Reference no: EM131004421
The firm for which you are working is growing. They have announced that they will open facilities in ten states. Those currently working for the firm will have opportunities to re-locate at some of these new facilities. The company is providing information on its policy for cost of living adjustments which are based on the median value of homes.
The company expects to open new locations in the following ten states.
Michigan $119,200
North Dakota $130,500
South Dakota $131,600
Wisconsin $167,200
Maine $173,900
Montana $183,600
Minnesota $185,800
Vermont $215,700
New Hampshire $239,100
Alaska $241,400
The firm has approached you about moving to either Maine or New Hampshire. You will be doing the same job, so there is no increase in salary. They explain that your moving expenses will be paid, but that since your job description will remain the same, you will still receive a salary of $60,000 per year.
When you asked about the cost of living adjustment, your boss explains that the company rule is that if home prices are within the 95% confidence interval of the mean of median home prices for the nation, there will be no cost of living adjustment. The cost of living adjustment is 6%, so in the event that you move to a location where median home prices are outside the confidence interval you will get a 6% adjustment making your new salary $63,600.
You currently live in Idaho and with no family ties, you are interested in making the move. You own your home in Idaho which is fact is valued at the state median of $160,000, a price that is approximately 3 times your income.
Given that you must choose between not moving, or moving to either Maine or New Hampshire, you will have to make some calculations on your own. Of primary concern to you is will you be able to afford a home in the new place comparable to your current home. If you use the financing rule that you can afford a home that is 3 times your income in which location, if any, would you be able to purchase the median value home should you decide to move?
You have assembled the following data and will perform the following statistical analyses to make your decision.
1. Calculate the mean, median, mode, variance, and standard deviation for both the sample and the population.
2. For the population mean construct the 95% confidence interval.
3. Formulate and test a hypothesis that the sample of the ten states has the same mean as the population.
4. Determine if either state location you have been offered, Maine or New Hampshire would result in your receiving a cost of living adjustment.
5. Determine if you would be able to afford the median value home in either location?
Prepare and explain your calculations. Use the evidence to write a paper explaining your decision: don't move, move to Maine, move to New Hampshire.
Attachment:- Assignment.rar
|
Tax consequences of the proposed transaction
: Goutam and Serena will each issue Orley a $20,000 note to compensate him for taking the mortgaged parcel. Each parcel is worth $75,000 and has a basis of $30,000. Determine the tax consequences of the proposed transaction.
|
|
Find the mean life of a carbon fourteen atom
: The mean life M of an atom in a radioactive substance is given by M = k 0∫∞te-kt dt, where k is a constant. For the radioactive carbon isotope 14C the value of k = 0.000121 year-1. Use this to find the mean life of a 14C atom.
|
|
Time requirements for identifying the properties
: Taxpayers can structure transactions through third parties that qualify as like-kind exchanges if certain time requirements for identifying the properties and closing the trans- action are met.
|
|
Information on a variety of tax issues
: The Internal Revenue Service provides information on a variety of tax issues in its publication series. These publications can be found on the IRS World Wide Web site (www.irs.gov/formspubs/index.html).
|
|
Calculate the mean median mode and variance
: The firm for which you are working is growing. They have announced that they will open facilities in ten states. Calculate the mean, median, mode, variance, and standard deviation for both the sample and the population
|
|
Find the centroid of system consisting of a mass of seven
: Find the centroid of the system consisting of a mass of 7 at (5, 5), a mass of 8 at (6, -1), a mass of 5 at (8, -2), and a mass of 5 at (7, 6).
|
|
What are the social determinants of health
: What are the characteristics of the individuals in this case study - what are the social determinants of health that are evident in the case study?
|
|
Ethical dilemma for a person working
: Write a 3 page paper describing an ethical dilemma for a person working in your desired profession, depicted in at least two forms of media. For example, you might select a movie and a radio talk show to discuss ethical dilemmas of a psychologist...
|
|
Which one is more attractive at an interest rate
: Special additives will be included in the lightweight concrete that will improve the heat transfer properties of the floor. If the energy costs for method A will be $600 per year lower than for method B, which one is more attractive at an interest..
|