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3 years ago

For which of the following random variables would the use of a Normal distribution as a model be a clear error?

Business

1 answer:

Zinaida [17]3 years ago

8 0

Answer:

A. The number of houses that an individual owns

Explanation:

The use of normal distribution in option A would produce an error. That is the number of houses individuals own.

We know that people can own 1 house or more than 1 house or no house at all. But a person can never be said to have less than 0 houses.

Option a is going to be skewed positively. Using Normal distribution would give us an error.

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Martinez Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $

Artemon [7]

Answer:

Martinez Company

a) Journal Entries

Jan. 2, 2020:

Debit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

Credit Sales Revenue $639,100

To record the sale of goods on account, with trade terms, 5 days $9,100, net 30.

Debit Cost of goods sold $480,000

Credit Inventory $480,000

To record the cost of goods sold.

Jan. 28, 2020:

Debit Cash $639,100

Credit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

To record the full receipt of cash on account and the revision of the cash discounts not taken.

Explanation:

a) Data and Analysis:

Jan. 2, 2020:

Accounts Receivable $630,000 Cash Discounts $9,100 Sales Revenue $639,100, terms, 5 days $9,100, net 30.

Cost of goods sold $480,000 Inventory $480,000

Jan. 28, 2020:

Cash $639,100 Accounts Receivable $630,000 Cash Discounts $9,100

7 0

3 years ago

Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Fact

Varvara68 [4.7K]

Answer:

Eclipse Solar Company

a. Factory overhead rate for Factory 1 is $23.13

b. Factory overhead rate for Factory 2 is $35.20

c. Journal Entries:

August 31:

Debit Work in Process Factory 1 $1,491,885

Credit Factory Overhead $1,491,885

Debit Work in Process Factory 2 $3,696,000

Credit Factory Overhead $3,696,000

d. Balances of the factory overhead accounts:

Factory 1 $23,915 underapplied

Factory 2 $89,700 overapplied

Explanation:

a) Data and Calculations:

Factory 1 Factory 2

Overhead application basis machine hrs direct labor hrs

Estimated overhead costs $18,500,000 $44,000,000

Direct labor hours 800,000

Factory overhead rate $23.125

Machine hours 1,250,000

Factory overhead rate $35.20

August:

Actual overhead costs $1,515,800 $3,606,300

Actual direct labor

hours for August 64,500

Actual machine hours for August 105,000

Application of overhead to production for August:

Factory 1 = $1,491,885 (64,500 * $23.13)

Factory 2 $3,696,000 (105,000 * $35.20)

Factory overhead accounts:

Factory 1 Factory 2

Actual overhead costs $1,515,800 $3,606,300

Applied overhead costs $1,491,885 $3,696,000

Under/(Over)-Applied $23,915 $89,700 Overapplied

4 0

3 years ago

Which of the following are reasons the aggregate demand curve is downward sloping? Check all that apply.

Lelechka [254]

Answer:

The correct answer is B

Explanation:

Aggregate demand curve states the number of demands for the goods and services at different price levels. The demand curve which is downward states that with the dropping or decrease in the price level of a commodity, leads to increase in demand.

There are 3 reasons for the aggregate demand curve is downward sloping. and the reasons are interest-rate effect,net exports effect and wealth effect.

5 0

3 years ago

If the performance obligation is not highly dependent on, or interrelated with, other promises in the contract, then each perfor

Cloud [144]

Answer:

Yes, it is<u> true</u> that If the performance obligation is not highly dependent on, or interrelated with, other promises in the contract, then each performance obligation should be accounted for separately.

Explanation:

A performance obligation exists when an entity provides a distinct product or service.

It is a promise to provide a “distinct” good or service to a customer.

When there are multiple promises in a contract, companies will need to determine whether those goods or services are distinct, and therefore separate performance obligations for to avoid ambiguity.

Performance obligations in each contract can be identified by a company by first considering whether or not the goods or services are distinct.

If distinct, a customer can benefit from the good or service on its own because the good or service is separable from the other goods or services in a contract.

7 0

3 years ago

A client invests $100,000 in a tax shelter as a limited partner, giving him a 10% interest in the program. However, the general

sergeinik [125]

Answer: 0

Explanation:

From the question, we are informed that a client invests $100,000 in a tax shelter as a limited partner, giving him a 10% interest in the program but that, the general partners cannot meet the program's expenses.

We are further told that a mortgage balance of $3 million remains, and the property of the program is liquidated for $1 million. The investor get back nothing from his original investment

This is because a limited partner will not get return of his investment. The creditors of the partnership have to be paid first in a failed program.

3 0

3 years ago