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Suppose that the sample standard deviation is used as an estimate of the population standard deviation in developing the formula for n. If the sample standard deviation s = 40, how many subjects should be tested in order to achieve a 95% confidence interval with a margin of error of 15?
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A manufacturing company that has a high investment in equipment and physical inventory might best use which of the following inventory methods to generate the lowest income taxes? a. FIFO b. LIFO c. LIFO reserve d. Weighted-average
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Janet, Inc. is considering a project that will produce cash inflows of $35,000 a year for three years followed by $20,000 in year four. What is the internal rate of return if the initial cost of the project is $60,000? A) 14% B) 16% C) 17.8% D) 18.5% E) 22.2%
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An open economy that has free immigration and capital flows and a flexible exchange rate tends to have a _____ current account balance and _____ net capital outflow than a closed economy with capital controls and a fixed exchange rate. a. smaller; more negative b. smaller; less negative c. larger; less negative d. ...
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Which of the following elements is not considered a risk element in a business or investment? A) Adjusted basis of property to which the taxpayer contributed. B) Borrowed funds for which the taxpayer is personally liable. C) Cash. D) Borrowed funds from a lender with an interest in the investment (other than that o...
C
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A monopolist is producing a level of output at which price is 10, average revenue is 10, average total cost is 8, and marginal cost is 11. He should _____. A. increase production to maximize profit B. decrease production to maximize profit C. keep output the same to maximize profit D. shut down to minimize loss E....
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For an economist, the idea of making assumptions is generally regarded as: a) a bad idea, since doing so leads to the omission of important ideas and variables from economic models. b) a bad idea, since doing so invariably leads to data-collection problems. c) a good idea, since doing so helps to simplify the comple...
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During a sale at a department store, you purchase a pair of shoes at a price of $35. Which of the following would most likely have been true at the time you purchased the shoes? a. Your consumer surplus from purchasing the shoes was equal to the marginal benefit from the purchase b. The marginal benefit of the shoes ...
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Which of the following would not appear on a personal balance sheet? a. Home. b. Taxes owed. c. Car loan. d. College savings account. e. Stock options.
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At December 31, year, before adjusting and closing the accounts, the balances of the partnership equity accounts were as follows:   Artisan Partner $ 28,000 Base Capital Martinez Partner 40,000 Deficiency Land Partner 120,000 Thompson Partner 160,000 The partners share income and loss on a 1:1:3:5 ...
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Sheffield Corp. is planning to sell 1200 boxes of ceramic tile, with production estimated at 1270 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a r...
b
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Suppose that we have 200 outcomes, $x_1, x_2, ..., x_{200}$, equally likely to occur, with each having a probability of $0.005$. Calculate the probability that the smallest $x_i$ will be larger than $2$.
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Jasper Corporation leases its office space. The lease requires a $1,200 per month payment and the current lease is for three years with an option to renew for an additional three years. How much total expense will Jasper record if it exercises the renewal option? a. {eq}\$2,400 {/eq}. b. {eq}\$14,400 {/eq}. c. {eq...
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For a random variable that is normally distributed, with a mean of 20.0 and a standard deviation of 2.0, determine the probability that a random value is between 18.0 and 26.0.
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A manufacturer of premium wire strippers has supplied the following data: Units produced and sold.............................................140,000 Sales revenue.................................................................$1,512,000 Variable manufacturing expense.................$765,000 Fixed manufacturing e...
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A wire in the shape of a semicircle is made of a material with resistivity p. The wire has a radius of 22.5 cm and a cross-sectional area of 1.40 cm{eq}^2 {/eq}. A potential difference of 12 V is placed across the straight ends of the wire. Using calculus, find the resistance of the wire.
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Rickers Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product O66CProduct V67G Sales$37,000$42,000 Variable expenses$12,500$28,580 The fixed expenses of the entire company were $39,090. What is the break-even point for the entire company?
$81,437.5
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Find the cumulative distribution function for a random variable X having the following probability density function: {eq}f(x) = 1, \ 0<x<1 {/eq} {eq}f(x) = 2-x, \ 1 \leq x < 2 {/eq} {eq}f(x) = 0, \ otherwise {/eq}
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Find the current ratio for a firm with $35,000 in current assets and $22,000 in current liabilities. a. 1.59 b. 1.09 c. 0.63 d. 1.63
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What is the volume of the solid produced by revolving f(x)=cosx, x in [0,pi] around the x-axis?
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What is the least-squares regression equation for predicting quantity demanded in cans sold from a price change of $0.10 per can in U.S. dollars? a) y = 46.53 - 32.66x b) y = 46.53 + 32.66x c) y = 32.66 - 46.53x d) y = 32.66 + 46.53x
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Suppose that the short-run Phillips curve is given by: π = 4 - 0.75(ΝR - 6) where π is the inflation rate and ΝR is the unemployment rate. If the natural rate of unemployment is 4%, then the cost of recession is: a. 0.75 percentage points of inflation b. 2.75 percentage points of inflation c. 1.75 percentage poin...
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With initial condition $x(1)=\frac{1}{2}$, solve the differential equation $t\frac{dx} {dt}+x=t$ using Laplace transforms, given the intermediate steps $L[t\frac{dx}{dt}]=-\frac{d(sX(s)-x(0))}{ds}$ $-\frac{d(sX(s)-x(0))}{ds}+X(s)=\frac{1}{s^2}$ $-X(s) +s\frac{d{X(s)}}{ds}+X(s)=\frac{1}{s^2}$ $s\frac{d{X(s)}}{ds}=\frac{...
$x(t) = \frac{t}{2}$
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Determine whether there has been impairment of goodwill. Caroline Company acquired 100 percent of the outstanding voting common stock of Laramie Division at a price greater than book value. The amount of the premium was attributed to goodwill. The division is in its first year of operation. On December 31, 2017, the f...
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The lower of cost or market (LCM) rule is applied to each: a. lot of inventory. b. item of inventory. c. inventory group. d. subsidiary ledger.
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CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit cost structure for item no. 89: Variable manufacturing $53 Fixed manufacturing 15 Variable selling 7 Fixed selling 9 Traceable fixed administrative 2 Allocated administrative 1 The trac...
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How might higher real wages make an economy more productive? A) Real wages higher than those in other countries can attract a larger pool of workers. B) They make workers' lifestyles easier and encourage them to stay home more. C) They encourage businesses to adopt technology that increases productivity. D) They ra...
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DW Co. stock has an annual return mean and standard deviation of 15% and 38%, respectively. What is the smallest expected loss in the coming year with a probability of 5%?
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You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $240,000. The truck falls into the MACRS 7-year class, and it will be sold after 7 years for $24,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,400. The truck...
$89,032.80
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Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 40%, rd = 7%, rps = 6.5%, and rs = 11%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? Round your answer to ...
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If psychologists estimate that eighty percent of male drivers when lost continue to drive rather than asking for directions, what is the probability that, in a random sample of 100 lost male drivers, the proportion who continue to drive is less than 0.85?
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The main difference between the periodic inventory system and the perpetual inventory system is: a. Perpetual inventory systems only use estimated dates. b. Periodic inventory systems use estimated dates and perpetual inventory systems use actual dates. c. Periodic inventory systems use actual dates and perpetual in...
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Which of the following statements about the p-value approach are true? (Check all that apply. If none applies, do not check any.) A. It yields different results than the rejection region method. B. It yields the same conclusions as the rejection region method. C. It takes full advantage of the information available ...
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I would like to solve the following recurrence relation: \begin{align} T(n) & = 2T(n/2) + n\log n \\ T(1) & = 0 \\ T(2) & = 1 \end{align} I tried to solve it by substituting $n = 2^m$ and rewriting the equation as follows: $$ T(2^m) = 2T(2^{m-1}) + 2^m \log (2^m) $$ $$ T(2^m) = 2(T(2^{m-2}) + 2^{m-1} \log(2^{m-1})) ...
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If the absolute value of the slope of the demand curve is 0.25, price is $8 per unit, and quantity demanded is 12 units, then demand for this good is: a. inelastic. b. unit elastic. c. perfectly elastic. d. elastic.
a
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Suppose a monopolist faces the following inverse demand curve: P = 100 - 3Q. This firm's cost function is given by C(Q) = 10 + 5Q. What is this firm's maximum possible profit?
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If you want to be 95% confident of estimating the population mean to within a sampling error of plus or minus 35, and the standard deviation is assumed to be 80, what sample size is required?
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Dole Industries had the following inventory transactions occur during 2016: Units Cost/Unit Feb. 1, 2016 Purchase54$135 Mar. 14, 2016 Purchase93$141 May 1, 2016 Purchase66$147 The company sold 153 units at $189 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's ...
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The rate at which the electron loses its energy in a hydrogen atom is given by the relation {eq}\frac{dE}{dt} = -\frac{e^2}{8\pi \epsilon_0} \frac{v^2}{r^2} {/eq} Where E is the energy, t is the time, e is the charge of the electron, v is its velocity and r is the radius of the atom. Given that v = 1.09 x 10^{7} m/...
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Which of the following terms was adopted to replace the flawed Keynesian "fundamental theory of employment" and was used to reflect that employment was determined by the market forces of supply and demand rather than by the propensity to consume? A. Endogenous employment B. Flexible wages and prices C. Natural rate ...
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The opportunity cost of an action is the: A) the explicit cost of the action. B) the implicit cost of giving up taking the best alternative action. C) the implicit cost of giving up taking the worst alternative action. D) the explicit cost of the action and the implicit cost of giving up taking the best alternative...
B
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Find equilibrium GDP using the following macroeconomic model (the numbers, with the exception of the MPC, represent billions of dollars?): C = 1,000 + 0.85Y Consumption function I = 2,000 Planned investment function G = 1,000 Government spending function NX = -250 Net export function Y= C + I + G + NX Equilibriu...
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Given the function {eq}f(x,y) = x^2 - y^2 + 6x - 2y - 57 {/eq}, determine the point at which the function has an absolute maximum over the entire xy plane.
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A country that increases its capital stock by less than 60% from the beginning of the 20th to the beginning of the 21st century is A) China. B) Japan. C) South Korea. D) Spain.
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Find the limit of the following expression: {eq}\lim_{x \rightarrow 0} (\tan 6x)^x{/eq}
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In a period of falling prices, which of the following methods will give the largest net income? A. LIFO B. FIFO C. Average-cost D. Specific identification
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If the production process is shut down whenever a sample proportion of defectives exceeds 0.05, what is the likelihood of this happening, given a sample of 120 items is drawn from a population of manufactured products, the number of defective items is recorded, and prior experience has shown that the proportion of defe...
0.50
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An incorrect statement, regarding the development of the heart, is: a. The primitive heart is formed by fusion of two parallel tubes. b. The heart tube kinks to form a U-shaped loop c. The single atrium and ventricle are separated by the dorsal and ventral endocardial cushions. d. The foramen secundum is a defect i...
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So I'm solving the recurrence relation $$T(n) = 2T(\frac{n}{2}) + n \log n$$ using backward substitution: $$T(n) = 2(2T(\frac{n}{4}) + \frac{n}{2}\log \frac{n}{2}) + n\log n$$ $$T(n) = 4T(\frac{n}{4}) + n\log \frac{n}{2} + n\log n$$ $$T(n) = 4(2T(\frac{n}{8}) + \frac{n}{4}\log \frac{n}{4}) + n\log \frac{n}{2} + n\log n...
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What is the volume of the solid produced by revolving f(x) = 3x-x^2, x in [0,2] around the x-axis?
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To test the above hypothesis, you need to use the _____ statistic because the population _____ are assumed to be known. a. Z; means b. t; means c. Z; variances d. t; variances e. F; variances
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From the given statement, {eq}38 \pm 2.52{/eq} find the t-value for a two-sample, two-tailed t-test with a sample size of 20.
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Suppose the proportion of female shoppers in a certain mall is 0.57. On a specific day, a store in the mall took a random sample of 163 shoppers and recorded the proportion of females in the sample. What is the standard deviation of the sampling distribution?
0.0388
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Which of the following is a correct statement about bad debts expense? a. Bad debt expense can be reduced by reclassifying uncollectible accounts to the allowance account. b. When the percentage of receivables method is used, bad debt expense is included in the determination of the adjusted balance of the allowance a...
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In 2015, New Tech, Inc., purchased a computer for $60,000. The estimated useful life of the computer was five years and the estimated residual value was $2,700. On January 1, 2018, before the computer had been used for four years, New Tech sold it for $15,000. Under the straight-line method, the computer's gain or los...
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Let $f:R\rightarrow R$ be a convex function. The convex conjugate $f^*$ of $f$ is defined by $f^*(y)=\sup_{x\in R} (yx-f(x))$, $y\in R$. Show that $f^*$ is convex.
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For 2013, the Weimer Corporation reported the following inventory amounts: December 31, 2012 ($): 278,000 December 31, 2013 ($): 324,000 The cost of goods sold for 2013 was $700,000, and the company's gross profit ratio was 30% based on sales revenue. Based on the data, what were the company's sales for 2013?
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As per the 1995 US Information Yearbook, the US exports of jeans amounted to $459 million in 1994. 1994 US exports of jeans are higher than 1993 exports when the value of the US dollar is lower against other currencies. If you use 1995 exchange rates to value 1994 exports of jeans at constant 1995 prices, what happens ...
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What is the probability that a randomly selected luxury hotel's daily rate will be less than $252, given that the average daily rate for a luxury hotel is $233.82 and follows a normal probability distribution with a standard deviation of $22.12?
0.7939
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The economy is initially at equilibrium in the AD/AS framework. You have been hired as an economic consultant for a government commission and they have asked you the following: What would be the implications of a temporary aggregate demand shock (e.g. due to a drop in exports) on price level and output in the long-run?...
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Suppose the own-price elasticity of market demand for retail gasoline is -0.7, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,400,000 annually. What is the price elasticity of demand for a representative gasoline retailer's product?
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To test the above hypothesis, you need to use the _____ statistic because the population _____ are assumed to be known. a. Z; means b. t; means c. Z; variances d. t; variances e. F; variances
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Which one of the following does NOT cause euro currency spreads to be narrower than in domestic money markets? a) Eurobanks don't have to maintain reserves on Eurodollar deposits. b) Eurobanks face lower regulatory expenses. c) national banks are often required to lend money to certain borrowers at concessionary rat...
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How many shares should an investor short if they believe stock's price will go down from $60 to $55 and the investor wants a return of 6% using a 6-month (put) option with a $55 strike price, given the risk-free rate is 5% and the current market price of the stock option is $10?
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An investment has a 10% probability of earning a 20% rate of return, a 60% probability of earning a 10% rate of return and a 30% probability of losing 5%. What is the standard deviation of the rate of return for this investment?
8.08%
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Given the following data for a company: EPS for year 1$4.50 EPS for year 5$3.00 Growth in EBIT 10% Tax rate 35% Interest expense year 1$3,000,000 Determine the company's times interest earned.
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Suppose the market demand function is {eq}Q = 42 - 6P {/eq}, and the marginal and average costs for each identical firm are {eq}MC = 0.2Q {/eq} and {eq}AC = 0.1Q {/eq}. What are the equilibrium market output, price and profit? a) {eq}P = 5, Q = 3, \pi = 2.5 {/eq} b) {eq}P = 5, Q = 6, \pi = 1.5 {/eq} c) {eq}P =...
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Zeno Electronics has before-tax earnings of $550,000, total revenues of $2,700,000, and total operating costs of $2,300,000. The interest expenses are $120,000, and the firm's tax rate is 40 percent. Determine the firm's net operating profit after tax (NOPAT) and its EBIT margin ratio.
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Assume the interest rate on a 1-year T-bond is 2.0%, and that on a 2-year T-bond is 2.5%. Assume also that the pure expectations theory is CORRECT, that is, investors can earn the same return regardless of the maturity of their securities. The maturity risk premium is 0%. What is the yield on a 1-year T-bond expected ...
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Which of the following statements is incorrect? A) The money market deals with the short-term borrowing needs of households and business firms. B) The stock market deals with financing long-term investments. C) Bond prices are determined by the demand for and supply of that specific bond in the bond market. D) The ...
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MDX Sales Corp. is expecting a 10% increase in sales next year. MDX has an inventory balance of $1,000,000 and uses the percent of sales forecasting method. Which of the following could explain why the inventory forecast of $1,100,000 might be too high? a. The current inventory balance of $1,000,000 is lower than usua...
d
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Pro Stock Corp. desires to have $26,350 in its bank account at the beginning of each of the next three years. If the company has $15,000 in its account today, and it receives 6% interest compounded annually, what amount must it deposit in the bank annually to reach its goal? (Assume no further deposits will be made int...
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Mistery Corporation issued ten-year, 10% bonds payable in exchange for $1,000,000 in cash. Which of the following would be the correct journal entry to record the issuance of the bonds if the stated rate of interest is equal to the market rate of interest? a) Cash 1,000,000 Bonds Payable 1,000,000 b) Cash 1,000,000...
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Sleeter Manufacturing contributes $100,000 per quarter to an account earning 3% quarterly. The company plans to use this account to finance an expansion into international markets. After two years, the funds in the account will be invested elsewhere. How much will the account be worth when the Sleeter Manufacturing us...
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Suppose that Laramie Trucking's stock is currently selling for $60 per share. The company has a total of 10 million shares outstanding. Assume that the company is planning no future stock issues, and all of its dividend payments are recorded in its balance sheets (i.e., as a reduction of its cash reserves). The company...
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Consider an economy in which the marginal propensity to consume (MPC) is 0.5. Assume the government increases spending by $100 billion and the central bank responds by changing the money supply just enough to hold the interest rate (r) constant at all income levels. The crowding-out effect in this case will: a. elimin...
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On January 1, 2013, Evergreen Company leases an asset from Rocky, Inc. The asset leased is a special computer server with an estimated useful life of 6 years. The lease agreement specifies six annual payments of $220,000 beginning January 1, 2013, the inception of the lease, and at each December 31 thereafter through 2...
a
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Abercrombie & Fitch's common stock pays a dividend of $1.20 and is selling for $20.50. If the expected return on the market portfolio is 14% and the risk-free rate is 4%, what is the market's required return on Abercrombie & Fitch common stock?
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Benson Co. purchases an asset for $6,000. This asset qualifies as a seven-year recovery asset under MACRS. Benson has a tax rate of 30%. The seven-year expense percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. If the asset is sold at the end of six years for ...
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Assume that the current rate of inflation is 2%, the real risk-free rate is 3% and the maturity risk premium is 0.5%. What is the nominal interest rate on 1-year Treasury security?
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Canada's annual inflation is 3%, while U.S. annual inflation is 5%. The current exchange rate is $1.0585 Canadian dollars per U.S. dollar. Canada's one-year interest rate is 13%. If interest rate parity holds true, what is the expected exchange rate in one year?
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Suppose that the average income of a Kenyan is higher than the average income of a South African. You might conclude that a. South African firms are faced with stricter government regulations than Kenyan firms. b. total income is divided among fewer workers in Kenya since it has a smaller labor force than South Afric...
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Boston, Inc., planned and actually manufactured 190,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $950,000. Planned and actual...
c
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M/Aaron 7, Inc. has the following inventory data: Inventory Date Quantity Unit Cost Total Cost 1/1/2012 40 units $12 $480 1/10/2012 136 units $14 $1,904 1/20/2012 210 units $15 $3,150 1/28/2012 54 units $16 $864 A physical count of inventory on December 31, 2012 reveals that there are 54 units on hand. Using the LIFO...
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A worker, who is supposed to be putting filled boxes onto a conveyor belt, takes a lunch break and refuses to return to his job. As a result, 20 boxes containing household goods, which the worker was supposed to put on the conveyor, remain to be filled. They are filled by his associate, who is trying to get the boxes f...
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Let $S$ be a nonempty set and let $f : S \to R$ be such that the range of $f$ is bounded. Prove or disprove: there exists a convergent subsequence of $(f (x_n))$, whenever $(x_n)$ is a sequence in $S$.
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In making the multiplier argument for government spending, economists typically point out that: a. government spending creates a "ripple effect" throughout the economy. b. the marginal propensity to save is greater than the marginal propensity to consume. c. the amount of the tax cut will be smaller than the amount ...
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Assuming perfect information, if the opportunity cost of buying a new Mac computer is a new iPhone, then the _____ of the Mac computer _____ that of the iPhone. A) opportunity cost; equals B) opportunity cost; is greater than C) marginal benefit; equals D) marginal benefit; exceeds
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All of the bacteria are gram positive. Which does NOT belong with the others? A) Actinomyces B) Bacillus C) Listeria D) Mycorynebacterium E) Corynebacterium
D
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From the notes: "To determine the money amount of any event or quantity, the analysis that must be performed is as follows: i. Determine which exchange rate should be used (use the appropriate exchange rate in the numerator when converting from foreign currency to dollars). ii. Express the amount of the event or qua...
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In the previous problem, if the firm has current assets of $800,000, long-term assets of $2,000,000, sales of $6,000,000, and a profit margin of 4%, what is its return on stockholder's equity?
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Find the number of non-zero terms in the Taylor series of f(x) = arctan(3x) about x = 0 that are required to approximate arctan(0.8) to three decimal places.
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At the profit-maximizing price, the loss in consumer surplus due to a monopolist is: a. lower than the producer surplus obtained by the monopolist b. equivalent to the producer surplus obtained by the monopolist c. equal to the deadweight loss d. higher than the producer surplus obtained by the monopolist
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Horace Corporation reports the following information for 2012: Service revenue $2,500,000 Rent expense $600,000 Depreciation expense $300,000 Wages expense $400,000 Interest expense $200,000 Income tax expense $100,000 The company's tax rate is 30%. The company's net income for 2012 was _____.
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Differentiate implicitly to find {eq}\frac{\mathrm{d}y}{\mathrm{d}x}{/eq}. Then find the slope of the curve at the given point: {eq}y^2 - y^3 = 1 \, ; \; (2, \; -3){/eq}
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With reference to the conventional cash flow pattern, identify the statement which is incorrect? a) It is common in long-lived depreciable assets. b) {eq}\Sigma_{t=0}^n (CF_t/(1+i)^t) > 0 {/eq} c) The first and largest cash outflow occurs at time zero. d) The net initial investment is always negative.
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The reporting of depreciation expense as a cash outflow in the a. indirect method of reporting operating cash flows. b. direct method of reporting operating cash flows. c. statement of cash flows prepared using the accrual basis of accounting. d. statement of cash flows prepared using the cash basis of accounting.
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Which of the following statements are correct? A. If two stocks have a zero correlation coefficient, combining these stocks into a portfolio will reduce the portfolio's risk. B. If a stock has a negative beta, such as -1.2, it would imply that the expected return on the stock is 12% above the riskless rate. C. If a ...
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The XYZ investment banking firm has the following summarized balance sheet. Assets Liabilities Total $300 Total $300 Deposits $250 Reserves $50 Investment securities 50 Loans 100 The required res...
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Which of the following is true of a stock's beta coefficient? a. If the stock is riskier than the market, its beta is negative. b. Its magnitude is unaffected by the number of years over which the returns in the numerator and denominator of equation 6.11 are calculated. c. Its magnitude increases as the return on th...
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