BUSINESS COLLEGE

From Jan. 1, 1960 to Jan. 1, 1985, the historical average annual rate of return in the hypothetical country of Westeros was 12%. The annual standard deviation of the rate of return is 10%. What is the upper bound of the 95.4% confidence interval for the annual rate of return based on this information?a. 16%.
b. 10%.
c. 12%.
d. 14%.
e. 8%.

Answers

Answer 1

Answer:

Answer:

a. 16%.

Explanation:

According to the given situation, the calculation of the upper bond is shown below:-

Upper bond = Mean return + Z Value (Standard deviation ÷ SQRT(n))

= 12% + 2 × (10% ÷ 5)

= 16%

Note :- 95.4% confidence level has "Z Value" OF 2. (consider cumulative normal distribution table)

Therefore for computing the upper bond we simply applied the above formula.

Related Questions

How does Amazon illustrate the sources of service sector growth?
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 17,000 Indirect labor 150,000 Property taxes, factory 10,000 Utilities, factory 90,000 Depreciation, factory 147,000 Insurance, factory 12,000 Total actual manufacturing overhead costs incurred $ 426,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 420,000 Direct labor cost $ 80,000 Inventories: Raw materials, beginning $ 22,000 Raw materials, ending $ 32,000 Work in process, beginning $ 42,000 Work in process, ending $ 72,000 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,700 machine-hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.
Many different project life cycle models are used for different types of projects, such as information systems, improvement, research and development, and construction. Select one:True False
The Baldwin's workforce complement will grow by 10% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Baldwin spends the same amount extra above the $1,000 recruiting base as they did last year. Relevant information: The workforce complement this year is 471, recruiting cost is 543k, recruiting spend is 5000k. Answer choices: 3.108 mil, 235k, 2.59 mil, or 282k
Completed Per Day Flower Beds Weeded Bags of Leaves Raked Samantha 4 8 Adam 5 25 Samantha and Adam own a gardening business together. They each pull weeds from flower beds and rake up leaves for their neighbors. If each decides to specialize in what they are best at, Samantha will a.weed and Adam will rake because these are the goods each has a comparative advantage in. b.rake and Adam will weed because these are the goods each has a comparative advantage in. c.weed and Adam will rake because these are the goods each has an absolute advantage in. d.rake and Adam will weed because these are the goods each has an absolute advantage in.

Sue spent much of her time checking inventories, processing straight rebuys, setting up displays and making sure everything is going smoothly. Sue was primarily a(n):__________ A. business development specialist
B. caretaker rep
C. order getter
D. order taker
E. sale support personnel

Answers

Answer:

(D) order taker.

Explanation:

An order taker is a salesperson who collects orders checks inventories, processes straight rebuys, sets up displays but does not make any effort to invite new customers or persuade the existing ones to increase their quantities of purchase.

Depreciation by Three Methods; Partial YearsPerdue Company purchased equipment on April 1 for $43,470. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $1,350. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

Answers

Answer:

a. Straight-line method.

Year Depreciation expense ($)

1 10,530

2 14,040

3 14,040

4 3,510

b. Units-of-production method.

Year Depreciation expense ($)

1 7,800

2 14,950

3 12,350

4 7,020

c. Double-declining balance method

Year Depreciation expense ($)

1 21,735

2 14,490

3 4,830

4 1,065

Explanation:

(a) the straight-line method

Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.

In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:

Straight line depreciation rate = 1 / Estimated useful life = 1 / 3 = 0.3333, or 33.33%

(b) units-of-output method

Note: See part b of the attached excel file for the depreciation schedule for units-of-production method.

(c) the double-declining-balance method.

Note: See part c of the attached excel file for the depreciation schedule for double-declining-balance method.

In the attached excel file, the depreciation rate used for the Double- declining-balance method is calculated as follows:

Double-declining depreciation rate = Straight line depreciation rate * 2 = (1/3) * 2 = 0.666667, or 66.6667%

Note:

Under this double-declining-balance method, the depreciation expenses for Year 4 is calculated by deducting the residual value of $1,350 from the Year 4 Beginning depreciable amount (i.e. $2,415 - $1,350 = $1,065). The residual value of $1,350 therefore represents the book value at the end of Year 4.

Which of the following represents the national spending approach to splitting GDP? Y = C + I + G + NX Y = C + I + G – NX Y = C + I + G Y = C + G + NX – M

Answers

Answer:

Y = C+ I +G +NX

Explanation:

We know,

The national spending approach is also known as the expenditure approach. According to the expenditure approach, all the goods and services that make up the gross domestic product will be applied to individual consumption, investment, and government expenditure. It also modifies the net exports and imports of a country. Therefore, option A is the correct answer as the expenditure approach, Y = C+ I +G +NX.

Final answer:

The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M).

Explanation:

The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M). This equation includes consumption (C), investment (I), government spending (G), and net exports (X - M). Net exports are calculated by subtracting imports (M) from exports (X).

Learn more about GDP here:

brainly.com/question/31197617

#SPJ12

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $185,000 Actual direct labor hours 14,600 The predetermined manufacturing overhead rate per direct labor hour is closest to

Answers

Answer:

manufacturing overhead rate =$12.78

Explanation:

Giving the following information:

Butler Manufacturing estimated that:

Manufacturing overhead $176,400

Direct labor hour 13,800.

Actual results for the year:

The actual manufacturing overhead costs $185,000.

Actual direct labor hours 14,600.

We need to calculate the predetermined manufacturing overhead rate per direct hour

manufacturing overhead rate = 176400/13800hours= $12.78

When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet? A. Parent company net income equals controlling interest in consolidated net income.
B. Parent company retained earnings equals consolidated retained earnings.
C. Parent company total assets equals consolidated total assets.
D. Parent company dividends equals consolidated dividends.
E. Goodwill will not be recorded on the parent's books.

Answers

Answer: The correct answer is "C. Parent company total assets equals consolidated total assets".

Explanation: The statement "C. Parent company total assets equals consolidated total assets" is false before making adjustments on the consolidated worksheet when a parent uses the equity method because the parent company total assets are not equal to consolidated total assets.

Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds is December 31, 2028. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 9%. Barnett incurred legal and investment banking fees of $22,000 in issuing the bonds and amortizes these costs annually on a straight-line basis.Required:

1. Calculate the selling price of the bonds.
2. Prepare journal entry for the issuance of the bonds and bond issue costs.
3. Assume that Barnett uses IFRS. Prepare the journal entry for the issuance of the bonds.

Answers

Answer:

1. The selling price of the bonds is $590.976.46

2 .The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit

Cash $600,000

Bonds Payable $600,000

Explanation:

In order to calculate the selling price of the bonds we would have to calculate first the present value of particular and present value of interest, hence:

present value of particular=($600,000×0.414643)=$248,785.80

present value of interest=$600,000×4%13.007936=$312,190.46

Therefore, selling price of the bonds=present value of particular+present value of interest

1. Selling price of the bonds=$248,785.80+$312,190.46=$590.976.46

2. The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit