4. A credit rating company recommends granting of credit cards based on severalcriteria. One is annual income. If the annual income of applicants is normally dis-tributed with mean $22,000 and standard deviation $4,800 and the companyrecommends no applicant unless his or her income exceeds $15,000, what fractionof the applicants are denied on this basis?

The probability value for Z (-1.4583), according to the cumulative probability table, the…

Answered: 4. A credit rating company recommends…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Residents of certain states, such as Florida and Tennessee would be wise to add sinkhole insurance to their homeowner’s insurance plan as it is typically not covered in the standard policy. Group of answer choices True False
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3 00 Which of the following is/are fully exempt from Capital Gains Tax? Select one: O a. A family home which was owned for 15 years by the taxpayer and has been rented out for the last 7 years as the taxpayer relocated to the UK for work purposes. The owner, upon returning to Australia, has lived in the property for 2 months prior to selling the house (to fund the purchase of a new family home). There have been no other claims of main residence by the taxpayer. O b. A motor vehicle purchased by the taxpayer, held for 24 months then disposed of for a value above the cost base. c. O d. O e. A lottery win by a Uber driver. Two of the specific events are fully exempted from CGT. All of the specific events are fully exempted from CGT.
You have just received a business valuation report that is dated six months ago. Describe the factors that might have changed during the past six months and, therefore, caused the value of the business today to be different from the value six months ago. Which of these changes affect the expected cash flows, and which affect the discount rate that you would use in a discounted cash flow valuation of this company?
Purchase Discounts It is typically beneficial for companies to take advantage of early-paymentdiscounts allowed on purchases made on credit. To see why this is the case, determine the effectiverate of interest associated with not taking advantage of the early-payment discount for each of thefollowing situations. Assume in each case that payment is made on the 30th day of the billing cycle.Required1. What is the opportunity cost of not taking advantage of the discount associated with purchases madeunder the following terms: 2/10, n/30? (Show calculations.)2. What is the opportunity cost of not taking advantage of the discount associated with purchases madeunder the following terms: 1/10, n/30? (Show calculations.)3. To motivate managers to take early-payment discounts, what is the appropriate accounting treatment forpurchase discounts?
Q1 A video rental shop could buy a copy of a film and rent it to the public, and the copyright owner would receive no further royalties, even though the video shop was making a profit from the commercial exploitation of the work This was felt to be unfair. In which category this examples belongs to, also explain how? Q2 A database is a collection of information that is organized so that it can be easily accessed, managed and updated. Computer databases typically contain aggregations of data records or files, containing information about sales transactions or interactions with specific customers. How we protect a database, as it is not a tangible thing. Q3 Di fference between Valid and void contracts BExplain with at least two examples each.
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es Congress has enacted a number of regulations that have established criteria for evaluating home loan applicants and mandating disclosures in the origination of home loans. Which of the following congressional acts requires important disclosures concerning the cost of consumer credit, including the computation of the annual percentage rate (APR)? Multiple Choice Equal Credit Opportunity Act (ECOA) Truth-in-Lending Act (TILA) Real Estate Settlement Procedures Act (RESPA) О Home Ownership and Equity Protection Act (HOEPA)
How is probability is used in inventory management?
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You are the assistant to Simone Nain who is the CEO and board member of Simplicity, a small private company making a single product and mainly owned by the Nain family that has no diversified assets. Some family members have been approached by representatives of Complex Solutions plc. , a large publicly listed corporation, owned by diversified investors, that carries no debt. Complex Solutions are interested in buying the Simplicity business. Nain is however puzzled because the price Complex Solutions plc is offering suggests that they are using a much lower discount rate than the family firms own current estimate of the appropriate discount rate for Simplicity. Nain is concerned that this might mean that the discount rate used by the company at present is too high. You have been asked to write a note (approximately 500 words) to explain whether Simplicity, if it refuses the offer from Complex Solutions plc, should make future decisions, as a private family company, based on a…
true or false Some speculative risks are insurable (T) The possibility of not meeting the annual sales target of one million dollar set by the top management is an example of strategic risk. ABC Insurance Company plans to sell fire insurance in Kedah. ABC expects that eight buildings out of every 100, on average, will report claims each year. The variation between the loss that ABC expects to occur and the loss that actually occurs can be measured by range, variance, standard deviation or coefficient of variation A total loss to the car that could happen to a driver as a result of a collision is an example of pure risk.

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