Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,
1 answer:
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Answer:
So then the best answer for this case would be:
a. 13.6 minutes
Explanation:
For this case we have the following data for the response rates:
17,12,9,16,14
And we want to calculate the mean response time for 911 calls in this village.
And for this case we use we can use the definition of sample mean given by:
Where n = 5 represent the sample size for this case. If we replace we got:
So then the best answer for this case would be:
a. 13.6 minutes
The sample mean is an estimator unbiased of the population mean because:
For this reason is a good statistic if we want to see central tendency in a group of values.
Answer:
Net income will increase by $11,250
Explanation:
Provided information,
Current sales = 75,000 units which represents 80% capacity
Therefore, 100% capacity =
Fixed cost at 100% capacity = $1.25 93,750 = $117,187.50
Therefore,
Current net income
Sales = 75,000 $7.00 = $525,000
Less: Variable cost = 75,000 $3.50 = $262,500
Less: Fixed Cost = $117,187.50
Net Operating Income = $145,312.50
Now with the additional order, which is of 15,000 units the additional ideal capacity of 20% will be utilized, further no fixed cost will be incurred, as the entire fixed cost for 100% capacity is utilized, thus
Sales = 15,000 $3 = $45,000
Less: Variable cost = 15,000 $2.25 = $33,750
Net Income = $11,250
Thus, the net income will increase by $11,250