EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
EBK FOUNDATIONS OF FINANCIAL MANAGEMENT
17th Edition
ISBN: 9781260464900
Author: BLOCK
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 13, Problem 20P

a.

Summary Introduction

To calculate: The probability that the outcome will be between $16,800 and $31,200.

Introduction:

Probability:

The likelihood of the occurrence of an event or of a proposition to be true, when expressed numerically or quantitatively, is termed as probability.

a.

Expert Solution
Check Mark

Answer to Problem 20P

The probability that the outcome will be between $16,800 and $31,200 is 0.8664.

Explanation of Solution

The calculation of the expected value (Z) for the outcome being equal to or greater than $16,800 is shown below.

Z=Lower RangeExpected Value (X)Standard Deviation (σ)=$16,800$24,000$4,800=$7,200$4,800=1.5

The calculation of the expected value (Z) for the outcome being equal to or lower than $31,200 is shown below.

Z=Upper RangeExpected Value (X)Standard Deviation (σ)=$31,200$24,000$4,800=$7,200$4,800=1.5

The Z values are positive as well as negative 1.5. Hence, the probability of the outcome being between $16,800 and $31,200 is 0.8664.

b.

Summary Introduction

To calculate: The probability that the outcome will be between $14,400 and $33,600.

Introduction:

Probability:

The likelihood of the occurrence of an event or of a proposition to be true, when expressed numerically or quantitatively, is termed as probability.

b.

Expert Solution
Check Mark

Answer to Problem 20P

The probability that the outcome will be between $14,400 and $33,600 is 0.9544.

Explanation of Solution

The calculation of the expected value (Z) for the outcome being equal to or greater than $14,400 is shown below.

Z=Lower RangeExpected Value (X)Standard Deviation (σ)=$14,400$24,000$4,800=$9,600$4,800=2

The calculation of the expected value (Z) for the outcome being equal to or lower than $33,600 is shown below.

Z=Upper RangeExpected Value (X)Standard Deviation (σ)=$33,600$24,000$4,800=$9,600$4,800=2

The Z values are positive as well as negative 2. Hence, the probability of the outcome being between $14,400 and $33,600 is 0.9544.

c.

Summary Introduction

To calculate: The probability that the outcome will be at least $14,400.

Introduction:

Probability:

The likelihood of the occurrence of an event or of a proposition to be true, when expressed numerically or quantitatively, is termed as probability.

c.

Expert Solution
Check Mark

Answer to Problem 20P

The probability that the outcome will be at least $14,400 is 0.9544.

Explanation of Solution

The calculation of the expected value (Z) for the outcome being at least $14,400 is shown below.

Z=Lower RangeExpected Value (X)Standard Deviation (σ)=$14,400$24,000$4,800=$9,600$4,800=2

The expected value is 0.4772 when Z is (+ or -) 2 and 0.5000 when Z is 0. So, the probability of the outcome being at least $14,400 is 0.9772. The graph of this probability is shown below.

EBK FOUNDATIONS OF FINANCIAL MANAGEMENT, Chapter 13, Problem 20P , additional homework tip  1

d.

Summary Introduction

To calculate: The probability that the outcome will be less than $31,900.

Introduction:

Probability:

The likelihood of the occurrence of an event or of a proposition to be true, when expressed numerically or quantitatively, is termed as probability.

d.

Expert Solution
Check Mark

Answer to Problem 20P

The probability that the outcome will be less than $31,900 is 0.9544.

Explanation of Solution

The calculation of the expected value (Z) for the outcome being at least $14,400 is shown below.

Z=Upper RangeExpected Value (X)Standard Deviation (σ)=$31,900$24,000$4,800=$7,900$4,800=1.65

The expected value is 0.4505 when Z is (+ or -) 1.65 and 0.5000 when Z is 0. So, the probability of the outcome being at least $14,400 is 0.9505. The graph of this probability is shown below.

EBK FOUNDATIONS OF FINANCIAL MANAGEMENT, Chapter 13, Problem 20P , additional homework tip  2

e.

Summary Introduction

To calculate: The probability that the outcome will be less than $19,200 or greater than $26,400.

Introduction:

Probability:

The likelihood of the occurrence of an event or of a proposition to be true, when expressed numerically or quantitatively, is termed as probability.

e.

Expert Solution
Check Mark

Answer to Problem 20P

The probability that the outcome will be less than $19,200 or greater than $26,400 is 0.4672.

Explanation of Solution

The calculation of the expected value (Z) for the outcome being less than $19,200 is shown below.

Z=Lower RangeExpected Value (X)Standard Deviation (σ)=$19,200$24,000$4,800=$4,800$4,800=1

The expected value is 0.3413 when Z is (+ or -) 1 and 0.5000 when Z is 0. So, the probability of the outcome being less than $19,200 is 0.1587 (0.5000 – 0.3413).

The calculation of the expected value (Z) for the outcome being greater than $26,400 is shown below.

Z=Upper RangeExpected Value (X)Standard Deviation (σ)=$26,400$24,000$4,800=$2,400$4,800=0.5

The expected value is 0.1915 when Z is (+ or -) 1 and 0.5000 when Z is 0. So, the probability of the outcome being at least $14,400 is 0.3085 (0.5000 – 0.1915).

Hence, the probability that the outcome will be less than $19,200 or greater than $26,400 is 0.4672. The graph of this probability is shown below.

EBK FOUNDATIONS OF FINANCIAL MANAGEMENT, Chapter 13, Problem 20P , additional homework tip  3

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Listed here, are the 2018 and 2019 balance sheets. motors. and income statements,, for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard a. On the basis of the information provided, calculate the following financial ratios for 2018 and 2019: b. Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay Marine Motors? Explain. a. Calculate the following financial ratios for 2018 and 2019. (Round to two decimal places.) Current ratio Otago Bay Marine Motors 2019 2018
I need to get more details by doing homeworks and exams.
Use the financial statement of DKT Enterprise provided above to calculate the ratio for 2024 that reflects each of the following conditions (where applicable, round off answers to two decimal places.): 1. The percentage of DKT Enterprises' revenue that remained after accounting for the cost of goods sold.  2. The percentage of DKT Enterprises' revenue that remained after all expenses, including operating costs, interest, and taxes, have been deducted. 3. The extent to which DKT Enterprises' short-term liabilities, were covered by assets that could be quickly converted into cash during the year. 4. The ratio of DKT Enterprises' liquid assets to its current liabilities, indicating the company's ability to meet short-term obligations without relying on inventory. 5. The percentage of the profit DKT Enterprises generated from its total assets during the year, reflecting how efficiently it utillises its asset base to generate earnings.  6. The percentage of the profit for the year relative…
Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Portfolio return, variance, standard deviation; Author: MyFinanceTeacher;https://www.youtube.com/watch?v=RWT0kx36vZE;License: Standard YouTube License, CC-BY