Yes, because Ray investing in two different saving bonds is basically diversification.
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= <em>u</em> + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find <em>u</em>
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( 
)
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200
= 400
Answer:
tspecialize in being a surgeon because its opportunity cost is lower
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
What the surgeon would give up to pratice as a surgeon would be lower compared than if he decided to specialise in cleaning pools
thus he should specialize in being a surgeon because its opportunity cost is lower
Answer:
Pro forma financial statements
Explanation:
The term pro forma financial statements refers to a type of financial statement which estimates future financial results. It doesn't follow the GAAP, instead it is designed to focus on specific figures about a company's expected earnings. Although pro forma financials are only expected financial statements, it is still illegal to mislead investors using them.
By preparing a pro forma financial statement, Tomas will be able to estimate if his new business will be profitable or not, approximately how much financing he will need and estimate the future cash flows of his project.
