The average hourly rate of pay for financial managers in a given region is $ 32.62 and the standard deviation is $ 2.32. Suppose these compensation rates are normally distributed. (Develop the figure for each exercise). At the end you must explain in your words what these results mean.
What is the probability that a financial manager will earn between $ 30 and $ 35 per hour?
How high does the hourly wage need to be for a CFO to have a 10% higher pay?
The average hourly rate of pay for financial managers in a given region is $ 32.62...
The average hourly pay for a company is $20 with a standard deviation of $3. Furthermore, it is known that the hourly pay rates are normally distributed. (a) [2] What is the probability that a randomly selected employee will have an hourly wage of at least $26? (b) [4] What are the minimum and the maximum hourly wages of the middle 90% of employees? (c) [4] If 15 of the employees have hourly pay rates less than $17, how many...
The average hourly wage of workers at a fast food restaurant is $10.00/hr. Assuming that the wages are normally distributed with a standard deviation of $0.55. If a worker at this fast food restaurant is selected at random, what is the probability that the worker earns less than $8.70 per hour?
4. According to the Bureau of Labor Statistics, the average weekly pay for a U.S. production worker was $441.84. Assume that available data indicate that production worker wages were normally distributed with a standard deviation of $90. What is the probability that a worker earned between $400 and $500? (Round to four decimal places) How much did a production worker have to earn to be in the top 20% of wage earners? (Round to two decimal places) For a randomly...
1. The average amount parents and children spent per child on back-to-school clothes in Autumn 2010 was $527. Assume the standard deviation is $160 and that the amount spent is normally distributed. What is the probability that the amount spent on a randomly selected child is more than $700? (Round to four decimal places) What is the probability that the amount spent on a randomly selected child is less than $100? (Round to four decimal places) What is the probability...
a. The current value of a stock portfolio is $23 million. A financial analyst summarizes the uncertainty about next year's holding-period return using the scenario analysis in the following spreadsheet. What are the annual holding-period returns of the portfolio in each scenario? Calculate the expected holding-period return, the standard deviation of returns, and the 5% VaR. What is the VaR of a portfolio with normally distributed returns with the same mean and standard deviation as this stock? D End of-Year...
Designing a Managerial Incentives Contract Specific Electric Co. asks you to implement a pay-for-performance incentive contract for its new CEO and four EVPs on the Executive Committee. The five managers can either work really hard with 70-hour weeks at a personal opportunity cost of $200,000 in reduced personal entrepreneurship and increased stress-related health care costs or they can reduce effort, thereby avoiding the personal costs. The CEO and EVPs face three possible random outcomes: the probability of the company experiencing...
A stock analyst wondered whether the mean rate of return of financial, energy, and utility stocks differed over the past 5 years. He obtained a simple random sample of eight companies from each of the three sectors and obtained the 5-year rates of return shown in the accompanying table (in percent). Complete parts (a) through (d) below. EEB Click the icon to view the data table. (a) State the null and alternative hypotheses. Choose the correct answer below. O A....
financial management 12) Stock HOWDY plans to pay a 52 dividend et yea,a3 divdend in yer d 54 in y 3 The dividends are expected to grow at 2% foreve afer year S The discount eae in 20 How d company can choose not to pay the dividend nest year ad eivest The st of dhe divdendswi remain the same. If the company chooses not to pay the 2 dividend nevt year, they can i and give you a special...
Wilson’s is a small chain of low-cost retailers based across Scotland and the North of England. It has no stores in London. It has 30 outlets, typically medium-sized shops (around 10,000 square feet) selling low cost items such as household products, cleaning products, and general homewares. Its main competitor is the larger chain of B&M stores. The brand was established 15 years ago, just before the financial crisis by an entrepreneur, Mr Khan. The Khan family still own and run...
Wilson’s is a small chain of low-cost retailers based across Scotland and the North of England. It has no stores in London. It has 30 outlets, typically medium-sized shops (around 10,000 square feet) selling low cost items such as household products, cleaning products, and general homewares. Its main competitor is the larger chain of B&M stores. The brand was established 15 years ago, just before the financial crisis by an entrepreneur, Mr Khan. The Khan family still own and run...