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Sliva [168]
3 years ago
9

Jessica Salas, president of Salas Products, is reviewing the warranty policy for her company's new model of automobile batteries

. Life tests performed on a sample of 100 batteries indicated: (1) an average life of 75 months, (2) a standard deviation of 5 months, and (3) battery life is approximately normally distributed. Approximately 95% of the batteries will last between:______
a. 70 and 80 months
b. 60 and 90 months
c. 65 and 85 months
d. 55 and 95 months
Business
1 answer:
frez [133]3 years ago
3 0

Answer:

c. 65 and 85 months

Explanation:

Life tests performed on a sample of 100 batteries indicated:

(1) an average life of 75 months,

(2) a standard deviation of 5 months, and

(3) battery life is approximately normally distributed.

We create a 95% CI around mean.

If 95% is in the middle, then 5% is in the ends, 2.5% in each end.

Z score at .025 is -1.96, z score at .975 is +1.96

To convert z to battery life:

Z*sd + mean = battery life

-1.96*5 + 75 = 65.2, rounds to 65

+1.96*5 + 75 = 84.8, rounds to 85

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Depends on the quality and quantity of goods
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3 years ago
What is Keynesian model?
murzikaleks [220]

The Keynesian model is an economic theory developed by John Keynes to analyze the Great Depression in the 1930s. In this model, he advocated for increased government spending and lower taxes in an attempt to stimulate consumer demand to pull the economy out of the depression.

5 0
2 years ago
ECG Monitors is forecasting that sales next year will be $8,640,000, a 20 percent increase over current sales. ECG has total ass
Rama09 [41]

Answer:

$ 620,000

Explanation:

<u>The increase is assets is the amount the firm will need to finance:</u>

Current Assets: 3,840,000

Forecast Assets: 3,840,000 x ( 1 + 20%) = 4,608,000

Assets to finance: 4,608,000 - 3,840,000 = 768,000

<u>A portion of this will be financed by the supplier as the accounts payable will increase:</u>

Curent Account Payable: 740,000

Forecast A/P: 740,000 x (1 + 20%) =  888,000

Financiation provided by the supplier: 888,000 - 740,000 = 148,000

<u>The rest will requiere addtional financiation through equity or other means.</u>

Total Financiation needed: 768,000 - 148,000 = 620,000

3 0
2 years ago
Benton Company's sales budget shows the following expected total sales: Month Sales January $ 18,000 February $ 37,000 March $ 4
trapecia [35]

Answer:

The total cash receipt in the month of April amounts to $42,023

Explanation:

Total cash receipt in the month of April = March credit sales amount + April credit sale amount (25% is received) + April cash sales amount

= $29,400 × 67% + $32,900 × 25% + $14,100

= $19,698 + $8,225 + $14,100

= $42,023

Working Note:

March credit sales = March sales × 70%

= $42,000 × 70%

= $29,400

April Cash Sales = April Sales × 30%

= $47,000 ×  30%

= $14,100

April Credit Sale = April Sales ×  70%

= $47,000 ×  70%

= $32,900

From the credit sale, 25% is received in the month of April

So,

= $32,900 × 25%

= $8,225

5 0
2 years ago
Herrindale Mart borrows $420,000 on July 1 with a short-term loan that has an annual interest rate of 5% which is payable on the
kirill [66]

Answer:

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Explanation:

The journal entry to record the loan:

July 1 , 202x

Dr Cash 420,000

    Cr Notes payable 420,000

The journal entry to record accrued interest on the loan:

August 31, 202x (assuming a 360 day year)

Dr Interest expense 1,750

    Cr Interest payable 1,750

Interest expense = $420,000 x 5% x 2/12 = $1,750

3 0
2 years ago
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