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Sergeeva-Olga [200]
3 years ago
9

Surgery U.S. insurers’ costs for knee replacement surgery range from $17,627 to $25,462. Estimate the population variance (stand

ard deviation) in cost with 98% confidence based on a random sample of 10 persons who have had this surgery. The retail costs (for uninsured persons) for the same procedure range from $40,640 to $58,702. Estimate the population variance and standard deviation in cost with 98% confidence based on a sample of 10 persons, and compare your two intervals.
Business
1 answer:
egoroff_w [7]3 years ago
7 0

Answer:

Insured persons:

Population sd = $4,391.4

Population variance = 19,284,393.96 square dollars

Uninsured persons:

Population sd = $10,123.5

Population variance = 102,485,252.3 square dollars

The cost interval for insured persons is less than that of uninsured persons.

Explanation:

Insured persons:

98% confidence interval is ($17,627, $25,462)

Lower limit = $17,627

Upper limit = $25,462

Margin of error (E) = (upper limit - lower limit) ÷ 2 = (25,462 - 17,627) ÷ 2 = 7,835 ÷ 2 = $3917.5

n = 10

degree of freedom = n-1 = 10-1 = 9

confidence level (C) = 98% = 0.98

significance level = 1 - C = 1 - 0.98 = 0.02 = 2%

critical value (t) corresponding to 9 degrees of freedom and 2% significance level is 2.821

Population sd = E×√n/t = 3917.5×√10/2.821 = $4391.4

Population variance = (population sd)^2 = ($4391.4)^2 = 19,284,393.96 square dollars

Uninsured persons:

98% confidence interval is ($40,640, $58,702)

Lower limit = $40,640

Upper limit = $58,702

Margin of error (E) = (58,702 - 40,640) ÷ 2 = 18,062/2 = $9,031

n = 10

degree of freedom = n-1 = 10-1 = 9

significance level = 2%

critical value (t) = 2.821

Population sd = E×√n/t = 9,031×√10/2.821 = $10,123.5

Population variance = ($10,123.5)^2 = 102,485,252.3 square dollars.

The cost interval for insured persons is less than than that of uninsured persons.

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You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use
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Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary o
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What can challenge Rick in his quest to become a successful entrepreneur is that he has an external locus of control, which occurs when an individual relates events related to their failures or successes to external variables that are not their responsibility, such as fate, luck or bad luck.

The external locus of control can pose a challenge for Rick in the sense that an entrepreneur's success is related to his own personal control and personal efforts to make the business viable and successful in the market. It is necessary for the entrepreneur to understand that there are risks inherent to the business and that a business can work according to their efforts, learning and planning, that is, the entrepreneur and their control and management actions will be responsible for the success or failure of the business, and not just external factors like fate or bad luck.

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3 years ago
Balance sheet and income statement data indicate the following:
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Answer:

The correct option is d. 5.5.

Explanation:

Note: This question is not properly arranged. It is therefore rearranged before answering the question as follows:

Balance sheet and income statement data indicate the following:

Bonds payable, 10% (due in two years)                              $842,000

Preferred 5% stock, $100 par (no change during year)       220,000

Common stock, $50 par (no change during year)             1,672,000

Income before income tax for year                                       376,000

Income tax for year                                                                  89,000

Common dividends paid                                                         83,600

Preferred dividends paid                                                          11,000

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Oa. 7.9

Ob. 4.5

Oc. 3.5

Od. 5.5

The explanation of the answer is now given as follows:

The times interest earned ratio can be calculated using the following formula:

Times interest earned ratio = EBIT / Interest expenses ................ (1)

Where;

Interest expenses = Bonds payable * 10% = $842,000 * 10% = $84,200

EBIT = Earnings before interest and taxes = Income before income tax for year + Interest expenses = $376,000 + $84,200 = $460,200

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Times interest earned ratio = $460,200 / $84,200 = 5.46555819477435

Rounded to one decimal place, we have:

Times interest earned ratio = 5.5

Therefore, the correct option is d. 5.5.

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