A college has 240 full-time employees that are currently covered under the school's health care plan. The average out-of-pocket cost for the employees on the plan is $1,820 with a standard deviation of $515. The college is performing an audit of its health care plan and has randomly selected 35 employees to analyze their out-of-pocket costs. a. Calculate the standard...
PROBLEM 18.1 (pg 132, #86) People randomly arrive for treatment at an emergency room at a rate of 3.8 per hour. Let Y be the amount of time (in hours) until the next patient arrives in the emergency room. a. The random variable Y has an exponential distribution with parameter λ b. Find the probability no patients arrive over the...
Section B Question 1 (Show all workings/steps) (10 marks) wa Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a revered plan (Plan II). Under Plan I, the company would have 195,000 shares of stock outstanding. Under Plan II, there would be 100,000 shares of stock outstanding and $1,787,500 in debt outstanding. The interest rate on...
The following information pertains to Rembrandt Inc.'s pension plan for calendar 2017: Defined benefit obligation at Jan 1/17................. $96,000 Interest (discount) rate...................................... 10% Current service costs......................................... $24,000 Pension benefits paid retirees............................ $20,000 The corporation uses IFRS. If no change in actuarial estimates occurred during 2017, Rembrandt's defined benefit obligation at December 31,...
Presented below is information related to Peach Corporation’s defined benefit pension plan for calendar 2017. The corporation uses IFRS. Defined benefit obligation, Jan 1............................. $200,000 Fair value of plan assets, Jan 1............................... 180,000 Current service cost................................................... 27,000 Contributions to plan................................................. 25,000 Actual and expected return on plan assets............ 9,000 Benefits...
BREAKEVEN AND LEVERAGE Wingler Communications Corporation (WCC) produces premium stereo headphones that sell for $29.00 per set, and this year's sales are expected to be 440,000 units. Variable production costs for the expected sales under present production methods are estimated at $10,000,000, and fixed production (operating costs at present are $1,560,000. WCC has $4,800,000 of debt outstanding at an interest...
Assignment 3 Due April 4 11:59 pm online 1. The demand schedule for a certain cellphone plan is given below. (Q is the quantity/number of customers who get the plan.) Assume that the marginal cost to offer the plan to an additional customer is $5. A) What is the efficient quantity/number of customer? B) Calculate the marginal revenue for each...
Consider the economy of Pomistan, where citizens consume only apples. Assume that apples are priced at $1 each. The government has devised the following tax plans: Plan A Plan B Consumption up to 1,000 apples is taxed at 5%. Consumption up to 2,000 apples is taxed at 30%. Consumption higher than 1,000 apples is taxed at 40% Consumption higher than...
Two antibiotics A and B are available as treatment for a common ear infection in children. Antibiotic A is known to cure the infection 75 % of the time. Treatment with Antibiotic A costs $ 70. Antibiotic B is known to cure the infection 90 % of the time. Treatment with Antibiotic B costs $ 85. The antibiotics work independently...
5. Understanding marginal and average tax rates Consider the economy of Cocoland, where citizens consume only coconuts. Assume that coconuts are priced at $1 each. The government has devised the following tax plans: Plan A • Consumption up to 1,000 coconuts is taxed at 5%. • Consumption higher than 1,000 coconuts is taxed at 40%. Plan B • Consumption up...