Tough Company is basing next year's budget on sales of $27 million. Tough expects that 80% of sales will be on credit, with n/30 terms. Tough estimates that relaxing the credit policy will increase credit sales by 30% and increase the average collection period from 28 to 40 days. Based on a 360-day year, what is the expected increase in Tough's average accounts receivable balance

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 3%. a mutual-fund rating agency randomly selects 27 months and determines the rate of return for a certain fund. the standard deviation of the rate of return is computed to be 2.19%. is there sufficient evidence to conclude that the fund has moderate risk at the alpha equals 0.05 level of significance? a normal probability plot indicates that the monthly rates of return are normally distributed.