Q1 Given the following data for X (number of units sold), a normally distributed random variable.
1. Calculate E[X] or the mean of unit sales and S[X] or the sample standard deviation of unit sales using Excel. Calculate E[X] using "=AVERAGE( )" in Excel.
2. Calculate S[X] using "=STDEV.S( )" in Excel. Round-off each to the nearest unit. Think of this sample of data being collected from one market in the last five years, or think of it as being collected in just one year from five different markets. Here is the data for X:
18,000 units 25,000 units 25,000 units 25,000 units 32,000 units
Q2 Next, create a histogram of the data in Excel with three categories on the horizontal axis.
Q3 Given fixed cost = $1,000,000 , selling price per unit = $120 , variable cost per unit = $70
1. calculate the probability that the firm makes a loss. Recall, unit sales are normally distributed so Z = (BEP - E[Q])/S[Q].
2. Next, suppose the government imposes a $5 per unit tax which will raise the variable cost per unit by $5.
3 Recalculate the probability of making a loss and compare to the pre-tax probability of loss.
4 Does your result make sense?
5 Does this help you understand why many industries lobby for lower business taxes?
Q1 Given the following data for X (number of units sold), a normally distributed random variable....
Q Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost per unit = $70 ① Calculate the probability that the firm makes a loss. Recall, unit sales are normally distributed so Z = (BEP - E[Q])/S[Q] ② Suppose the government imposes a $5 per unit tax which will raise the variable cost per unit by $5. Recalculate the probability of making a loss. ③ Compare to the pre-tax probability of loss. ④ Does your...
Given Fixed cost = $1,000,000 , Selling price per unit = $120 , Variable cost per unit = $70 ① Calculate the probability that the firm makes a loss. Recall, unit sales are normally distributed so Z = (BEP - E[Q])/S[Q] ② Suppose the government imposes a $5 per unit tax which will raise the variable cost per unit by $5. Recalculate the probability of making a loss. ③ Compare to the pre-tax probability of loss. ④ Does your result...
Exercise 4 (Continuous Probability) For this exercise, consider a random variable X which is normally distributed with a mean of 120 and a standard deviation of 15. That is, x-.. N (μ = 120, σ. 225) (a) Calculate P(X<95) (b) Calculate P(X > 140) c) Calculate P(95<X<120 (d) Find q such that P(X<)-0.05 (e) Find q such that P(X>) 0.10
Assume the random variable X is normally distributed with mean p = 50 and standard deviation o = 7. Compute the probability. Be sure to draw a normal curve with the area corresponding to the probability shaded PIX> 39) Q os oo S 50 39 50 39 50 39 P(X>39) = (Round to four decimal places as needed) secta
. feo points/ In probability, if a random variable X is standardly normally distributed then the probability of a
JP Corporation's projected data for 2017 are: Sales: 203,000 units Unit Price: $70 Total Variable Cost: ? Total Contribution Margin: $6,090,000 Total Fixed Cost: $4,945,500 Operating Income: ? REQUIRED: 1. Compute the Unit Variable Cost 2. Compute the CM per unit 3. Compute the BEP in units 4. Calculate the CMR with four decimals 5. Compute the BEP in sales revenue 6. Compute the Margin of Safety in units 7. Compute the Margin of Safety in dollars 8. Compute the...
Data Table Units produced and sold 600 units Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs 350 per unit 62 per unit 63 per unit 16 per unit 10,500 per month 10 per unit 4,450 per month Print Print [ Done] Done Salem, Inc. has collected the following data for November (there are no beginning inventories): B (Click the icon to view the data.) Read the...
Historically data shows that the diameter of current piston rings is a normally distributed random variable with mean of 12 CM and standard deviation of 0.04 CM A. If you use 46 randomly select the rings and calculate X bar what is the probability of having an X bar greater than 12.01cm B. Assume you take 40 rings and put them side-by-side in line what is the probability that the length of the line will exceed 490cm? use original sd
Given a random variable X normally distributed, with standard deviation10 and P (X less than 40) = 0.0080, calculate the mean.
1. This question is on probability a. Suppose that X is a normally distributed random variable, where X N (M, o). Show that E [cºX f (x)] = cºu+20oʻE [ f (x + 002)] where f is a suitable function and 0 € R is a scalar. Hint: Write X = 1 +o0; 0~ N (0,1) and calculate the resulting integral b. Consider the probability density function X>0 p(x) = { Az exp (-1.2-2) 10 x < 0 (>0) is...