2. Happy Selling Company's total liabilities amounted P10,000. Total equity had an ending balance of 20,000. How much is total assets?

Solution

3. Happy Selling's had the following accounts at year end: Cash-250,000, Accounts Payable-70,000, Prepaid Expense.
15,000. Compute for the company's current assets.
Answer
Solution:

Consider the linear model for a two-stage nested design with b nested in a as given below. yijk=\small \mu + \small \taui + \small \betaj(i) + \small \varepsilon(ij)k , for i=1,; j= ; k=1, assumption: \small \varepsilon(ij)k ~ iid n (0, \small \sigma2) ; \small \taui ~ iid n(0, \small \sigmat2 ); \tiny \sum_{j=1}^{b} \small \betaj(i) =0; \small \varepsilon(ij)k and \small \taui are independent. using only the given information, derive the least square estimator of \small \betaj(i) using the appropriate constraints (sum to zero constraints) and derive e(msb(a) ).