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
Answer: b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.
Explanation:
Diversifiable risk is a risk that a particular security has or which can be seen in a certain sector. Market risk occurs when there's possibility that a particular investor will make loss due to certain factors which affects the entire market.
In the above scenario, the most likely to occur will be that the diversifiable risk of the portfolio will likely decline, but the expected market risk should not change.
It should be noted that diversification won't eliminate market risk. When more stocks are added, this brings about decline in diversification risk but market risk won't change.
Based on the fact that the non-taxable life insurance benefit is $400, the amount that Joseph would have to earn is $555.56.
<h3>How much should Joseph earn?</h3>
This can be found as:
= Non-taxable benefit amount / (1 - tax bracket rate)
Solving gives:
= 400 / (1 - 28%)
= 400 / 0.72
= $555.56
Find out more on non-taxable benefits at brainly.com/question/1581158.
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Answer:
Please see explanation.
Explanation:
Once the factory overhead rate is determined using the estimated amount of factory overhead and estimated base, it is used to charge overhead cost to the jobs, products or work performed.
Since, not all overhead costs are known at the time of making the product, (such as electricity bill is received after the month end) therefore, the estimated rate is used to apply the overhead cost to the job or product using actual activity level. This is called absorption or application of overheads to the products / jobs.
Due to this, at each period end, the management calculates and compares the actual overhead cost with the applied overhead cost and determine the over or under applied overheads.
Answer:
The product Deluxe sgould not be processed further.
Explanation:
Giving the following information:
Sales - Value without Processing - Additional Costs - Sales Value after processing
Premier: $1,350 - $900 - $2,700
Deluxe: 450 - 225 - 630
Super: 900 - 450 - 1,800
Basic: 90 - 45 - 180
We need to calculate the contribution margin of each product before and after processing.
<u>Premier:</u>
Before= 1,350
After= 2,700 - 900= $1,800
It is more profitable to continue processing.
<u>Deluxe:</u>
Before= 450
After= 630 - 225= $405
It is more profitable to sell before processing.
<u>Super:</u>
Before= 900
After= 1,800 - 450= $1,350
It is more profitable to continue processing.
<u>Basic:</u>
Before= 90
After= 180 - 45= 135
It is more profitable to continue processing.
