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o-na [289]
4 years ago
8

American energy review reported that 27% of american households burn wood. if a random sample of 500 american households is sele

cted find the mean, variance, and standard deviation of the number of households that burn wood.
Business
1 answer:
Juli2301 [7.4K]4 years ago
4 0

This is binomial distribution problem. <span>
We are given that:</span>

n = sample size = 500

p = proportion which burns wood = 0.27,

q = proportion which does not burn wood = 1-p = 0.73 

<span>
A. Mean is calculated as:</span>

Mean = n*p

Mean = 500 * 0.27

Mean = 135 

<span>
B. Variance is calculated as:</span>

Variance = n*p*q

Variance = 500*0.27*0.73

Variance = 98.55 

<span>
C. Standard deviation is calculated as:</span>

Standard deviation = sqrt(variance)

Standard deviation = sqrt(98.55)

<span>Standard deviation = 9.93</span>

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How do you make decision for the yourself?what are the things that you consider before making a decision​
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3 years ago
Goodwin Technologies, a relatively young comply, has been wildly successful but has yet to pay a dividend. An analyst forecasts
aleksandrvk [35]

Answer:

Horizon value is $22.59  

Intrinsic value is $16.32

Explanation:

D3=1.5000

D4=1.5000*(1+7.8%)

D4=1.6170

D5=1.6170 *(1+7.8%)

D5=1.7431

D6=1.7431 *(1+3.42%)

D6=1.8027

horizon value is the same as the price of the stock(the terminal value) using the dividend in year 6

P=D5*(1+g)/(r-g)

D5=$1.7431

g is the constant growth rate of 3.42%

r is the required rate of return of 11.40%

P=$1.7431*(1+3.42%)/(11.40%-3.42%)

P=$1.8027/0.0798 =$22.59  

Goodwill Technologies share price is $22.59

Current intrinsic value is the dividends payable in relevant years plus the horizon value discount to present value as follows:

Present value of D3                =1.5000/(1+11.40%)^3=$1.0850

present of value of D4            =1.6170 /(1+11.40%)^4=$1.0500

present value of D5                 =1.7431 /(1+11.40%)^5=1.0160

present value of horizon value=$22.59/(1+11.40%)^5=13.1671

Total present values                                                       $16.32                                      

8 0
3 years ago
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