Seven measurements of the pH of a buffer solution gave the following results:
5.12 5.20 5.15 5.17 5.16 5.19 5.15
Calculate (i) the 95% and (ii) the 99% confidence limits for the true pH.

Company has signed a contract that requires tanhem to produceand sell 60,000 units for $8 per units. A regression model was runusing 27 observations to measure total costs as a function ofunits. It is as follows:

Total costs = $100,000 + $6 per unit

The standard error of the estimate is $8,000.

Required:

a. Calculate the following assumingcertainty:

1. Breakeven in units and in dollars

2. Sales quantity in needed to obtain an after-tax profit of$24,000. Assume that a 40 percent tax rate is used for only part2.

3. Sales in dollars needed to obtain apretax profit equal to 10 percent of sales.

b. Calculate the following assuminguncertainty:

1. What is the range of incomes that would be expected with 90percent confidence?

2. What is the probability that the firm will make a profit nextyear?

Samuel Smith Company has signed a contract that requires them toproduce and sell 60,000 units for $5 per units. A regression modelwas run using 24 observations to measure toatal costs as a functionof units. It is as follows:

Total costs= $100,000 + $3 per unit

The standard error of the estimate is $7,500.

Required:

a) calculate the following assuming certainty:

i) Breakeven in units and in dollars

ii) Sales quantity in needed to obtain an after-tax profit of$36,000. Assume that 40% tax rate is used for only part ii.

iii) Sales in dollars needed to obtain a pretax profit equal to20% of sales.

b) Calculate the following assuming uncertainty:

i) What is the range of incomes that would be expected with 95%confidence?

ii) What is the probability that the firm will lose money nextyear?

In viewing how to restate financial statements, there are twomajor processes. The first is known as translation and the secondis known as remeasurement. You will look at these two processes asyou answer the following questions:

What is the translation method and when is it used?

What is the remeasurement process and when is it used?

Which is the most common in today’s business practices and whichdo you prefer?