All categories

4 years ago

Four possibilities are equally likely and have payoffs of $2, $4, $6, and $10. The expected value is:

Business

1 answer:

ki77a [65]4 years ago

6 0

Answer:

Expected value is 5.5

Explanation:

Expected value = sum of X*P(x)

= 1/4*2 + 1/4*4 + 1/4*6 + 1/4*10

= 0.5 + 1.0 + 1.5 + 2 .5

= 5.5

You might be interested in

You are trying to value the common stock shares BeGood Company using a market multiples approach. Begone just reported annual ea

lakkis [162]

Answer:

$22.81

Explanation:

We can easily calculate share price for BeeGood company just by multiplying the current earnings per share with an average P/E ration of competitors

P/E = Price earning ratio

EPS = Earning per share

Formula: Share price = PE x EPS

Share price = $\frac{(11.2+13.25+14.88)}{3}$ x $1.74

Share price = $22.81

7 0

3 years ago

If the total adult working population of Country X is 450 million, the number of unemployed people is 95 million, and the number

Lisa [10]

Answer:

Labor force participation rate = 75.55% (Approx)

Explanation:

Given:

Working population = 450 million

Unemployed people = 95 million

Number of employed people = 245 million

Find:

Labor force participation rate

Computation:

Total labor = 245 + 95 = 340 million

Labor force participation rate = [340 / 450]100

Labor force participation rate = 75.55% (Approx)

8 0

3 years ago

Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January

lara [203]

Answer:

Correct answer is a.$13,500.

Explanation:

To calculate work in process ending inventory we will add opening balance of work in process to all cost transferred to work in process during the period. The cost of good manufactured is subtracted from it. Cost of good manufactured become part of finished good inventory. Detail calculation is given below.

WIP opening balance $ 11,000

Direct Material $ 27,000

Direct Labour $ 25,000

FOH $ 18,750 (75%* 25,000)

Cost of goods manufactured ($68,250)

WIP ending balance $ 13,500

7 0

3 years ago

Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ

kirill115 [55]

Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

8 0

3 years ago

Fixed costs included in this income statement are $2,000 for meal production and $400 for administrative costs. Maria has receiv

Olenka [21]

Answer:

While the special order generates a positive differential cost of $15

It should be rejected.

As this is an insignificant reward (15 / 1,000 = 1.5%)

considering the effort needed (300 / 2,000 = 15% production)

We increase production by 15% to increase our income by 1.5%

Any deviation from the expected cost will turn the project into a negative outcome the project is not useful for the current cost structure.

Explanation:

MISSING INFORMATION

TOTAL /// Per Unit

Sales revenue $10,000 $ 5.00

Costs of meals 8,000 4.00

Gross profit 2,000 1.00

Administrative costs 1,000 0.50

Operating profit 1,000 0.50

Fixed Cost

2,000 meal production

400 administrative cost

Variable cost:

unit sold: 10,000 / 5.00 = 2,000

Total Cost: 9,000

Less fixed of 2,400

Variable cost 6,600

6,600 / 2,000 units = 3.3 per unit

Special order:

Sales revenue 3.35 x 300 = 1,005

Cost per unit: 3.30 x 300 = 990

revenue 15

7 0

3 years ago

​Four possibilities are equally likely and have payoffs of $2, $4, $6, and $10. The expected value is:

Four possibilities are equally likely and have payoffs of $2, $4, $6, and $10. The expected value is: