Little Equipment for Hire is a subsidiary in the Giant Machinery and currently under the liquidation plan due to the severe contraction of operation due to corona virus. The company plans to pay total dividend of $2.5 million now and $ 7.5 million one year from now as a liquidating dividend. The required rate of return for shareholders is 12%. Calculate the current value of the firm’s equity in total and per share if the firm has 1.5 million shares outstanding. (4 marks)

Answers

Answer 1

Complete Question:

The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in the current year is $250 000. The company is planning to launch a project that will requires an investment of $175 000 next year. Currently the share of Giant machinery is $25/share. Required: a. How much dividend Giant Machinery can pay its shareholders this year and what is dividend payout ratio of the company. Assume the Residual Dividend Payout Policy applies? b. If the company is paying a dividend of $2.50/share and tomorrow the stock will go ex-dividend. Calculate the ex-dividend price tomorrow morning. Assuming the tax on dividend is 15%? c. Little Equipment for Hire is a subsidiary in the Giant Machinery and currently under the liquidation plan due to the severe contraction of operation due to corona virus. The company plans to pay total dividend of $2.5 million now and $ 7.5 million one year from now as a liquidating dividend. The required rate of return for shareholders is 12%. Calculate the current value of the firm’s equity in total and per share if the firm has 1.5 million shares outstanding?

Answer:

a) Total dividend for the current year = $136,250

Dividend Payout Ratio = 0.545

b) Ex-dividend price = $22.875

c) Total current value = $9,196,428.57

Current value per share = $6.13

Step-by-step explanation:

a) Equity = 65%

Debt = 35%

Net Income for year 0 = $250,000

proposed Investment for year 1= $175,000

Current price = $25/share

Tax on dividend = 15%

Total dividend for year 0 = 250000 - (65% of 175000)

Total dividend for year 0= 250000 - 113750

Total dividend for the current year = $136,250

Dividend Payout Ratio = total dividends/ total earning

Dividend Payout Ratio = 136250/250000

Dividend Payout Ratio = 0.545

b) Dividend = $2.5/ share

Ex-dividend price = current price - Dividend * (1-tax on dividend)

Substituting the appropriate values:

Ex-dividend price = 25 - 2.5 * (1-15%)

Ex-dividend price = 25 - 2.125

Ex-dividend price = $22.875

c) Current value of the firm = Dividend paid in year 0 + (Dividend to be paid in year 1/discount rate)

Dividend paid in year 0 = $2,500,000

Dividend to be paid in year 1 = $7,500,000

Discount rate = 12%

Total current value = 2,500,000 + (7,500,000 / 1.12)

Total current value = $9,196,428.57

Numbe of shares = 1,500,000

Current value per share = Total current value / number of shares

Current value per share = 9,196,428.57/1,500,000

Current value per share = $6.13


Related Questions

If f(x)=7+4c and g(x) = 1/2x what is the value of (f/g)(5)

Answers

Answer: 270

Step-by-step explanation:

The notation [tex](\frac{f}{g})(5)[/tex] means to divide [tex]\frac{f(5)}{g(5)}[/tex]. Now that we know we have to divide, we can plug them into this equation.

[tex]\frac{7+4(5)}{\frac{1}{2(5)} }=\frac{27}{\frac{1}{10} }[/tex]. We know that dividing by a fraction means to multiply by its reciprocal, so we'll do that.

[tex]27*10=270[/tex]

I will mark you as BRANLIEST and I will give you 55 points if you answer correctly.

~Solve each system of equations using elimination. SHOW YOUR WORK

1) -4x+3y=-5
4x-5y=3

2) 2x+3y=36
10x-6y=12

Answers

Answer:

1. x = 2    y = 1

2. x = 17   y = 29/3

Step-by-step explanation:

1. Use elimination

-4x+3y=-5

4x-5y=3

x's cancel, so add them

-2y = -2

y = 1

substitute

4x -5(1) = 3

4x - 5 = 3

4x = 8

x = 2

2. Use elimination  

2x+3y=36

10x-6y=12

Multiply top equasion by 5

10x+30y = 360

10x-6y = 12

x's cancel so subract

36y = 348

y = 29/3

Substitute

2x+3(2/3)=36

2x+2 = 36

2x = 34

x = 17

Find the probability that in 200 tosses of a fair die, we will obtain at most 30 fives

Answers

Answer:

0.2946

Step-by-step explanation:

Number of tosses, n = 200

P(obtaining a 5), p = 1/6

q = 1 - p = 5/6

Normal approximation for binomial distribution

P(X < A) = P(Z < (A - mean)/standard deviation)

Mean = np

= 200 x 1/6

= 33.33

Standard deviation = √npq

= √(200(1/6)(5/6) )

= 5.27

P(at most 30 fives) = P(X ≤ 30)

= P(Z < (30.5 - 33.33)/5.27) (continuity correction of 0.5 is added to 30)

= P(Z < -0.54)

= 0.2946

A circle with circumference 6 has an arc with a 20 degrees central angle. What is the length of the arc?

Answers

Answer:

[tex]\frac{1}{3}[/tex]

Step-by-step explanation:

So first calculate what fraction of the circumference the arc is.

[tex]\frac{20}{360}=\frac{1}{18}[/tex]

Now the circumference is 6, so one eighteenth of that is [tex]\frac{1}{3}[/tex]

Please answer this correctly

Answers

Answer:

12 2/5 hours

Step-by-step explanation:

[tex]1+1+1\frac{1}{5} +1\frac{1}{5} +1\frac{1}{5} +1\frac{3}{5} +1\frac{3}{5} +1\frac{4}{5} +1\frac{4}{5} =\\\\2+3\frac{3}{5} +3\frac{1}{5} +3\frac{3}{5} =\\\\11\frac{7}{5} =\\\\12\frac{2}{5}[/tex]

12 2/5 hours have been logged in all.

Round 90.2844097979 to 3 decimals

Answers

Answer:

only allow 3 decimals

90.284 is the answer we removed all others except for 3

The drama club is selling candles for a fundraiser. They spend $100 on the candles and sell them for $4.50 each. How many candles must they sell to make more than $125 profit?

Let x represent the number of candles sold. Which inequality can you use to find x?

Answers

So I try to help

Step-by-step explanation:

I don't no sorrry

Answer:

the first one!!

Step-by-step explanation:

Please answer this correctly

Answers

Answer:

Height of this missing bar would be 1

Step-by-step explanation:

Since there is 1 and only 1 quantity between 80-99.

Answer:

1

There is 1 number that is between 80 and 99 which is 99 so there should be 1 bar.

Step-by-step explanation:

We wish to find the probability that a child from this population who has inadequate calcium intake is 11 to 13 years old. In other words, if you know that a child has inadequate calcium intake, what is the probability that the child is between 11 and 13 years old

Answers

Answer:

Step-by-step explanation:

Look at the population statistics. Let's say it contains:

- data on the age groups available in the population

- data on the probability that a child in the population has inadequate calcium intake OR data that a child in the population does not have the deficiency. If you're given one of these, the other can be gotten by subtracting the probability value given from 1.

So let's say there are children from ages 5 to 15 in this population and the probability that a child in this population has the deficiency is 0.23 (not all the children in this population of 5-15 year olds may have the deficiency) while the probability that a child in this population does not have the deficiency is [1-0.23] = 0.77

So if you pick a child randomly from the population and he has this deficiency, what is the probability that he or she is between 11 and 13 years old?

From ages 5-15, ages 11, 12 and 13 are 3 ages. The total number of ages is 11 ages.

3÷11 = 0.2727

This is the probability that a child picked or selected at random from the population is 11, 12, or 13 years old.

0.2727 × 0.23 = 0.0627

This is the probability that a child picked at random is BOTH within the age bracket 11 to 13 AND has the deficiency!

Apply this.

Given that d is the midpoint of line segment ab and k is the midpoint of line segment bc, which statement must be true? (May give brainliest)

Answers

Answer:

B is the midpoint of line segment AC

Suppose point (4, −9) is translated according to the rule (, ) → ( + 3, − 2). What are the coordinates of ′? Explain.


Please help

Answers

Answer:

(7, -11)

Step-by-step explanation:

If the point is shifted 3 to the right and 2 down, you just have to add 3 to the x-coordinate and subtract 2 from the y-coordinate. 4+ 3 = 7 and -9 - 2 is -11. So, the new point will be (7, -11).

Answer:

(7, -11)

Step-by-step explanation:

The point is translated three units to the right, and 2 units down.

[tex](4,-9)=>(4+3,-9-2)=>(7,-11)[/tex]

Point " ' " should be (7,-11)

A study of the effect of smoking on sleep patterns is conducted. The measure observed is the time, in minutes, that it takes to fall asleep. These data are obtained:
Smokers: 69.3 56.0 22.1 47.6 53.2 48.1 52.7 34.4 60.2 43.8 23.2 13.8
Non-Smokers: 28.6 25.1 26.4 34.9 28.8 28.4 38.5 30.2 30.6 31.8 41.6 21.1 36.0 37.9 13.9
Which group having greater value of relative dispersion and why?

Answers

Answer:

The group that has greater value of relative dispersion is the smokers group, as the coefficient of variationof their data is bigger than the coefficient of variation of the non-smokers group data.

CV smokers: 0.387

CV non-smokers: 0.234

Step-by-step explanation:

We will calculate the relative dispersion of each data set with its coefficient of variation (ratio of the standard deviation to the arithmetic mean).

Then, first we calculate the mean and standard deviation for the smokers data:

Mean: 43.7

Standard deviation: 286.5

[tex]M_s=\dfrac{1}{n}\sum_{i=1}^n\,x_i\\\\\\M_s=\dfrac{1}{12}(69.3+56+22.1+47.6+53.2+. . .+13.8)\\\\\\M_s=\dfrac{524.4}{12}\\\\\\M_s=43.7\\\\\\s_s=\dfrac{1}{n-1}\sum_{i=1}^n\,(x_i-M_s)^2\\\\\\s_s=\dfrac{1}{11}((69.3-43.7)^2+. . . +(13.8-43.7)^2)\\\\\\s_s=\dfrac{3152}{11}\\\\\\s_s=286.5\\\\\\[/tex]

The mean and standard deviation for the non-smokers is:

Mean: 30.3

Standard deviation: 50.9

[tex]M_n=\dfrac{1}{n}\sum_{i=1}^n\,x_i\\\\\\M_n=\dfrac{1}{15}(28.6+25.1+26.4+34.9+28.8+. . .+13.9)\\\\\\M_n=\dfrac{453.8}{15}\\\\\\M_n=30.3\\\\\\s_n=\dfrac{1}{n-1}\sum_{i=1}^n\,(x_i-M_n)^2\\\\\\s_n=\dfrac{1}{14}((28.6-30.3)^2+. . . +(13.9-30.3)^2)\\\\\\s_n=\dfrac{713.3}{14}\\\\\\s_n=50.9\\\\\\[/tex]

Now, we can calculate the coefficient of variation:

CV smokers:

[tex]CV_s=\dfrac{s_s}{M_s}=\dfrac{16.9}{43.7}=0.387[/tex]

CV non-smokers:

[tex]CV_n=\dfrac{s_n}{M_n}=\dfrac{7.1}{30.3}=0.234[/tex]

1.solve for x 3(10 - 2x)=18

Answers

Answer:

[tex]\boxed{\ x=2\ }[/tex]

Step-by-step explanation:

3(10-2x)=18

<=>

10-2x=18/3=6

<=>

2x=10-6=4

<=>

x= 4/2=2

What are the next two numbers in the pattern of numbers 45,15,44,17,40,20,31,25

Answers

Answer:

14, 32

Step-by-step explanation:

45,15,44,17,40,20,31,25

this is combination of 2 series:

45-44-40-31- ?15-17-20-25-?

In the first series we can see the pattern as:

-1, -4, -9 = -1², -2², -3² so next difference must be -4², which is 31- 16= 14

In the second series we can see the pattern as:

2, 3, 5 prime numbers, so next difference must be 7, which is 25+7=32

The series will continue as:

45, 15, 44, 17, 40, 20, 31, 25, 14, 32

Answer:

14, 32

Step-by-step explanation:

lol :D

The length of a rectangle is 4 inches longer than the width. If the area is 390 square inches, find the rectangle's dimensions. Round your answers to the nearest tenth of an inch.

Answers

Answer:

17.8 in x 21.8 in

Step-by-step explanation:

Given w=width and l=length

w*l=390

l=w+4, therefore w*(w+4)=390

w^2+4w=390

w^2+4w-390=0

Quadratic equation, solve as such

w=-21.8 or 17.8

Solution can't be negative so w=17.8 in

l=w+4 so l=21.8

Find the range of the set of numbers shown by the box-and-whisker plot.
6
6
7
8
9
10
11
12
13
14
16
16
17
18
19
20
21
22

Answers

I’m confused on what you are asking in this I think it would be 6

Answer:

16

Step-by-step explanation:

The range is the difference between the highest and lowest number of a data set. 22-6=16

A survey showed that 82​% of adults need correction​ (eyeglasses, contacts,​ surgery, etc.) for their eyesight. If 15 adults are randomly​ selected, find the probability that no more than 1 of them need correction for their eyesight. Is 1 a significantly low number of adults requiring eyesight​ correction?

Answers

Answer:

[tex] P(X \leq 1)= P(X=0) +P(X=1) [/tex]

And using the probability mass function we can find the individual probabiities

[tex]P(X=0)=(15C0)(0.82)^0 (1-0.82)^{15-0}=6.75x10^{-12}[/tex]

[tex]P(X=1)=(15C1)(0.82)^1 (1-0.82)^{15-1}=4.61x10^{-10}[/tex]

And replacing we got:

[tex] P(X \leq 1)= P(X=0) +P(X=1)= 4.68x10^{-10}[/tex]

And for this case yes we can conclude that 1 a significantly low number of adults requiring eyesight​ correction in a sample of 15 since the probability obtained is very near to 0

Step-by-step explanation:

Let X the random variable of interest "number of adults who need correction", on this case we now that:

[tex]X \sim Binom(n=15, p=0.82)[/tex]

The probability mass function for the Binomial distribution is given as:

[tex]P(X)=(nCx)(p)^x (1-p)^{n-x}[/tex]

Where (nCx) means combinatory and it's given by this formula:

[tex]nCx=\frac{n!}{(n-x)! x!}[/tex]

We want to find this probability:

[tex] P(X \leq 1)= P(X=0) +P(X=1) [/tex]

And using the probability mass function we can find the individual probabiities

[tex]P(X=0)=(15C0)(0.82)^0 (1-0.82)^{15-0}=6.75x10^{-12}[/tex]

[tex]P(X=1)=(15C1)(0.82)^1 (1-0.82)^{15-1}=4.61x10^{-10}[/tex]

And replacing we got:

[tex] P(X \leq 1)= P(X=0) +P(X=1)= 4.68x10^{-10}[/tex]

And for this case yes we can conclude that 1 a significantly low number of adults requiring eyesight​ correction in a sample of 15 since the probability obtained is very near to 0

Erythropoietin (EPO) is a banned drug used by athletes to increase the oxygen-carrying capacity of their blood. New tests for EPO were first introduced prior to the 2000 Olympic Games held in Sydney, Australia. Chance (Spring 2004) reported that of a sample of 830 world-class athletes, 159 did not compete in the 1999 World Championships (a year prior to the new EPO test). Similarly, 133 of 82:5 potential athletes did not compete in the 2000 Olympic Games. Was the new test effective in deterring an athlete's participation in the 2000 Olympics? If so, then the proportion of nonparticipating athletes in 2000 will be greater than the proportion of nonparticipating athletes in 1999, Use a 98% confidence interval to compare the two proportions and make the proper conclusion.

Answers

Answer:

Step-by-step

The null and the alternative hypothesis can be define as  follows,

Null Hypothesis; There is no significance difference between the proportions of non participating athletes in 1999 and 2000

[tex]H_0:(p_1-p_2)\neq 0[/tex]

Alternative Hypothesis: The proportion of non participating  athletes in  2000 will be more than the proportion of non participating athletes in 1999

[tex]H_1:(p_1-p_2)<0[/tex]

The proportion of nonparticipating athletes in 1999 is given by

[tex]\hat p_1 = \frac{x_1}{n_1} \\\\=\frac{159}{830} =0.1916[/tex]

The proportion of nonparticipating athletes in 2000 is given by

[tex]\hat p_2 =\frac{x_2}{n_1} \\\\=\frac{133}{825} =0.1612[/tex]

The pooled proportion can be calculated using the following formula

[tex]\hat p = \frac{x_1+x_2}{n_1+n_2} \\\\=\frac{159+133}{830+825} =0.1764[/tex]

under the null hypothesis, the test statistics can be calculated as follows

[tex]Z=\frac{\hat p_1 - \hat p_2}{\sqrt{\hat p \hat q(\frac{1}{n_1}+\frac{1}{n_2} ) } }[/tex]

[tex]=\frac{0.1916-0.1612}{\sqrt{(0.1764)(0.8236)(\frac{1}{830} +\frac{1}{825} )} } \\\\=1.6257[/tex]

Determine the P-value using the following formula

P-value = Normdist(1.6257)

=0.947993

Here, it can be observed that the P-value is greater than the level of the significance,

Hence, the null hypothesis fails to be rejected

Therefore it can be concluded that there is insufficient evidence to support that the proportions of non participating athletes in 2000 will be more than the proportions of non participating athletes in 1999

The HCF of two numbers is 11, and their L.C.M is 368. If one number is 64, then the other number is​

Answers

Answer:

63.25 not an integer

Step-by-step explanation:

HCF(a,b)*LCM(a,b)=ab

11*368=64*x

x=11*368/64

x=63.25 not an integer, one of the given numbers must be incorrect

but you may use this method to find it yourself

Determine whether the stated causal connection is valid. If the causal connection appears to be​ valid, provide an explanation. Test grades are affected by the amount of time and effort spent studying and preparing for the test. Choose the correct answer below

a. The causal connection is valid. Students who spend more time and effort studying will be able to memorize more​ information, so their test grades will be higher.
b. The causal connection is valid. Students who spend more time and effort studying tend to be​ smarter, so their test grades are higher.
c. The causal connection is valid. When students spend more time and effort studying for a​ test, their test grades tend to be higher.
d. The causal connection is not valid.

Answers

Answer:

A. The causal connection is valid. Students who spend more time and effort studying will be able to memorize more​ information, so their test grades will be higher.

Step-by-step Explanation:

The causal connection between the test grades of students and the amount of time and effort spent the students spend in studying and preparing for the test appears to be valid. This is valid because students who spend more time and effort studying would most likely be able to memorize more information of which they are most likely to come by in the test they take. Invariably, they'd be able to easily recall what they've memorize and give the right answers to the questions they are asked in the test, and this definitely will earn them higher test grades.

Find the area of a circle with radius, r = 9cm.
Give your answer in terms of π .

Answers

Answer:

[tex]81\pi[/tex]

Step-by-step explanation:

[tex]Area = \pi * r^{2} \\\pi *9^{2} =81\pi[/tex]

Answer:

81 π

Step-by-step explanation:

formula is radius squared times pi or π so the answer would be 9x9=81 and you said to leave in terms of π so the answer is 81 π.

Lesson 9: Problem Solving When the Percent Changes
Exit Ticket
Tamia and Laniece were selling magazines for a charity. In the
first week, Tamia sold 30% more than Laniece. In the second
week, Tamia sold 12 magazines, but Laniece did not sell any. If
Tamia sold 50% more than Laniece by the end of the second
week, how many magazines did Laniece sell? Choose any
model to solve the problem. Show your work to justify your
answer.​

Answers

Answer:

Laniece had 60 magazines

Step-by-step explanation:

Given: In the  first week, Tamia sold 30% more than Laniece. In the second  week, Tamia sold 12 magazines, but Laniece did not sell any. Tamia sold 50% more than Laniece by the end of the second  week

To find: Number of magazines sold by Laniece

Solution:

Let number of magazines sold by Laniece in the first week be x.

Number of magazines sold by Tamia in the first week = [tex]x+\frac{30}{100} x=\frac{130x}{100} =\frac{13x}{10}[/tex]

Number of magazines sold by Tamia in the second week = 12

Total number of magazines sold by Tamia at the end of the second week = [tex]\frac{13x}{10}+12[/tex]

Total number of magazines sold by Laniece at the end of the second week = x

According to question,

[tex]\frac{13x}{10}+12=x+\frac{50x}{100}=x+\frac{x}{2}\\\frac{13x}{10}+12=\frac{3x}{2}\\\frac{3x}{2}-\frac{13x}{10} =12\\\frac{15x-13x}{10}=12\\\frac{2x}{10}=12\\\frac{x}{5}=12\\x=60[/tex]

Write down five numbers with a mode of 6.

Answers

Answer:

6 4 5 6 7

Step-by-step explanation:

The mode would be 5. The first 2 letters of MODE are MO, which can be an abbreviation for MOST OFTEN.

A fair 6-sided die is colored in the following way: The faces of 1 - 3 are colored red. The faces of 4 and 5 are colored blue. The face of 6 is colored green. What is the probability that the face comes up red OR a prime number

Answers

Answer:

There are 6 total possibilities, 3 red faces and 3 prime numbers however, 2 and 3 are prime numbers and they are red as well so total successful outcomes = 3 + 3 - 2 = 4. This means that the answer is 4 / 6 or 2 / 3.

Answer:

[tex]\frac{2}{3}[/tex]

Step-by-step explanation:

[tex]1 \: 2\:3[/tex] are red

[tex]5[/tex] is prime.

Total of [tex]4[/tex] possibilities out of [tex]6[/tex]

[tex]\frac{4}{6}[/tex]

Which graph represents this equation y-4= -3(x+5)

Answers

Answer:

Graph B

Step-by-step explanation:

Simplify.

y - 4 = -3x - 15       Distribute

y = -3x - 11             Add 4 on both sides

The y-intercept should be negative, and option B has a negative y-intercept.

The graph of the given function will be represented by graph B so the correct answer is option B.

What is a graph?

A graph is the representation of the data on the vertical and horizontal coordinates so we can see the trend of the data.

The graph of the function is attached with the answer below.

Simplify.

y - 4 = -3x - 15       Distribute

y = -3x - 11             Add 4 on both sides

The y-intercept should be negative, and option B has a negative y-intercept.

Therefore the graph of the given function will be represented by graph B so the correct answer is option B.

To know more about graphs follow

https://brainly.com/question/4025726

SPJ5

If the mean of 5 positive integers is 15, what is the maximum possible difference between the largest and the smallest of these 5 numbers?

Answers

Answer:

64

Step-by-step explanation:

If the mean is 15, the sum of 5 numbers is:

5*15 = 75

Minimum value for the first four numbers would be:

1, 2, 3, 4

Then the fifth number is:

75 - (1+2+3+4) = 75 - 10 = 65

So the maximum difference is:

65 - 1 = 64

Can you help me with this one don’t get it

Answers

Answer: 95

Do you need an explication?
Answer : 95
The total degrees of angles is (n-2) *180
And since there are 5 sides it’s 3 *180 which gives u 540. Then you subtract all the given angles or find the remaining angle

Playbill magazine reported that the mean annual household income of its readers is $119,155 (Playbill, January 2006). Assume this estimate of the mean annual household in- come is based on a sample of 80 households, and based on past studies, the population standard deviation is known to be a = $30,000. a. Develop a 90% confidence interval estimate of the population mean. b. Develop a 95% confidence interval estimate of the population mean. c. Develop a 99% confidence interval estimate of the population mean. d. Discuss what happens to the width of the confidence interval as the confidence level is increased. Does this result seem reasonable? Explain.

Answers

Answer:

a) CI = (113,637.5  ,  124,672.5)

b) CI = (112,581  ,  125,729)

c) CI = (110,501.4  ,  127,808.6)

Step-by-step explanation:

You have the following information:

[tex]\overline{x}[/tex]: mean annual household income = 119,155

σ: standard deviation = 30,000

n: sample = 80

The interval of confidence is given by the following expression:

[tex]\overline{x}\pm Z_{\alpha/s}(\frac{\sigma}{\sqrt{n}})[/tex]

Z_α/2: distribution density factor

where α and Z_α/2 are given by the range of the confidence interval.

a) For a 90% confidence interval you have:

α = 1 - 0.9 = 0.1

Z_0.1/2 = Z_0.05 = 1.645   (found in a table of normal distribution)

You replace in the equation (1) to obtain the confidence interval:

[tex]119,155\pm (1.645)(\frac{30,000}{\sqrt{80}})\\\\=119,155\pm5,517.5[/tex]

Then, the confidence interval is (119,155 + 5,517.5 , 119,155 - 5,517.5  )

= (113,637.5  ,  124,672.5)

b) For a 95% confidence interval you have:

α = 1 - 0.95 = 0.05

Z_0.05/2 = Z_0.025 = 1.96

[tex]119,155\pm (1.96)(\frac{30,000}{\sqrt{80}})\\\\=119,155\pm 6,574.0[/tex]

The confidence interval is (112,581  ,  125,729)

c) For a 99% confidence interval:

α = 1 - 0.99 = 0.01

Z_0.01/2 = Z_0.005 = 2.58

[tex]119,155\pm (2.58)(\frac{30,000}{\sqrt{80}})\\\\=119,155\pm 8,653.6[/tex]

The confidence interval is (110,501.4  ,  127,808.6)

d) When the confidence level increases the width of the confidence increases too. This can be noticed in the normal distribution, when the confidence level is higher, the area of the tails is reduced, and so, the confidence interval is higher.

Saved
250 mg
sing value in
50 mg
10 ml
X
Choice

Answers

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What is the question and then i can help!

The mean percent of childhood asthma prevalence in 43 cities is 2.32​%. A random sample of 32 of these cities is selected. What is the probability that the mean childhood asthma prevalence for the sample is greater than 2.8​%? Interpret this probability. Assume that sigmaequals1.24​%. The probability is nothing.

Answers

Answer:

[tex] P(\bar X>2.8)[/tex]

We can use the z score formula given by:

[tex] z=\frac{\bar X -\mu}{\frac{\sigma}{\sqrt{n}}}[/tex]

And replacing we got:

[tex] z=\frac{2.8 -2.32}{\frac{1.24}{\sqrt{32}}}=2.190 [/tex]

And using the normal standard distribution and the complement rule we got:

[tex] P(z>2.190 )= 1-P(z<2.190) = 1-0.986=0.014[/tex]

Step-by-step explanation:

For this case w eknow the following parameters:

[tex] \mu = 2.32[/tex] represent the mean

[tex]\sigma =1.24[/tex] represent the deviation

n= 32 represent the sample sze selected

We want to find the following probability:

[tex] P(\bar X>2.8)[/tex]

We can use the z score formula given by:

[tex] z=\frac{\bar X -\mu}{\frac{\sigma}{\sqrt{n}}}[/tex]

And replacing we got:

[tex] z=\frac{2.8 -2.32}{\frac{1.24}{\sqrt{32}}}=2.190 [/tex]

And using the normal standard distribution and the complement rule we got:

[tex] P(z>2.190 )= 1-P(z<2.190) = 1-0.986=0.014[/tex]

Answer:

0.55% probability that the mean childhood asthma prevalence for the sample is greater than 2.8​%. This means that a sample having an asthma prevalence of greater than 2.8% is unusual event, that is, unlikely.

Step-by-step explanation:

To solve this question, we need to understand the normal probability distribution and the central limit theorem.

Normal probability distribution

When the distribution is normal, we use the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the zscore of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

If X is more than two standard deviations from the mean, it is considered an unusual outcome.

Central Limit Theorem

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

In this question, we have that:

[tex]\mu = 2.32, \sigma = 1.24, n = 43, s = \frac{1.24}{\sqrt{43}} = 0.189[/tex]

What is the probability that the mean childhood asthma prevalence for the sample is greater than 2.8​%?

This is 1 subtracted by the pvalue of Z when X = 2.8. So

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

By the Central Limit Theorem

[tex]Z = \frac{X - \mu}{s}[/tex]

[tex]Z = \frac{2.8 - 2.32}{0.189}[/tex]

[tex]Z = 2.54[/tex]

[tex]Z = 2.54[/tex] has a pvalue of 0.9945

1 - 0.9945 = 0.0055

0.55% probability that the mean childhood asthma prevalence for the sample is greater than 2.8​%. This means that a sample having an asthma prevalence of greater than 2.8% is unusual event, that is, unlikely.

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