a larger portion of health care benefits. A recent Mercer survey showed that 52% of U.S. employers were likely to require higher employee contributions for health care coverage. Suppose the survey was based on a sample of 600 companies. Compute the margin of error and a 95% confidence interval for the proportion of companies likely to require higher employee contributions for health care coverage. If required, round your answer to four decimal places. Round intermediate calculations to four decimal places.
| Margin of Error: | |
| Confidence Interval: | to |
In: Statistics and Probability
United Claim Processors provides claims processing services for major insurance companies. The Winnipeg location processes all health benefit claims for various insurance benefit providers. Claims are received electronically or by mail in the Initial Review Department. Employees in this department sort claims into simple and complex categories and note any missing documentation that may be required. Simple claims are then passed on to the Processing Department where skilled claims processors match information from the claim with each individual's accounts in the database and then estimate the value of the benefit payment to be paid. Complex claims go to a separate processing centre for further examination. The next stage in the simple claims process is the Approval and Payment Department where final approvals and payments to claimants are initiated and completed.
During March, the Initial Review Department transferred 5,000 simple claims to the Processing Department. At the end of March, 800 claims remained in the Initial Review Department that were 80% complete with respect to conversion. The cost per equivalent unit for the month was $1.50 per claim processed and total costs incurred in the Initial Review Department during the month totalled $8,460. (Note there are only conversion costs in this process; no raw materials are added at any point.)
Required:
Prepare the cost reconciliation portion of the Initial Review Department's production report for March.
In: Accounting
In his 1960 article, ”The Problem of Social Cost,” Ronald Coase uses an example of a rancher and a wheat farmer. The problem comes from the rancher’s cows crossing over onto the farmer’s fields and trampling his crop. For the next problems assume the damage to the farmer’s crops is $1,000 a year and the cost of putting up/maintaining a fence is $1,500 a year.
1. The farmer takes the rancher to court and the judge decides
putting up a fence is the farmer’s responsibility. What is the
nature of the externality in this problem?
A. the rancher is putting a $1000 cost on the farmer that he is not internalizing.
B. the farmer is putting a $1000 benefit on the rancher that is not internalized.
C. the rancher is putting a$1500 cost on the farmer that he is not internalizing.
D. there is no externality present because rights are defined.
2. After the court decision, will the farmer build a fence?
A. Yes
B. No
C. The rancher will build the fence
D. There is not enough information to say
3.. Suppose the judge ruled that the rancher is responsible for
keeping the cows off the farmer’s land. Will the rancher build the
fence?
A. Yes, he is required by law.
B. Yes, because it is more efficient to put the fence up.
C. No, he would pay the farmer $1,000 to compensate him for the damages to his crops.
D. There is not enough information to say.
In: Economics
The cost function C and the price-demand function p are given. Assume that the value of C(x) and p(x) are in dollars. Complete the following. C(x) = x2 100 + 7x + 2000; p(x) = − x 40 + 5 (a) Determine the revenue function R and the profit function P. R(x) = P(x) = (b) Determine the marginal cost function MC and the marginal profit function MP. MC(x) = MP(x) =
Here is a picture of the problem: https://gyazo.com/6ce694b737f7dd4cfb20fbb9d1917420
In: Math
The mean cost of domestic airfares in the United States rose to an all-time high of $370 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $100. Use Table 1 in Appendix B.
a. What is the probability that a domestic airfare is $530 or more (to 4 decimals)?
b. What is the probability that a domestic airfare is $240 or less (to 4 decimals)?
c. What if the probability that a domestic airfare is between $320 and $480 (to 4 decimals)?
d. What is the cost for the 4% highest domestic airfares? (rounded to nearest dollar)
In: Statistics and Probability
For many years businesses have struggled with the rising cost of health care. But recently, the increases have slowed due to less inflation in health care prices and employees paying for a larger portion of health care benefits. A recent Mercer survey showed that 52% of U.S. employers were likely to require higher employee contributions for health care coverage. Suppose the survey was based on a sample of 600 companies. Compute the margin of error and a 95% confidence interval for the proportion of companies likely to require higher employee contributions for health care coverage. If required, round your answer to four decimal places. Round intermediate calculations to four decimal places.
In: Statistics and Probability
In a random sample of five microwave ovens, the mean repair cost was$75.00 and the standard deviation was $12.50
Assume the population is normally distributed and use a t-distribution to construct a 90% confidence interval for the population mean u
What is the margin of error of μ?
Interpret the results.
In: Statistics and Probability
Man-U-Facturing Inc. will buy a machine that has a cost of $850,000 and is expected to be useful for 10 years. At the end of the 10th year, the firm intends to sell the machine for an estimated price of $52,036. In addition, the yearly benefits are expected to be $201,952 while the annual maintenance costs are predicted to be $51,300. The company uses a 9% interest rate for this project and it is currently being taxed at a flat tax rate of 21%. This time assume that Man-U-Facturing Inc. uses straight-line depreciation. What the is the after-tax benefit-cost ratio?
In: Economics
Man-U-Facturing Inc. will buy a machine that has a cost of $850,000 and is expected to be useful for 10 years. At the end of the 10th year, the firm intends to sell the machine for an estimated price of $52,036. In addition, the yearly benefits are expected to be $201,952 while the annual maintenance costs are predicted to be $51,300. The company uses a 9% interest rate for this project and it is currently being taxed at a flat tax rate of 21%. This time assume that Man-U-Facturing Inc. uses straight-line depreciation. What the is the after-tax internal rate of return?
In: Economics