Answer:
See Below
Explanation:
Expected value is the sum of the products of the probability and payoff of each.
<u>Wager 1:</u>
probability of heads and tails, both is 0.5
Win = 440
Loose = 110
So,
Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165
<u>Wager 2:</u>
Similar to wager 1
Win = 770
Loose = 220
So,
Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275
2nd wager is better, in this sense.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
D: Loss leading
Explanation:
Loss leading or the loss leaders is the concept where we decree the price of certain well known and popular products to such a level that customers are amazed. We even start selling that product below its cost as well. The basic logic behind loss leaders is to increase the store traffic and therefore increasing the sales. For example, if everyone is selling eggs at $2 per dozen, and you get it at $1.5 from the whole seller then you can either sell it at the same amount on which you purchasing it from the whole seller, at $1.5 or even below than this at £1.3. People knows that eggs are usually sols at $1.5 but your concept of loss leading will attract them towards your store, and besides purchasing eggs at $1.3, they will also but many other high profit margins products as well.
Answer:
The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.
Explanation:
Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.
For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.
The accounting entries needed are:
Debit: Retained Earnings with the amount of the asset distributed.
Credit: Dividend Payable with the amount of the asset distributed.
It is important to note that the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings
In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.
They are in the "collecting information" stage of planning.
