Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Your company is concerned about a possible slowdown in payments from its customers as measured by number of days in receivables . It

image text in transcribed
Question 1 Your company is concerned about a possible slowdown in payments from its customers as measured by number of days in receivables . It has maintained an average of 45 days in receivables. It would be too costly to frequently analyze all receivables so samples are drawn to track customers' payment rates. A random sample of 50 accounts shows a mean number of days in receivables of 49 with a standard deviation of 8 days. a) Formulate null (H0) and alternate (Ha) hypotheses consistent with determining whether the evidence supports the suspected condition that customer payments have slowed. b) What test statistic would be appropriate for testing the hypothesis? c) Identify the rejection pointlpoints for the hypothesis at the 0.05 and 0.01 levels of significance. d) Should the null hypothesis be rejected or not at these levels of significance? Question 2 A firm's net income averaged $30 millionlyear with a standard deviation of $10 million (n=6 observations). Management claims this recent performance results from new approaches and that profitability expectations averaging $24 million/year from previous cycles can be dismissed. a) With p as population mean annual net income, formulate null and alternative hypotheses consistent with testing management's claims. b) Assuming the firm's net income is at least approximately normally distributed, identify the appropriate test statistic. c) Identify the rejection point or points at the 0.05 level of significance for the hypothesis tested in (a) above. d) Should we reject the null hypothesis at the 0.05 level of signicance? Question 3 You are analyzing a mutual fund which has had a mean monthly return of 1.5% and SD of 3.6% over the last 24 months. Given its risk, you feel it should have returned 1.10% over the period. Assuming returns are normally distributed, are the actual results consistent with a population mean monthly return of 1.10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Database Management

Authors: Heikki Topi, Jeffrey A Hoffer, Ramesh Venkataraman

10th Edition

0132998440, 9780132998444

More Books

Students also viewed these General Management questions

Question

Explain possible uses for single-case research.

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago