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dimaraw [331]
3 years ago
9

A national survey conducted in 2011 among a simple random sample of 1,507 adults shows that 56% of americans think the civil war

is still relevant to american politics and political life. conduct a hypothesis test at significance level α=0.05 to determine whether these data provide strong evidence that a majority of american adults think the civil war is still relevant.
Business
1 answer:
kifflom [539]3 years ago
4 0

Answer:

Null : x = 0.56 ; Alternate : x < 0.56

t = (x - 0.56) / (s / √n) : If < tabulated t at α =0.05 , null hypothesis  accepted

If t > tabulated t at α =0.05 , alternate hypothesis is accepted

Explanation:

Hypothesis Testing is used to test the statistical validity of a statement. Null Hypothesis is the neutral hypothesis, signifying equality to the tested value. Alternate Hypothesis is the contradictory hypothesis, signifying deviation from the tested value.

To test 'Proportion of people giving importance to civil rights in american political life' : Let these proportion be = x

<u>Null</u> Hypothesis (H0) : x = 56% = 0.56

<u>Alternate </u>Hypothesis (H1) : x < 56 % , i.e x < 0.56

't' statistic is calculated based on sample : ( x' - u ) / (s / √n)

where : x' = sample mean , u = population hypothesised mean = 0.56 , s = sample standard deviation , n = sample size

If this calculated 't' < tabulated 't' at significance level α =0.05 ; null hypothesis is accepted. It implies average people thinking as mentioned = 56 % (majority)

If this calculated 't' > tabulated 't' at significance level α =0.05 ; alternate hypothesis is accepted. It implies average people thinking as mentioned < 56% (not majority)

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Answer:

NPV = $11,525.6

Probability the project has negative NPV: 30%

Explanation:

1. When there is no risk:

It is given that the initial British corporate tax rate on income earned by US firms is 40%.

The initial investment: $200,000

<em>The cash flow of Hoosier can be described as following: </em>

+) The addition to the cash flow includes:

  • Pretax earnings: £300,000

+) The subtraction to the cash flow includes:

  • Tax on income (40%): £300,000 x 40% = £120,000

=> The cash flow = 300,000 - 120,000 = £180,000 = 180,000 x $1,6 = $288,000

=> The Present value of the project after one year is:

<em>PV = Cash flow/ [(1 + required rate of return)^ 1 year]</em>

<em>= 288,000/ (1+0.18) = $244,068</em>

=> The Net Project Value is:

<em>NPV1 = ∑PV - Initial investment = 244,068 - 200,000 = $44,068</em>

2. Case 2: The British economy may weaken

The initial British corporate tax rate on income earned by US firms is 40%.

The initial investment: $200,000

<em>The cash flow of Hoosier can be described as following: </em>

+) The addition to the cash flow includes:

  • Pretax earnings: £200,000

+) The subtraction to the cash flow includes:

  • Tax on income (40%): £200,000 x 40% = £80,000

=> The cash flow = 200,000 - 80,000 = £120,000 = 120,000 x $1,6 = $192,000

=> The Present value of the project after one year is:

<em>PV = Cash flow/ [(1 + required rate of return)^ 1 year]</em>

<em>= 192,000/ (1+0.18) = $162,712</em>

=> The Net Project Value is:

<em>NPV 2= ∑PV - Initial investment = 162,712 - 200,000 = -$37,288</em>

<em />

3. Case 3: The British corporate tax rate on income earned by U.S. firms may increase from 40 to 50 percent

British corporate tax rate on income earned by US firms is 50%.

The initial investment: $200,000

<em>The cash flow of Hoosier can be described as following: </em>

+) The addition to the cash flow includes:

  • Pretax earnings: £300,000

+) The subtraction to the cash flow includes:

  • Tax on income (50%): £300,000 x 50% = £150,000

=> The cash flow = 300,000 - 150,000 = £150,000 = 150,000 x $1,6 = $240,000

=> The Present value of the project after one year is:

<em>PV = Cash flow/ [(1 + required rate of return)^ 1 year]</em>

<em>=  240,000/ (1+0.18) = $203,390</em>

=> The Net Project Value is:

<em>NPV3= ∑PV - Initial investment = 203,390 - 200,000 = $3,390</em>

The probability of the case there is no risk = 100% - probability of Case 2 - probability of case 3 = 100% - 30% - 20% = 50%

The expected value of the project’s net present value is:

<em>NPV = probability Case 1 x NPV1 + probability Case 2 x NPV2 + probabilityCase 3 x NPV3 </em>

= 50% x 44,068 + 30% x (-37,288) + 20% x 3,390= $11,525.6

<em>As only the NPV of case 2 are negative, so that the probability that the project will have a negative NPV = probability case 2 = 30%</em>

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Sampson Company's accounting records show the following at the year ending on December 31, 2010: Purchase Discounts $ 5,600 Frei
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Answer:

The correct answer is D.

Explanation:

Giving the following information:

Purchase Discounts $ 5,600 Freight - in 7,800 Purchases 200,010 Beginning Inventory 23,500 Ending Inventory 28,800 Purchase Returns 6,400 Using the periodic system

Purchased= 200,010 + 7,800 - 5,600 - 6,400= $195,810

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Brandeis Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each dep
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Answer:

a. $90,875

Explanation:

Provided information we have,

Individually allocated cost

S1  = $62,000    S2 = $102,000     P1 = $162,000         P2 = $142,000

Firstly under step method cost allocation will be from S1 to S2, P1, P2

Ratio = 0.7 : 0.1: 0.2

Thus allocated to S2 = $62,000 \times 0.7 = $43,400

P1 = $62,000 \times 0.1 = $6,200

P2 = $62,000 \times 0.2 = $12,400

Total cost of S2 = $102,000 + $43,400 = $145,400

Ratio between S1: P1: P2 = 0.2:0.3:0.5

Amount allocated to P1 =  $145,400 \times \frac{0.3}{0.8}

= $54,525

Amount allocated to P2 =  $145,400 \times \frac{0.5}{0.8}

= $90,875

Therefore, correct option is

a. $90,875

4 0
3 years ago
Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1
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Answer:

$48,000

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= $28,000 + $64,000 + $20,000

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Average cost per unit = $112,000/700 = $160

Ending inventory = Total units - units sold

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Therefore, cost of ending inventory = Ending inventory × Average cost per unit

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= $48,000

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E. decrease in both number of shares outstanding and the market price per share
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