K offering of its stock in order to raise sufficient working capital to finance the development of a radically new, seventh-generation integrated system. With current earnings of $1.61 a share, AC and...

attempt question 7 part b

Extracted text: K offering of its stock in order to raise sufficient working capital to finance the development of a radically new, seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of price, they randomly chose seven publicly traded software firms and found that their average price/earnings 1.85 At a =0.02, can AC conclude that the s was 14.4 , and the sample standard deviation was of publicly traded software firms have an average P/E ratio that is significantly different from What are the confidence limits of acceptance region? 15 Q7 (a) 15% of customers at the snack counter of a movie theater buy soft drinks. 40% also purchase popcorn. Among those who buy soft drinks, (i) What is the probability that a customer at the counter buys a drink and popcorn? Theaters use this type of calculation to decide which products should be bundled to appeal to Based on the probability so calculated, what is your recommendation customers. Whether to bundle the products or not? (ii) If the proportion of customer who buys popcorn is 55% . Then find the probability that a customer will buy a popcorn or a soft drink? (b) Some electronic devices are better used than new: The failure rate is higher when they are new 44.50% of the personal music players of a particular than when they are six months old. For example, brand have a flaw. If the player has the flaw, it dies in the first six months. If it does not have this flaw, then only 4.500% fail in the first six monthsYours died after you had it for three months. What are the chances that it has this flaw? Digital video recorders allow us to skip commercials when watching TV. Some allow advertisers to see 2506 homes in a city. XYZ Q8 which ads are watched. A study used this technology in a sample of