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Mariana [72]
2 years ago
9

An accountant of wallie's the pizza franchise claims that its stores generate average weekly revenues of at least $7,000 per sto

re. a potential buyer who is considering purchasing a wallie's pizza franchise is doubtful about this claim, and believes instead that the average weekly revenue might be less than $7,000. with some effort, he obtains revenues from 20 wallie's stores across the country by interviewing their managers/employees and finds that the average revenue is $6400. historical tax filings by wallie's indicate that the standard deviation of revenues has been about $1042. store revenues are assumed to be normally distribute
d.what is the calculated value of the statistic to test the potential buyer's belief at the 1% level of significance?
Business
1 answer:
Lesechka [4]2 years ago
7 0

The calculated value of the Z statistic to test the potential buyer's belief at the 1% significant level is -2.57512627.

The calculated Z score is slightly greater than the critical value of -2.575, the potential buyer's view that weekly store revenues are less than $7,000 stands vindicated.

Since store revenues are assumed to be normally distributed and population standard deviation is given, we can use the Z-test. The relevant test statistic is the Z-score.

We use the following formula for calculating the Z score:

Z = (X - μ) / (σ /√n)

Substituting the relevant values we get,

Z = (6400 -7000) / (1042/√20)

Z = -600 / 232.9982833

Z = -2.57512627

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The City of West Hutchison is constructing a new road, which it estimates will cost $7.2 million. The city will finance the road
Mice21 [21]

Answer:

1.

Budgetary fund balance reserved for encumbrances (DR)  $7,200,000

Encumbrances-Capital Project (CR)  $7,200,000

2.

Cash (DR)  $1,200,000

Government Grant (CR)  $1,200,000

3.

Cash (DR)  $6,000,000

Bonds Payable (CR)  $6,000,000

Explanation:

1. The Budgetary entry for encumbrance is given as follows :  

Budgetary fund balance reserved for encumbrances (DR)  $7,200,000

Encumbrances-Capital Project (CR)  $7,200,000

2. The government grant received will be recorded as :

Cash (DR)  $1,200,000

Government Grant (CR)  $1,200,000

3. The Issuance of Bonds needs to be recorded in the journal ledger as :

Cash (DR)  $6,000,000

Bonds Payable (CR)  $6,000,000

6 0
3 years ago
Which of the following is NOT a federal income tax deduction?
11Alexandr11 [23.1K]

Answer: a)

Explanation: All the others are deductible, whilst excise taxes are only deductible as a business expense.

8 0
2 years ago
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particul
bezimeni [28]

Answer:

Tom Busby

His annual payment will be:

= $4,091.64

Explanation:

a) Data:

Loan = $20,000

Interest on loan for 4 years = 8% per annum

Amount of loan after 4 years = $27,200 ($20,000 * 1.360)

Payment period = 12 years

Interest rate during payment period = 11%

b) From online finance calculator:

You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.

Monthly Payment $340.97

Annual Payment  $4,091.64

Time Required to Clear Debt 12.00 years

Total of 144 or 12 Payments = $49,099.25

Total Interest $21,899.25

8 0
3 years ago
You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre
Fynjy0 [20]

Answer:

The correct answer is $7,056.46

Explanation:

Giving the following information:

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?

Final value= 55,000*25= 1,375,000

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

5 0
2 years ago
What agency provides over 25,000 government publications?
shepuryov [24]

Answer:

Correct Answer:

4. The Government Printing Office

Explanation:

The United States Government Publishing Office is an agency of the legislative branch of the United States federal government with the mandate to inform the Nation by producing, procuring, and disseminating printed and electronic publications of the Congress as well as the executive departments and establishments of the Federal Government.

7 0
3 years ago
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