HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every yea
1 answer:
Answer:
Annual cost savings = 60,000
Explanation:
Given:
Present value of machine = $205,980
Use full life = 5 year
Internal rate of return = 14% = 0.14
Find
Annual cost savings = ?
Computation:
Annuity factor
Annual cost savings = Present value of machine / Annuity factor
Annual cost savings = $205,980 / 3.433
Annual cost savings = 60,000
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Answer:
Explanation:
Data given and notation
represent the sample mean
represent the standard deviation for the sample
sample size
represent the value that we want to test
represent the significance level for the hypothesis test.
t would represent the statistic (variable of interest)
represent the p value for the test (variable of interest)
State the null and alternative hypotheses.
We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:
Null hypothesis:
Alternative hypothesis:
We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:
(1)
t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".
Calculate the statistic
We can replace in formula (1) the info given like this: