A consumer watchdog organization takes a random sample of 500 bags of flour made by a company, weighs them, and discovers that 18 of them are underweight. Suppose that legal action can be taken if it can be demonstrated that the proportion of bags sold by the company that are underweight is more than 1 in 40. Would you advise the watchdog organization that there are grounds for legal action?
A consumer watchdog organization is concerned about credit card debt. A survey of 10 young adults with credit card debt of more than $2,000 showed they paid an average of just over $100 per month against their balances. Listed below are the amounts each young adult paid last month. a. Compute the...
A manufacturer of semiconductor devices takes a random sample of size n of chips and tests them, classifying each chip as defective or non-defective. Let Xi = 0 if the chip is non-defective and Xi = 1 if the chip is defective. The sample fraction defective isWhat are the sampling distribution, the...
A philanthropic organization knows that its donors have an average age near 60 and is considering taking out an ad in the American Association of Retired People (AARP) magazine. An analyst wonders what proportion of their donors are actually 50 years old or older. He takes a random sample of the...
The Langley Corporation is in a seasonal business. It requires a permanent base of net working capital of $10 million all year long, but that requirement temporarily increases to $20 million during a four-month period each year. Langley has three financing options for net working capital. a....
1. Irving just hit the jackpot in Las Vegas and won $35,000! If he invests it now at a 10% interest rate, how much will it be worth in fifteen years? 2. Trent would like to have $3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 14% interest rate to fund...
The T-Shirt Trends Company purchased a delivery truck on October 12, 2009, at a cost of $78,900. The delivery truck has an estimated useful life of three years and an estimated disposal value of $900. Instructions On the forms provided in your working papers: 1 . Prepare a depreciation schedule for...
In the month of June, Barbara’s Beauty Salon gave 2,700 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $18,000 and variable costs were 70% of sales. Instructions (a) Determine the contribution margin in dollars, per unit, and as a ratio. (b)...
Hirpara Inc. has provided the following data for July: Raw materials, beginning balance $12,000 Work in process, beginning balance $32,000 Finished Goods, beginning balance $41,000 Transactions: 1. Raw materials purchases $64,000 2. Raw materials used in production (all direct materials) $69,000 3....
When a random sample of 64 male students was asked their opinion on a proposal, 28 of them expressed support. Also, when a random sample of 85 female students was asked their opinion on the proposal. 31 of them expressed support. (a) Use an appropriate hypothesis test to assess whether there is...
Patients were diagnosed as being either condition A or condition B before undergoing a treatment. The treatment was successful for 56 out of 94 patients classified as condition A, and the treatment was successful for 64 out of 153 patients classified as condition B. (a) Perform a hypothesis test to...
Sky Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $18,000,000; it will enable the company to increase its annual cash inflow by $6,000,000 per year. The plane is...