In accounting, cost-volume-profit analysis is a useful tool to help managers predict how profit will be affected by changes in prices or sales volume. Net income, NININ, I, is calculated using the formula NI = (SP-VC)(V)-FCNI=(SP−VC)(V)−FCN, I, equals, left parenthesis, S, P, minus, V, C, right parenthesis, left parenthesis, V, right parenthesis, minus, F, C, where SPSPS, P is the sales price, VCVCV, C is the variable cost per unit, VVV is the sales volume, and FCFCF, C are fixed costs. Rearrange the formula to solve for sales volume (V)(V)left parenthesis, V, right parenthesis.

In Accounting, Cost-volume-profit Analysis Is A Useful Tool To Help Managers Predict How Profit Will

Answers

Answer 1

Answer:

(a)[tex]V=\dfrac{NI+FC}{SP-VC}[/tex]

(b)V=240 Units

Step-by-step explanation:

NI=(SP-VC)V-FC

We are required to make V the subject of the equation

Add FC to both sides

NI+FC=(SP-VC)V-FC+FC

NI+FC=(SP-VC)V

Divide both sides by SP-VC

[tex]V=\dfrac{NI+FC}{SP-VC}[/tex]

When

Net Income(NI)=$5000Sales Price(SP)=$40Variable Cost(VC)=$15Fixed Costs(FC)=$1000

Volume of Sales

[tex]V=\dfrac{5000+1000}{40-15}\\=\dfrac{6000}{25}\\\\=240[/tex]


Related Questions

The height of the triangle is 10 cm. It is decreased by 25%. Calculate the new height.​

Answers

Decreased height = 10 x [tex]\frac{100 - 25}{100}[/tex]

                              = 10 x [tex]\frac{75}{100}[/tex]

                              = [tex]\frac{750}{100}[/tex]

                              = 7.5 cm

Answer:

7.5 cm

Step-by-step explanation:

Decreased height = 25% of 10

                              [tex]=\frac{25}{100}*10\\\\=0.25*10\\=2.5[/tex]

New height = 10 - 2.5 = 7.5 cm

Assume that a procedure yields a binomial distribution with a trial repeated n times. Use the binomial probability formula to find the probability of x successes given the probability p of success on a single trial.
n=55​,
x=33​,
p=0.55
p(3)=_________

Answers

Answer:

P(33) = 0.0826

Step-by-step explanation:

The binomial distribution in this case has parameters n=55 and p=0.55.

The probability that k successes happen with these parameters can be calculated as:

[tex]P(x=k) = \dbinom{n}{k} p^{k}(1-p)^{n-k}\\\\\\P(x=k) = \dbinom{55}{k} 0.55^{k} 0.45^{55-k}\\\\\\[/tex]

We have to calculate the probability fo X=33 succesess.

This can be calculated using the formula above as:

[tex]P(x=33) = \dbinom{55}{33} p^{33}(1-p)^{22}\\\\\\P(x=33) =1300853625660220*0.0000000027*0.0000000235\\\\\\P(x=33) =0.0826\\\\\\[/tex]

jaideep builds a house and sell it for $450000. (a)he pays a tax of 1.5% of the selling price of the house.show that he pays $6750 in tax.​

Answers

Answer:

$450000*0.015=$6750

Step-by-step explanation:

1.5% as a decimal is 0.015

You then multiply the sale amount by the decimal to get $6750

pqrs is a rhombus. If PO= 4 cm and OQ=3cm,then find PQ.​(please answer fast)

Answers

Answer: 5 cm

Step-by-step explanation:

The diagonals of a rhombus bisect each other in half

PO = OR = 4 cm

So. PR = 8 cm

Similarly,

SO = OQ = 3 cm

So, SQ = 6 cm

To measure side, formula is

a = √p^2 + q^2 / 2

a = √6^2 + 8^2 / 2

a = √36+64 / 2

a = √100 / 2

a = 10/2 = 5 cm

Is 1/2 grater then less than or equal to 5/7

Answers

Answer

LESS THAN

Step-by-step explanation:

The population of a town grows at a rate proportional to the population present at time t. The initial population of 500 increases by 5% in 10 years. What will be the population in 20 years

Answers

Answer:

551 people  

Step-by-step explanation:

We have that for this type of situation the equation that models the population depending on the time is:

P (t) = I * e ^ (k * t)

Where I is the initial population, that is to say that for this case it would be:

P (t) = 500 * e ^ (k * t)

k is the constant of proportionality and t the time, they tell us that in 10 years it increases 5%, therefore the population would be:

500 + 500 * 0.05 = 525, therefore:

525 = 500 * e ^ (k * 10)

we solve:

525/500 = e ^ (k * 10)

ln 1.05 = k * 10

k = 0.00488

Now, to calculate how much the population is in 20 years it would be:

P (t) = 500 * e ^ (0.00488 * 20)

P (t) = 551.26

In other words, the population would be approximately 551 people  

The average American generates 4.4 lbs of trash every day. We circulated fliers that listed tips on how to reduce wastefulness in three separate neighborhoods. For the next week, we measured the amount of trash each person produced each day in those neighborhoods. There were 625 people total in our study. The mean trash per person was 4.3 lbs with a standard deviation of 1
Determine your sample's score on the comparison distribution.
a) -2
b) -1
c) -1.5
d) -2.5

Answers

Answer:

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

And replacing we got:

[tex] z=\frac{4.3 -4.4}{\frac{1}{\sqrt{625}}}= -2.5[/tex]

And the best option would be:

d) -2.5

Step-by-step explanation:

For this problem we know that the true mean of  trash every day is:

[tex]\mu =4.4[/tex]

And from the info given we also know that:

[tex]\bar X=4.3[/tex] represent the sample mean

[tex]n=625[/tex] sample size selected

[tex]\sigma = 1[/tex] the population standard deviation assumed

If we want to find the z score for the person we can use the following formula:

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

And replacing we got:

[tex] z=\frac{4.3 -4.4}{\frac{1}{\sqrt{625}}}= -2.5[/tex]

And the best option would be:

d) -2.5

The percentage of data values that must be within one, two, and three standard deviations of the mean for data having a bell-shaped distribution can be determined using a. The empirical rule. b. A five-number summary. c. Percentiles. d. Chebyshev's theorem.

Answers

Answer:

a. The empirical rule.

Step-by-step explanation:

The Empirical Rule states that, for a normally distributed(bell-shaped) random variable:

68% of the measures are within 1 standard deviation of the mean.

95% of the measures are within 2 standard deviation of the mean.

99.7% of the measures are within 3 standard deviations of the mean.

So the correct answer is:

a. The empirical rule.

Which of the following are equations for the line shown below? Check all that apply.


A. Y= x-2
B. Y-1=(x-3)
C. Y=x-2
D. Y+4=(x+2)

Answers

Answer: D. [tex]y+4=(x+2)[/tex]

Step-by-step explanation: Once you subtract [tex]4[/tex] from both sides, in order to solve for y (as the equation needs to be in the slope-intercept form, otherwise known as [tex]y=mx+b[/tex]), you end up with [tex]y=x-2[/tex], which is the right answer. It is the correct answer because the y-intecept shown in the equation matches what is on the graph, in addition to the fact that the slope is just [tex]x[/tex].

Allison is preparing her applications for college. She will apply to three community colleges and has to fill out four parts to each of those applications. She will apply to three ​four-year schools, each of which has a seven​-part application. How many application segments must she​ complete?

Answers

Answer:

She must complete 33 application segments

Step-by-step explanation:

Community colleges:

3 community colleges.

Each with four segments.

So 3*4 = 12

Four-year schools:

3 four-year schools.

Each with seven segments.

So 3*7 = 21

How many application segments must she​ complete?

12 + 21 = 33

She must complete 33 application segments

How many solutions does the system have?
You can use the interactive graph below to find the answer.
y=x+1
y = 2x – 5
Choose 1 answer:

Answers

The answer has one solution:

_______________________________

       →  x = 6 ; y = 7 ;  or, write as:  [6, 7].

_______________________________

Step-by-step explanation:

_______________________________

Given:

y = x + 1;

y = 2x – 5 ;

_______________________________

2x  – 5 = x + 1  ;  Solve for "x" ;

Subtract "x" ; and Subtract "1" ; from Each Side of the equation:

   2x  – x  – 5  – 1 = x  – x  +  1  –  1 ;

to get:  

   x   –  6  =  0  ;

Now, add "6" to Each Side of the equation;

       to isolate "x" on one side of the equation;

        and to solve for "x" :

    x   –  6   +  6 =  0  +  6  ;

to get:

       x  =  6 .

_______________________________

Now, let us solve for "y" ;  

We are given:  

  y =  x + 1  ;

Substitute our solved value for "x" ; which is:  "6" ; for "x" ; into this given equation; to obtain the value for "y" :

 y =  x + 1 ;

    =  6 + 1 ;

 y =  7 .

_______________________________

Let us check our answers by plugging the values for "x" and "y" ;

("6" ; and "7"; respectively);  into the second given equation; to see if these values for "x" and "y" ; hold true:

  Given:  y = 2x –  5 ;

        →  7 =? 2(6) –  5 ??  ;

        →  7 =? 2(6) –  5 ??  ;        

        →  7 =?  12   –  5 ??  ;

        →  7 =?   7 ?? ;

        →  Yes!

_______________________________

The answer has one solution:

       →  x = 6 ; y = 7 ;  or, write as:  [6, 7].

_______________________________

Hope this is helpful!  Best wishes!

_______________________________

- 2/3x + 5(3/5 - 3/5x) - 12 divided 6 *2

Answers

Answer: -3 2/3x - 1

Step-by-step explanation:

-2/3x + 5(3/5 - 3/5x) - 12 / 6 * 2

First distribute

-2/3x + 3 - 3x - 12 / 6 * 2

Now divide 12 by 6

-2/3x + 3 - 3x -2 * 2

Now multiply -2 by 2

-2/3x + 3 - 3x - 4

Now subtract 3x from -2/3x

-3 2/3x + 3 - 4

Now subtract 4 from 3

-3 2/3x - 1

How many outcomes are there for the following experiments? List all the possible outcomes. a) Tossing a coin

Answers

Answer:

2 outcomes when you toss a coin.

Step-by-step explanation:

You either can land on heads or on tails.

Heads is one outcome and Tails is the other.

Therefore, there are 2 outcomes.

write (n^3)^2 without exponets

Answers

Step-by-step explanation:

[tex]( {n}^{3} )^{2} = {n}^{6} = n \times n \times n \times n \times n \times n [/tex]

Answer:

n x n x n x n x n x n

Step-by-step explanation:

(n^3)^2 = n^6 = n x n x n x n x n x n

(Geometry) PLEASE HELP ASAP

Answers

Answer:

CD=72x=7

please see the attached picture for full solution

Hope it helps

Good luck on your assignment

Bill buys and sells laptops. Last month Bill bought 50 laptops. He paid £400 for each laptop. He sold 40 of these laptops at a profit of 30% on each laptop and 10 of these laptops at a profit of 15% on each laptop. Bill’s target last month was to sell all 50 laptops for a total of at least £25 000. Did Bill reach this target?

Answers

Answer:

As Bill's sales is £25400, which is greater than £25000, he achieved his target.

Step-by-step explanation:

Cost of each laptop = £400

lets calculate for 40 laptops first

Given, he sold 40 of these at 30% profit

30% of cost price = 30% of  £400  = 30/100 * 400 = 120

Therefore, selling price of these laptops =  £400  +  £120 =  £520

Total sales generated from selling 40 of these laptop = 40*£520

= £520 =£20,800  

lets calculate for 10 laptops now

Given, he sold 10 of these at 15% profit

15% of cost price = 15% of  £400  = 15/100 * 400 = 60

Therefore, selling price of these laptops =  £400  +  £60 =  £460

Total sales generated from selling 10 of these laptop = 10*£460

= £4600

Total sales generated from selling all the 50 laptop =  

Total sales generated from selling 40 of these laptop + Total, sales generated from selling 10 of these laptop = £20,800  + £4600 = £25,400

Target for Bill = £25000

As his sales is £25400, which is greater than £25000, he achieved his target.

Compute the determinant using a cofactor expansion across the first row. Also compute the determinant by a cofactor expansion down the second column. StartAbsoluteValue Start 3 By 3 Matrix 1st Row 1st Column 3 2nd Column 0 3rd Column 3 2nd Row 1st Column 2 2nd Column 3 3rd Column 3 3rd Row 1st Column 0 2nd Column 4 3rd Column negative 2 EndMatrix EndAbsoluteValue

Answers

Answer:

Step-by-step explanation:

It is given that

[tex]\Delta=\begin{vmatrix}3&0&3\\2 &3&3\\0 &4&-2\end{vmatrix}[/tex]

By cofactor expansion across the first row, we get

[tex]\Delta=a_{11}C_{11}+a_{12}C_{12}+a_{13}C_{13}[/tex]

[tex]\Delta=3\left[(-1)^{1+1}\begin{vmatrix}3&3\\4&-2\end{vmatrix}\right]+0\left[(-1)^{1+2}\begin{vmatrix}2&3\\0&-2\end{vmatrix}\right]+3\left[(-1)^{1+3}\begin{vmatrix}2&3\\0&4\end{vmatrix}\right][/tex]

[tex]\Delta=3\left[-18\right]+0\left[(-1)(-4)\right]+3\left[8\right][/tex]

[tex]\Delta=-54+0+24[/tex]

[tex]\Delta=-30[/tex]

Therefore, the value of determinant is -30.

By cofactor expansion across the second column, we get

[tex]\Delta=a_{12}C_{12}+a_{22}C_{22}+a_{32}C_{32}[/tex]

[tex]\Delta=0\left[(-1)^{2+1}\begin{vmatrix}2&3\\0&-2\end{vmatrix}\right]+3\left[(-1)^{2+2}\begin{vmatrix}3&3\\0&-2\end{vmatrix}\right]+4\left[(-1)^{3+2}\begin{vmatrix}3&3\\2&3\end{vmatrix}\right][/tex]

[tex]\Delta=0\left[(-1)(-4)\right]+3\left[(-6)\right]+4\left[(-1)3\right][/tex]

[tex]\Delta=-18-12[/tex]

[tex]\Delta=-30[/tex]

Therefore, the value of determinant is -30.

Please answer this correctly

Answers

Answer:

The right graph (one on your right side)

Step-by-step explanation:

The left one it incorrect because there is 0 data showing 0-9 so it's going to be the right sided graph.

A person tosses a coin 9 times. In how many ways can he get 3 heads?

The equation is up above I’m not sure how to use it

Answers

Answer: if he/she tosses the coin 9 times i am pretty sure he/she out of 5/9 he/she will get heads

Step-by-step explanation:

1 if he flips the coin 9 times and it spins and it flips i am pretty sure a couple times he/she will get tails or heads 2 but there is a way for him/her to get heads it flips and spins he/she is most likey to get heads 3 if he/she flips the coin and the coin keeps going the coin will flip and he/she will get heads hope this helps you :)

fill the blank with , or = please help quick!

Answers

Answer:

44. answer = a. (<)

45. answer = b. (>)

Step-by-step explanation:

To find the relation between the angles, we can use the law of sines in the triangle that contains both angles.

So for question 44, the angles mQRW and mRWQ are both in the triangle QWR, so we have:

10 / sin(mQRW) = 17 / sin(mRWQ)

sin(mQRW) / sin(mRWQ) = 10 / 17

The bigger the sine of the angle, the bigger the angle, so if the ratio between the sine of mQRW and sine of mRWQ is lesser than 1, the angle mQRW is lesser than the angle mRWQ (correct option: a.)

In the same way, in the question 45, the angles mRTW and mTWR are both in the triangle TWR, so we have:

15 / sin(mRTW) = 8 / sin(mTWR)

sin(mRTW) / sin(mTWR) = 15 / 8

If the ratio between the sine of mRTW and sine of mTWR is greater than 1, the angle mRTW is greater than the angle mTWR (correct option: b.)

Basically, the angle opposite to the greater side is the greater angle, and the angle opposite to the smaller side is the smaller angle.

Find the values of each variable

Answers

That is true and one of them is the answer

You are building a model sailboat. The plans show that the base of the main sail is 9 cm, the bottom acute angle in the sail is 52°, and the distance between the base of the sail and the deck is 2 cm. What is the height of the mast? a. 12.5 cm b. 11.2 cm c. 13.5 cm d. 11.5 cm

Answers

Answer:

c. 13.5 cm

Step-by-step explanation:

In the right triangle formed by the main sail.

Using the trigonometric function

[tex]\tan \theta =\dfrac{\text{Opposite}}{\text{Adjacent}} \\\tan 52^\circ =\dfrac{x}{9} \\x=9 \times \tan 52^\circ\\x=11.52$ cm[/tex]

Therefore:

Height of the mast = 2+11.5=13.5 cm

The height of the mast is 13.5 cm.

Sales personnel for Skillings Distributors submit weekly reports listing the customer contacts made during the week. A sample of 6565 weekly reports showed a sample mean of 19.519.5 customer contacts per week. The sample standard deviation was 5.2.5.2. Provide 90%90% and 95%95% confidence intervals for the population mean number of weekly customer contacts for the sales personnel.

Answers

Answer:

95% confidence

[tex]19.5-1.998\frac{5.2}{\sqrt{65}}=18.211[/tex]    

[tex]19.5+1.998\frac{5.2}{\sqrt{65}}=20.789[/tex]    

For the 90% confidence interval the critical value would be [tex]t_{\alpha/2}=1.669[/tex]  and replacing we got:

[tex]19.5-1.669\frac{5.2}{\sqrt{65}}=18.424[/tex]    

[tex]19.5+1.669\frac{5.2}{\sqrt{65}}=20.576[/tex

Step-by-step explanation:

Information given

[tex]\bar X=19.5[/tex] represent the sample mean

[tex]\mu[/tex] population mean (variable of interest)

[tex]s=5.2[/tex] represent the sample standard deviation

n=65 represent the sample size  

Confidence interval

The confidence interval for the mean is given by the following formula:

[tex]\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}[/tex]   (1)

The degrees of freedom are given by:

[tex]df=n-1=65-1=64[/tex]

Since the Confidence is 0.95 or 95%, the value of [tex]\alpha=0.05[/tex] and [tex]\alpha/2 =0.025[/tex], and the critical value would be [tex]t_{\alpha/2}=1.998[/tex]

Now we have everything in order to replace into formula (1):

[tex]19.5-1.998\frac{5.2}{\sqrt{65}}=18.211[/tex]    

[tex]19.5+1.998\frac{5.2}{\sqrt{65}}=20.789[/tex]    

For the 90% confidence interval the critical value would be [tex]t_{\alpha/2}=1.669[/tex]  and replacing we got:

[tex]19.5-1.669\frac{5.2}{\sqrt{65}}=18.424[/tex]    

[tex]19.5+1.669\frac{5.2}{\sqrt{65}}=20.576[/tex]    

PQR is an isosceles triangle in which PQ = PR

Mand N are points on PQ and PR such that angle MRQ = angle NQR.

Prove that triangles QNR and RMQ are congruent.

Answers

Answer and Step-by-step explanation: Congruent triangles are triangles with the same three sides and same three angles.

There many ways to determine if 2 triangles are congruent.

One of them is ASA or Angle, Side, Angle and it means that if two angles and the included side of one triangle are equal to the corresponding angles and side on the other triangle, they are congruent.

In this case, angle MRQ and angle NQR are equal. The included side of both triangles are the same QR, so it can be concluded that triangle QNR is congruent to triangle RMQ.

The image in the attachment shows the angles and their included side, which are colored.

Tiles in this image would cover a 1 ft.? area of the kitchen. The large tiles cost $0.96 each and the small tiles cost $0.26 each. If Fred needs to cover an area of 22 ft.
by 3 ft., how much will the tile cost?
Click on the correct answers)
A
$244.00
B
$264.00
с
8346.00
D
$366.00
E
$412.00

Answers

Answer:

B. $264.00

Step-by-step explanation:

==>The image that shows the pattern of the arrangement of tiles consists of:

2 large tiles = $0.96*2 = $1.92

8 small tiles = $0.26*8 = $2.08

This implies that $4 would need to be spent to cover 1ft²

Therefore, to cover an area of 22ft by 3ft, it would cost Fred the following below:

Area to be covered = 22×3 = 66ft²

$4 --> 1ft²

x$ ---> 66ft²

= (66 × 4)/1

= $264.00

In general, shopping online is supposed to be more convenient than going to stores. However, according to a recent Harris Interactive poll, 87% of people have experienced problems with an online transaction (The Wall Street Journal, October 2, 2007). Forty-two percent of people who experienced a problem abandoned the transaction or switched to a competitor′s website. Fifty-three percent of people who experienced problems contacted customer-service representatives.

a. What percentage of people did not experience problems with an online transaction?

b. What percentage of people experienced problems with an online transaction and abandoned the transaction or switched to a competitor′s website?

c. What percentage of people experienced problems with an online transaction and contacted customer-service representatives?

Answers

Answer:

a) 13% of people did not experience problems with an online transaction.

b) 36.54% of people experienced problems with an online transaction and abandoned the transaction or switched to a competitor′s website

c) 46.11% of people experienced problems with an online transaction and contacted customer-service representatives.

Step-by-step explanation:

a. What percentage of people did not experience problems with an online transaction?

87% of people have experienced problems with an online transaction. So 100 - 87 = 13% of people did not experience problems with an online transaction.

b. What percentage of people experienced problems with an online transaction and abandoned the transaction or switched to a competitor′s website?

87% of people have experienced problems with an online transaction. Forty-two percent of people who experienced a problem abandoned the transaction or switched to a competitor′s website.

Then:

0.87*0.42 = 0.3654

36.54% of people experienced problems with an online transaction and abandoned the transaction or switched to a competitor′s website.

c. What percentage of people experienced problems with an online transaction and contacted customer-service representatives?

87% of people have experienced problems with an online transaction. Fifty-three percent of people who experienced problems contacted customer-service representatives.

Then:

0.87*0.53 = 0.4611

46.11% of people experienced problems with an online transaction and contacted customer-service representatives.

The water works commission needs to know the mean household usage of water by the residents of a small town in gallons per day. They would like the estimate to have a maximum error of 0.12 gallons. A previous study found that for an average family the variance is 5.29 gallons and the mean is 17 gallons per day. If they are using a 85% level of confidence, how large of a sample is required to estimate the mean usage of water

Answers

Answer:

[tex]n=(\frac{1.440(2.3)}{0.12})^2 =761.76 \approx 762[/tex]

So the answer for this case would be n=762 rounded up to the nearest integer

Step-by-step explanation:

Information given

[tex]\bar X = 17[/tex] represent the mean

[tex]\mu[/tex] population mean (variable of interest)

[tex]\sigma= \sqrt{5.29}= 2.3[/tex] represent the standard deviation

Solution to the problem

The margin of error is given by this formula:

[tex] ME=z_{\alpha/2}\frac{s}{\sqrt{n}}[/tex]    (a)

And on this case we have that ME =0.12 and we are interested in order to find the value of n, if we solve n from equation (a) we got:

[tex]n=(\frac{z_{\alpha/2} \sigma}{ME})^2[/tex]   (b)

The confidence level is 85%, the significance level would be [tex] \alpha=1-0.85 = 0.15[/tex] and [tex]\alpha/2 =0.075[/tex] the critical value for this case would be [tex]z_{\alpha/2}=1.440[/tex], replacing into formula (b) we got:

[tex]n=(\frac{1.440(2.3)}{0.12})^2 =761.76 \approx 762[/tex]

So the answer for this case would be n=762 rounded up to the nearest integer

There are several sets of different numbers which can be chosen from {0,1,2,3,4,5,6,7,8,9}. How many of these sets contain any 2 numbers? PLS HELP I'M REALLY STUCK AND DON'T JUST STEAL THE POINTS PLEASE

Answers

Answer:

90

Step-by-step explanation:

it is 90 because in the first slot there can be any 10 numbers and in the second slot the set can contain any of the remaining 9 numbers and then we can multiply these two numbers together to find the total amount of sets.

hope this helps :)

Answer:

45 different sets

Step-by-step explanation:

There are 10 numbers in {0,1,2,3,4,5,6,7,8,9}.

We are looking for a combination since order doesn't mater

There are 10 options for the first number

We have chosen 1

Now there are 9 numbers

10*9

But since order doesn't matter, we divide by 2

The set {1,2} is the same as the set {2,1}

90/2 = 45

Can anyone log into my clever and do my work for me?

Answers

Answer:

I mean what’s clever

Step-by-step explanation:

Answer: what is clever?

Step-by-step explanation:

A poll surveyed 503 video gamers, and 106 of them said they prefer playing games on a console rather than a computer. An executive at a game console company claims that more than 25% of gamers prefer consoles. Does the poll provide convincing evidence that the claim is true? Use the level of significance.

Answers

Answer:

The claim has no evidence to be supported.

On the contrary, there is enough evidence to support the claim that less than 25% of gamers prefer consoles.

Step-by-step explanation:

This is a hypothesis test for a proportion.

The sample has a size n=503.

The sample proportion is p=0.211.

p=X/n=106/503=0.211

The sample proportion is less than 25%, so we will test the claim that less than 25% of gamers prefer consoles.  

Then, the null and alternative hypothesis are:

[tex]H_0: \pi=0.25\\\\H_a:\pi<0.25[/tex]

The significance level is assumed to be 0.05.

 

The standard error of the proportion is:

[tex]\sigma_p=\sqrt{\dfrac{\pi(1-\pi)}{n}}=\sqrt{\dfrac{0.25*0.75}{503}}\\\\\\ \sigma_p=\sqrt{0.000373}=0.019[/tex]

Then, we can calculate the z-statistic as:

[tex]z=\dfrac{p-\pi+0.5/n}{\sigma_p}=\dfrac{0.211-0.25+0.5/503}{0.019}=\dfrac{-0.038}{0.019}=-1.9685[/tex]

This test is a left-tailed test, so the P-value for this test is calculated as:

[tex]\text{P-value}=P(z<-1.9685)=0.0245[/tex]

As the P-value (0.0245) is smaller than the significance level (0.05), the effect is  significant.

The null hypothesis is rejected.

There is enough evidence to support the claim that less than 25% of gamers prefer consoles.

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