Problems 1-14 through 1-22 and all solutions

Problems 1-14 through 1-22 and All solutions

1-14 : Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each. (a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be? (b) How many shirts must Gina sell to break even? What is the total revenue for this? 1-15 : Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-16 : Ray Bond, from Problem 1-15, is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. If he was able to succeed in reducing this cost, what would the break-even point be? 1-17 : Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. IF Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even? 1-18 : Katherine D’Ann, from Problem 1-17, has become concerned that sales may fall, as the team is on a terrible losing streak, and attendance has fallen off. In fact, Katherine believes that she will sell only 500 programs for the next game. If it was possible to raise the selling price of the program and still sell 500, what would the price have to be for Katherine to break even by selling 500? 1-19 : Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be covered is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break-even point? 1-20 : Mysti Farris (See Problem 1-19) is considering raising the selling price of each cue to $50 instead of $40. If this is done while the costs remain the same, what would the new break-even point be? What would the total revenue be at this break-even point? 1-21 : Mysti Farris (See Problem 1-19) believes that there is a high probability that 120 pool cues can be sold if the selling price is appropriately set. What selling price would case the break-even point to be 120? 1-22 : Golden Age Retirement Planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising and other incidentals is about $10,000 per seminar. The cost of the materials and special gifts for each attendee is $60 per person attending the seminar. The company charges $250 per person to attend the seminar as this seems to be competitive with other companies in the same business. How many people must attend each seminar for Golden Age to break even?

 

 

 

Tutorial

 

 

Strategic management-financial statements and strategies

This assignment is due Saturday, December 6th at 1:47 pm EST.

 

This all relates to Lowes expanding their business globally.You will have to read the case study to get more detailed information but below is the two questions needed to be completed after reading the study. I have also included chapters 7 & 8 for you that the instructor stated that is needed to help complete the assignment.

 

What do you think are the best strategies for Lowe’s to outperform Home Depot as the housing market and world economy continue to improve?

 

Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy. This should include a full balance sheet, income statement and EPS/EBIT analysis.

 

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Financial & managerial accounting 16th edition chapter-26

Financial & Managerial Accounting 16th Edition Chapter-26
Q1. A company invests $100,000 in plant assets with an estimated 20-year service life and no salvage value. These assets contribute $10,000 to an final net income when depreciation is computed on a straight-line basis. Compute the payback period and explain your computation.
Solution-
 
Q2. How much is that laser in the window?
The management of Metro Printers is considering a proposal to replace some existing equipment with a new highly efficient laser printer. The existing equipment has a current book value of $2,200,000 and a remaining life (if not replaced) of 10 years. The laser printer has a cost of $1,300,000 and an expected useful life of 10 years. The laser printer would increase the company’s annual cash flows by reducing operating costs and by increasing the company’s ability to generate revenue. Susan Mills, controller of Metro Printers, has prepared the following estimates of the laser printer’s effect on annual earnings and cash flows:
Estimated increase in annual cash flows (before taxes):
Incremental revenue………………………………………………………………….. $140,000
Cost savings (other than depreciation)………………………………………… 110,000 $250,000
Reduction in annual depreciation expense:
Depreciation on existing equipment……………………………………………$220,000
Depreciation on laser printer………………………………………………………. 130,000 90,000
Estimated increase in income before income taxes………………………………………………………..$340,000
Increase in annual income taxes (40%)……………………………………………………………………….. 136,000
Estimated increase in annual net income…………………………………………………………………… $204,000
Estimated increase in annual net cash flows
($250,000 – $136,000)……………………………………………………………………………………. $114,000
Don Adams, a director of Metro Printers, makes the following observation: “These estimates look fine, but won’t we take a huge loss in the current year on the sale of our existing equipment? Softer the invention of the laser printer, I doubt that our old equipment can be sold for much at all.” In response, Mills provides the following information about the expected loss on the sale of the existing equipment:
Book value of existing printing equipment……………………………………….. $2,200,000
Estimated current sales price, net of removal costs………………………………. 200,000
Estimated loss on sale, before income taxes…………………………………………. $2,000,000
Reduction in current year’s income taxes as a result of loss (40%)…………. 800,000
Loss on sale of existing equipment, net of tax savings……………………………… $1,200,000
Adams replies, “Good grief, our loss would be almost as great as the cost of the laser itself. Add this $1,200,000 loss to the $1,300,000 cost of the laser, and we’re into this new equipment for $2,500,000. I’d go along with a cost of $1,300,000, but $2,500,000 is out of question.”
Instructions
a. Use Exhibits 26-3 and 26-4 to help compute the net present value of the proposal to sell the existing equipment and buy the laser printer, discounted at an annual rate of 15 percent. In your computation, make the following assumptions regarding the timing of cash flows:
1. The purchase price of the laser printer will be paid in cash immediately.
2. The $200,000 sales price of the existing equipment will be received in cash immediately.
3. The income tax benefit from selling the equipment will be realized one year from today.
4. Metro uses straight-line depreciation in its income tax returns as well as its financial statements.
5. The annual net cash flows may be regarded as received at year-end for each of the next 10 years.
b. Is the cost to Metro Printers of acquiring the laser printer $2,500,000, as Adams suggests? Explain fully.
Solution –
 
 

Q3. The following are 10 technical accounting terms introduced or emphasized in this chapter:
Net Present Value Capital budgeting Incremental analysis 
Discount Rate Payback period Present value 
Sunk Cost Return on average investment Salvage value 
Capital budget audit   

Each of the following statements may (or may not) describe one of these terms. Answer “None” if the statement does not correctly describe any of the terms…..
a. The examination of differences among revenue, costs, and cash flows under alternative courses of actions….
b. A cost incurred in the past that cannot be changed as a result of future actions…..
c. The process of planning and evaluating proposals for investments in plant assets…..
d. The average annual net income from an investment expressed as a percentage of the average amount invested……
e. The length of time necessary to recover the entire cost of an investment from resulting annual net cash flows…..
f. The present value of an investments expected future cash flows…….
g. The amount of money today that is considered equivalent to the cash flows expected to take place in the future…..
h. The required rate of return used by an investor to discount future cash flows to their present value…..
i. Often an investments final cash flows to be considered in discounted cash flow analysis
Solution-
 
Q4. Toying With Nature wants to take advantage of children’s current fascination with dinosaurs by adding several scale-model dinosaurs to its existing product line. Annual sales of the dinosaurs are estimated at 80,000 units at a price of $6 per unit. Variable manufacturing costs are estimated at $2.50 per unit, incremental fixed manufacturing costs (excluding depreciation) at $45,000 annually, and additional selling and general expenses related to the dinosaurs at $55,000 annually.
To manufacture the dinosaurs, the company must invest $350,000 in design molds and special equipment. Since toy fads wane in popularity rather quickly, Toying With Nature anticipates the special equipment will have a three-year service life with only a $20,000 salvage value. Depreciation will be computed on a straight-line basis. All revenue and expenses other than depreciation will be received or paid in cash. The company’s combined federal and state income tax rate is 40 percent.
Instructions
a. Prepare a schedule showing the estimated increase in annual net income from the planned manufacture and sale of dinosaur toys. (Input all amounts as positive values. Round to the nearest whole dollar, where necessary. Omit the “$” sign in your response.)
b. Compute the annual net cash flows expected from this project. (Omit the “$” sign in your response.)
c. Compute for this project the i) payback period ii) return on average investment iii) net present value, discounted at an annual rate of 15 percent. Use Exhibit 26-3 and 26-4where necessary. (Round your “PV factors” to 3 decimal places, playback period to the nearest tenth of a year, the return on average investment to the nearest tenth of a percent, and the net present value to the nearest dollar. Omit the “$” & “%” signs in your response.)
Solution –

 
 
Q5. Monster Toys is considering a new toy monster called Garga.  Annual sales of Garga are estimated at 100,000 units at a price of $8 per unit.  Variable manufacturing costs are estimated at $3 per unit, incremental fixed manufacturing costs (excluding depreciation) at $60,000 annually, and additional selling and general expenses related to the monster at $40,000 annually.
To manufacture the monsters, the company must invest $400,000 in design molds and special equipment.  Since toy fads wane in popularity rather quickly, Monster Toys anticipates the special equipment will have a three-year service life with only a $10,000 salvage value.  Depreciation will be computed on a straight-line basis.  All revenue and expenses other than depreciation will be received or paid in cash.  The company’s combined federal and state income tax rate is 30%.
Instructions
a. Prepare a schedule showing the estimated increase in annual net income from the planned manufacture and sale of Garga.
b. Compute the annual net cash flows expected from this project.
c. Compute for this project the (1) payback period, (2) return on average investment, and (3) net present value, discounted at an annual rate of 12%.  Round the payback period to the nearest tenth of a year and the return on average investment to the nearest tenth of a percent.
Solution-
 
 
Q6. Doug’s Conveyor Systems, Inc., is considering two investment proposals (1 and 2). Data for the two proposals are present here: 1 2 Cost of Investment $98,000 $98,500 Estimated Salvage value 12,000 6,500 Average estimated net income 13,000 10,500 calculate the return on average investment for both proposals.
Solution-
 
Q7. DQ – Identify some conditions where upper management might allows some divisions to have a lower required rate of return.
Solution  –
 
Q8. Heartland Paper Company is considering the purchase of a new high-speed cutting machine. Two cutting machine manufacturers have approached Heartland with proposals: (1) Toledo Tools and (2) Akron Industries. Regardless of which vendor Heartland chooses, the following incremental cash flows are expected to be realized:….. Year = 1 … Incremental Cash Inflows = $26,000 … Incremental Cash Outflows = $20,000… Year = 2 … Incremental Cash Inflows = $27,000 … Incremental Cash Outflows = $21,000…. Year = 3 … Incremental Cash Inflows = $32,000 … Incremental Cash Outflows = $26,000…. Year = 4 … Incremental Cash Inflows = $35,000 … Incremental Cash Outflows = $29,000…. Year = 5 … Incremental Cash Inflows = $34,000 … Incremental Cash Outflows = $28,000…. Year = 6 … Incremental Cash Inflows = $33,000 … Incremental Cash Outflows = $27,000…. a. If the machine manufactured by Toledo Tools costs $27,000, what is its expected payback period?…. b. If the machine manufactured by Akron Industries has a payback period of 66 months, what is its cost?…. c. Which of the machines is most attractive based on its respective payback period? Should Heartland base its decision entirely on this criterion? Explain your answer.
Solution –
 
Q9. Micro technology is considering two alternative proposals for modernizing its production facilities. To provide a basis for selection, the cost accounting department has developed the following data regarding the expected annual operating results for the two proposals:

Proposal 1 Proposal 2
Required investment in equipment……………………………… $360,000 $350,000
Estimated service life of equipment……………………………. 8years 7 years
Estimated salvage value……………………………………………… $-0- $14,000
Estimated annual cost saving (net cash flow) 75,000 76,000
Depreciation on equipment (straight-line basis)………… 45,000 48,000
Estimated increase in annual net income…………………… 30,000 28,000

Instructions
a. for each proposal, compute the (1) payback period, (2) return on average investment, and (3) net present value, discounted at an annual rate of 12 percent. (Round the payback period tot eh nearest tenth of a year and the return on investment to the nearest tenth of a percent.) Use this exhibits 26-3 and 26-4 where necessary.
b. Based on your analysis in part a, state which proposal you would recommend and explain the reason for your choice.
Solution- 
 
 
Q10. Macro Technology is considering two alternative proposals for modernizing its production facilities.  To provide a basis for selection, the cost accounting department has developed the following data regarding the expected annual operating results for the two proposals:

 Proposal 1 Proposal 2
 Required investment in equipment  $400,000 $380,000
 Estimated service life of equipment  10 years 8 years
 Estimated salvage value  $        -0- $  20,000
 Estimated annual cost savings (net cash flow)  80,000 82,000
 Depreciation on equipment (straight-line basis)  40,000 45,000
 Estimated increase in annual net income  40,000 37,000

Instructions
a. For each proposal, compute the (1) payback period, (2) return on average investment, and (3) net present value, discounted at an annual rate of 15%.  (Round the payback period to the nearest tenth of a year and the return on investment to the nearest tenth of a percent.)
b. Based on your analysis in part a, state which proposal you would recommend and explain the reasons for your choice.
Solution-
 
 

Q11. A particular investment proposal has a positive net present value of $20 when a discount rate of 8 percent is used. The same proposal has a negative present value of $2,000 when a discount rate of 10 percent is used. What conclusions can be drawn about the estimated return of this proposal?
Solution-
 
Q12. What are the pitfalls to avoid when investing in overseas activities? The following key issues have been identified as important:
a. Lower cost offshore does not always mean gains in efficiency.
b. Choose your model carefully, either run your own offshore operation or outsource
c. Get your current employees to be supportive, otherwise they can hinder the process
d. Be prepared to invest time and effort because quality control can be challenging
e. Treat your overseas partners as equals in your business dealings
Instructions-
1. Explain how the above list of key issues in offshore investments can have an impact on future cash flows associated with an offshore investment
2. Discuss the ethical implications of encouraging current employees to help a company shift jobs overseas.
Solution –
 

Q13. What is the major short coming of using the payback period as the only criterion in making capital budgeting decisions?
Solution-
 

Q14. Foz Co. is considering four investment proposals (A, B, C and D). The following table provides data concerning each of these investments:

 A   B   C   D 
Investment cost $ 44,000  $ 45,000  $ 50,000  $ 

Estimated salvage value  8,000   5,000   
  4,000 
Average estimated net income  6,000   ??   5,400   4,500 
Return on average investment  ?? %  28 %  20 %  15 

Compute the missing information pertaining to each investment proposal.

Solution –
 
 
Q15. Cartor Industries is evaluating two alternative investment opportunities. The controller of the company has prepared the following analysis of the two investment proposals:

Proposal A Proposal B
Required investment in equipment $ 220,000 $ 250,000
Estimated service life of equipment 5 years 6 years
Estimated salvage value $ 10,000 $ 0
Estimated annual net cash flow 60,000 60,000
Depreciation on equipment (straight-line basis) 42,000 40,000
Estimated annual net income 18,000 20,000

Instructions
a. For each proposed investment, compute the following. Assume discounted at an annual rate of 10 percent. Use Exhibits 26-3 and 26-4 where necessary. (Round your “PV factors” to 3 decimal places, payback period to the nearest tenth of a year and the return on average investment to the nearest tenth of a percent. Omit the “$” & “%” signs in your response.)

Proposal A Proposal B
(1) Payback period years years
(2) Return on average investment % %
(3) Net present value $ $

b. Based on your computations in part a, which proposal do you consider to be the better investment?
Solution –
 
 
Q16. Flagg Equipment Company is evaluating two alternative investment opportunities.  The controller of the company has prepared the following analysis of the two investment proposals:
 Proposal A Proposal B
 Required investment in equipment  $260,000 $280,000
 Estimated service life of equipment  6 years 7 years
 Estimated salvage value  $  20,000 $        -0-
 Estimated annual net cash flow  82,000 65,000
 Depreciation on equipment (straight-line basis)  40,000 40,000
 Estimated annual net income  42,000 25,000

Instructions
a. For each proposal investment, compute the (1) payback period, (2) return on average investment, and (3) net present value, discounted at an annual rate of 15%.  (Round the payback period to the nearest tenth of a year and the return on investment to the nearest tenth of a percent.)
b. Based on your analysis in part a, which proposal do you consider to be the better investment?  Explain.

Solution –

 

Q16. Landry’s Tool Supply Corporation is considering purchasing a machine that costs $56,000 and will produce annual cash flows of $19,000 for six years. The machine will be repurchased at the end of six years for $2,000. What is the net present value of the proposed investment? Landry’s requires a 12 percent return on all capital investment.

Solution-
 
Q17. Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows discounted at an annual rate of 15 percent.
a. $10,000 to be received 20 years from today.
b. $15,000 to be received annually for 10 years.
c. $10,000 to be received annually for five years, with an additional $12,000 salvage value expected at the end of the fifth year.
d. $30,000 to be received annually for the first three years, followed by $20,000received annually for the next two years (total of five years in which cash is received).

Solution-
 
Q18. Marengo is a popular restaurant located in Chilton resort. Management feels that enlarging
 
Solution  –
 
 
Q19. Samba Is a popular restaurant located in Brazilton Resort. Management feels that enlarging the facility to incorporate a large outdoor seating area will enable Samba to continue to attract existing customers as well as handle large banquet parties that now must be turned away.
 
Solution-
 
Q20. A company is trying to decide whether to go ahead with an investment opportunity that costs $35,650. The expected incremental cash inflows are $78,000, while the expected incremental cash outflows are $67,500. What is the payback period?
Solution-
 

Which of the following is true regarding the sampling distribution of

Q1. Which of the following is true regarding the sampling distribution of the mean for a large sample size?
   a. It has the same shape, mean, and standard deviation as the population.
   b. It has a normal distribution with the same mean and standard deviation as the population.
   c. It has the same shape and mean as the population, but has a smaller standard deviation.
   d. It has a normal distribution with the same mean as the population but with a smaller standard deviation.

Q2. According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. The probability that annual household income is over $25,000 if the residents of a household do not own 2 cars is:
   a. 0.12
   b. 0.18
   c. 0.40
   d. 0.55

Q3. The collection and summarization of the socioeconomic and physical characteristics of the employees of a particular firm is an example of:
   a. inferential statistics.
   b. descriptive statistics.
   c. a parameter.
   d. a statistic.

Q4. The head librarian at the Library of Congress has asked her assistant for an interval estimate of the mean number of books checked out each day. The assistant provides the following interval estimate: from 740 to 920 books per day.

If the head librarian knows that the population standard deviation is 150 books checked out per day, and she asked her assistant to use 25 days of data to construct the interval estimate, what confidence level can she attach to the interval estimate?
   a. 99.7%
   b. 99.0%
   c. 98.0%
   d. 95.4%

Q5. Referring to the histogram, how many graduating seniors attended the luncheon?

   a. 4
   b. 152
   c. 275
   d. 388

Q6. The following are the durations in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier.

Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02

Referring to the table, if 10 calls lasted 30 minutes or more, how many calls lasted less than 5 minutes?
   a. 10
   b. 185
   c. 295
   d. 500

Q7. The collection of all possible events is called:
   a. a simple probability.
   b. a sample space.
   c. a joint probability.
   d. the null set.

Q8. A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution:

Price:
$10.00
$12.50
$15.00
Probability:
0.35
0.40
0.25

How much should the lab budget for next year’s rat orders be, assuming this distribution does not change?
   a. $520
   b. $637
   c. $650
   d. $780

Q9. A professor of economics at a small Texas university wanted to determine what year in school students were taking his tough economics course. Shown below is a pie chart of the results. What percentage of the class took the course prior to reaching their senior year?

   a. 14%
   b. 44%
   c. 54%
   d. 86%

Q10. Since a _______ is not a randomly selected probability sample, there is no way to know how well it represents the overall population.
   a. simple random sample
   b. quota sample
   c. stratified sample
   d. cluster sample

Q11. A study is under way in Yosemite National Forest to determine the adult height of American pine trees. Specifically, the study is attempting to determine what factors aid a tree in reaching heights greater than 60 feet tall. It is estimated that the forest contains 25,000 adult American pines. The study involves collecting heights from 250 randomly selected adult American pine trees and analyzing the results. Identify the population from which the study was sampled.
   a. The 250 randomly selected adult American pine trees in the forest.
   b. The 25,000 adult American pine trees in the forest.
   c. All the adult American pine trees taller than 60 feet in the world.
   d. All American pine trees, of any age, in the forest.

Q12. A population frame for a survey contains a listing of 72,345 names. Using a table of random numbers, how many digits will the code numbers for each member of your population contain?
   a. 3
   b. 4
   c. 5
   d. 6

Q13. The chancellor of a major university was concerned about alcohol abuse on her campus and wanted to find out the portion of students at her university who visited campus bars every weekend. Her advisor took a random sample of 250 students. The portion of students in the sample who visited campus bars every weekend is an example of a __________.
   a. categorical random variable
   b. discrete random variable
   c. parameter
   d. statistic

Q14. The following are the durations in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier.

Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02

Referring to Table 2-5, if 100 calls were randomly sampled, how many calls lasted 15 minutes or longer?
   a. 10
   b. 14
   c. 26
   d. 74

Q15. If two events are mutually exclusive, what is the probability that one or the other occurs?
   a. 0
   b. 0.50
   c. 1.00
   d. Cannot be determined from the information given.

Q16. According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $25,000 is 80%. Of the households surveyed, 60% had incomes over $25,000 and 70% had 2 cars. The probability that the residents of a household do not own 2 cars and have an income over $25,000 a year is:
   a. 0.12
   b. 0.18
   c. 0.22
   d. 0.48

Q17. If two events are mutually exclusive and collectively exhaustive, what is the probability that one or the other occurs?
   a. 0.
   b. 0.50.
   c. 1.00.
   d. Cannot be determined from the information given.

Q18. Why is the Central Limit Theorem so important to the study of sampling distributions?
   a. It allows us to disregard the size of the sample selected when the population is not normal.
   b. It allows us to disregard the shape of the sampling distribution when the size of the population is large.
   c. It allows us to disregard the size of the population we are sampling from.
   d. It allows us to disregard the shape of the population whennis large.

Q19. A sample of 200 students at a Big-Ten university was taken after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following table contains the result.

 
Did Well on Midterm
Did Poorly on Midterm
Studying for Exam
80
20
Went Bar Hopping
30
70

Referring to the table, of those who did well on the midterm in the sample, _______ percent of them went bar hopping the weekend before the midterm.
   a. 15
   b. 27.27
   c. 30
   d. 50

Q20. Tim was planning for a meeting with his boss to discuss a raise in his annual salary. In preparation, he wanted to use the Consumer Price Index to determine the percentage increase in his salary in terms of real income over the last three years. Which method of data collection was involved when he used the Consumer Price Index?
   a. Published sources
   b. Experimentation
   c. Surveying
   d. Observation

Q21. A survey was conducted to determine how people rated the quality of programming available on television. Respondents were asked to rate the overall quality from 0 (no quality at all) to 100 (extremely good quality). The stem-and-leaf display of the data is shown below.

Stem
Leaves
3
24
4
3478999
5
112345
6
12566
7
1
8
 
9
2

Referring to the table, what percentage of the respondents rated overall television quality with a rating between 50 and 75?
   a. 0.11
   b. 0.40
   c. 0.44
   d. 0.56

Q22. The process of using sample statistics to draw conclusions about true population parameters is called:
   a. statistical inference.
   b. the scientific method.
   c. sampling.
   d. descriptive statistics.

Q23. If two equally likely events A and B are mutually exclusive and collectively exhaustive, what is the probability that event A occurs?
   a. 0
   b. 0.50
   c. 1.00
   d. Cannot be determined from the information given.

Q24. Which of the following is most likely a parameter as opposed to a statistic?
   a. The average score of the first five students completing an assignment.
   b. The proportion of females registered to vote in a county.
   c. The average height of people randomly selected from a database.
   d. The proportion of trucks stopped yesterday that were cited for bad brakes.

Q25. Selection of raffle tickets from a large bowl is an example of:
   a. sampling with replacement.
   b. sampling without replacement.
   c. subjective probability.
   d. None of the above.

Q26. The portfolio expected return of two investments
   a. will be higher when the covariance is zero.
   b. will be higher when the covariance is negative.
   c. will be higher when the covariance is positive.
   d. does not depend on the covariance.

Q27. Given the numbers: 1, 3, 5, 7, 8 what are the average and the median?
   a. Average = 4.8; Median = 5.0
   b. Average = 5.0; Median = 5.0
   c. Average = 4.8; Median = 4.8
   d. Average = 5.0; Median = 4.8

Q28. The employees of a company were surveyed on questions regarding their educational background and marital status. Of the 600 employees, 400 had college degrees, 100 were single, and 60 were single college graduates. The probability that an employee of the company is single or has a college degree is:
   a. 0.10
   b. 0.25
   c. 0.667
   d. 0.733

Q29. A catalog company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of time was found to be a random variable best approximated by an exponential distribution with a mean equal to 3 minutes. What proportion of customers having to hold more than 1.5 minutes will hang up before placing an order?
   a. 0.86466
   b. 0.60653
   c. 0.39347
   d. 0.13534

Q30. The following are the durations in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier.

Time (in Minutes)
Relative Frequency
0 but less than 5
0.37
5 but less than 10
0.22
10 but less than 15
0.15
15 but less than 20
0.10
20 but less than 25
0.07
25 but less than 30
0.07
30 or more
0.02

Referring to the table, what is the width of each class?
   a. 1 minute
   b. 5 minutes
   c. 2%
   d. 100%

Q31. The probability that
house sales will increase in the next 6 months is estimated to be 0.25.
the interest rates on housing loans will go up in the same period is estimated to be 0.74
house sales or interest rates will go up during the next 6 months is estimated to be 0.89
The probability that house sales will increase but interest rates will not during the next 6 months is:

   a. 0.065
   b. 0.15
   c. 0.51
   d. 0.89

Q32. Which of the mean, median, mode, and geometric mean are resistant measures of central tendency?
   a. The mean and median.
   b. The median and mode.
   c. The mode and geometric mean.
   d. The mean and mode.

Q33. The probability that
house sales will increase in the next 6 months is estimated to be 0.25
the interest rates on housing loans will go up in the same period is estimated to be 0.74
house sales or interest rates will go up during the next 6 months is estimated to be 0.89
The probability that neither house sales nor interest rates will increase during the next 6 months is:
   a. 0.11
   b. 0.195
   c. 0.89
   d. 0.90

Q34. Which of the following statistics is not a measure of central tendency?
   a. Mean.
   b. Median.
   c. Mode.
   d. Q3.

Q35. The width of each bar in a histogram corresponds to the:
   a. differences between the boundaries of the class.
   b. number of observations in each class.
   c. midpoint of each class.
   d. percentage of observations in each class.

Q36. In left-skewed distributions, which of the following is the correct statement?
   a. The distance from Q1 to Q2 is smaller than the distance from Q2 to Q3.
   b. The distance from the smallest observation to Q1 is larger than the distance from Q3 to the largest observation.
   c. The distance from the smallest observation to Q2 is smaller than the distance from Q2 to the largest observation.
   d. The distance from Q1 to Q3 is twice the distance from Q1 to Q2.

Q37. The Central Limit Theorem is important in statistics because:
   a. for a largen, it says the population is approximately normal.
   b. for any population, it says the sampling distribution of the sample mean is approximately normal, regardless of the sample size.
   c. for a largen, it says the sampling distribution of the sample mean is approximately normal, regardless of the shape of the population.
   d. for any sized sample, it says the sampling distribution of the sample mean is approximately normal.

Q38. A sample of 200 students at a Big-Ten university was taken after the midterm to ask them whether they went bar hopping the weekend before the midterm or spent the weekend studying, and whether they did well or poorly on the midterm. The following table contains the result.

 
Did Well on the midterm
Did Poorly on Midterm
Studying for Exam
80
20
Went Bar Hopping
30
70

Referring to the table, _______ percent of the students in the sample went bar hopping the weekend before the midterm and did well on the midterm.
   a. 15
   b. 27.27
   c. 30
   d. 50

Q39. Which of the following statements about the median is not true?
   a. It is more affected by extreme values than the mean.
   b. It is a measure of central tendency.
   c. It is equal to Q2.
   d. It is equal to the mode in bell-shaped “normal” distributions.

Q40. A confidence interval was used to estimate the proportion of statistics students that are females. A random sample of 72 statistics students generated the following 90% confidence interval: (0.438, 0.642). Based on the interval above, is the population proportion of females equal to 0.60?
   a. No, and we are 90% sure of it.
   b. No. The proportion is 54.17%.
   c. Maybe. 0.60 is a believable value of the population proportion based on the information above.


Q1. The sample correlation coefficient between X and Y is 0.375. It has been found out that the p-value is 0.256 when testing H0: ρ = 0 against the two-sided alternative H1: ρ ≠ 0. To test H0: ρ = 0 against the one-sided alternative H1: ρ > 0 at a significance level of 0.193, the p-value is
    a. 0.256/2
    b. 0.256
    c. 1 – 0.256
    d. 1 – 0.256/2

Q2. A researcher randomly sampled 30 graduates of an MBA program and recorded data concerning their starting salaries. Of primary interest to the researcher was the effect of gender on starting salaries. Analysis of the mean salaries of the females and males in the sample is given below.
Size
Mean
Std Dev

Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to the table, the researcher was attempting to show statistically that the female MBA graduates have a significantly lower mean starting salary than the male MBA graduates. What assumptions were necessary to conduct this hypothesis test?
    a. Both populations of salaries (male and female) must have approximate normal distributions.
    b. The population variances are approximately equal.
    c. The samples were randomly and independently selected.
    d. All of the above assumptions were necessary.

Q3. The Y-intercept (b0) represents the:
    a. predicted value of Y when X = 0.
    b. change in estimated average Y per unit change in X.
    c. predicted value of Y.
    d. variation around the sample regression line.

Q4. A local real estate appraiser analyzed the sales prices of homes in 2 neighborhoods to the corresponding appraised values of the homes. The goal of the analysis was to compare the distribution of sale-to-appraised ratios from homes in the 2 neighborhoods. Random and independent samples were selected from the 2 neighborhoods from last year’s homes sales, 8 from each of the 2 neighborhoods. Identify the nonparametric method that would be used to analyze the data.
    a. the Wilcoxon Signed-Ranks Test, using the test statistic Z
    b. the Wilcoxon Signed-Ranks Test, using the test statistic W
    c. the Wilcoxon Rank Sum Test, using the test statistic T1
    d. the Wilcoxon Rank Sum Test, using the test statistic Z

Q5. A survey claims that 9 out of 10 doctors recommend aspirin for their patients with headaches. To test this claim against the alternative that the actual proportion of doctors who recommend aspirin is less than 0.90, a random sample of 100 doctors results in 83 who indicate that they recommend aspirin. The value of the test statistic in this problem is approximately equal to:
    a. -4.12
    b. -2.33
    c. -1.86
    d. -0.07

Q6. A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in four neighborhoods (W, X, Y, and Z). Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below. 

W: 1.2, 1.1, 0.9, 0.4
X: 2.5, 2.1, 1.9, 1.6
Y: 1.0, 1.5, 1.1, 1.3
Z: 0.8, 1.3, 1.1, 0.7


Interpret the results of the analysis summarized in the following table: 
Source
df
SS
MS
F
PR > F
Neighborhoods
2.97
0.990
8.31
0.0260

Error
12

Total
4.40



Referring to the table, the within group mean squares is
    a. 0.119
    b. 0.990
    c. 1.109
    d. 8.31

Q7. If a group of independent variables are not significant individually but are significant as a group at a specified level of significance, this is most likely due to:
    a. autocorrelation.
    b. the presence of dummy variables.
    c. the absence of dummy variables.
    d. collinearity.

Q8. In a multiple regression model, the adjusted r2
    a. cannot be negative.
    b. can sometimes be negative.
    c. can sometimes be greater than +1.
    d. has to fall between 0 and +1.

Q9. Why would you use the Tukey-Kramer procedure?
    a. To test for normality.
    b. To test for homogeneity of variance.
    c. To test independence of errors.
    d. To test for differences in pairwise means.

Q10. A campus researcher wanted to investigate the factors that affect visitor travel time in a complex, multilevel building on campus. Specifically, he wanted to determine whether different building signs (building maps versus wall signage) affect the total amount of time visitors require to reach their destination and whether that time depends on whether the starting location is inside or outside the building. Three subjects were assigned to each of the combinations of signs and starting locations, and travel time in seconds from beginning to destination was recorded. How should the data be analyzed? 
 
Starting Room
 
Interior
Exterior
Wall Signs
141
224

119
339

238
139
Map
85
226

94
129

126
130

    a. Completely randomized design
    b. Randomized block design
    c. 2 x 2 factorial design
    d. Kruskal-Wallis rank test

Q11. As a business statistics project, a student examined the factors that determine parking meter rates throughout the campus and downtown area. The campus is a group of buildings located in the center of downtown, with an open central quadrangle. Data were collected for the price of parking per hour and the number of blocks to the quadrangle. In addition, two dummy variables were coded to indicate the location of the parking meter (See below). The population regression model hypothesized is 

Yi = ß0 + ß1x1i + ß2x2i + ß3x3i + ei 

where 
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that if x1 is less than 2, then the meter is on campus; if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise 

The following Excel results are obtained. 
Regression Statistics
Multiple R
9.9659
R Square
0.9331
Adjusted R Square
0.9294
Standard Error
0.0327
Observations
58

ANOVA
df
SS
MS
F
Signif F
Regression
3
0.8094
0.2698
251.1995
1.0964E-31
Residual
54
0.0580
0.0010

Total
57
0.8675


Coeff
StdError
t Stat
P-value

Intercept
0.5118
0.0136
37.4675
2.4904
X1
-0.0045
0.0034
-1.3275
0.1898
X2
-0.2392
0.0123
-19.3942
5.3581E-26
X3
-0.0002
0.0123
-0.0214
0.9829


Referring to the tables, predict the meter rate per hour if one parks outside of downtown and off campus, 3 blocks from the quad. 
    a. $-0.0139
    b. $0.2589
    c. $0.2604
    d. $0.4981

Q12. If we use the chi-squared method of analysis to test for the differences among 4 proportions, the degrees of freedom are equal to:
    a. 3
    b. 4
    c. 5
    d. 1

Q13. An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index). The Microsoft Excel output of this regression is partially reproduced below.

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.991
R Square
0.982
Adjusted R Square
0.976
Standard Error
0.299
Observations
10

ANOVA
df
SS
MS
F
Signif F
Regression
2
33.4163
16.7082
186.325
0.0001
Residual
7
0.6277
0.0897

Total
9
34.0440


Coeff
StdError
t Stat
P-value

Intercept
-0.0861
0.5674
-0.152
0.8837
GDP
0.7654
0.0574
13.340
0.0001
Price
-0.0006
0.0028
-0.219
0.8330


Referring to the tables, one economy in the sample had an aggregate consumption level of $4 billion, a GDP of $6 billion, and an aggregate price level of 200. What is the residual for this data point? 
    a. $4.39 billion
    b. $0.39 billion
    c. -$0.39 billion
    d. -$1.33 billion

Q14. Testing for the existence of correlation is equivalent to
    a. testing for the existence of the slope (β1).
    b. testing for the existence of the Y-intercept (β0).
    c. the confidence interval estimate for predicting Y.
    d. testing for the existence of the slope (β10).

Q15. As a business statistics project, a student examined the factors that determine parking meter rates throughout the campus and downtown area. The campus is a group of buildings located in the center of downtown, with an open central quadrangle. Data were collected for the price of parking per hour and the number of blocks to the quadrangle. In addition, two dummy variables were coded to indicate the location of the parking meter (See below). The population regression model hypothesized is 

Yi = ß0 + ß1x1i + ß2x2i + ß3x3i + ei 

where 
Y is the price per hour
x1 is a numerical variable = the number of blocks to the quadrangle
(Note that if x1 is less than 2, then the meter is on campus; if x1 is less than 3, then the meter is downtown)
x2 is a dummy variable = 1 if inside downtown and off campus, 0 otherwise
x3 is a dummy variable = 1 if outside downtown and off campus, 0 otherwise 

The following Excel results are obtained. 
Regression Statistics
Multiple R
9.9659
R Square
0.9331
Adjusted R Square
0.9294
Standard Error
0.0327
Observations
58

ANOVA
df
SS
MS
F
Signif F
Regression
3
0.8094
0.2698
251.1995
1.0964E-31
Residual
54
0.0580
0.0010

Total
57
0.8675


Coeff
StdError
t Stat
P-value

Intercept
0.5118
0.0136
37.4675
2.4904
X1
-0.0045
0.0034
-1.3275
0.1898
X2
-0.2392
0.0123
-19.3942
5.3581E-26
X3
-0.0002
0.0123
-0.0214
0.9829


Referring to the tables, if one is already outside of downtown and off campus but decides to park an additional 3 blocks from the quadrangle, the estimated average parking meter rate will: 
    a. decrease by 0.0045.
    b. decrease by 0.0135.
    c. decrease by 0.0139.
    d. decrease by 0.4979.

Q16. The following EXCEL output contains the results of a test to determine if the proportions of satisfied guests at two resorts are the same or different. 

Hypothesized Difference0
Level of Significance 0.05
Group 1
Number of Successes163
Sample Size227
Group 2
Number of Successes154
Sample Size262
Group 1 Proportion0.718061674
Group 2 Proportion0.58778626
Difference in Two Proportions 0.130275414
Average Proportion0.648261759
Test Statistic3.00875353
Two-Tailed Test
Lower Critical Value -1.959961082
Upper Critical Value 1.959961082
p-Value 0.002623357

Referring to the data above, if you want to test the claim that “Resort 1 (Group 1) has a higher proportion of satisfied guests compared to Resort 2 (Group 2),” the p-value of the test will be
    a. 0.00262
    b. 0.00262/2
    c. 2*(0.00262)
    d. 1 – (0.00262/2)

Q17. A real estate builder wishes to determine how house size (House) is influenced by family income (Income), family size (Size), and education of the head of household (School). House size is measured in hundreds of square feet, income is measured in thousands of dollars, and education is in years. The builder randomly selected 50 families and ran the µltiple regression. Microsoft Excel output is provided below:

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.865
R Square
0.748
Adjusted R Square
0.726
Standard Error
5.195
Observations
50

ANOVA
df
SS
MS
F
Signif F
Regression
3605.7736
901.4434
0.0001

Residual
1214.2264
26.9828

Total
49
4820.0000


Coeff
StdError
t Stat
P-value

Intercept
-1.6335
5.8078
-0.281
0.7798
Income
0.4485
0.1137
3.9545
0.0003
Size
4.2615
0.8062
5.286
0.0001
School
-0.6517
0.4319
-1.509
0.1383


Referring to the tables, one individual in the sample had an annual income of $10,000, a family size of 1, and an education of 8 years. This individual owned a home with an area of 1,000 square feet (House = 10.00). What is the residual (in hundreds of square feet) for this data point?
    a. 8.10
    b. 5.40
    c. -5.40
    d. -8.10

Q18. A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following: 
Employee
Y
X1
X2
1
100
10
7
2
90
3
10
3
80
8
9
4
70
5
4
5
60
5
8
6
50
7
5
7
40
1
4
8
30
1
1


Referring to the table, for these data, what is the estimated coefficient for the variable representing years an employee has been with the company, b1?
    a. 0.998
    b. 3.103
    c. 4.698
    d. 21.293

Q19. In testing for differences between the means of 2 independent populations, the null hypothesis is:
    a. H0: μ1 – μ2 = 2.
    b. H0: μ1 – μ2 = 0.
    c. H0: μ1 – μ2 > 0.
    d. H0: μ1 – μ2 [removed] F
Subject visibility
1
1380.24
1380.24
4.26
0.043
Test taker success
1
1325.16
1325.16
4.09
0.050
Interaction
1
3385.80
3385.80
10.45
0.002
Error
36
11,664.00
324.00

Total
39
17,755.20



Referring to the table, in the context of this study, interpret the statement: “Subject visibility and test taker success interact.” 
    a. The difference between the mean feedback time for visible and nonvisible subjects depends on the success of the test taker.
    b. The difference between the mean feedback time for test takers scoring in the top 20% and bottom 20% depends on the visibility of the subject.
    c. The relationship between feedback time and subject visibility depends on the success of the test taker.
    d. All of the above are correct interpretations.

Q25. A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: 
City
Price ($)
Sales
River Falls
1.30
100
Hudson
1.60
90
Ellsworth
1.80
90
Prescott
2.00
40
Rock Elm
2.40
38
Stillwater
2.90
32


Referring to the table, what is the coefficient of correlation for these data?
    a. -0.8854
    b. -0.7839
    c. 0.7839
    d. 0.8854

Q26. A ____________ is a numerical quantity computed from the data of a sample and is used in reaching a decision on whether or not to reject the null hypothesis.
    a. significance level
    b. critical value
    c. test statistic
    d. parameter

Q27. An investment specialist claims that if one holds a portfolio that moves in opposite direction to the market index like the S&P 500, then it is possible to reduce the variability of the portfolio’s return. In other words, one can create a portfolio with positive returns but less exposure to risk.

A sample of 26 years of S&P 500 index and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 index, is collected. A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 index (X) to prove that the private prisons stock portfolio is negatively related to the S&P 500 index at a 5% level of significance. The results are given in the following EXCEL output.
Coefficients
Standard Error
T Stat
P-value

Intercept
4.866004258
0.35743609
13.61363441
8.7932E-13
S&P
-0.502513506
0.071597152
-7.01862425
2.94942E-07


Referring to the table, which of the following will be a correct conclusion?
    a. We cannot reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prison stock portfolio and S&P 500 index are negatively related.
    b. We can reject the null hypothesis and, therefore, conclude that there is sufficient evidence to show that the prison stock portfolio and S&P 500 index are negatively related.
    c. We cannot reject the null hypothesis and, therefore, conclude that there is not sufficient evidence to show that the prison stock portfolio and S&P 500 index are negatively related.
    d. We can reject the null hypothesis and conclude that there is not sufficient evidence to show that the prison stock portfolio and S&P 500 index are negatively related.

Q28. One criterion used to evaluate employees in the assembly section of a large factory is the number of defective pieces per 1,000 parts produced. The quality control department wants to find out whether there is a relationship between years of experience and defect rate. Since the job is repetitious, after the initial training period any improvement due to a learning effect might be offset by a loss of motivation. A defect rate is calculated for each worker in a yearly evaluation. The results for 100 workers are given in the table below. 
Years Since Training Period


[removed] 16.919 
    b. Reject H0 if chi-square > 15.507 
    c. Reject H0 if chi-square > 11.143 
    d. Reject H0 if chi-square > 9.488 

Q29. A campus researcher wanted to investigate the factors that affect visitor travel time in a complex, multilevel building on campus. Specifically, he wanted to determine whether different building signs (building maps versus wall signage) affect the total amount of time visitors require to reach their destination and whether that time depends on whether the starting location is inside or outside the building. Three subjects were assigned to each of the combinations of signs and starting locations, and travel time in seconds from beginning to destination was recorded. An Excel output of the appropriate analysis is given below: 
ANOVA
Source of Variation
SS
df
MS
F
P-value
F crit
Signs
14008.33
14008.33
0.11267
5.317645

Starting Location
12288
2.784395
0.13374
5.317645

Interaction
48
48
0.919506
5.317645

Within
35305.33
4413.167

Total
61649.67
11



Referring to the table, the within (error) degrees of freedom is
    a. 1
    b. 4
    c. 8
    d. 11

Q30. If we wish to determine whether there is evidence that the proportion of successes is higher in group 1 than in group 2, the appropriate test to use is
    a. the Z test.
    b. the chi-squared test.
    c. the W test.
    d. the X test.

Q31. A researcher randomly sampled 30 graduates of an MBA program and recorded data concerning their starting salaries. Of primary interest to the researcher was the effect of gender on starting salaries. Analysis of the mean salaries of the females and males in the sample is given below.
Size
Mean
Std Dev

Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to the table, the researcher was attempting to show statistically that the female MBA graduates have a significantly lower mean starting salary than the male MBA graduates. From the analysis in the table, the correct test statistic is:
    a. 4,634.72
    b. -1.4221
    c. -1.4528
    d. -6,733.33

Q32. If we are performing a two-tailed test of whether μ = 100, the probability of detecting a shift of the mean to 105 will be ________ the probability of detecting a shift of the mean to 110.
    a. less than
    b. greater than
    c. equal to
    d. not comparable to

Q33. Parents complain that children read too few storybooks and watch too µch television nowadays. A survey of 1,000 children reveals the following information on average time spent watching TV and average time spent reading storybooks
Average time spent reading storybooks

Average time
spent watching TV
Less than
1 hour
Between
1 and 2 hours
More than
2 hours
Less than 2 hours
90
85
130
More than 2 hours
655
32
8


Referring to the table, to test whether there is any relationship between average time spent watching TV and average time spent reading storybooks, the value of the measured test statistic is:
    a. -12.59
    b. 1.61
    c. 481.49
    d. 1,368.06

Q34. A large national bank charges local companies for using their services. A bank official reported the results of a regression analysis designed to predict the bank’s charges (Y) — measured in dollars per month — for services rendered to local companies. One independent variable used to predict service charge to a company is the company’s sales revenue (X) — measured in millions of dollars. Data for 21 companies who use the bank’s services were used to fit the model: 

E(Y) = ß0 + ß1X 

The results of the simple linear regression are provided below. 

Y = -2,700+20X, syx = 65, two-tailed p value = 0.034 (for testing ß1) 

Referring to Table 13-1, interpret the p value for testing whether ß1 exceeds 0.
    a. There is sufficient evidence (at the α = 0.05) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).
    b. There is insufficient evidence (at the α = 0.10) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).
    c. Sales revenue (X) is a poor predictor of service charge (Y).
    d. For every $1 million increase in sales revenue, we expect a service charge to increase $0.034.

Q35. A study published in the American Journal of Public Health was conducted to determine whether the use of seat belts in motor vehicles depends on ethnic status in San Diego County. A sample of 792 children treated for injuries sustained from motor vehicle accidents was obtained, and each child was classified according to (1) ethnic status (Hispanic or non-Hispanic) and (2) seat belt usage (worn or not worn) during the accident. The number of children in each category is given in the table below. 
Hispanic
Non-Hispanic

Seat belts worn
31
148
Seat belts not worn
283
330


Referring to the table, which test would be used to properly analyze the data in this experiment? 
    a. chi-square test for independence in a two-way contingency table.
    b. chi-square test for equal proportions in a one-way table. 
    c. ANOVA F test for interaction in a 2 x 2 factorial design.
    d. chi-square test for a 2 x 2 factorial design. 

Q36. The Journal of Business Venturing reported on the activities of entrepreneurs during the organization creation process. As part of a designed study, a total of 71 entrepreneurs were interviewed and divided into 3 groups: those that were successful in founding a new firm (n1 = 34), those still actively trying to establish a firm (n2 = 21), and those who tried to start a new firm but eventually gave up (n3 = 16). The total number of activities undertaken (e.g., developed a business plan, sought funding, looked for facilities) by each group over a specified time period during organization creation was measured. The objective is to compare the mean number of activities of the 3 groups of entrepreneurs. Because of concerns over necessary assumption of the parametric analysis, it was decided to use a nonparametric analysis. Identify the nonparametric method that would be used to analyze the data.
    a. Wilcoxon Rank Sums Test
    b. Wilcoxon Signed Rank Test
    c. Kruskal-Wallis Rank Test for Differences in Medians
    d. One-way ANOVA F test

Q37. A researcher randomly sampled 30 graduates of an MBA program and recorded data concerning their starting salaries. Of primary interest to the researcher was the effect of gender on starting salaries. Analysis of the mean salaries of the females and males in the sample is given below.
Size
Mean
Std Dev

Females
18
48,266.7
13,577.63
Males
12
55,000
11,741.29
Std Error = 4,764.82
Means Diff = -6,733.3
Z = -1.4528 2-tailed p value = 0.1463
T = -1.4221 2-tailed p value = 0.1574

Referring to the table, the researcher was attempting to show statistically that the female MBA graduates have a significantly lower mean starting salary than the male MBA graduates. According to the test run, which of the following is an appropriate alternative hypothesis?
    a. H1: μfemales > μmales
    b. H1: μfemales < μmales
    c. H1: μfemales ≠ μmales
    d. H1: μfemales = μmales

Q38. A computer used by a 24-hour banking service is supposed to randomly assign each transaction to one of 5 memory locations. A check at the end of a day’s transactions gave the counts shown in the table to each of the 5 memory locations, along with the number of reported errors. 
Memory Location:
1
2
3
4
5
Number of Transactions:
82
100
74
92
102
Number of Reported Errors
11
12
6
9
10


The bank manager wanted to test whether the proportion of errors in transactions assigned to each of the 5 memory locations differ. Referring to the table, which test would be used to properly analyze the data in this experiment?
    a. chi-square test for independence in a two-way contingency table 
    b. chi-square test for equal proportions in a one-way table 
    c. ANOVA F test for main treatment effect
    d. Z test for the difference in two proportions

Q39. If a test of hypothesis has a Type I error probability (α) of 0.01, we mean
    a. if the null hypothesis is true, we don’t reject it 1% of the time.
    b. if the null hypothesis is true, we reject it 1% of the time.
    c. if the null hypothesis is false, we don’t reject it 1% of the time.
    d. if the null hypothesis is false, we reject it 1% of the time.

Q40. The following EXCEL output contains the results of a test to determine if the proportions of satisfied guests at two resorts are the same or different. 

Hypothesized Difference 0
Level of Significance 0.05
Group 1
Number of Successes 163
Sample Size 227
Group 2
Number of Successes 154
Sample Size 262
Group 1 Proportion 0.718061674
Group 2 Proportion 0.58778626
Difference in Two Proportions 0.130275414
Average Proportion 0.648261759
Test Statistic 3.00875353
Two-Tailed Test
Lower Critical Value -1.959961082
Upper Critical Value 1.959961082
p-Value 0.002623357


Referring to the table, if you want to test the claim that “Resort 1 (Group 1) has a higher proportion of satisfied guests compared to Resort 2 (Group 2),” the p-value of the test will be 
    a. 0.00262 
    b. 0.00262/2 
    c. 2*(0.00262) 
    d. 1 – (0.00262/2) 

The treasurer of unisyms company has accumulated the following budget

I already have the question completed to my best ability, but am just looking for someone to double check it.

Here’s the question again in case it didn’t go through on the little bar above, and my answer is posted below:

 

The treasurer of Unisyms Company has accumulated the following budget information for the first two months of the coming year:

 

 

March

April

Sales.

$450,000

$520,000

Manufacturing costs

 290,000

  350,000

Selling and administrative    
  expenses

   41,400

  46,400

Capital additions

 250,000

     

The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are expected to be collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are expected to be paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the probable monthly selling and administrative expenses. Insurance is paid in February and a $40,000 installment on income taxes is expected to be paid in April. Of the remainder of the selling and administrative expenses, one-half are expected to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are expected to be paid in March.

Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are composed of accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $20,000.

Prepare a monthly cash budget for March and April.

—————————————————————————————-

 

Unisyms Company   Unisyms Company
Schedule of Collections from Sales   Cash Budget
For Two Months Ending April 30   For Two Months Ending April 30
  March April     March April
Cash Sales: $157,500 $182,000   Estimated Cash receipts from:    
             Cash Sales $157,500 $182,000
Sales on Account:            Collections of accounts receivable $285,000 $328,900
     Collection from month prior sales $51,000 $58,500             Total cash receipts $442,500 $510,900
     Collection from current month’s sales $234,000 $270,400   Estimated cash payments for:    
Total Sales on Account $285,000 $328,900        Manufacturing costs $174,500 $305,000
        Selling and administrative expenses $37,000 $37,500
        Capital additions $250,000  
Unisyms Company   Note Payable    
Schedule of Payments for Manufacturing Costs   Dividends    
For Two Months Ending April 30   Income taxes   $40,000
  March April        Total cash payments $461,500 $382,500
Payments of prior month’s manufacturing costs $102,000 $217,500   Cash increase (decrease) ($19,000) $128,400
Payments of current month’s manufacturing costs $72,500 $87,500   Cash balance at beginning of month $45,000 $26,000
Total Payments $174,500 $305,000   Cash balance at end of month $26,000 $154,400
        Minimum cash balance $20,000 $20,000
        Excess (deficiency) $6,000 $134,400
Unisyms Company        
Schedule of Payments for Selling & Admin Expenses        
For Two Months Ending April 30        
  March April        
Payments of prior month’s manufacturing costs $19,500 $17,500        
Payments of current month’s manufacturing costs $17,500 $20,000        
Total Payments $37,000 $37,500        
             
             
  March April        
Sales: $450,000 $520,000        
Manufacturing Costs: $290,000 $350,000        
Selling & Admin Expenses: $41,400 $46,400        
Capital Additions: $250,000          
Total Sales on Account: $292,500 $338,000        
             
March 1 Current Assets:            
Cash: $45,000          
Accounts Receivable: $51,000          
March 1 Current Liabililities:            
Accounts Payable: $121,500          
Materials Purchased: $102,000          
Operating Expenses: $19,500          

The electrocomp corporation manufactures two electrical products: air

Part 1 of 5

 

The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a $15 profit. 

Now, Electrocomp’s management also realizes that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an oversupply of fans in the preceding period, a limit should be placed on the total number of fans produced.

 

1. If Electrocomp decides that at least 20 air conditioners should be produced but no more than 80 fans should be produced, the optimal production mix of air conditioners and fans is _____________ (The first number is for air conditioners and the second is for fans

a. (50, 30)

b. (20, 80)

c. (40, 60)

d. (26.67, 80)

2. In the optimal solution for the above question (Question 1), the slack for the four constraints – Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are _________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. Take the negative sign out when interpreting the results.)

a. 0, 0, 20, 20

b. 0, 0, 10, 20

c. 0, 0, 20, 10

d. 10, 10, 10, 10

3. If Electrocomp decides that at least 30 air conditioners should be produced but no more than 50 fans should be produced, the optimal production of air conditioners is 45 and the optimal productions of fans is 50 (Only enter an integer and include no units.)

4. In the optimal solution for the above question (Question 3), the slack for the four constraints – Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are __________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. You may take the negative sign out when interpreting the results)

a. 0, 0, 15, 10

b. 5, 0, 15, 0

c. 0, 5, 15, 0

d. 0, 0, 10, 15

 

Part 2 of 5

 

The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in the furniture. During the next production cycle, 1,200 hours of labor are available under a union agreement. The firm also has a stock of 3,500 feet of good-quality redwood. Each bench that Outdoor Furniture produces requires 4 labor hours and 10 feet of redwood; each picnic table takes 6 labor hours and 35 feet of redwood. Completed benches will yield a profit of $9 each, and tables will result in a profit of $20 each.

 

5. The optimal production of benches is262 and the optimal production of tables is 25.(Please only include the integer and no units. Hint: Because of the resource constraints, you may not be able to produce 4 tables even if the solution is 3.8; you may have to just produce 3 tables)

 

Part 3 of 5

 

A winner of the Texas Lotto has decided to invest $50,000 per year in the stock market. Under consideration are stocks for a petrochemical firm and a public utility. Although a long-range goal is to get the highest possible return, some consideration is given to the risk involved with the stocks. A risk index on a scale of 1–10 (with 10 being the most risky) is assigned to each of the two stocks. The total risk of the portfolio is found by multiplying the risk of each stock by the dollars invested in that stock. The attached table provides a summary of the return and risk. The investor would like to maximize the return on the investment, but the average risk index of the investment should not be higher than 6.

 

 

 

Stock

Estimated Return

Risk Index

Petrochemical

12%

9

Utility

6%

4

 

 

 

 

6. The optimal dollar amount invested in Petrochemical stock is 20000 dollars, and the optimal  dollaramount invested in Utility stock is 30000 dollars. (Only use an integer and include no units. Hint: The total risk on each stock is the risk index times the investment in dollars. When you use Excel QM, you need to end the total risk in the right hand side of the constraint not simply the risk index.)

a. 20,000, 30,000

b. 30,000, 20,000

c. 10,000, 15,000

d. 15,000, 10,000

7. The average risk index (not in dollar amount) for the optimal investment is 6, and the estimated best/maximum return for this investment is 4200. (Please only use an integer and include no units). 

 

Part 4 of 5

 

The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $250,000 of her money obtained recently through the sale of land holdings in Ohio. The client has a good deal of trust in the investment house, but she also has her own ideas about the distribution of the funds being invested. In particular, she requests that the firm select whatever stocks and bonds they believe are well rated, but within the following guidelines:

(a) Municipal bonds should constitute at least 20% of the investment.
(b) At least 40% of the funds should be placed in a combination of electronic firms, aerospace firms, and drug manufacturers.
(c) No more than 50% of the amount invested in municipal bonds should be placed in a high-risk, high-yield nursing home stock.

Subject to these restraints, the client’s goal is to maximize projected return on investments. The analysts at Heinlein and Krampf, aware of these guidelines, prepare the attached list of high-quality stocks and bonds and their corresponding rates of return.

Hint: You will need to rearrange one of the constraints in this problem so that all variables will be at the left hand side of the constraint and the right hand side of the constraint will be zero. You may adjust he sign of the constraint accordingly. For example, rearranging x < y + 2 to x – y < 2.

 

Investment

Projected Rate of Return (%)

Los Angeles municipal bonds

5.3

Thompson Electronics, Inc

6.8

United Aerospace Corp.

4.9

Palmer Drugs

8.4

Happy Days Nursing Homes

11.8

 

8. The optimal money invested in the five stocks and bonds – Municipal bonds, Electronics, Aerospace, Drugs, and Nursing homes are ________ dollars, respectively. 

a. 50,000, 50,000, 50,000, 50,000, 50,000

b. 50,000, 0, 0, 175,000, 25,000

c. 25,000, 0, 0, 175,000, 50,000

d. 50,000, 25,000, 25,000, 125,000, 25,000

 

Part 5 of 5

 

Mt. Sinai Hospital in New Orleans is a large, private, 600-bed facility, complete with laboratories, operating rooms, and x-ray equipment. In seeking to increase revenues, Mt. Sinai’s administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms, and x-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff for medical patients and how many to the surgical staff for surgical patients.

The hospital’s accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and receives a $1,515 bill. The laboratory is capable of handling 15,000 tests per year more than it was handling. The average medical patient requires 3.1 lab tests and the average surgical patient takes 2.6 lab tests. Furthermore, the average medical patient uses one x-ray, whereas the average surgical patient requires two x-rays. If the hospital was expanded by 90 beds, the x-ray department could handle up to 7,000 x-rays without significant additional cost. Finally, the administration estimates that up to 2,800 additional operations could be performed in existing operating room facilities. Medical patients, of course, do not require surgery, whereas each surgical patient generally has one surgery performed.

Assume that the hospital is open 365 days a year. Round off your answers to the nearest integer.

 

9. The optimal number of medical patients per year is 2791, and the optimal number of surgical patients per year is 2104. The maximum annual profit is9551040 dollars. (Please round to the closest integer and include no units)

10. Among the 90 additional beds, _____ beds should be used for medical patients and _________ beds used for surgical patients.

a. 45, 45

b. 60, 30

c. 61, 29

d. 29, 61

11. At the optimal, there are 2 empty beds, 877.5lab tests of unused capacity, 1x-rays of unused capacity, and 696unused operation rooms available. (Please round to the closest integer and include no units.)

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    Journal (due 5 hours) | Nursing homework help

     

    1) Minimum 3 full pages (Follow the 3 x 3 rule: minimum three paragraphs per part)

                 

    2)

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              Bulleted responses are not accepted

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              Dont copy and pase the questions.

              Answer the question objectively, do not make introductions to your answers, answer it when you start the paragraph

    3)****************************** It will be verified by Turnitin (Identify the percentage of exact match of writing with any other resource on the internet and academic sources, including universities and data banks) 

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    4) Identify your answer with the numbers, according to the question.

    Example:

    Q 1. Nursing is XXXXX

    Q 2. Health is XXXX

    ————————————————————————————————-

     

    Refer to File 1 and reflect on the following:

    Topic: The use of pharmacology in advanced practice.

    1. How has your knowledge of pharmacology changed?

    2. Do you find yourself thinking about medication use in your current employment differently? Why or why not?

    3. Explain how your appreciation of the advanced practice role changed or did not change?

    4. How do you envision using the knowledge from this course in your future advanced practice role?

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