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Charra [1.4K]
3 years ago
7

Jim Bob Airlines has one 57 seat plane. On its last five flights it had 44 passengers from MSY to DFW, 49 passengers from DFW to

OKL, 36 passengers from OKL to TUL, 30 passengers from TUL to FWB, and 49 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
Business
1 answer:
ahrayia [7]3 years ago
5 0

Solution:

Total number of seats in the plane = 57

From MSY to DFW = 44 passangers

From DFW to OKL = 49 passangers

From OKL to TUL = 36 passangers

From TUL to FWB = 30 passangers

From FWB to MYS = 49 passangers

So the average number of seats filled per flight

                                                                = (44+49+36+30+49) / 5

                                                                 = 208/5

                                                                  = 41.6

For the last 5 flights Load factor = Average number of seats filled per flight / Total number of seats in the plane

= 41.6 / 57

= 0.7298

= 72.9%

So for the last five flights the load factor was 72.9%

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Answer: Option A

<u>Explanation:</u>

The production utilization is the use of the productive capacity of the firm. It shows the extent to which the production capacity of the firm can be used to produce the goods in the firm.

It shows the relationship between the output that has been produced with the equipment that has been installed in the enterprise. If the capacity of the firm is totally utilised, it is very efficient and can be used to produce the maximum amount of goods of that enterprise.

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3 years ago
What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and
siniylev [52]

Answer:

a. The expected return on the equally weighted portfolio of the three stocks is 16.23%.

b. The variance of the portfolio is 0.020353.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

This can be calculated using the following 2 steps:

Step 1: Calculation of expected returns under each state of the economy

Expected return under a state of the economy is the sum of the multiplication of the percentage invested in each stock and the rate of return of each stock under the state of the economy.

This can be calculated using the following formula:

Expected return under a state of the economy = (Percentage invested in Stock A * Return of Stock A under the state of the economy) + (Percentage invested in Stock B * Return of Stock B under the state of the economy) + (Percentage invested in Stock C * Return of Stock C under the state of the economy) …………… (1)

Since we have an equally weighted portfolio, this implies that percentage invested on each stock can be calculated as follows:

Percentage invested on each stock = 100% / 3 = 33.3333333333333%, or 0.333333333333333

Substituting the relevant values into equation (1), we have:

Expected return under Boom = (0.333333333333333 * 0.09) + (0.333333333333333 * 0.03) + (0.333333333333333 * 0.39) = 0.17

Expected return under Bust = (0.333333333333333 * 0.28) + (0.333333333333333 * 0.34) + (0.333333333333333 * (-0.19)) = 0.143333333333333

Step 2: Calculation of expected return of the portfolio

This can be calculated using the following formula:

Portfolio expected return = (Probability of Boom Occurring * Expected Return under Boom) + (Probability of Bust Occurring * Expected Return under Bust) …………………. (2)

Substituting the relevant values into equation (2), we have::

Portfolio expected return = (0.71 * 0.17) + (0.29 * 0.143333333333333) = 0.162266666666667, or 16.2266666666667%

Rounding to 2 decimal places as required by the question, we have:

Portfolio expected return = 16.23%

Therefore, the expected return on the equally weighted portfolio of the three stocks is 16.23%.

b. What is the variance of a portfolio invested 16 percent each in A and B and 68 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)

This can be calculated using the following 3 steps:

Step 1: Calculation of expected returns under each state of the economy

Using equation (1) in part a above, we have:

Expected return under Boom = (16% * 0.09) + (16% * 0.03) + (68% * 0.39) = 0.2844

Expected return under Boom = (16% * 0.28) + (16% * 0.34) + (68% * (-0.19)) = -0.03

Step 2: Calculation of expected return of the portfolio

Using equation (2) in part a above, we have:

Portfolio expected return = (0.71 * 0.2844) + (0.29 *(-0.03)) = 0.193224

Step 3: Calculation of the variance of the portfolio

Variance of the portfolio = (Probability of Boom Occurring * (Expected Return under Boom - Portfolio expected return)^2) + (Probability of Bust Occurring * (Expected Return under Bust - Portfolio expected return)^2) …………………….. (3)

Substituting the relevant values into equation (3), we have:

Variance of the portfolio = (0.71 * (0.2844 - 0.193224)^2) + (0.29 * (-0.03- 0.193224)^2) = 0.020352671424

Rounding to 6 decimal places as required by the question, we have:

Variance of the portfolio = 0.020353

Therefore, the variance of the portfolio is 0.020353.

Download pdf
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Answer:

The correct option is;

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Generally Accepted Accounting Principles (GAAP) are the guidelines with regards to the standards, principles, practices and procedures of financial statement compilation by accountants issued by the Financial Accounting Standards Board (FASB). It is a requirement that all publicly quoted companies make use of GAAP for their financial compilation.

GAAP comprises of the generally accepted accounting records reporting and recording methods as well as policy board standards of accounting procedures.

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Answer:

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