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Aloiza [94]
2 years ago
14

West Virginia has one of the highest divorce rates in the nation with an annual rate of approximately 5 divorces per 1000 people

(Centers for Disease Control and Prevention website, January 12, 2012). The Marital Counseling Center, Inc. (MCC) thinks that the high divorce rate in the state may require them to hire additional staff. Working with a consultant, the management of MCC has developed the following probability distribution for x = the number of new clients for marriage counseling for the next year.
West Virginia has one of the highest divorce rates

a. Is this probability distribution valid?
SelectYesNoItem 1

Explain.

f(x) Selectgreater than or equal to 0less than or equal to 0greater than or equal to 1less than or equal to 1Item 2
?f(x) Selectequal to 1not equal to 1greater than 1less than 1Item 3
b. What is the probability MCC will obtain more than 30 new clients (to 2 decimals)?

c. What is the probability MCC will obtain fewer than 20 new clients(to 2 decimals)?

d. Compute the expected value and variance of x.

Expected value clients per year
Variance squared clients per year
Business
1 answer:
Alex17521 [72]2 years ago
8 0

Answer:

a. Yes. It is a probability density function because \sum f(x) =1

. b. probability MCC will obtain more than 30 new clients=P(40)+P(50)+P(60)= 0.20+0.35+0.20=0.75

c. probability MCC will obtain fewer than 20 new clients= P(10)= 0.05

d.

x f(x) x*f(x) x*x*f(x)

10 0.05 0.5 5

20 0.1 2 40

30 0.1 3 90

40 0.2 8 320

50 0.35 17.5 875

60 0.2 12 720

1 43 2050

expected value = \sum xf(x) = 43

Variance = 2050-43^2= 201

Explanation:

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Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; con
Maksim231197 [3]

Answer:

=$246,000

Explanation:

Intended sales 3500 units

Selling price =$60

variable costs 35% of sales price is 35/100 x 60= $21

Contribution margin is 65% of sales price = 65/100 x 60 = $39

Fixed costs =$78,000

Sales revenue to make $81,900 will be

operating income = total contribution margin -Fixed costs

$81,900 = TCM - $78,000

TCM = $81,900 +78,000

TCM= 159,900

TCM is a product of contribution margins and sales units

159,900 =$39 x sales units

sales units = 159,000/ $39

sales units = 4,100

sales revenue = sales units x selling price

=$60 X 4100

=$246,000

4 0
1 year ago
Beacon company is considering automating its production facility. the initial investment in automation would be $15 million, and
marin [14]

Additional Information:

Net Operating Income before investment            $1,710,000

Net Operating Income After investment               $2,690,000

Answer:

12.65%

Explanation:

Now the project's accounting rate of return can be calculated using the following formula:

Accounting rate of return = Average Project Net Income / Avg. Investment

Here

Average Project Net Income is $980,000 per year (Step1)

and

Average investment is $7,750,000 (Step2)

By putting values, we have:

Accounting rate of return = $980,000 / $7,750,000   = 12.65%

Step1: Average Project Net Income

The relevant cash generated due to additional sales is the difference of the net operating income before investment and after investment, which is:

Investment Profit per year = $2,690,000  -  $1,710,000 = $980,000 per year

<u>Step2: Average Investment</u>

Average Investment = (Initial Investment + Residual Value) / 2

Here

Initial Investment is $15 million

and

Residual Value is $0.5 million

So by putting values, we have:

Average Investment = ($15 million + $0.5 Million) / 2 = $7.75 million

6 0
2 years ago
Today you deposited $15,000 into a 5-year CD that will pay 6 percent interest. How much will you withdraw from the account in 5
Soloha48 [4]

Answer:

The answer is 20073.38

Explanation:

FV = A * (1+ i)^n

FV = $15,000 * (1.06)^5= 20073.38

20073.38 will be withdrawn from the account in 5 years

4 0
2 years ago
A regional transportation authority is interested in estimating the mean number of minutes working adults in the region spend co
scoray [572]

Answer:  To remove bias when estimating the proportion of working adults living in urban, suburban, and rural areas.

Explanation: In simple words, stratification refers to the process in which different sections of the society are grouped on the basis of one or more general factors.

In the given case, the company wants to estimate the minutes of working adults in the region and the region is grouped into urban, suburban and rural.

Thus, the random selection from different regions is done so that no bias takes place regarding the number of adult working in these three different areas.

8 0
2 years ago
Sheridan Company has two divisions—Standard and Premium. Each division has hundreds of different types of tennis racquets and te
natita [175]

Answer:

Break-even point in dollars is b) 810,811

Explanation:

Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.

It is calculated with the fixed cost divided to the porcentage of contribution margin.

step 1: % of contribution margin

CMg/total sales

($90,000+$280,000)/$1,000,000=0.37 %CMg

Step 2: Break-even point

FC/%CMg

$300,000/0.37=$810,811

3 0
1 year ago
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