Question

An agricultural researcher claims that the new breed of layers lays an average of 750 eggs during their lifetime. An interested farmer wishes to test this claim at 10% significance level. State the null and the alternative hypothesis 1. H0 : 750 versus H1 : > 750 2. H0 : 750 versus H1 : < 750 3. H0 : D 750 versus H1 : 6D 750 4. H0 : N X D 750 versus H1 : N X 6D 750 5. H0 : N X D 750 versus H1 : N X > 750 STATS

Answer 1

Solution: It is given that an agricultural researcher claims that the new breed of layers lays an average of 750 eggs during their lifetime.

We are required to determine the null and alternative hypotheses:

The null and alternative hypotheses are:

Answer 2

To calculate the discounted payback period for the project, you need to find the time it takes for the cumulative discounted cash flows to become positive. In this case, the discount rate is the Weighted Average Cost of Capital (WACC), which is 9%.

Here are the cash flows:

Year 0: -$1,100 Year 1: $550 Year 2: $550 Year 3: $550

To calculate the discounted cash flows, you'll discount each year's cash flow to present value (Year 0):

Year 0: -$1,100 (already in present value) Year 1: $550 / (1 + 0.09)^1 = $550 / 1.09 ≈ $504.59 Year 2: $550 / (1 + 0.09)^2 ≈ $462.73 Year 3: $550 / (1 + 0.09)^3 ≈ $424.45

Now, calculate the cumulative discounted cash flows:

Year 0: -$1,100 Year 1: -$1,100 + $504.59 = -$595.41 Year 2: -$595.41 + $462.73 = -$132.68 Year 3: -$132.68 + $424.45 = $291.77

The discounted payback period is the point at which the cumulative discounted cash flows become positive. In this case, it happens at the end of Year 3, so the discounted payback period is 3 years.

Rounded to two decimal places, the answer is 3.00 years.