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klasskru [66]
3 years ago
14

The defect rate for data entry of insurance claims at Sadegh Kazemi Insurance Co. has historically been about 1.50​%. This exerc

ise contains only parts​ a, b,​ c, d, and e. ​a) If you wish to use a sample size of 200​, the 3​-sigma control limits are​:
Business
1 answer:
AURORKA [14]3 years ago
7 0

Answer and Explanation:

Data provided in the question

defect rate i.e. \bar p = 1.50%

the sample size = n = 200

Now

S_p = \sqrt{\frac{\bar p (1 - \bar p)}{n} } \\\\= \sqrt{\frac{1.50\% (1 - 1.50\%)}{200} }

= 0.008595057

Now the 3 sigma control limits is

UCL_p = \bar p + 35p

= 0.015 + 3 (0.008595057 )

= 0.04078517

LCL_p = \bar p - 35p

= 0.015 - 3 (0.008595057 )

= 0

hence, the 3 sigma control limits are UCL 0.04078517 and LCL 0 respectively

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On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra
olga_2 [115]

Answer and Explanation:

1.1 The Journal Entry is shown below:-

a. Cash Dr, $5,400

     To Sales $5,400

(Being Sales Held is recorded)

b. Warranty Expense Dr, $330  

Estimated Warranty Liability $330

(Being warranty expense recognized is recorded)  

($5,500 × 6%)

c. Estimated Warranty Liability Dr, $435

       To Inventory $435

(Being warranty Executed is recorded)  

(29 razors × $15)

d. Cash Dr, $16,200  

       To Sales $16,200

(Being Sales Held is recorded)

e. Estimated Warranty Liability Dr, $360

        To Inventory $360

(Being Warranty Executed is recorded)

(24 × $15)

f. Warranty Expense Dr, $972

           To Estimated Warranty Liability $972

(Being warranty expense recognized is recorded)

($16,200 × 6%)

2. The computation of warranty expense is reported for November 2016 and December 2016 is shown below:-

Warranty Expense for Nov 2016 = $5,500 × 6%

= $330

Warranty Expense for Dec 2016 = $16,200 × 6%

= $972

3. The computation of warranty expense is reported for January 2017 is given below:-

Warranty Expense for Jan 2017 =$10,800 × 6%

= $648

4. The computation of balance of the Estimated Warranty Liability account as of December 31, 2016 is given below:-

Balance of Estimated Warranty Liability on 31 Dec 2016 = Estimated Warranty Liability For Nov 2016 + Estimated Warranty Liability For Dec 2016 - Warranty Claim in Dec 2016

= $330 + $972 - $648

= $654

5. The computation of balance of the Estimated Warranty Liability account as of December 31, 2017 is given below:-

Balance of Estimated Warranty Liability on 31st Jan 2017 = Balance of Estimated Warranty Liability on 31 Dec 2016 + Estimated Warranty Liability for Jan 2017 - Warranty Claim in Jan 2017

= $654 + $648 - (29 × $15)

= $654 + $648 - $435

= $867

6 0
3 years ago
Your boss has purchased a new laptop for business use and has asked you to make sure the data he plans to store on the laptop is
wlad13 [49]

Answer:

A. Use BitLocker Encryption with the TPM chip

B. Secure Boot option

Explanation:

Trusted Platform Module or TPM chip is a tool used to produce reliable and unusual cryptographic codes and save them in an encrypted form to be utilized to validate hardware accessories. The cryptographic systems are encrypted and can be decrypted only by the TPM chip, which designed and encrypted them. <em>BitLocker</em> software uses a TPM chip to control the encryption of the computer data. Since the key saved in the TPM is distinctive, the BitLocker software can quickly verify the encrypted TPM and do not pass the decryption to another computer.

The method of Secure Boot is where the Operating System boot pictures and code are verified against the hardware before they are authorized to be used in the actual boot process.

If my boss uses both the encryption and secure boot, the data will become secure.

4 0
3 years ago
Dehnert Midwifery's cost formula for its wages and salaries is $2,030 per month plus $409 per birth. For the month of May, the c
notsponge [240]

Answer:

The Answer is A. $47,838.

Explanation:

8 0
3 years ago
What is one action an employer can take to lower wage levels?
Nastasia [14]
The right answer for the question that is being asked and shown above is that: "c. Replace some workers with machines." one action an employer can take to lower wage levels is that <span>c. Replace some workers with machines.</span>
7 0
3 years ago
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the
Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.</em>

<em> According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em>

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

<em>The capital asset pricing model (CAPM)</em>: relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0
3 years ago
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