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A manufacturer of salad dressing uses machines to dispense liquid ingredients into bottles that move along a filling line.the machine that dispenses salad dressing is working properly when 8 ounces are dispenses.suppose that the average amount dispensed in a particular sample of 35 bottles is 7.91 ounces with a variance of 0.03 onces squared.is there evidence that the machine production should be stopped and wait for repair? The lost production from a shutdown is potentso great that management feels that the level of significance in the analysis should be
Why are IT resources described as a commodity?
collected from 15 different market stalls over a week period. Enter this data on an Excel file and
then use it to answer the following questions.
Beer (ml) 98 92 82 74 63 57 73 110 84 68 40 45 47 39 58
Price (cents) 24 22 23 26 27 24 25 28 21 26 31 33 35 37 29
1. What type of data are we dealing with? (2)
2. Compute a scatter plot that represents the price and quantity of beer (5)
3. Interpret the scatter plot by explaining the relationship that appears between price and quantity.
(3)
4. Use the under-mentioned formulae to calculate the correlation coefficient. Explain the intuitive
logic of this correlation coefficient. (10)
5. Interpret the correlation coefficient how strong is the degree of linear association between the
price and quantity of beer. Explain the coefficient sign of the correlation in (4)
to finally implement the long-awaited and much needed labor reforms. One of the most
crucial reform has been the enactment of the Minimum Wage Law. In accordance with the
law, the government of Gotham city decided to impose a minimum wage of 1000 Deltas
(Delta is the official currency), with an intent to earn the vote bank of the workers.
(a) Before the implementation of the minimum wage law, the market wage was 1200
Deltas. Critics say that the minimum wage law is nothing but a political gimmick,
as for the public it creates an impression that it is helping workers while at the same
time, it keeps the capitalists happy with absolutely no bearing on the free market
efficiency. Are they correct? Explain with the help of a diagram
You are a financial advisor at XYZ Stock Broking firm. Calculate the return as per CAPM for following company’s stock, identify whether the stocks are undervalued, overvalued or correctly priced and advise accordingly. Returns of T- Bill is 7%.
Stock Expected Return Beta
Tata 21% 1.7
Adani Power 16% 1.4
Ranbaxy 23% 1.1
PNB 19% 1.2
Sensex 18%
LT India Ltd has the following capital structure, which it considers optimal:
Debt 35%
Equity shares 65%
Total 100%
Applicable tax rate for the company is 25%. Risk free rate of return is 6%, average equity market investment has expected rate of return of 12%. The company’s beta is 1.10. Debt will bear an interest rate of 9% p.a.
Calculate
a. component cost of debt and equity shares assuming that the company does not issue any additional equity shares.
b. Weighted Average Cost of Capital (WACC).
MCARTECH Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows
Expected Cash Flows
Year Project A Project B
0 -500 -875
1 100 150
2 110 200
3 120 250
4 175 375
5 240 530
6 300 680
a. If you were told that each project’s cost of capital was 12%, which project should be selected using the NPV criteria?
b. What is the profitability index for each project if the cost of capital is 12%?
c. What is the regular payback period for these two projects?
You are a Financial Planner. Your client Ashwin Aswani aged 37 years and works with an IT company earning Rs 15 lakhs per year. His wife Asha, aged 34 years, is a homemaker. They have one daughter Rimmi aged 5 years. The couple requires your help to make some financial decisions. (You can make any assumptions to further build up your case.)
a. Ashwin wants to buy a Pure Risk Life Insurance cover of Rs 1.5 crore. He is confused whether he should buy a ULIP a Term Plan. Recommend the product best suited for his requirement.
b. Ashwin has expressed his desire to retire by the age of 55. Design a retirement plan for him.
one of your clients wants to apply for a Home Loan in the next 12 to 18 months. In 2020 during the pandemic the client had lost his job and delayed his credit card payments. The client is worried that this may impact his credit score maintained by Credit Bureaus. Suggest a roadmap to your client to improve his credit score.
From the following information, furnished by Ms. Anucampa pertaining to the financial year ended as on 31st march 2021,
Short term capital gains on sale of shares in an Indian company received in Japan
10000
Dividend from a Chinese company received in China
3000
Agricultural income from land in Madhya Pradesh
5000
Dividend from PJV Ltd an Indian Company
4745
Gross Rent from a residential property located at Singapore, later on remitted to the saving account in Bank of Maharashtra, Mumbai using the approved channels
600000
Compute the total income and give reason for considering/ not considering these specific items for the relevant assessment year 2021-22, if she is-
a. Resident and ordinary resident
b. Non resident
