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sdas [7]
4 years ago
14

Suppose that you are responsible for making arrangements for a business convention and that you have been charged with choosing

a city for the conven- tion that has the least expensive hotel rooms. You have narrowed your choices to Atlanta and Houston. The file named Hotel contains samples of prices for rooms in Atlanta and Houston that are consistent with the results reported by Smith Travel Research (smart Money, March 2009). Because considerable historical data on the prices of rooms in both cities are available, the population standard deviations for the prices can be assumed to be $20 in Atlanta and $25 in Houston. Based on the sample data, can you conclude that the mean price of a hotel room in Atlanta is lower than one in Houston

Business
1 answer:
Valentin [98]4 years ago
5 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Like many college students, Bernadette applied for and got a credit card that has an annual percentage rate (APR) of 15%. The fi
Dovator [93]

Answer:

It would take Bernadette approximately <u>33 months</u> to completely pay off the stereo system.

Explanation:

Since it is assumed that Bernadette makes her payment when she sees her statement at the end of each month,  we use the formula for calculating the present value (PV) of an ordinary annuity to determine the number of months as follows:

PV = M * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the new stereo system = $400

M = minimum monthly payment = $15

r = monthly interest rate = 15% / 12 = 0.15 / 12 = 0.0125

n = number of months = n

Substitute the values into equation (1) and solve for n as follows:

400 = 15 * ((1 - (1 / (1 + 0.0125))^n) / 0.0125)

400 / 15 = (1 - (1 / 1.0125)^n) / 0.0125

26.6666666666667 * 0.0125 = 1 - (1 / 1.0125)^n

0.333333333333334 = 1 - 0.987654320987654^n

0.987654320987654^n = 1 - 0.333333333333334

0.987654320987654^n = 0.666666666666666

Loglinearizing both sides, we have:

n * log0.987654320987654 = log0.666666666666666

n * (-0.00539503188670629) = -0.176091259055682

n = -0.176091259055682 / -0.00539503188670629

n = 32.64, or 33 approximately.

Therefore, it would take Bernadette approximately <u>33 months</u> to completely pay off the stereo system.

6 0
4 years ago
The Horizon Company will invest $84,000 in a temporary project that will generate the following cash inflows for the next three
GarryVolchara [31]

Answer:

The net present value is $3,624

Explanation:

Net present value is the sum of all cash inflows and outflows in present value terms. It is calculated by discounting each cash flow with given interest rate and for specified period of time.

Net present value of this project is $3,623.84

All the workings and calculations are made in an MS Excel File which is attached with this answer.

Download xlsx
7 0
3 years ago
Three airlines account for most of the air traffic in and out of a local city. If the three airlines joined together in setting
kykrilka [37]

Answer:

The options for this question are the following:

A. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.

B. monopolistic competitors, as each firm would have to differentiate its airline services from its rivals.

C. perfect competitors, as each firm would sell travel services at the same fares as the other airlines.

D. kinked demand curve oligopolists.

The correct answer is A. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.

Explanation:

A cartel is a formal agreement between two or more companies in order to reduce competition between them and increase their profits or joint profits.

A cartel is the formal expression of a collusion agreement. This implies that firms explicitly agree on the level of certain competitive variables such as price, quantity, distribution of customers or areas, etc.

The goal of cartel members is to increase joint benefits at the cost of reducing or eliminating competition. In this way, it is intended to act as a monopoly by increasing prices, reducing the quantity and increasing the profits obtained from sales.

8 0
3 years ago
Can the government require a company to recall a product if they believe it is harmful to consumers?
Ymorist [56]

Answer:

A.Yes. They have the power to remove it if they believe it’s harmful.

Explanation:

When the government have reasons to believe that a product is potentially harmful to consumers and or buyers, they have the right to require a company to recall a product, if they believe it is harmful to consumers, because it is then the governments responsibility to protect the public.

3 0
3 years ago
The discount rate is the interest rate on loans that the federal reserve makes to banks. banks occasionally borrow from the fede
Rainbow [258]
<span> for short-term (typically overnight) loans. when the federal reserve uses open-market operations to sell government bonds</span>
6 0
3 years ago
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