Answer:
≈ 25%
Explanation:
Given data:
Cpk = 0.22
Determine The percentage of production that falls beyond the specification limit ( assuming normal distribution )
first calculate the value of Z ;
Cpk = Z /3
hence Z = Cpk * 3 = 0.22 * 3 = 0.66
The percentage of the production can be determined by
( 1 - value obtained from the standard normal table for the value of Z =0.66 )
1 - 0.7454 = 0.2546 ≈ 25%
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Answer: $0
Explanation:
The cyclical deficit occurs when there is a different between the actual output and the potential output. This is why it is calculated by the formula:
= Tax rate * ( Potential output - Actual output)
As the economy here is at the potential output, it means that both the actual and the potential output are the same. In such a case, there would be no cyclical deficit.
This can be proven by the formula:
= Tax rate * ( Potential output - Actual output)
= 30% * (0)
= $0
Answer:
The undervaluation penalty is $560
Explanation:
Solution
Under valuation penalty applied when a person valued assets understated to save tax.
The undervaluation reduces the tax and hence comes with accuracy related penalty.
From the example, Tim undervalued the gift of $7,000 which is valued at $15,000 by IRS.
The deduction is undervalued for more than 150% and hence penalty is assessed. this is so because the income tax valuation is lower than 40%, so the penalty rate is 20%
Thus,
The calculation of overvaluation penalty is given below:
Undervaluation = $8000
Tax rate = 35%
Tax amount = $2,800
Penalty rate = 20%
Penalty on undervaluation is =$560
Therefore, the undervaluation penalty is $560
Answer:
left; rises
Explanation:
Bonds and Stocks are different options for investment. When stock prices becomes volatile, People will become more interested to put their investment ins stocks. This will make the amount of people who invested in bonds decreased, hence causing the demand for bonds shift to the less.
Since the demand decreased, the issuer of the bond need to do something to attack investors to purchase it. This is why they will increase the interest rates for their bonds. Higher interest = more profit for the bond purchaser.
