Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
![E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162](https://tex.z-dn.net/?f=E%28P%29%3D%5B0.39%2A%28-23%2C000%29%2B0.24%2A8%2C700%2B0.12%2A31%2C000%2B0.25%2A0%5D-10%2C000%5C%5C%5C%5CE%28P%29%3D%5B-8%2C970%2B2%2C088%2B3%2C720%2B0%5D-10%2C000%5C%5C%5C%5CE%28P%29%3D-3%2C162-10%2C000%5C%5C%5C%5CE%28P%29%3D-13%2C162)
Answer:
Increase spending and shift aggregate demand to the right in an effort to reach full employment output.
Explanation:
The goal of expansionary fiscal policy with respect to output is to reduce the problem of unemployment. In order to let this work, the government must increase its spending or Decrease the tax rate. This will make the Aggregate Demand Curve to the right which is a proof of increasing real Gross Domestic Product (GDP) as well as gradual reduction of unemployment.
Industrialized former colonial states that dominate the world economic system: Core Countries
Answer:
d. credit to Salaries Payable for $8,600
Explanation:
<em>The journal entry would be as follows.</em>
Magnum Company
Payroll Journal
Particulars Debit Credit
Salaries $12,000 Debit
Federal Income taxes withheld 2,500 Credit
Social Security & Medicare taxes withheld 900 Credit
Salaries Payable $8,600 Credit
Unemployment taxes are paid by the employer . They are not deducted from the employees' wages . They include both the federal and state taxes.Social Security & Medicare taxes withheld $ 900 include the Social Security & Medicare taxes $ 900.
