Solve the Problem $$\mathrm { I } = \underset { \mathrm { s } } { 3 ( \mathrm { x } - \mathrm { median } ) }$$

question 161

Essay

Solve the problem.
-Skewness can be measured by Pearson's index of skewness: $$\mathrm { I } = \underset { \mathrm { s } } { 3 ( \mathrm { x } - \mathrm { median } ) }$$
If $\mathrm { I } \geq 1.00$ or $\mathrm { I } \leq - 1.00$ , the data can be considered significantly skewed. Would you expect that incomes of all adults in the US would be skewed? In which direction? Why? Would you expect that for these incomes, Pearson's index of skewness would be greater than 1 , smaller than $- 1$ , or between $- 1$ and 1 ?

Calculate net income based on given revenue, cost, and price parameters.

Understand and calculate break-even points in units and dollars.

Apply fixed and variable cost concepts to determine required sales for targeted net income.

Analyze the effects of capacity utilization on net income and break-even points.

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Definitions:

Ages Receivables

A method of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Gross Accounts Receivable Approach

A method to estimate the total amount of receivables, including both collected and still outstanding payments.

Unadjusted Year End

The conclusion of a fiscal year before any adjustments are made for accounting purposes, such as accruals or deferrals.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.