Financial data for Joel de Paris, Inc., for last year follow:

The ABC Co. is considering a new consumer product. They believe that the XYZ Co. may come out with a competing product. If ABC a

andrey2020 [161]

Answer:

Let X be probability XYZ offers a competing product

EMV (assembly line) = $10,000∗X+$40,000∗(1-X)

EMV (addition) = -$100,000∗X+$600,000∗(1-X)

$10,000∗X+$40,000∗(1-X) = -$100,000*X+$600,000∗(1-X)

$10,000∗X-$40,000∗X+$40,000 = -$100,000∗X-$600,000∗X$600,000

-$30,000∗X+$700,000∗X = $600,000-$40,000

$670,000∗X = $560,000

X = $560,000/$670,000

X = 0.836

ABC will be indifferent between the two alternatives if the probability that XYZ will offer a competing product is estimated to be 0.836.

ABC should invest in the addition if the probability that XYZ will offer a competing product is estimated to be less than 0.836.

7 0

3 years ago

Safeco’s current assets total to $20 million versus $10 million of current liabilities, while Risco’s current assets are $10 mil

dlinn [17]

Answer:

b. The transactions would lower Safeco's financial strength as measured by its current ratio but raise Risco's current ratio

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities

So,

For Safeco, the current ratio would be

= $20 million ÷ $10 million

= 2 times

And for Risco, the current ratio would be

= $10 million ÷ $20 million

= 0.5 times

After borrowing, the current ratio would be

The current assets and the current liabilities would be increased by $10 million in each side.

For Safeco, the current ratio would be

= $30 million ÷ $20 million

= 1.5 times

And for Risco, the current ratio would be

= $20 million ÷ $30 million

= 0.67 times

By comparing the current ratio, we get to know that The Safeco current ratio would be decreased whereas, the Risco current ratio is increased

Hence, option b is correct

4 0

3 years ago

Suppose that Billy McGee owns the Internet domain www.ironmaiden.com. Iron Maiden, the legendary British heavy metal band, was g

Eduardwww [97]

Answer:

B

Explanation:

Coase theorem states that in a situation of conflicting property right . the trading parties should be able to arrive at a mutually benefiting term that should cover the the cost and other underlying value of the property involved.

In the scenario above , for Billy McGee to retain the domain name as the WIPO has already given the right to Iron maiden , he will have to pay iron maiden more than the value to iron maiden and less than the value to him so that the two can mutually benefit from the transaction

5 0

3 years ago

A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5

nikdorinn [45]

Answer:

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Question : A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36. SAMPLE 1 2 3 4 5 6 7 8 9 10 5 6 9 10 9 10 9 12 8 9 8 9 9 8 12 11 9 9 6 10 6 8 5 7 10 8 10 9 4 12 4 7 3 8 8 6 12 10 4 11 5 4 2 9 8 6 8 6 5 7 Using information from the above table: Calculate the standard deviation of the sample means, σ×. Determine the control limits for the mean chart, using A2 and σ× if z=3. Determine the control limits for the range chart. Construct mean (using A2) and range control charts by using information from (ii) and (iii). Comment on your results.

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Asked Apr 22, 2020

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Question :

A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36.

SAMPLE

1

2

3

4

5

6

7

8

9

10

5

6

9

10

9

10

9

12

8

9

8

9

8

12

11

9

6

10

6

8

5

7

10

8

10

9

4

12

4

7

3

8

6

12

10

4

11

5

4

2

9

8

6

8

6

5

7

Using information from the above table:

Calculate the standard deviation of the sample means, σ×.

Determine the control limits for the mean chart, using A2 and σ× if z=3.

Determine the control limits for the range chart.

Construct mean (using A2) and range control charts by using information from (ii) and (iii).

Comment on your results.

check_circle

Expert Answer

Step 1

Note- We’ll answer the first three subparts of the question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.

Given data,

Samples

Observation

1

2

3

4

5

6

7

8

9

10

1

5

6

9

10

9

10

9

12

8

9

2

8

9

8

12

11

9

6

10

3

6

8

5

7

10

8

10

9

4

12

4

7

3

8

6

12

10

4

11

5

4

2

9

8

6

8

6

5

7

Step 2

The method of standard deviation is similar to the population standard deviation.

Operations Management homework question answer, step 2, image 1

The standard deviation of the sample mean can be calculated by the following formula.

Operations Management homework question answer, step 2, image 2

On substituting the given value in the formula.

Operations Management homework question answer, step 2, image 3

Hence, the standard deviation for the sample mean is 0.60

Step 3

Ans 2:

(x-bar) is calculated by calculating the average of given numbers in a column and Range is calculated by subtracting the largest value from the smallest value.

Samples

Observation

1

2

3

4

5

6

7

8

9

10

1

5

6

9

10

9

10

9

12

8

9

2

8

9

8

12

11

9

6

10

3

6

8

5

7

10

8

10

9

4

12

4

7

3

8

6

12

10

4

11

5

4

2

9

8

6

8

6

5

7

5.6

6.8

5.6

8.4

9.4

8.2

9.6

9.2

5.4

9.8

Range R

(8-4)

= 4

(9-4)

= 5

(9-2)

= 7

(10-7)

= 3

(12-8)

= 4

(11-6)

= 5

(12-8)

= 4

(12-6)

= 6

(8-4)

= 4

(12-7)

= 5

...

Explanation:

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8 0

3 years ago

List three things you should look for when hiring a tax professional.

Alja [10]

They're qualified and have the right certifications. ...

They're available all year. ...

They understand your financial goals. ...

8 0

2 years ago