Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail.

The sample mean is x = 12.6%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01.

b). Compute the z value of the sample test statistic. (Round your answer to two decimal places.) ___________?


(c) Find (or estimate) the P-value. (Round your answer to four decimal places.) _________?

Based on data from a​ college, scores on a certain test are normally distributed with a mean of 1532 1532 and a standard deviation of 316 316. LOADING... Click the icon to view the table with standard scores and percentiles for a normal distribution. a. Find the percentage of scores greater than 1848 1848. nothing ​% ​ (Round to two decimal places as​ needed.) b. Find the percentage of scores less than 900 900. nothing ​% ​ (Round to two decimal places as​ needed.) c. Find the percentage of scores between 1374 1374 and 2006 2006. nothing ​% ​ (Round to two decimal places as​ needed.)

Standard score   Percent
-3.0   0.13
-2.5   0.62
-2   2.28
-1.5   6.68
-1   15.87
-0.9   18.41
-0.5   30.85
-0.1   46.02
0   50.00
0.10   53.98
0.5   69.15
0.9   81.59
1   84.13
1.5   93.32
2   97.72
2.5   99.38
3   99.87
3.5   99.98

The Wrigley Corporation needs to raise $17 million. The investment banking firm of Tinkers, Evers & Chance will handle the transaction.

a. If stock is utilized, 1,700,000 shares will be sold to the public at $10.75 per share. The corporation will receive a net price of $10.00 per share. What is the percentage underwriting spread per share? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  

b. If bonds are utilized, slightly over 17,000 bonds will be sold to the public at $1,005 per bond. The corporation will receive a net price of $997 per bond. What is the percentage of underwriting spread per bond? (Relate the dollar spread to the public price.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
  

c-1. Which alternative has the larger percentage of spread?
  

c-2. Is this the normal relationship between the two types of issues?
  

2. We are interested in analyzing data related to the Olympics from one decade. We are looking at individuals and if they participated in the summer or winter Olympics and whether or not they won a medal. Use S to denote summer and M to denote if a medal was won. The probability that someone participated in the summer Olympics is 72%. The probability that they won a medal is 13%. The probability that they won a medal and it was in the summer Olympics is 10%. ( please show steps)

a. What percentage of people participated in the summer Olympics or won a medal?

b. What percentage of people participated in the winter Olympics?

c. Given someone won a medal, what is the probability that they participated in the summer Olympics?

d. What percentage of people did NOT participate in the summer games NOR won a medal?

e. Are M and S mutually exclusive events? Why or why not? f. Are M and S independent events? Explain, using probabilities.

g. If we know someone participated in the summer Olympics, what is the probability that they also won a medal?

A company uses a ranking system of values from 0 to 5 to determine pay raise percentage and new salary for employees. Create the code for a python application that prompts the user for the annual performance ranking for an employee and their current salary.   Your code should use the annual performance ranking to determine the pay raise percentage based on the table below, then calculate the new annual salary ( salary + raise) in dollars. Assume rankings are only 0 to 5 inclusive. The employee ranking must be greater than or equal to zero and less than 6. Your code should have statements to output the calculated raise and new salary for each case.

Use the following table to determine pay raise percentage:

Employee Ranking                    Pay raise %

0                                                 0%

1                                               1.25%

2                                               2.0%

3                                               2.5%

4                                               3.25%

5                         3.5%

Run with the following test cases:

Rank Salary

3 $76,000

5 $32,000

1 $52,000

A researcher conducts a study of white and black attitudes toward the police in his state.

The percentage of a random sample of white respondents (N = 300) who say they have a favorable attitude toward the police is 61%. The percentage of a random sample of black respondents (N = 250) who say they have a favorable attitude toward the police is 47%.

• Is there a real (statistically significant) difference between the percentage of Whites and African Americans who have a positive attitude toward the police in the larger population, or are these results likely to have occurred by chance?
• Construct a 95% confidence interval for the proportion of Whites in the population who have a favorable attitude toward the police.
• Construct a 95% confidence interval for the proportion of African Americans in the population who have a favorable attitude toward the police.

Please show work. I want to learn how to execute the question. Class does not use any statistical softwares or excel.

1. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites:

a. Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio. (5 points)

b. What would be the percentage increase in net operating income if sales volume increases by 50%? (5 points)

c. If the selling price increases by 10% and sales volume decreases by 10%, what would be the net operating income? (5 points)

d. What would be the break even point in unit sales if variable expenses per unit increases by 8% and fixed expenses increase by 10%? (5 points)

e. What is the margin of safety percentage? At what “percentage of sale volume decrease” the company would experience zero net operating income? (5 points)

1.

CASE STUDY

Australian Motor Execs (AME) is set up as a proprietary company and is considering whether to enter the discount rental car market in Tasmania. This project would involve the purchase of 100 used, late model, mid-sized cars at the average price of $18,000. In order to reduce their insurance costs, AME will have a LoJack Stolen Vehicle Recovery System installed in each car at a cost of

$1,500 per vehicle. The rental car operation projected by AME will have two locations: one near Hobart airport and the other near Launceston airport. At each location, AME owns an abandoned lot and building where it could store its vehicles. If AME does not undertake the project, the lots can be leased to an auto-repair company for $90,000 per year (total amount for both lots). The $25,000 annual maintenance cost (total for both lots) will be paid by AME whether the lots are leased or used for this project. This discount rental car business is expected to have minimum impact on AME’s regular car rental business in Tasmania, where the net cash flow is expected to fall by only

$20,000 per year.

For taxation purposes, the useful life of the cars is determined to be five years and they will be depreciated using the most advantageous depreciation method set out by the Income Tax Assessment Act. It is assumed that the cars will first be used at the beginning of the next financial year: 1 July 2018.

Before starting this new operation, AME will need to redevelop and renovate the buildings at each airport location. This is expected to cost $220,000 for both locations. AME has also budgeted

$80,000 in marketing costs that will be spent prior the start of operation and during the first two years of operation. In addition, if the project is undertaken, a total new injection of $150,000 in net working capital will be required.

Maeve, the company CFO would like you help her examine the viability of the project for the next five years taking into account the projections of sales and operating costs prepared by AME’s accountants. Given the risk associated with the project, she believes it is reasonable to use a cost of capital of 12% for the evaluation of this project. Further financial data relating to the project can be found in the appendix.

*Question1. Discuss which costs are relevant for the evaluation of this project and which costs are not. Your discussion should be justified by a valid argument and supported by references to appropriate sources.

APPENDIX: Additional information for the case

Initial capital expenditure

Acquisition of the car fleet (including LowJack system): $18,000 + $1,500 per vehicle

Renovation of building at airport locations :$220,000

Injection of net Working capital $150,000

For tax purposes, the cars (including the LowJack system) may be depreciated using either the prime cost or the diminishing value methods as set out in Division 40 of the Income tax Assessment Act (ITAA) 1997. The economic life of 5 years has been approved by the Commissioner of taxation. Maeve indicated to you that the company will retain the method that is the most advantageous to the company from a financial point of view.

Assume that AME is not able to claim any tax deduction for the capital expenditure relating to the renovation of the building until the business is sold. At that time the cost of renovation is taken into account to calculate the capital gain.

Marketing costs

The $80,000 marketing costs will be incurred as follows:

$40,000 immediately before the launch of the new operation (1/7/2018)

$20,000 at the beginning of year 2 (1/7/2019) i.e. end of year 1

$20,000 at the beginning of Year 3 (1/7/2020) i.e. end of year 2

These costs are fully tax deductible in the year they are incurred (assume calendar year).

Revenue projections

Revenue projections from car rental for the next five years are as follows

Operating costs

Operating variable costs associated with the new business represent 10 % of revenue. Annual operating fixed costs (excluding depreciation) are $1800 per vehicle.

Existing administrative costs are $550,000 per annum. As a result of the new operation these administrative cost will increase by 20 %.

Tax rate

The company is subject to a tax rate of 27.5% on its profits. The capital gain (if any ) on the sale of the business would also be taxed at 27.5%.

Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $70,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $30,800. A new piece of equipment will cost $160,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Savings 1 $ 68,000 2 60,000 3 58,000 4 56,000 5 53,000 6 42,000 The firm’s tax rate is 25 percent and the cost of capital is 11 percent. a. What is the book value of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) b. What is the tax loss on the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) c. What is the tax benefit from the sale? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) d. What is the cash inflow from the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) f. Determine the depreciation schedule for the new equipment. (Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.) g. Determine the depreciation schedule for the remaining years of the old equipment. (Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.) h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) i. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) j-1. Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) j-2. Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) k-1. Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.) k-2. Should the replacement be undertaken? Yes No