# Textbook Solutions

### BioCom’s New Product Line – FIN 419 Solution Guide Part 1

Company Details BioCom Cost of new plant and equipment $24,000,000 Designs and prototypes $ 450,000 Estimated salvage value of technology and equipment, end of year 5 $2,400,000 First-year sales forecast $16,500,000 Projected annual rate of sales increases 6% Cost of [...]Read more

### Hypothesis Test μ ≤ 10 – Solve Test Statistic

Given the following hypotheses: H0 : μ ≤ 10 H1 : μ > 10 A random sample of 10 observations is selected from a normal population. The sample mean was 12 and the sample standard deviation 3. Using the .05 significance level: Look closely at the formulas in the excel spreadsheet [...]Read more

### Hypothesis Test μ = 400 – Solve Test Statistic

Given the following hypotheses: H0 : μ = 400 H1 : μ ≠ 400 A random sample of 12 observations is selected from a normal population. The sample mean was 407 and the sample standard deviation 6. Using the .01 significance level: Setup the problem in excel and solve for the test [...]Read more

### Hypothesis Test United Nations Report – Solution Guide

A United Nations report shows the mean family income for Mexican migrants to the United States is $26,700 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 21 Mexican family units reveals a mean to be $28,450 with a sample standard deviation of $10,850. Does this [...]Read more

### Hypothesis Test Rocky Mountain Rath Publishing – Solution Guide

The Rocky Mountain district sales manager of Rath Publishing Inc., a college textbook publishing company, claims that the sales representatives make an average of 36 sales calls per week on professors. Several reps say that this estimate is too low. To investigate, a random [...]Read more

### Hypothesis Test H0 : μ ≥ 220 – Solve Test Statistic and p-Value

The following information is available. H0 : μ ≥ 220 H1 : μ < 220 A sample of 64 observations is selected from a normal population. The sample mean is 215, and the population standard deviation is 15. Conduct the following test of hypothesis using the .025 significance level. [...]Read more

### Grumney Family Restaurant Ms. Brigden Tips – Solution Guide

At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $70 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $3.46. Over the first 32 days she was employed at the [...]Read more

### Normal Population Hypothesis Test

A sample of 33 observations is selected from a normal population. The sample mean is 30, and the population standard deviation is 3. Conduct the following test of hypothesis using the 0.05 significance level. H0 : μ<= 29 H1 : μ > 29 Setting up a Hypothesis Test in Excel [...]Read more

### Delivery time for all food orders at a restaurant during lunch hr are normally distributed…QNT 275

Quick Tutorial – Solving for Mean and Standard Deviation Delivery time for all food orders at a restaurant during lunch hr are normally distributed with a mean of 8.1 min and SD of 4.6 min let x bar be the mean delivery time for a random sample of 30 orders. Calculate the [...]Read more

### Walk Co – Net Income Generated from Assets Invested

Net Income Generated from Assets Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Walk Co generate for each dollar of assets invested? Solution This is also called the Return on Assets ratio, which [...]Read more