A sample of 51 observations yielded a sample standard deviation of 5. If we want to test H0: ?2 = 20, the test statistic is
A. 62.5.
B. 12.5.
C. 51.25.
D. 50.
Answer: A
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A department store had items in its inventory at the end of the year that had a recorded book value of $10,000 and, because of fashion changes, a market value of only $7,000 . The department store failed to write down these inventory items to market value. To keep the obsolete condition of the inventory items away from its auditors, the firm shipped the goods to a remote warehouse. The effect of
this error was to a. understate the inventory turnover ratio. b. overstate the cost of goods sold to sales percentage. c. overstate the total assets turnover ratio. d. understate net income. e. none of the above
If output decreases
A) total fixed costs will remain the same B) total variable costs will remain the same C) total mixed costs will remain the same D) all of the answers are correct
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Evergreen Company has two investment opportunities. Both investments cost $5,000 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment IIPeriod 1 $1600? $4320? Period 2 1600? 2960? Period 3 2960? 2960? Period 4 5440? 1360? Total $11,600? $11,600? Select the correct statement.
A. Evergreen should choose Investment I because of the time value of money. B. Time value of money techniques are not useful for comparing these investments. C. Evergreen should be indifferent between the two investments because they provide the same total cash inflows. D. Evergreen should choose Investment II because it generates more immediate cash inflows.