T-Tests, ANOVA, and Correlation in Statistical Analysis
T-Tests
Understanding T-Distributions
True Statement: The larger the sample size, the more a t distribution resembles a normal curve.
Estimating Population Variance
When estimating the variance of a population from a sample, the sample variance cannot be used directly because it tends to be slightly too small—it underestimates the population variance.
T-Test vs. Z-Test
The difference between a t test for a single sample and a Z test for a single sample lies in how the variance of the known population
Read MoreNPV and IRR Analysis for Mutually Exclusive Projects & Ethical Considerations
NPV Profiles: Scale Differences
A company is considering two mutually exclusive expansion plans:
Plan A
Requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.4 million per year for 20 years.
Plan B
Requires a $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.72 million per year for 20 years. The firm’s WACC is 10%.
a) Calculate each project’s NPV and IRR
Using a financial calculator,
Read MoreFinancial Calculations: DSO, ROA, ROE, and More
Financial Calculations
1. Baker Brothers’ Days Sales Outstanding and Cash Freed Up
Question: Baker Brothers has accounts receivable of $700,000 and sales of $2,000,000. What is Baker’s days sales outstanding? How much cash would Baker Brothers free up if it reduced its days sales outstanding to 45 days?
Solution:
DSO = (Accounts Receivable / Sales) * 365
DSO = (700,000 / 2,000,000) * 365 = 128 days
Cash Freed Up = (128 days – 45 days) * (2,000,000 / 365) = $454,794.35
2. Debt Ratio from Equity Multiplier
Question:
Read MoreAudit Planning & Supervision: A Comprehensive Guide
1. Audit Planning
Definition
Audit planning is the process of formulating the desired future state for an organization. It involves considering alternative courses of action, evaluating them, and defining appropriate mechanisms to achieve the proposed objectives. Additionally, it includes determining the allocation of human and physical resources for efficient use.
2. Importance of Audit Planning
Adequate planning and monitoring enable auditors to obtain satisfactory results that support their opinion.
Read MoreProduction and Manufacturing Systems
Production and Manufacturing
Production adds value to a good or service through transformation. It amends goods or services to satisfy a need.
Production Examples:
- Copper extraction
- Car assembly
- Rock concert preparation
The Input
Every element undergoing transformation within a system is an input.
Types of Input:
- Physical Information: Raw materials, product preforms, other supplies, accounting, financial, sales data, etc.
- Human Energy: Students, patients, unskilled workers
- Energy Sources: Electricity, oil,
Adjectives in English: Comparative and Superlative Forms
Adjetivo | Comparativo | Superlativo | Español | |
1 | angry | angrier | angriest | enfadado, enojado |
2 | bad | worse | worst | malo |
3 | big | bigger | biggest | grande |
4 | bitter | bitterer | bitterest | amargo |
5 | black | blacker | blackest | negro |
6 | bossy | bossier | bossiest | mandón |
7 | brave | braver | bravest | valiente |
8 | brief | briefer | briefest | breve |
9 | bright | brighter | brightest | brillante, luminoso |
10 | broad | broader | broadest | ancho, amplio |
11 | busy | busier | busiest | ocupado, ajetreado |
12 | calm | calmer | calmest | tranquilo |
13 | cheap | cheaper | cheapest | barato, económico |
14 | clean | cleaner | cleanest | limpio, sano |
15 | clear | clearer | clearest | claro, |