Stain removal product claims to completely remove stains

Assignment Help Financial Management
Reference no: EM131077994

A new stain removal product claims to completely remove the stains on 90 percent of all stained garments. Assume that the product will be tested on 20 randomly selected stained garments, and let x denote the number of these garments from which the stains will be completely removed. Use the binomial distribution to find P(x ≤ 13) if the stain removal product's claim is correct. If x actually turns out to be 13, what do you think of the claim? (Round your answer to 4 decimal places.)

Reference no: EM131077994

Questions Cloud

The expected return and standard deviation of portfolio : Stock X and Stock Z both have an expected return of 10%. The standard deviation of the expected return is 8% for Stock X, and 12% for Stock Z. Assume that these are the only two stocks available in a hypothetical world. What is the expected return an..
The refiner holds the position open to the delivery month : Forwards: A refiner takes a long position in one June forward contract to buy crude oil for a price of $41 per barrel. The spot price currently is $40 per barrel. The refiner holds the position open to the delivery month. In June, the spot price turn..
Myocardial infarctions to occur each year : If an HMO covered 150,000 lives, expected 25 myocardial infarctions (MIs) to occur each year within the covered lives, would expect a length of stay of 4.5 days for each MI, and had to pay an average of $950 per day for each day the MI patient was in..
What are the macaulay duration and modified duration : A Treasury bond that settles on October 18, 2013, matures on March 30, 2032. The coupon rate is 5.90 percent and the bond has a 5.29 yield to maturity. What are the Macaulay duration and modified duration?
Stain removal product claims to completely remove stains : A new stain removal product claims to completely remove the stains on 90 percent of all stained garments. Assume that the product will be tested on 20 randomly selected stained garments, and let x denote the number of these garments from which the st..
Demand function for bagels is modeled : Suppose the demand function for bagels is modeled as: D(x)=125-10x 0x
Automatic investment plan : Share your thoughts on the Automatic Investment Plan (AIP). Does the AIP make sense for most people? Does it make sense for you?
Rock concert promoter has scheduled an outdoor : Supplementary Exercise 5.48 A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $30,000. What is the promoter's expected profit? Is the expected profit a reasonable decision criterion?
Load balancing refers to the process of loading data : "Load balancing" refers to the process of loading data in a sequential fashion during an ETL process. In a three tier ERP environment, there is typically an application, database and a client (or browser) running. A program that aids communication be..

Reviews

Write a Review

Financial Management Questions & Answers

  How institutional investors and individuals participate

How institutional investors and individuals participate in money, stock, and bond markets, and equity securities? Describe how each one of these markets is utilized by each type of investor.

  Annual return on the original purchase price

Over the past few years, Microsoft founder Bill Gates' net worth has fluctuated between $20 billion and $130 billion. Manhattan's native tribe sold Manhattan Island to Peter Minuit for $24 in 1626. Now, 387 years later in 2013, Bil Gates wants to buy..

  What is the terminal or horizon-value of operations

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of c..

  Calculate the present value of the costs incurred under plan

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from January 2014 to December 2015, for reconstruction at a cost of $535 million. Calculate the present value of t..

  What is the IRR of the Wheel Deal expansion

The Wheel Deal Inc., a company that produces scooters and other wheeled non-motorized recreational equipment is considering an expansion of their product line to Europe. The expansion would require a purchase of equipment with a price of €1,200,000 a..

  In what sense does the marginal cost of capital schedule

In what sense does the marginal cost of capital schedule represent a series of average costs? Please explain as thorough as possible.

  What is the average accounts payable

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $450,000 each day. The company purchases the inventory under the credit terms of 1/15, net 35. APP always takes the discount, but takes the full 15 days to pay its ..

  Maintenance margin requirement for purchases of stock

The maintenance margin requirement for purchases of stock and bond market assets is set by:

  Calculate the new market-to-book ratio

Teardrop, Inc., wishes to expand its facilities. The company currently has 15 million shares outstanding and no debt. The stock sells for $26 per share, but the book value per share is $34. Net income for Teardrop is currently $4.2 million. Calculate..

  New supermarkets is major capital budgeting project

Opening a series of new supermarkets is a major capital budgeting project for the company. Describe and discuss the main items on the income statement and balance sheet that you think will be impacted by this new undertaking. Explain why you chose th..

  Similar operations and financial structures as the industry

Assume each firm within an industry has similar operations and financial structures as the industry as a whole. Which one of these statements related to beta is correct given this assumption?

  Bond is premium bond making annual payments

Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.2 percent, a YTM of 6.2 percent, and has 15 years to maturity. Bond Y is a discount bond making annual payments. What are the prices of these bonds today? What do you ex..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd