Answer:
True
Explanation:
Return on assets (ROA) is she valuable measure in assessing the effectiveness of company management in utilizing company capital. It is calculated
ROA=
Total Assets/
Net Income
where:
Total Assets=Shareholder Equity+Liabilities
Return on assets is closely related to return on equity as they are both almost used for same purpose which is measuring management's effectiveness in capital utilization. Return on equity differs from return on assets by the inclusion or exclusion of the debt factor in calculating them.
The relationship between ROA and ROE is demonstrated in DuPont formula which is given
ROE=profit margin*asset turnover*shareholder equity
Operations is concerned with_______while marketing is concerned with________.a. demand, quality.b. efficiency, cost.c. supply, demand.d. demand, supply.e. none of the above.
Answer: demand; supply
Explanation:
Operations is concerned with demand while marketing is concerned with supply. It is function of those in the operations department to use the available raw materials to create products that consumers have demanded.
The marketing department is in charge of making sure people purchase the product and supply to them.
Best's Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Given the information in the table, calculate the required capacity for this year's production. Note that the times are given for assembly lines, so capacity calculations should be in terms of the number of lines necessary. Assume that Best Bicycles operates three shifts, each with 2,000 hours per year.Bike Demand Forecast Processing Time Lot Size (# of bikes) Setup Time (units/year) (minutes/unit) (minutes/setup)Tiny Tike 14,000 8 15 50Adult Aero16,000 10 18 80Mountain 19,000 12 25 40Mongera. Determine the total setup timeb. Determine the total operating time availablec. Determine the number of assembly lines
Answer:
A.148,177.78
B.360,000 hours
C. 2.89
Explanation:
A. Calculation to Determine the total setup time
Determine the total setup time for each of the three different types of bikes
Tiny Bike= (14,000/15)×50
=933.3333×50
=46,666.67
Adult Aero (16,000/18)×80
=888.889×50
=71,111.11
Mountain Monger (19,000/25)×40
=760×40
=304,00
Total Setup Time=
Tiny Bike 46,666.67+Adult Aero 71,111.11+Mountain Monger 30,400
Total Setup Time=148,177.78
Therefore the total setup time will be 148,177.78
b. Calculation to Determine the total operating time available
Total Operating Time=3×2,000×60
Total Operating Time=360,000 hours
Therefore the total operating time be 360,000 hours
c. Calculation to Determine the number of assembly lines
Number of assembly lines=(532,000+148,178)/360,000)+1
Number of assembly lines=(680,178/360,000)+1
Number of assembly lines=1.88938333+1
Number of assembly lines=2.89
Therefore the number of assembly lines will be 2.89
Margaret incurred one personal casualty loss caused by a federally declared major disaster in 2019. The amount of the loss, after all reimbursements had been subtracted, is $2,500. Margaret's AGI is $35,000. What is the amount of her casualty loss deduction
Answer:
$0
Explanation:
There are two Step for the computation of casualty loss deduction if the casualty loss is personal
Step 1 Reduce $100 per casualty event from the casualty loss
Step 2 Reduce 10% of the AGI from the amount you get from step 1
Data
Loss = $2,500
AGI = $35,000
Deduction =?
Solution
Step 1 = $2,500 - $100 = $2,400
Step 2: $2,400 - ($35,000 x 10%) = $0
If the amount in step 2 is $0 then the person is not eligible for casualty loss deduction
You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?
Answer:
Cant calculate
Explanation:
The National Income is the total amount of income accruing to a country from economic activities in a year's time. It includes payments made to all resources either in the form of wages, interest, rent, and profits. In this case, National income can not be calculated because data in corporate profits is missing .
If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?
Question:
Suppose there is a bond in ABC Company that that pays coupons of 8.5%, and suppose that these coupons are paid annually.
Suppose the face value of the ABC bond is $1000 and the maturity is 11 years.
If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?
Answer:
Price of bond = $ 1197.17
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The price of the bond can be worked out as follows:
Step 1
PV of interest payments
Annual Interest payment = 8.5%× 1000 = 85
Annual yield = 6%
Total period to maturity (in years) = 11
PV of interest =
85 × (1- (1+0.06)^(-11)/)/0.06 = 670.38
Step 2
PV of Redemption Value
= 1,000 × (1.06)^(-11) = 526.78
Step 3:
Price of bond
670.38 + 526.78= 1,197.17
Price of bond = $ 1197.17
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,200 shares issued, and 14,800 shares of common stock outstanding. The journal entry to record the dividend declaration is:
A. Debit Common Dividends Payable $7,400; credit Cash $7,400.
B. Debit Retained Earnings $9,600; credit Common Dividends Payable $9,600.
C. Debit Common Dividends Payable $9,600; credit Cash $9,600.
D. Debit Retained Earnings $18,500; credit Common Dividends Payable $18,500.
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.
Answer:
E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.
Explanation:
The Journal entry is shown below:-
Retained earnings Dr, $7,400 (14,800 × $0.50)
To Common dividend Payable $7,400
(Being dividend declaration is recorded)
Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability
So the correct option is D.
Addy company has 2 products: A and B. The annual production and sales of Product A is 1700 units, and the annual production and sales of Product B is 1100 units. The company has traditionally used Direct Labor Hours to apply all manufacturing overhead to products.Product A requires 0.3 Direct Labor Hours per unit.Product B requires 0.6 Direct Labor Hours per unit.Total estimated overhead for the period is $98,785The company is considering switching to an Activity Based Costing system. The new ABC system would have 3 overhead cost pools, with overhead costs and activity as follows: Estimated Overhead Expected ActivityActivities Cost Product A Product B Product CActivity 1 $30,528 1000 MH 600 MH 1600 MHActivity 2 $17,385 1700 Setups 200 Setups 1900 SetupsTotal $50,872 510 DLH 660 DLH 1170 DLHThe pre-determined overhead rate under the traditional costing system is closest to:a. $9.15.b. $43.48.c. $84.43.d. $19.08.
Answer:
Addy
Predetermined overhead rate
c. $84.43
Explanation:
a) Data and Calculations:
Product A requires 0.3 Direct Labor Hours per unit.
Product B requires 0.6 Direct Labor Hours per unit.
Total estimated overhead for the period is $98,785
Direct Labor Hours for A = 510
Direct Labor Hours for B = 660
Total Direct Labor Hours = 1,170
b) Addy's two products will have a predetermined overhead rate that is equal to $98,785/1,170, which is $84.43. The predetermined overhead rate results from the division of the total estimated overhead for the period by the total number of direct labor hours for products A and B. Addy applies this rate to each product based on the level of direct labor hours used in order to ascertain the amount of overhead attributable to the product.
when comparing companies in different industries a higher profit margin always indicates which company has better management
Answer: B. When comparing companies in different industries, a higher profit margin always indicates which company has better management performance
Explanation:
The profit margin refers to how much profit the company is making given the amount of sales it makes. It is therefore very dependant on the expenses incurred by the company.
This is why comparing management in different industries by using the Profit margin is like comparing apples and oranges. Industries are different and so are their methods of operation. One industry might require more expenses than another and still only make less sales which would impact it's profit margin negatively.
Profit Margin is best used for companies in the same industry.
Claire purchases an eight-year callable bond with a 10% annual coupon rate payable semiannually. The bond has a face value of 3,000 and a redemption value of 2,800. The purchase price assumes the bond is called at the end of the fourth year for 2,900, and provides an annual effective yield of 10.0%. Immediately after the first coupon payment is received, the bond is called for 2,960. Claire’s annual effective yield rate is i. Calculate i.
Answer:
12.41%
Explanation:
yield to call = {coupon + [(call value - market value)/n]} / [(call value - market value)/2]
0.05 = {150 + [(2,900 - market value)/8]} / [(2,900 - market value)/2]
0.05 x [(2,900 - market value)/2] = 150 + [(2,900 - market value)/8]
0.05 x (1,450 + 0.5MV) = 150 + 362.5 - 0.125MV
72.5 + 0.025MV = 512.5 - 0.125MV
0.15MV = 440
MV = 440 / 0.15 = $2,933.33
Claire's total returns = $150 (coupon) + ($2,960 - $2,933.33) = $176.67
Claire's return on investment = $176.67 / $2,933.33 = 6.02273%
effective annual yield = (1 + 6.02273%)² - 1 = 12.41%
Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually 32,000 Required investment $ 520,000 Unit product cost $ 31 Selling and administrative expenses $ 170,000 If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
Answer:
markup % = 6.71%
markup in $ = $2.4375
selling price per unit = $38.75
Explanation:
budgeted sales units = 32,000
COGS ($992,000)
S&A expenses ($170,000)
required return = $520,000 x 15% = ($78,000)
total cost per unit = ($992,000 + $170,000) / 32,000 = $36.3125
total sales revenue = 32,000 x selling price = $1,240,000
selling price = $1,240,000 / 32,000 units = $38.75 per unit
markup % = (sales price per unit / total cost per unit) - 1 = ($38.75 / $36.3125) - 1 = 6.71%
mark up in $ = $38.75 - $$36.3125 = $2.4375
QUESTION 3 Project governance does NOT include Setting standards for project selection. Overseeing project management activities. Centralization of project processes and practices. Options for continuous improvement. Allowing project managers to plan the project the way they see fit.
Answer: Allowing project managers to plan the project the way they see fit.
Explanation: Project governance may be described as collectively adopted and designated framework or structure which is employed to serve as a guide or model during the entire process of project planning and development. The project governance model is often in tandem with the organizational management framework and provides the necessary guidance and protocol for project management. Hence, it includes setting standard benchmarks, continuous monitoring of project activities and Options for standard incorporation and continuous improvement.
Project governance does not include allowing project managers to plan the project the way they see fit.
What is project governance?
Project governance can be described as the management framework that allows for the making of decisions that regards projects.
The main objective of the project governance is to allow decision making that would be:
LogicalRepeatable RobustRead more about project governance on
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You work as an assistant coach on the university basketball team and earn $15 per hour. One day, you decide to skip the hour-long practice and go to the movie theater instead, which has an admission fee of $9. The total cost (valued in dollars) of skipping practice and going to the movies (including the opportunity cost of time) is
Answer:
Total cost = $24
Explanation:
In economics total cost is a combination of the amount actually paid for a product or activity and the forgone benefit of buying another product or doing another activity.
Opportunity cost is defined as the forgone alternative of doing a particular activity. For example of you can buy ice cream or a book, if you buy a book you forgot the pleasure you would have derived from taking the ice cream.
In this instance the actual cost of going to the movie is $9 while the foregone alternative is the $15 you would have earned as a coach.
Therefore
Total cost = 15 + 9 = $24
If the company is using the payback period method and it requires a payback of three years or less, which project(s) should be selected?
Answer: Project X
Explanation:
The Payback period is the amount of time it would take for the cash inflows accruing from an investment to payoff the cost of the investment.
Project X has a constant cashflow of $24,000 for 3 years and a cost of $68,000 for the Payback period is;
= 68,000/24,000
= 2.83 years
Project Y has an uneven cash flow with a cost of $60,000. Payback is calculated as;
= Year before payback + Amount left to be paid/cashflow in year of payback
Year before payback = 4,000 + 26,000 + 26,000
= $56,000
This means that the third year is the year before payback.
60,000 - 56,000 = $4,000
Payback period = 3 + 4,000/20,000
= 3.2 years
Based on a Payback period of 3 years, only Project X should be chosen as it pays back in less than 3 years.
What is the monthly payment on a $110,000 mortgage? Assume a standard 30-year, 5.4% mortgage with monthly payments.
Answer:
the monthly payment on a $110,000 mortgage is $617.68.
Explanation:
The Monthly payments, PMT on the mortgage can be determined using a Financial Calculator as follows :
Pv = $110,000
n = 30 × 12 = 360
r = 5.4 %
P/yr = 12
Fv = $ 0
PMT = ?
Using a Financial Calculator, the Monthly payments, PMT on the mortgage is $617.68
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement
Answer:
C) Image
Explanation:
In this case, the company is concerned with the image of the product, for having created a product with different characteristics and wants to know what consumers will perceive about the new product.
The image of a product can directly affect the acceptance that will make the consumer have the desire to buy the product, because the image is the physical representation of a consumer's wishes and needs when purchasing a good, so it is necessary that companies align the strategy of product development and its functionalities to an image that corresponds to the product's identity and generates the expected value to the consumer.
Assume that an investor owns 35% of an investee, and accounts for its investment using the equity ethod. At the beginning of the year, the Equity investment was reported on the investor's balance sheet at $360,000. During the year, the investeee reported net income of $110,000 and paid dividends of $20,000 to he investor. In addition, the investor sold inventory to the investee, realizing a gorss profit of $36,000 on the sale. At the end of the year, 15% of the inventory remained unsold by the investee.
a) How much equity income should the investor report for the year?
b) What is the balance of the Equity Investment at the end of the year?
c) Assume that the inventories are all sold in the following year, The investeee reports $160,000 of net income. How much equity income will the investor report for the following year?
Answer:
a. Investors shares in Net Income = Net Income * Share percentage
= $110,000 * 35%
= $38,500
Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage
= $36,000 * 15% * 35%
= $1,890
Hence, Equity Income = Investors share in Net income - Investor share in unrealized gain on ending inventory
= $38,500 - $1,890
= $38,610
b. Equity investment balance at year end = Equity Investment in the beginning during the time+ Equity income to be reported - Dividend paid
= $360,000 + $36,610 - $20,000
= $376,000
c. Investor share in Net Income = Net income * Share percentage
= $160,000 * 35%
= $56,000
Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage
= $36,000 * 15% * 35%
= $1,890
Hence, Equity Income = Investor share in Net Income + Investor share in unrealized gain on beginnging inventory
= $56,000 + $1,890
= $57,890
Which of the following is not a function of Public Accounting firms?
A. Register public accounting firms that prepare audit reports of publicly traded companies.
B. Conduct inspections of registered public accounting firms.
C. Promulgate accounting principles.
D. Establish or adopt auditing standards.
Answer:
C. Promulgate accounting principles.
Explanation:
The public company accounting is a non profit organization, established by an act, which provides regulatory roles for auditors of firms who trade on the stock exchange market.
They are responsible for establishing standards for audits of financial company, sanction registered audit firms and to establish independence standards for auditors of public companies.
Therefore, option 'C' is odd because Financial Accounting Standards Board(FASB) is the only body responsible for promulgating accounting principles.
Company has a division that manufactures a component that sells for and has variable costs of and fixed costs of . Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?
Complete Question:
Palmo Company has a division that manufactures a component that sells for $66 and has variable costs of $29 and fixed costs of $19. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?
A. $48
B. $66
C. $19
D. $29
Answer:
Option D. $66 per unit
Explanation:
The transfer price can be calculated using the following Formula if the division is working at full capacity:
Lowest Transfer Price = Variable cost per unit + Contribution lost Per unit
Here
Variable cost per unit is $29
Contribution lost Per unit = $66 - $29 = $37
By putting values in the above equation, we have:
Lowest Transfer Price = $29 + $37 = $66 per unit which is the market price of the company. If the company wasn't operating at full capacity then the minimum transfer price would be variable cost only because we will not have any contribution lost losses. This means that if the division is operation at full capacity the transfer price would be market price.
Warehouses have many functions. One of them is to:a. Reduce the response time on a customer's order.b. Reduce the inventory carrying costs of the company.c. Reduce duty rates for the company.d. Increase the response time to a customer's order.
Answer:
The correct answer is the option A: Reduce the response time on a customer's order.
Explanation:
To begin with, the warehouses are the places that the organizations use in order to accumulate inventory near the places of sale so the primary purpose of them is to increase the amount of available stock that could be quickly send to the place of sale and therefore to reduce the response time on a customer's order when they want to buy something that is not currently in stock in the place where the sale is taking place. And that is why that one of the many functions of the warehouse is to achieve that goal of reducing that wait time that the customer might suffer.
Which of the following is true?a. Currently, the food and fiber sector accounts for about 12% to 15% of gross domestic product (GDP). b. Off-farm income is important to agricultural producers today. c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry. d. The food and fiber industry is responsible for one out of every ten jobs.
Answer:
b. Off-farm income is important to agricultural producers today.
c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry.
Explanation:
The food and fiber industry is divided into 4 main sectors:
suppliers of farm inputs (including services and materials)farmers themselves (producers)processing and manufacturing of farm and fiber productsmarketing and distribution (wholesalers and retailers)In the US, the food and fiber industry represents approximately 5.4% of GDP. It employs roughly around 21 million workers (including direct and indirect employment). The food and fiber industry is a net exporter, since it exports more than it imports. Currently, most farming value is concentrated on large farms, where smaller farms generally produce more livestock output while larger farms produce crops.
After WW2, there has been a tendency to substitute labor for capital, and to have more larger farms and less smaller ones.
What is the risk posture for each particular system as it contributes to the overall risk posture of the organization
Please find attached full question Answera and Explanation:
Risk posture or cybersecurity posture is the general status or overall defense of the cybersecurity program in place in an organization to guard against cyber attacks and data breaches. For a company to maintain reasonable cyber security posture as there is no fool proof cybersecurity posture, there is need for regular continuous assessment of risk exposures and potential loopholes across the company's digital infrastructure. There are different digital and sophisticated infrastructures utilized by am organizations and most if not all are well prone to cyber attacks. These infrastructures are used by employees for work e. g-email, went servers, phones, networking devices and cloud programs etc . Therefore each employee must be educated in the need to safeguard company data by looking out for traps set by cyber attackers such as phishing in email and many other loopholes. Vulnerability tests need to be performed at regular intervals and reports monitored and analyzed to protect against a potential source of cyber attack.
Mr. Saso is currently holding $10,000,000 worth of Exxon mobile stock in his portfolio. In order to hedge his position Mr Saso should
Answer:
B. Write a put option on $10 million worth of Exxon Mobile
Explanation:
In order to hedge or reduce the risk Mr Saso should be writing a put option as it permits to sell the stock at the price i.e. predetermined. In case when there is a drop in price that falls the position so it would not be destroyed and therefore the profits could be made
The other option i.e. c and d are not correct as there is no requirement of call option and also long position
And, the option a is also wrong because in this it considered buying the particular amount not for selling it
Hence, the correct option is B
(True/False) An employee code of conduct will list illegal behaviors, but it will not list unethical behaviors.
Answer:
False
Explanation:
An employee code of conduct is a legal document that provides guidelines on acceptable behaviours of individuals in an organisation.
It contains what is deemed illegal, values and ethical conducts
The percentage of homes in a given area that are watching television during a specific time period is referred to as:__________. A. households using television. B. ratings point. C. program rating. D. share of audience. E. total audience.
Answer:
A. households using television
Explanation:
Households using television is a term used by Nielson Media Research to represent the total number of households that have their televisions on in a particular area compared to the total number of houses with televisions.
For example this can be calculated in a one hour period to see the percentage of households that watch television within that time frame.
Rating on the other hand calculates number of households watching a particular programme.
The formula for this is
Household using television = Rating ÷ Share
Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the month of sale; 55% are collected in the month following sale. Similarly, 15% of purchases are paid in the month of purchase, and 85% are paid in the month following purchase. The following data apply to January and February:
January February
Sales $ 39,000 $ 59,000
Purchases 32,000 44,000
Operating expenses7,400 9,400
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,900, determine the change in Wolverine's cash balance during February.
a) $4,800 increase.
b) $7,700 increase.
c) $10,550 increase.
d) $13,450 increase.
e) Some other amount.
Answer:
$7,700 increase
Explanation:
We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\
Change in cash balance = Cash receipts - Cash disbursement - Operating expense
Change in cash balance = $48,000 - $33,800 -$6,500
Change in cash balance = $7,700
WORKING:
Cash Receipts
Sales
February ( 59,000 x 45%) $26,550
January ( 39,000 x 55%) $21,450
Total $48,000
Cash disbursement
Purchases
February ( 44,000 x 15%) $6,600
January ( 32,000 x 85%) $27,200
Total $33,800
Operating expenses
Incurred $9,400
Depreciation ($2,900)
Net $6,500
The generally accepted accounting principles for trading securities include all of the following except:________a. Initially recording the investment at costb. Subsequently valuing the investment at fair valuec. Including unrealized holding gains and losses as a component of stockholders' equityd. Including interest and dividend revenue as part of income
Answer:
c. Including unrealized holding gains and losses as a component of stockholders' equity
Explanation:
Any unrealized holding gains or losses of Held for Trading securities must be included in the income statement under unrealized gains or losses. They affect net income, because a gain resulting from an increase in market value will increase net income, and a decrease in market will decrease net income.
For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the measurement scale a. Number of cellphones in the household b. Whether there is a high-speed Internet connection in the household c. Distance (in miles) from a person's house to the nearest store d. Number of text messages exchanged per month e. Time in hours spent exercising per week a. Number of cellphones in the household is what kind of variable? A. This variable is a categorical variable that is ordinal-scaled. B. This variable is a discrete numerical variable that is interval-scaled. C. This variable is a continuous numerical variable that is interval-scaled. D. This variable is a continuous numerical variable that is ratio-scaled. E. This variable is a categorical variable that is nominal-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. b. Whether there is a high-speed Internet connection in the household is what kind of variable? A. This variable is a discrete numerical variable that is interval-scaled. B. This variable is a continuous numerical variable that is interval-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a categorical variable that is nominal-scaled. E. This variable is a continuous numerical variable that is ratio-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. c. Distance (in miles) from a person's house to the nearest store is what kind of variable? A. This variable is a continuous numerical variable that is interval-scaled. B. This variable is a categorical variable that is ordinal-scaled. C. This variable is a categorical variable that is nominal-scaled. D. This variable is a discrete numerical variable that is interval-scaled. E. This variable is a continuous numerical variable that is ratio-scaled. F. This variable is a discrete numerical variable that is ratio-scaled. d. Number of text messages exchanged per month is what kind of variable? A. This variable is a discrete numerical variable that is interval-scaled. B. This variable is a continuous numerical variable that is interval-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a continuous numerical variable that is ratio-scaled. E. This variable is a discrete numerical variable that is ratio-scaled. F. This variable is a categorical variable that is nominal-scaled. e. Time in hours spent exercising per week is what kind of variable? A. This variable is a continuous numerical variable that is interval-scaled. B. This variable is a discrete numerical variable that is ratio-scaled. C. This variable is a categorical variable that is ordinal-scaled. D. This variable is a categorical variable that is nominal-scaled. E. This variable is a discrete numerical variable that is interval-scaled. F. This variable is a continuous numerical variable that is ratio-scaled.
Answer:
A. This variable is a discrete numerical variable that is ratio scaled
b..This variable is a categorical variable that is nominal scaled
C. This variable is a continuous numerical variable that is interval scaled
D. This variable is a discrete numerical variable that is ratio scaled
E.This variable is a continuous numerical variable that is ratio scaled
Explanation:
This is because we know that
Interval scale has the variable that has ordering that is its is scaled with respect to who comes first and has e measure of the distance between different categories
While
Ratio scale is similar to interval scaled but with a reference equal same as zero.
Mike says, "The possibility that my house may burn isa pure risk for me, but if I buy insurance, it is a speculativerisk for the insurance company." Do you agree? Why or
Answer:
I agree with Mike because pure risks involve only possible losses. Since he owns his house, the possibility of it burning down would represent only a loss to him.
But if he buys insurance, he will pay an insurance premium which means that if the house burns down, the company will lose money, but if the hose doesn't burn down, the insurance company will make a profit. This represents speculative risk because the possibility of a gain and a loss exist.
A rational person would prefer which of the following cash flows. a. $5,000 per year for 10 years with the first payment made one year from today b. $5,000 per year for 10 years with the first payment made today c. $50,000 paid today d. $25,000 paid today and $25,000 paid next year e. $49,000 paid today
Answer: c. $50,000 paid today.
Explanation:
A rational person rational person would prefer $50,000 paid today. As individuals, we have been shaped in such a way that we live for the present as when we are given an opportunity to receive something now or later, we'll prefer to receive it now.
This is just the normal behavior of a rational human being.
You find a certain stock that had returns of 16 percent, −9 percent, 23 percent, and 24 percent for four of the last five years. The average return of the stock over this period was 14.4 percent. a. What was the stock’s return for the missing year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What is the standard deviation of the stock’s returns? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
stock's returns = (0.16 - 0.09 + 0.23 + 0.24 + x) / 5 = 0.144
0.16 - 0.09 + 0.23 + 0.24 + x = 0.144 x 5
0.54 + x = 0.72
missing return (x) = 0.72 - 0.54 = 0.18 = 18%
variance = [(0.16 - 0.144)² + (-0.09 - 0.144)² + (0.23 - 0.144)² + (0.24 - 0.144)² + (0.18 - 0.144)²] / 5 = (0.000256 + 0.054636257 + 0.007396 + 0.009216 + 0.001296) / 5 = 0.014560051
standard deviation = √0.014560051 = 0.1207 = 12.07%