The U.S. government reports the rate of inflation (as measured by th.pdf

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The U.S. government is the world’s largest borrower and currently enjoys a high-rating for its low default risk. Explain how receiving a lower bond-rating may affect the U.S. government. Solution The interest rate is determined by the Bond’s rating. For a high rated bond, borrower has to pay lower interest and for a low rated bond, borrower has to pay higher interest. If the US government bond rating reduces, they will have to pay higher interest on bonds. As a result of higher cash outflow for interest, US government will be able to borrow lower amount of money. Interest rates in US will increase and this will impact the economic activities..

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the trassh bag case Solution Tests show the trash bag has a mean breaking strength µ close to but not exceeding 50 lbs The null hypothesis H0 is that the new bag has a mean breaking strength that is 50 lbs or less The new bag’s mean breaking strength is not known and is in question, but it is hoped it is stronger than the current one The alternative hypothesis Ha is that the new bag has a mean breaking strength that exceeds 50 lbs One-sided, “greater than” alternative H0: µ = 50 versusHa: µ > 50 State the null and alternative hypotheses H0: ? ? 50Ha: ? > 50where µ is the mean breaking strength of the new bag Specify the significance level ? ? = 0.05 Select the test statistic Use the test statistic A positive value of this this test statistic results from a sample mean that is greater than 50 lbs Which provides evidence against H0 in favor of Ha Determine the rejection rule for deciding whether or not to reject H0 To decide how large the test statistic must be to reject H0 by setting the probability of a Type I error to ?, do the following: The probability ? is the area in the right-hand tail of the standard normal curve Use the normal table to find the point z? (called the rejection or critical point) z? is the point under the standard normal curve that gives a right-hand tail area equal to ? Since ? = 0.05 in the trash bag case, the rejection point is z? = z0.05 = 1.645 Reject H0 in favor of Ha if the test statistic z is greater than the rejection point z? This is the rejection rule In the trash bag case, the rejection rule is to reject H0 if the calculated test statistic z is > 1.645 Collect the sample data and calculate the value of the test statistic In the trash bag case, assume that s is known and s = n1.65 lbs For a sample of n = 40, x = 50.575 lbs. Then Decide whether to reject H0 by using the test statistic and the rejection rule Compare the value of the test statistic to the rejection point according to the rejection rule In the trash bag case, z = 2.20 is greater than z0.05 = 1.645 Therefore reject H0: µ = 50 in favor of Ha: µ > 50 at the 0.05 significance level Have rejected H0 by using a test that allows only a 5% chance of wrongly rejecting H0 This result is “statistically significant” at the 0.05 level Interpret the statistical results in managerial terms and assess their practical importance Can conclude that the mean breaking strength of the new bag exceeds 50 lbs.

The Travel Time bus company has determined that when x tourists are .pdf

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The transition matrix of a Markov chain is: [ .96 .04 ] [ .27 .73 ] If it starts in state 2, what is the probability that it will be in state 2 after 2 transitions? Solution The transition matrix is [P=([.96,.04],[.27,.73])] and we are asked to find the probability that if we are in state 2 we are again in state 2 after 2 transitions. The entries [p_(i,j)] are the probabilities of going from state i to state j. To find the probabilities after m transitions we look at [P^m] . [P^2=([.9324,.0676],[.4563,.5437])] . The probability of starting in state 2 and ending in state 2 after 2 transitions is the entry [p_(2,2)] in [P^2] which is .5437 ----------------------------------------------------------------- The probability is approximately .5437 ---------------------------------------------------------------.

The transitive closure R^T of a relation R is the smallest set conta.pdf

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The TOTOM Company sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits? Units Sold Price 30,000 $10 40,000 $9 50,000 $8 60,000 $7 A. $10 B. $9 C. $7 D. $8 Solution B. $9.

The Tourism Institute for the State of Florida plans to sample visit.pdf

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The top-down budget development approach the budgetA. is impose.pdf

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The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $298,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $640,000. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $630,000 at the end of the first year followed by a cash payment of $640,000 at the end of the second year. Use the IRR rule to calculate the (approximate) range of opportunity costs of capital at which the company should work the extra shift. (Round your answers to 2 decimal places.) The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $298,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $640,000. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $630,000 at the end of the first year followed by a cash payment of $640,000 at the end of the second year. Use the IRR rule to calculate the (approximate) range of opportunity costs of capital at which the company should work the extra shift. (Round your answers to 2 decimal places.) Solution We have following cash flows: C1 C2 C3 Current arrangement (298,000) (298,000) 640,000 Extra shift (630,000) 640,000 - Incremental flows (332,000) 938,000 (640,000) Using the IRR, function we get IRR 1= 15.21% IRR2= 67.32% Therefore, capital cost would be in between 15.21% to 67.32%. C1 C2 C3 Current arrangement (298,000) (298,000) 640,000 Extra shift (630,000) 640,000 - Incremental flows (332,000) 938,000 (640,000).

The title says it all. Why did the Swiss National Bank end the curre.pdf

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The three essential pieces of information in the abstract section of an informal document are A. buffer, appeal, and background. B. purpose, scope, and summary. C. conclusion, recommendations, and next step. D. ethos, pathos, and logos. Solution Ans ( B ) Purpose : for the report - why are you writing it ? Scope : what range of information does the report contain ? Summary : what main information does the reader most want or need to know..

The three essential pieces of information in the abstract section of.pdf

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The ThisInstructorIsSoNice Company expects to have net income of $18 million for the year, and to pay out $3.5 million in dividends to common stockholders. There is no preferred stock. What is the expected \"addition to retained earnings\" for the year? Solution The calculation is: + Beginning retained earnings Nil + Net income during the period $18.00 - Dividends paid (3.50) = Ending retained earnings $14.5 million.

The ThisInstructorIsSoNice Company expects to have net income of $18.pdf

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The time required for a customer service representative to field a h.pdf

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The terms of trade refers to: What goods are exported. What goods are imported. The volume of trade. The prices at which trade occurs.A What goods are exported.B What goods are imported.C The volume of trade.D The prices at which trade occurs. Solution Hi, The correct answer is option (D), The prices at which trade occurs Eplanation: Terms of trade (TOT) refers to the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices..

The terms of trade refers toWhat goods are exported.What goods .pdf

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The term structure of interest rates is influenced byThe term st.pdf

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The textbook (Engineering Materials - Properties and Selection) divides wear into 3 categories: adhesion, abrasion, and surface fatigue. For each of these, list the type of wear found in each. Solution Wear :- Wear is a erosion of material from its derivative and orginal position on solid surface performed by action of another surface Different types of wears 1) Adhesive wear 2)Abrasion wear 3) Surface fatigue 1) Adhesive wears These can be found between surfaces during fictional contact and generally refers to unwanted displacement and attachment of wear debris from one surface to another Generally adhesive wear occurs when slide over or pressed with each other , which promote material transfer ex - Sheet metal forming 2) Abrasion wear Abrasion wear forms when one material slides over other surface . Abrasion differs from type of contact ex- Deep grove like surface over metal 3) Surface fatigue This process is which surface of material is weakened by surfac loading . Which is a general material fatigue . Fatigue wear is produced by wear materials are detached by cyclic crack growth of micro cracks of surface.

The textbook (Engineering Materials - Properties and Selection) divi.pdf

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