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3 years ago

The average annual return over the period 1926-2009 for the S&P 500 is 12.0%, and the standard

Business

1 answer:

arsen [322]3 years ago

5 0

Answer:

C) -30.6%, 54.6%

Explanation:

95% Confidence Interval = (Average Return - 2*Standard Deviation, Average Return + 2*Standard Deviation)

=(0.12 - 2*0.213, 0.12 + 2*0.213)

= -30.6%,54.6%

Therefore, The 95% confidence interval for 2010 returns is -30.6%,54.6%.

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Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payme

mezya [45]

Answer: a. $120,000

b. $6,000

c. Yes

Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

= $60,000 * 2

= $120,000

b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

= 120,000 * 5%

= $6,000

By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.

c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.

As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

8 0

3 years ago

Garrett Company provided the following information:

Shalnov [3]

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

8 0

3 years ago

What amount needs to be invested today at 6% simple interest in order to have $4000 in 2 years?

garri49 [273]

Data:
A (amount) = ?
P (Principal) = $ 4000
r (rate) = 6% → 0.06
t (time) = 2 years

Formula:
$A = P(1+r*t)$

Solving:
$A = P(1+r*t)$
$A = 4000(1+0.06*2)$
$A = 4000(1+0.12)$
$A = 4000*1.12$
$\boxed{\boxed{A = \$\:4480}}\end{array}}\qquad\quad\checkmark$

4 0

3 years ago

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports

blagie [28]

Answer:

The correct option is b. $8,100

Explanation:

Since the question was asked about the allocation of maintenance department expense to assembly and the maintenance department expense is based on the square footage.

So, the following equation should be used which is shown below:

= Maintenance department expense × assembly square foot space ÷ total sum of square foot space

where,

Maintenance department expense is $18,000

Assembly square footage is 2,700

And, the total sum of square foot space equals to

= Fabrication square foot space + assembly square foot space

= 3,300 + 2,700

= 6,000

Now, put these values on the above equation.

So, the value would be equals to

= $18,000 × 2,700 ÷ 6,000

= $18,000 × 0.45

= $8,100

The other cost is irrelevant. Thus, it is ignored while computation.

Hence, the amount of Maintenance department expense to be allocated to Assembly is $8,100

Therefore, the correct option is b. $8,100

7 0

3 years ago

Operations managers have learned that quality control is not a never-ending process. Just before you add packaging to the finish

nikitadnepr [17]

Answer:

False.

Explanation:

Operations manager should ensure quality control is done at all stages in the production cycle to ensure highest standard. If quality check is carried out only at the final stage defects that should have been spotted earlier will cause product to be discarded.

So checking the product at the last stage is counter-productive.

5 0

3 years ago