Respond 5
Question 1
Throughout this week you have learned about the advantages and disadvantages of the different ways to establish a business. If you were to start your own business, how you would you organize it? Why? Which of options from this week's reading is the least appealing to you? Why?
Respond to this… I would pick a sole proprietorship. “This is a type of business where there is no legal distinction between the business and its owner” (Lau & Johnson, p. 197). Plus I would be the only person in charge. I don't have to get approval by a partner.
Benefits to a sole proprietor are:
No creation costs or time because you can just start working and charge and collect the money. Depending on the business there may still be permits or licenses to obtain such as a liquor license and obtaining a sales tax account with the local taxing authority (Lau & Johnson, p. 198).
I will be able to set my own ours and decide how fast or slow I want to grow the business (Lau & Johnson, p. 198).
There are always some disadvantages. It may be hard to raise working capital, the business may not be handed down to another person, all money earned by the business is considered ordinary personal income to the owner and will be taxed and may be taxed at a higher rate, the biggest disadvantage is that there is unlimited liability (Lau & Johnson, pp. 198-199).
I think a corporation seams less appealing. It feels like a longer process to create and there are corporate laws that must be followed. “Corporations can be quite complicated to manage and typically require attorneys and accountants to maintain corporate book in good order. The foundation requirements, corporate law requires ongoing annual maintenance” (Lau & Johnson, p. 203). Corporations just seem like a lot more work.
Lau, T., & Johnson, L. (n.d.). The Legal and Ethical Environment of Business. Flatworld Knowledge.
Question 2
The average body temperature for healthy adults is 98.6° F. Is this statement true? Do all healthy people have exactly the same body temperature? A study was conducted a few years go to examine this belief.
The body temperatures of n = 130 healthy adults were measured (half male and half female). The average temperature from the sample was found to be 
= 98.249 with standard deviation s = 0.7332.
Do these statistics contradict the belief that the average body temperature is 98.6? If the true average temperature is indeed 98.6° F and we obtain a sample of n = 130 healthy adults, we would not expect the sample mean to come out exactly equal to 98.6° F. We observed = 98.249- can this deviation from 98.6 be explained by chance or is it unlikely we would observe a value this different from 98.6?
Two people debating this issue could come to different conclusions.
Using the methods introduced in this module, discuss how you would determine if the data contradicts the hypothesis that the average body temperature is 98.6° F.
Respond to this… The sample of body temperatures of n= 130 of healthy men and women is just that, a sample of the population. There is always that chance for a variation in sampling. By watching the sample mean /x = 98.249 will not cancel out the chances that the population means is 98.6*F. To follow the proper procedure for using the hypothesis test to support the claims, even with such a high number is a one sample test for mean, which a Z test would be the appropriate means.
The null and alternative hypothesis would be; H0:µ = 98.6 and H1:µ ≠ 98.6.The test statistic would show = 98.249 -98.6/0.7332/√130=5.458. The critical values of 5% significance levels are +/1.96. It will demonstrate that the test statistics are falling in the denial area, which we deny the null hypothesis at 5 % significance level in conclusion observed in this analysis supporting enough evidence that the population means body temperature significantly differs from 98.6*F at 5% significance levels.
Even though the evidence shows favorable for the population having a temperature of 98.6 *F, I feel that not everyone runs average temperatures, I have always run below average 97.8 alway.
