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ACC 434 Week 5 Final Exam All Correct Answer

1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? (Points: 5)

2. (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity? (Points: 5)

3. (TCO 2) Fixed overhead costs include: (Points: 5)

4.TCO 2) Information pertaining to Brenton Corporation’s sales revenue is presented in the following table:

5. (TCO 2) Financing decisions PRIMARILY deal with: (Points: 5)

6. (TCO 3) The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? (Points: 5)

7. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points: 5)

8. (TCO 4) Sunk costs: (Points: 5)

9. (TCO 5) Throughput contribution equals revenues minus: (Points: 5)

10. (TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves: (Points: 5)

11. (TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously (Points: 5)

12. (TCO 6) Which of the following is a disadvantage of the physical-measure method of allocating joint costs? (Points: 5)

13. (TCO 7) Life-cycle costing is the name given to: (Points: 5)

  1. (TCO 7) Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed).  Haddon’s monthly sales are $500,000.

The markup percentage on full cost to arrive at the target (exisitng) selling price is

(Points: 5)

15. (TCO 8) Transfer prices should be judged by whether they promote: (Points: 5)

16. (TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound while Division B incurs additional costs of $2.50 per pound. Which of the following formulas correctly reflects the company’s operating income per pound? (Points: 5)

17. (TCO 8) When companies do not want to use market prices or find it too costly, they typically use ________ prices, even though suboptimal decisions may occur. (Points: 5)

18. (TCO 9) To guide cost allocation decisions, the benefits-received criterion: (Points: 5)

19. (TCO 9) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $20,000,000 bond issuance, the Electric Mixer Division used $14,000,000 and the Electric Lamp Division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Points: 5)

20. (TCO 10) The net present value method focuses on: (Points: 5)

21. (TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $350,000 in annual cash flows for a period of four years. The required rate of return is 14%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. (Points: 5)

22. (TCO 11) The four cost categories in a cost of quality program are (Points: 5)

23. (TCO 11) Regal Products has a budget of $900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in variable costs. The new method will require $18,000 in training costs and $120,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $30,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company’s average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories. How much will internal failure costs change if the internal product failures are reduced by 50% with the new procedures? (Points: 5)

24. (TCO 12) Obsolescence is an example of which cost category? (Points: 5)

25. (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $30. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is the estimated total setup cost for the flag displays for the coming year is (Points: 5)

Questions based on a case sudy given in the tutorial :

Question 1:  What is the annual operating income from Deluxe at the current price of $5,000?

Question 2:  What is the annual operating income from Deluxe if the price is reduced to $4,000 and sales in units increase by 25%?

What is the estimated life-cycle operating income for the first year?

  1. (TCO 8) Sportswear Company manufactures socks. The Athletic Division sells its socks for $6 a pair to outsiders. Socks have manufacturing costs of $2.50 each for variable and $1.50 for fixed. The division’s total fixed manufacturing costs are $105,000 at the normal volume of 70,000 units.

The European Division has offered to buy 15,000 socks at the full cost of $4. The Athletic Division has excess capacity and the 15,000 units can be produced without interfering with the current outside sales of 70,000. The 85,000 volume is within the division’s relevant operating range.

Explain whether the Athletic Division should accept the offer.  Support your decision showing all calculations.

(Points: 25)
 

 

 

 

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QNT 561 Week 5 Individual Assignment One- and Two-Sample Tests of Hypothesis Answer

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QNT 561 Week 5 Individual Assignment One- and Two-Sample Tests of Hypothesis Answer


QNT 561 Week 5 Individual Assignment
 One- and Two-Sample Tests of Hypothesis, Variance, and Chi-squared Analysis Problem Sets

QNT 561 Week 5 Individual Assignment One- and Two-Sample Tests of Hypothesis Answer

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Final exam wiley_Buttercup Corporation issued 300 shares of $10 par value common stock all 30 Questions Answer

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Final exam wiley_Buttercup Corporation issued 300 shares of $10 par value common stock all 30 Questions Answer


 

Product Description

Question 1 Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare Buttercup’s journal entry. 

Question 2 Wilco Corporation has the following account balances at December 31, 2014. Common stock, $5 par value $510,000 Treasury stock $90,000 Retained earnings $2,340,000 Paid-in capital in excess of par—common stock $1,320,000. Prepare Wilco’s December 31, 2014, stockholders’ equity section. 

Question 3 Woolford Inc. declared a cash dividend of $1.00 per share on its 2 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare all journal entries necessary on those three dates. Question 4 Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share. Prepare the journal entry to record the issuance. 

Question 5 The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,000 shares of $50 par value common. Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should cipating. (b) The preferred stock is cumulative and nonparticipating.receive under each of the following conditions. (a) The preferred stock is noncumulative and nonparti  (c) The preferred stock is cumulative and participating.

Question 6 Matt Schmidt Company’s ledger shows the following balances on December 31, 2014. 7% Preferred Stock—$10 par value, outstanding 20,000 shares $ 200,000 Common Stock—$100 par value, outstanding 30,000 shares 3,000,000 Retained Earnings 630,000 Assuming that the directors decide to declare total dividends in the amount of $366,000, determine how much each class of stock should receive under each of the conditions stated below. One year’s dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating. (b) The preferred stock is noncumulative and nonparticipating. (c) The preferred stock is noncumulative and is participating in distributions in excess of a 10% dividend rate on the common stock. 

Question 7 On January 1, 2014, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood’s journal entries for January 1, 2014, and December 31, 2014 and 2015. 

Question 8 Rockland Corporation earned net income of $300,000 in 2014 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds, which are convertible into 16,000 shares of common. Rockland’s tax rate is 40 percent. Compute Rockland’s 2014 diluted earnings per share.  

Question 9 Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $20 on 5,000 SARs. The required service period is 2 years. The fair value of the SARs are determined to be $4 on December 31, 2014, and $9 on December 31, 2015. Compute Ferraro’s compensation expense for 2014 and 2015.

 
 

Question 10 Garfield Company purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bonds of Chester Corporation for $74,086, which provides an 11% return. Prepare Garfield’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. 

Question 11 Arantxa Corporation made the following cash purchases of securities during 2014, which is the first year in which Arantxa invested in securities.

1 On January 15, purchased 10,000 shares of Sanchez Company’s common stock at $33.50 per share plus commission $1,980.

2 On April 1, purchased 5,000 shares of Vicario Co.’s common stock at $52 per share plus commission $3,370.3 On September 10, purchased 7,000 shares of WTA Co.’s preferred stock at $26.50 per share plus commission $4,910. On May 20, 2014, Arantxa sold 4,000 shares of Sanchez Company’s common stock at a market price of $35 per share less brokerage commissions, taxes, and fees of $3,850. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Arantxa told you that Arantxa Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices. (a) Prepare the journal entries to record the above three security purchases. (b) Prepare the journal entry for the security sale on May 20. (c) Compute the unrealized gains or losses. (d)Prepare the adjusting entries for Arantxa on December 31, 2014.

Question 12 The following are two independent situations.Situation 1

Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2014.  On June 30, Martinez declared and paid a $75,000 cash dividend. On December 31, Martinez reported net income of $122,000 for the year.  At December 31, the market price of Martinez Fashion was $15 per share.  The securities are classified as available-for-sale.

Situation 2

Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000 for the year.Prepare all necessary journal entries in 2014 for both situations. 

Question 13 Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Sub to answer the following questions Investment in Sub Co.1,000,000 110,000 44,000 (a) How much was Parent Co.’s share of Sub Co.’s net income for the year?(b) How much was Parent Co.’s share of Sub Co.’s dividends for the year?(c) What was Sub Co.’s total net income for the year?(d) What was Sub Co.’s total dividends for the year?

Question 14 Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2013. The purchase price was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2014. Kulikowski reported net income of $730,000 for 2014. The fair value of Kulikowski’s stock was $27 per share at December 31, 2014. 

(a) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps cannot exercise significant influence over Kulikowski. The securities should be classified as available-for-sale. (b) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps can exercise significant influence over Kulikowski. 

Question 15 On January 2, 2014, Jones Company purchases a call option for $300 on Merchant common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2014 (the intrinsic value is therefore $0). On March 31, 2014, the market price for Merchant stock is $53 per share, and the time value of the option is $200. (a) Prepare the journal entry to record the purchase of the call option on January 2, 2014.(b) Prepare the journal entries to recognize the change in the fair value of the call option as of March 31, 2014. (c) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2014?

Question 16 In 2014, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2014.

Question 17 Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2014. This difference will reverse as follows: 2015, $42,000; 2016, $244,000; and 2017, $294,000. Enacted tax rates are 34% for 2015 and 2016, and 40% for 2017. Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2014.

Question 18 At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2015, a new income tax act is signed into law that raises the tax rate to 40% for 2015 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability. 

Question 19Lahey Corp. has three defined benefit pension plans as follows.

Pension AssetsProjected Benefit

(at Fair Value)Obligation

Plan X$600,000 $500,000 $100,000 

Plan Y900,000          720,000$180,000 

Plan Z550,000          700,000($150,000)

How will Lahey report these multiple plans in its financial statements?

Question 20 Manno Corporation has the following information available concerning its postretirement benefit plan for 2014. Service cost $40,000 Interest cost $47,400 Actual and expected return on plan assets  $26,900

Compute Manno’s 2014 postretirement expense

Question 21For 2014, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell’s contribution to the plan during 2014 was $180,000. Prepare Sampsell’s 2014 entry to record postretirement expense. 

Question 22 Wertz Construction Company decided at the beginning of 2014 to change from the completed-contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2014, pretax income under the two methods was as follows: percentage-of-completion $120,000, and completed-contract $80,000. The tax rate is 35%. Prepare Wertz’s 2014 journal entry to record the change in accounting principle.  

Question 23 In 2014, Bailey Corporation discovered that equipment purchased on January 1, 2012, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey’s 2014 journal entry to correct the error. 

Question 24 At January 1, 2014, Beidler Company reported retained earnings of $2,000,000. In 2014, Beidler discovered that 2013 depreciation expense was understated by $400,000. In 2014, net income was $900,000 and dividends declared were $250,000. The tax rate is 40%. Prepare a 2014 retained earnings statement for Beidler Company.

Question 25 Simmons Corporation owns stock of Armstrong, Inc. Prior to 2014, the investment was accounted for using the equity method. In early 2014, Simmons sold part of its investment in Armstrong, and began using the fair value method. In 2014, Armstrong earned net income of $80,000 and paid dividends of $95,000. Prepare Simmons’s entries related to Armstrong’s net income and dividends, assuming Simmons now owns 10% of Armstrong’s stock. 

Question 26 DiCenta Corporation reported net income of $270,000 in 2014 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta’s tax rate is 40%. Compute DiCenta’s 2014 diluted earnings per share. 

Question 27 AMR Corporation (parent company of American Airlines) reported the following for 2011 (in millions). Service cost $366 Interest on P.B.O. $737 Return on plan assets $593 Amortization of prior service cost $13 Amortization of net loss $154

Question 28 For Warren Corporation, year-end plan assets were $2,000,000. At the beginning of the year, plan assets were $1,780,000. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000. Compute Warren’s actual return on plan assets.

Question 29 For 2012, Campbell Soup Company had pension expense of $73 million and contributed $71 million to the pension fund.Prepare Campbell Soup Company’s journal entry to record pension expense and funding.

Question 30 Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler Corp. with a carrying (and fair) value of $70,000. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $60,000. It is determined that this loss in value is other-than-temporary. Prepare the journal entry, if any, to record the reduction in value. 

Final exam wiley_Buttercup Corporation issued 300 shares of $10 par value common stock all 30 Questions Answer


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PROJ 430 Advance Project Management Week 1 Checkpoint Answer

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PROJ 430 Advance Project Management Week 1 Checkpoint Answer

Product Description

Jones and Shephard Accountants (Chapter 3, pp 138 – 140)
1. Provide a synopsis of the Jones and Shephard case.
2. Highlight three enterprise management causes/considerations and three project management causes/considerations for the situation. Include what seemed to be missing.
3. Consider that you are the systems manager who is now responsible for redesigning the organizational structure. What areas need to be addressed for the transition and how will they benefit the company? How will you interact with the upper managers in the company? How do you make this a transition with the least impact on the employees and the customers?
4. How should the transition to a new project management operation be accomplished? Consider what the enterprise should need to know about project management and the new structure. How much time do you recommend for the transition to the matrix organizations? Be sure to include your rationale.
5. What other organizational changes should be made? How do you work with the manager of operations to gain his/her support for your organizational changes?

PROJ 430 Advance Project Management Week 1 Checkpoint Answer

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Global Quartile Systems – SEO Executive

SEO Training and jobs offered by M/S Global Quartile Systems on part time or full time basis. Interested candidates can apply to the below position on email id mail@globalquartile.com

Job Description:

  • Learn SEO/SEM as part of the on job training
  • Should learn and Implement new SEO techniques , using basic and advanced SEO strategies (On Page SEO, Meta Tags, Link Acquisition Skills, Page content optimization, etc.)
  • Learn and suggest on-site changes to make the website more SEO compliant.
  • Keyword research, analysis, and implementation into content and other aspects of websites.
  • Manage and improve current and new organic search results for a portfolio of keywords
  • Improve organic performance through expanded keyword inventory, multivariate keyword and landing page performance.
  • Excellent Link Acquisition Skills. Co-develop link strategies to expand our portfolio of incoming links.
  • Link acquisition from Social Media Sites from Improve Social Media Buzz of individual landing pages.
  • Maintain awareness of current best SEO practices.
  • Should participate in ARTICLE writing on some of the social networking sites, forum and communities.

Desired Candidate Profile: An experienced/Fresher has the knack of learning SEO/SEM. The required/adequate training would be provided to the right candidate. Interested candidate would be tested or examined for 2-3 days and then they would be offered this position.

Experience Required: 0 to 3 Years

Education Required: (UG – B.Tech/B.E. – Any Specialization, Diploma – Any Specialization, B.Sc – Any Specialization, Maths, B.Com – Commerce) or (PG – Any Postgraduate – Any Specialization, Post Graduation Not Required) or ( Doctorate – Any Doctorate – Any Specialization, Doctorate Not Required)

Stipend – Flat sum of Rs. 8000/- per month would be given to the right candidate.

Please note that you just need to have basic computer skills to apply for this position. The complete training would be provided as part of this job,

Please send you resume to mail@globalquartile.com and we will revert back to you shortly.

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GM 533 Applied Managerial Statistics Finals Answer

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GM 533 Applied Managerial Statistics Finals Complete Answer

 

Set 1

1. (TCO D) PuttingPeople2Work has a growing business placing out-of-work MBAs. They claim they can place a client in a job in their field in less than 36 weeks. You are given the following data from a sample.
Sample size: 100
Population standard deviation: 5
Sample mean: 34.2
Formulate a hypothesis test to evaluate the claim. (Points : 10)
Ho: µ = 36; Ha: µ ≠ 36
Ho: µ ≥ 36; Ha: µ < 36 Ho: µ ≤ 34.2; Ha: µ > 34.2
Ho: µ > 36; Ha: µ ≤ 36

2. (TCO B) The Republican party is interested in studying the number of republicans that might vote in a particular congressional district. Assume that the number of voters is binomially distributed by party affiliation (either republican or not republican). If 10 people show up at the polls, determine the following:

Binomial distribution

10 n
0.5 p

X P(X) cumulative
probability
0 0.00098 0.00098
1 0.00977 0.01074
2 0.04395 0.05469
3 0.11719 0.17188
4 0.20508 0.37695
5 0.24609 0.62305
6 0.20508 0.82813
7 0.11719 0.94531
8 0.04395 0.98926
9 0.00977 0.99902
10 0.00098 1.00000

What is the probability that no more than four will be republicans? (Points : 10)
38%
12%
21%
62%

3. (TCO A) Company ABC had sales per month as listed below. Using the Minitab output given, determine:
(A) Range (5 points);
(B) Median (5 points); and
(C) The range of the data that would contain 68% of the results. (5 points).
Raw data: sales/month (Millions of $)
23
45
34
34
56
67
54
34
45
56
23
19

Descriptive Statistics: Sales
Variable Total Count Mean StDev Variance Minimum Maximum Range
Sales 12 40.83 15.39 236.88 19.00 67.00 48.00

Stem-and-Leaf Display: Sales
Stem-and-leaf of Sales N = 12
Leaf Unit = 1.0
1 1 9
3 2 33
3 2
6 3 444
6 3
6 4
6 4 55
4 5 4
3 5 66
1 6
1 6 7

Reference:
(TCO A) Company ABC had sales per month as listed below. Using the MegaStat output given, determine:
(A) Range (5 points)
(B) Median (5 points)
(C) The range of the data that would contain 68% of the results. (5 points)

Raw data: sales/month (Millions of $)
19
34
23
34
56
45
35
36
46
47
19
23

4. (TCO C, D) Tesla Motors needs to buy axles for their new car. They are considering using Chris Cross Manufacturing as a vendor. Tesla’s requirement is that 95% of the axles are 100 cm ± 2 cm. The following data is from a test run from Chris Cross Manufacturing. Should Tesla select them as a vendor? Explain your answer.

Descriptive statistics

count 16
mean 99.850
sample variance 4.627
sample standard deviation 2.151
minimum 96.9
maximum 104
range 7.1
population variance 4.338
population standard deviation 2.083
standard error of the mean 0.538
tolerance interval 95.45% lower 95.548
tolerance interval 95.45% upper 104.152
margin of error 4.302
1st quartile 98.850
median 99.200
3rd quartile 100.550
interquartile range 1.700
mode 103.000
(Points : 25)

5. (TCO D) A PC manufacturer claims that no more than 2% of their machines are defective. In a random sample of 100 machines, it is found that 4.5% are defective. The manufacturer claims this is a fluke of the sample. At a .02 level of significance, test the manufacturer’s claim, and explain your answer.

Test and CI for One Proportion
Test of p = 0.02 vs p > 0.02

Sample X N Sample p 98% Lower Bound Z-Value P-Value
1 4 100 0.040000 0.000000 1.43 0.077

Finals page 2
1. (TCO B) The following table gives the number of visits to recreational facilities by kind and geographical region.
(Points : 30)

finals 2 -2
2. (TCO B, F) The length of time Americans exercise each week is normally distributed with a mean of 15.8 minutes and a standard deviation of 2.2 minutes

X P(X≤x) P(X≥x) Mean Std dev
11 .0146 .9854 15.8 2.2
15 .3581 .6419 15.8 2.2
21 .9910 .0090 15.8 2.2
24 .9999 .0001 15.8 2.2
p(lower) p(upper)

(A) Analyze the output above to determine what percentage of Americans will exercise between 11 and 21 minutes per week. (15 points)
(B) What percentage of Americans will exercise less than 15 minutes? If 1000 Americans were evaluated, how many would you expect to have exercised less than 15 minutes? (15 points) (Points : 30)

Set 2

1. (TCO A) Seventeen salespeople reported the following number of sales calls completed last month.

72 93 82 81 82 97 102 107 119
86 88 91 83 93 73 100 102

a. Compute the mean, median, mode, and standard deviation, Q1, Q3, Min, and Max for the above sample data on number of sales calls per month.
b. In the context of this situation, interpret the Median, Q1, and Q3.

2. (TCO B) Cedar Home Furnishings has collected data on their customers in terms of whether they reside in an urban location or a suburban location, as well as rating the customers as either “good,” “borderline,” or “poor.” The data is below.
Urban Suburban Total
Good 60 168 228
Borderline 36 72 108
Poor 24 40 64
Total 120 280 400

If you choose a customer at random, then find the probability that the customer

a. is considered “borderline.”
b. is considered “good” and resides in an urban location.
c. is suburban, given that customer is considered “poor.”

3. (TCO B) Historically, 70% of your customers at Rodale Emporium pay for their purchases using credit cards. In a sample of 20 customers, find the probability that

a. exactly 14 customers will pay for their purchases using credit cards.
b. at least 10 customers will pay for their purchases using credit cards.
c. at most 12 customers will pay for their purchases using credit cards. (Points : 18)

4. (TCO B) The demand for gasoline at a local service station is normally distributed with a mean of 27,009 gallons per day and a standard deviation of 4,530 gallons per day.

a. Find the probability that the demand for gasoline exceeds 22,000 gallons for a given day.
b. Find the probability that the demand for gasoline falls between 20,000 and 23,000 gallons for a given day.
c. How many gallons of gasoline should be on hand at the beginning of each day so that we can meet the demand 90% of the time (i.e., the station stands a 10% chance of running out of gasoline for that day)?

5. (TCO C) An operations analyst from an airline company has been asked to develop a fairly accurate estimate of the mean refueling and baggage handling time at a foreign airport. A random sample of 36 refueling and baggage handling times yields the following results.

Sample Size = 36
Sample Mean = 24.2 minutes
Sample Standard Deviation = 4.2 minutes

a. Compute the 90% confidence interval for the population mean refueling and baggage time.
b. Interpret this interval.
c. How many refueling and baggage handling times should be sampled so that we may construct a 90% confidence interval with a sampling error of .5 minutes for the population mean refueling and baggage time?

6. (TCO C) The manufacturer of a certain brand of toothpaste claims that a high percentage of dentists recommend the use of their toothpaste. A random sample of 400 dentists results in 310 recommending their toothpaste.

a. Compute the 99% confidence interval for the population proportion of dentists who recommend the use of this toothpaste.
b. Interpret this confidence interval.
c. How large a sample size will need to be selected if we wish to have a 99% confidence interval that is accurate to within 3%?

7. (TCO D) A Ford Motor Company quality improvement team believes that its recently implemented defect reduction program has reduced the proportion of paint defects. Prior to the implementation of the program, the proportion of paint defects was .03 and had been stationary for the past 6 months. Ford selects a random sample of 2,000 cars built after the implementation of the defect reduction program. There were 45 cars with paint defects in that sample. Does the sample data provide evidence to conclude that the proportion of paint defects is now less than .03 (with a = .01)? Use the hypothesis testing procedure outlined below.

a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Determine the observed p-value for the hypothesis test and interpret this value. What does this mean?
h. Does the sample data provide evidence to conclude that the proportion of paint defects is now less than .03 (with
a = .01)?

8. (TCO D) A new car dealer calculates that the dealership must average more than 4.5% profit on sales of new cars. A random sample of 81 cars gives the following result.

Sample Size = 81
Sample Mean = 4.97%
Sample Standard Deviation = 1.8%

Does the sample data provide evidence to conclude that the dealership averages more than 4.5% profit on sales of new cars (using a = .10)? Use the hypothesis testing procedure outlined below.

a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and nonrejection regions.
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Determine the observed p-value for the hypothesis test and interpret this value. What does this mean?
h. Does the sample data provide evidence to conclude that the dealership averages more than 4.5% profit on sales of new cars (using
a = .10)?

1. (TCO E) Bill McFarland is a real estate broker who specializes in selling farmland in a large western state. Because Bill advises many of his clients about pricing their land, he is interested in developing a pricing formula of some type. He feels he could increase his business significantly if he could accurately determine the value of a farmer’s land. A geologist tells Bill that the soil and rock characteristics in most of the area that Bill sells do not vary much. Thus the price of land should depend greatly on acreage. Bill selects a sample of 30 plots recently sold. The data is found below (in Minitab), where X=Acreage and Y=Price ($1,000s).

PRICE ACREAGE PREDICT
60 20.0 50
130 40.5 250
25 10.2
300 100.0
85 30.0
182 56.5
115 41.0
24 10.0
60 18.5
92 30.0
77 25.6
122 42.0
41 14.0
200 70.0
42 13.0
60 21.6
20 6.5
145 45.0
61 19.2
235 80.0
250 90.0
278 95.0
118 41.0
46 14.0
69 22.0
220 81.5
235 78.0
50 16.0
25 10.0
290 100.0

Correlations: PRICE, ACREAGE

Pearson correlation of PRICE and ACREAGE = 0.997
P-Value = 0.000

Regression Analysis: PRICE versus ACREAGE

The regression equation is
PRICE = 2.26 + 2.89 ACREAGE

Predictor Coef SE Coef T P
Constant 2.257 2.231 1.01 0.320
ACREAGE 2.89202 0.04353 66.44 0.000

S = 7.21461 R-Sq = 99.4% R-Sq(adj) = 99.3%

Analysis of Variance

Source DF SS MS F P
Regression 1 229757 229757 4414.11 0.000
Residual Error 28 1457 52
Total 29 231215

Predicted Values for New Observations

New Obs Fit SE Fit 95% CI 95% PI
1 146.86 1.37 (144.05, 149.66) (131.82, 161.90)
2 725.26 9.18 (706.46, 744.06) (701.35, 749.17)XX

XX denotes a point that is an extreme outlier in the predictors.

Values of Predictors for New Observations

New Obs ACREAGE
1 50
2 250

a. Analyze the above output to determine the regression equation.
b. Find and interpret in the context of this problem.
c. Find and interpret the coefficient of determination (r-squared).
d. Find and interpret coefficient of correlation.
e. Does the data provide significant evidence (
a = .05) that the acreage can be used to predict the price? Test the utility of this model using a two-tailed test. Find the observed p-value and interpret.
f. Find the 95% confidence interval for mean price of plots of farmland that are 50 acres. Interpret this interval.
g. Find the 95% prediction interval for the price of a single plot of farmland that is 50 acres. Interpret this interval.
h. What can we say about the price for a plot of farmland that is 250 acres?

1. (TCO E) An insurance firm wishes to study the relationship between driving experience (X1, in years), number of driving violations in the past three years (X2), and current monthly auto insurance premium (Y). A sample of 12 insured drivers is selected at random. The data is given below (in MINITAB):

Y X1 X2 Predict X1 Predict X2
74 5 2 8 1
38 14 0
50 6 1
63 10 3
97 4 6
55 8 2
57 11 3
43 16 1
99 3 5
46 9 1
35 19 0
60 13 3

Regression Analysis: Y versus X1, X2

The regression equation is
Y = 55.1 – 1.37 X1 + 8.05 X2

Predictor Coef SE Coef T P
Constant 55.138 7.309 7.54 0.000
X1 -1.3736 0.4885 -2.81 0.020
X2 8.053 1.307 6.16 0.000

S = 6.07296 R-Sq = 93.1% R-Sq(adj) = 91.6%

Analysis of Variance

Source DF SS MS F P
Regression 2 4490.3 2245.2 60.88 0.000
Residual Error 9 331.9 36.9
Total 11 4822.3

Predicted Values for New Observations

New Obs Fit SE Fit 95% CI 95% PI
1 52.20 2.91 (45.62, 58.79) (36.97, 67.44)

Values of Predictors for New Observations

New Obs X1 X2
1 8.00 1.00

Correlations: Y, X1, X2

Y X1
X1 -0.800
0.002

X2 0.933 -0.660
0.000 0.020

Cell Contents: Pearson correlation
P-Value

a. Analyze the above output to determine the multiple regression equation.
b. Find and interpret the multiple index of determination (R-Sq).
c. Perform the t-tests on and on (use two tailed test with (
a = .05). Interpret your results.
d. Predict the monthly premium for an individual having 8 years of driving experience and 1 driving violation during the past 3 years. Use both a point estimate and the appropriate interval estimate.

 

GM 533 Applied Managerial Statistics Finals Complete Answer