Brynne Graham Owns a Law Practice

question 26

Multiple Choice

Brynne Graham owns a law practice.She wishes to earn an income of $350 000 from the business (ignore tax) .She expects to work 3500 hours on clients in the year,if client work develops as expected.The firm incurs the following costs - rent of $2000 per month and secretarial costs of $4000 per month.
How much must Brynne charge per hour,in order to earn her target profit?

• A) $81.50
• B) $79.43
• C) $121.68
• D) $100.00

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Definitions:

Estimator's Squared Bias

The squared difference between an estimator's expected value and the true value of the parameter being estimated.

Variance

The average of the squared differences from the Mean, measuring the spread between numbers in a data set.

Point Estimate

A single value or statistic that serves as the best guess or most probable value of an unknown population parameter.

Population Parameter

A numerical value that summarizes a characteristic of an entire population.