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densk [106]
3 years ago
6

You are interested in purchasing a new car and have done some research. One of the many points you wish to consider is the resal

e value of the car after 5 years. You wish to estimate the resale value of the one that piques your interest with a 99% confidence interval. In your research, you obtain data on 17 recently resold 5-year-old sedans of the same model you wish to purchase. These 17 cars were resold at an average price of $12,500 with a standard deviation of $700. What is the 99% CI for the true mean resale value?
Business
1 answer:
kari74 [83]3 years ago
8 0

Answer:

The 99% confidence interval would be given by (12004.26;12995.74)  

Explanation:

1) Previous concepts

A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".

The margin of error is the range of values below and above the sample statistic in a confidence interval.

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

\bar X=12500 represent the sample mean for the sample  

\mu population mean (variable of interest)

s=700 represent the sample standard deviation

n=17 represent the sample size  

2) Confidence interval

The confidence interval for the mean is given by the following formula:

\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}   (1)

In order to calculate the critical value t_{\alpha/2} we need to find first the degrees of freedom, given by:

df=n-1=17-1=16

Since the Confidence is 0.99 or 99%, the value of \alpha=0.01 and \alpha/2 =0.005, and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.005,16)".And we see that t_{\alpha/2}=2.92

Now we have everything in order to replace into formula (1):

12500-2.92\frac{700}{\sqrt{17}}=12004.26    

12500+2.92\frac{700}{\sqrt{17}}=12995.74    

So on this case the 99% confidence interval would be given by (12004.26;12995.74)    

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Maksim231197 [3]

Answer:

see below

Explanation:

The concept of limited liability is a confirmation that a corporation's assets are liabilities are distinct from those of shareholders. The concepts safeguard the shareholder's private properties should a business fail to meet its obligations.

Limited liability states that the liabilities of a shareholder is limited to the extent of his capital contribution. If the event of a dissolution, a shareholder's losses are capped to the share contribution. Their personal properties cannot be used to pay business debts should the business's assets be inadequate.

3 0
3 years ago
Volkswagen achieved spectacular success in the late 1990s by targeting the nostalgia segment, 35- to 54-year-old baby boomers, w
serg [7]

Answer: Differentiation focus

Explanation:

Marketing focus is not an actual marketing term. Cost leadership strategy's main focus is on the reduction of expenses which in turn, lowers prices of product while targeting a wide array of market segments.

In this question, Volkswagen is not reducing costs, or targeting large market segments. Differentiation strategy” require products to possess significant points of difference in brand image, product offerings, higher quality, advanced technology, and superior service to command a higher price while also targeting a wide array of market segments. For this question, these factors are not explaineded as targeting a broad market segments.

Differentiation focus strategy requires the products to have significant points of difference that is vital to target one or only a few market segments. For this question, Volkswagen uses a specific and unique factor to appeal to a specific group of people. So differentiation focus is the answer.

7 0
3 years ago
Record the following transactions for Lett Company. (Credit account titles are automatically indented when the amount is entered
Tanya [424]

A transaction is any monetary business event that impacts a business's financial statements.

<h3>The journal entries </h3>

The journal entries are as follows

On August 4

Account Receivable $610

 To Sales Revenue   $610

(Being the goods sold on credit basis is recorded)

On August 7

Sales Return and Allowances $60

  To Accounts Receivable $60

(Being the sales allowance is recorded)

On August 12

Sales Discount   $11  

Cash $539

 To Accounts Receivable $550

(Being the amount paid is recorded after considering the 2% discount

To learn more about financial statements visit the link

brainly.com/question/14951563

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7 0
2 years ago
Victoria Enterprises expects earnings before interest and taxes ​(EBIT​) next year of $ 2.5 million. Its depreciation and capita
Law Incorporation [45]

Answer:

Value of Victoria Enterprises=  $21,498,285.71  

Explanation:

<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures. </em>

It is computed as cash flow made from operation less capital expenditures

For Victoria Enterprises

The Free cash flow

= EBIT(1-T) + depreciation- increase in capital expenditure - increase in working capital

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Value of a firm = FCFF (1+g)/(WACC-g)

g- growth rate - 4%, WACC- 11%, FCFF-1,447,000

Value of Victoria = 1,447,000 × (1+0.04)/(0.11- 0.04) =  21,498,285.71  

Value of Victoria=  $21,498,285.71  

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Cool Gelato uses various sizes of foam cups. The use of 8oz foam cups is constant throughout the year, and Cool Gelato expects t
ruslelena [56]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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