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An Environmental Protection Agency official asserts that more than 80% of the plants in the northeast region of the United States meet air pollution standards. An antipollution advocate is not convinced by the EPA's claim. She takes a random sample of 64 plants in the northeast region and finds that 56 meet the federal government's pollution standards.
a. Does the sample information support the EPA's claim at the 5% level of significance?
b. For which values of the sample proportion (based on a sample size of 64) would the sample data support the EPA's claim, using a 5% significance level?
c. Would the conclusion found in part a change if the sample proportion remained constant but the sample size increased to 124? Explain why or why not.
Steve buys a house from Jim. There is no written contract. However, Steve pays the purchase price, moves onto the property, and begins to build a new garage. Jim seeks to evict Steve from the property stating that there was never a valid contract. Is..
What is the discounted cash flow concept, and why is it essential for financial managers to understand and employ this important concept?
A company’s technicians do many service calls to their customers’ sites and have been using their own cars, for which the company reimburses them at a rate of $0.56 per mile. A technician travels an average of 35,000 miles per year. If the interest r..
Sandy wiches sells fresh sandwiches at a beach location, management has determined that on a typical day, demand can be described by the following equation: Qd = 1200 - 200Px if p = $3.00, determine the number of sandwiches sold and the elasticity of..
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an iPad for $350. The minimum payment on the card is only $10 per month. How much interest in total does he pay on his credit card debt?
Which of the following is the main cost of the operation of commercial banks? a.) cost of labor b.) interest the banks pay on their borrowings c.) cost of materials d.) cost of energy
The All-Mine Corporation is deciding whether to invest in a new project. The project would have to be financed by equity, the cost is $2000 and will return $2500 or 25% in one year. Each economic outcome is equally likely and the promised debt repaym..
The interest rate on one year treasury bonds is 1%, The rate on two year T-bonds is 0.9% and the rate on three-year T-bonds is 0.8%. Using the expectations theory compute the expected one year interest rates in (a) the second year (Year two only) and..
A sailboat costs $28,867. You pay 2-% down payment and amortize the rest with eqaul monthly payment over a 9-yr period. If you must pay 6.9% compound monthly, What is your monthly payment? How much interest will you pay?
Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Co. an employment agency that supplies word processor operators and computer programmers to business ..
A pension fund manager decides to invest a total of at most $45 million in U.S. Treasury bonds paying 5% annual interest and in mutual funds paying 9% annual interest. He plans to invest at least $5 million in bonds and at least $ 10 million in mutua..
An employee filed a lawsuit against his previous employer claiming his former employer has not paid his overtime allowance for extra work that he was asked to work. Under which Article of the Labor Law would you use to file this claim? As the employe..
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