What are the expected net revenues for alternative

Assignment Help Basic Statistics

Reference no: EM13147780

R. Est, local operations manager for the Infernal Revenue Service, must decide upon the temporary tax examiner workforce size for the upcoming tax season. Mr. Est estimates that net revenues ( in thousands of dollars ) will vary with how well taxpayers comply with the new tax code just passed by Congress, as follows:

Number Compliance
of --------------------------------------
Examiners Low Medium High
===================================
One 50 50 50
Two 100 60 20
Three 150 70 -10

1. If Mr. Est believes the likelihoods of low, medium and high compliance are 20%, 30% and 50% respectively, what are the expected net revenues for each alternative and what number of assistants should he hire?

a. 50, 48, 46: Hire one examiner.
b. 50, 50, 50: Hire one examiner.
c. 50, 52, 46: Hire two examiners.
d. None of the above.

Reference no: EM13147780

Questions Cloud

Causes the disparity with the gender : In your opinion, what are the factors, if any, which causes the disparity with the gender of white collar offenders?

Create an audit report with findings : Create an audit report with the findings being somewhere between $5,000,000 and $30,000,000 Include these items in the report: The area under audit where the finding occurred, The steps you undertook during the audit

How many moles of co2 are produces : The combustion of ethane produces carbon dioxide and steam: 2C2H6 + 7O2 --- 4CO2 +6H20 How many moles of CO2 are produces when 5.55 mol of ethane are burned in an excess of oxygen.

Explain the action of insulin on body cells : What condition exists if little or no insulin is produced?

What are the expected net revenues for alternative : High compliance are 20%, 30% and 50% respectively, what are the expected net revenues for each alternative and what number of assistants should he hire?

Stock-based compensation basics : 1. What effects does stock-based compensation have on the financial statements of an entity? 2. How does this affect the investor's opinion of a company? 3. What advantages or problems due to you see with this type of payment?

Example formula of total revenue : Show a example formula of total revenue of 800,000, expense of 200,000 for tax purposes, and depreciation expense of 130,000 for reporting purposes, the tax rate is 34 percent.

What kind of mutations in lin-12 would cause : The Notch signaling pathway functions in C. elegans vulval development. In a loss of function mutation of lin-12 Notch receptor none of the vulval precursor cells adopt 2° fate. Gain of function of lin-12 results in all vulval precursor cells adop..

Compute the ph of the buffer : Methyl red (Ka = 7.9 x 10^-6 is added to a buffered solution of unknown pH. Spectrophotometric measurements show the ratio of the basic to the acidic form of the indicator to be 2.57 to 1.000. Calculate the pH of the buffer solution.

User Account

All Pages