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Serga [27]
3 years ago
5

Assume that the relationship between test scores and the student-teacher ratio can be modeled as a linear function with an inter

cept of 698.9 and a slope of (-2.28). A decrease in the student teacher ratio by 2 will:A) reduce test scores by 2.28 on averageB) result in a test score of 698.9C) reduce test scores by 2.56 on averageD) reduce test scores by 4.56 for every school district
Business
1 answer:
lianna [129]3 years ago
5 0

Answer:

The correct option is D) reduce test scores by 4.56 for every school district.

Explanation:

Based on the information in the question, the relationship between test scores and the student-teacher ratio can be mathematically written as follows:

x = 698.9 - 2.28y .................... (1)

Where,

x = test scores

y = student-teacher ratio

The a slope of (-2.28) indicates the amount by which x will change whenever there is a change in y.

Therefore, when there is a decrease in the student teacher ratio by 2 (i.e. y = 2), we will have:

Change in x = -2.28 * 2 = -4.56

The negative sign therefore indicate that the test scores will reduce by 4.56 for every school district. Therefore, the correct option is D) reduce test scores by 4.56 for every school district.

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High-Low Method
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Answer:

Requirement 1

<em>High Point = March</em>

<em>Low Point = January</em>

Requirement 2

<em>Variable rate for tanning $0.41 per tanning appointment </em>

<em>Fixed cost per month $1,457</em>

Requirement 3

<em>Total Cost = $1,457 + $0.41 × Activity Level</em>

Requirement 4

<em>Total predicted cost for September $ 2,482</em>

<em>Total fixed cost for September $1,457</em>

<em>Total predicted variable cost for September $1,025</em>

Explanation:

Requirement 1

High Point = March

Low Point = January

Requirement 2

<em>Variable Cost = Difference in Overhead Cost (High - Low)/ Difference in Activity (High - Low)</em>

                       = $2,810 - $1,744 / 3,300 - 700

                       = $1,066/ 2,600

                       = $0.41

<em>Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.</em>

Lets Select, January 700 $1,744

Fixed Cost Component = Total Overhead Cost - Variable Cost × Selected Activity.

                                       =  $1,744 - $0.41 × 700

                                       =  $1,457

Requirement 3

Cost formula for tanning services

<em>Total Cost = Fixed Cost + Variable Cost</em>

thus,

Total Cost = $1,457 + $0.41 × Activity Level

Requirement 4

Total Cost = $1,457 + $0.41 × Activity Level

                 =  $1,457 + $0.41 × 2,500

                 = $ 2,482

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Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV is a capital budgeting method used to determine profitable investments

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The customer should be communicated of the estimated time that will be taken to revert back with the correct answer to the question. It is highly recommended that no guesses are made when you don't know a certain answer.

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