Question

In: Statistics and Probability

For each of 12 organizations, the cost of operation per client was found. The 12 scores...

For each of 12 organizations, the cost of operation per client was found. The 12 scores have a mean of $2133 and a standard deviation of $345. Assume the population of cost of operation per client follows a normal model. Compute and interpret a 90% CI for the mean cost of operation for all such organizations

Need by 3pm pacific today! thank you!!

Expert Solution

Solution :

Given that,

Point estimate = sample mean = = $ 2133

sample standard deviation = s = $ 345

sample size = n = 12

Degrees of freedom = df = n - 1 = 12 - 1 = 11

At 90% confidence level

= 1 - 90%

=1 - 0.90 =0.10

/2 = 0.05

t/2,df = t0.05,11 = 1.796

Margin of error = E = t/2,df * (s / $\sqrt$ n)

= 1.796 * (345 / $\sqrt$ 12)

Margin of error = E = 178.87

The 90% confidence interval estimate of the population mean is,

± E

= $ 2133 ± $ 178.87

= ( $ 1954.13, $ 2311.87 )

We are 90% confident that the true mean of cost of operation per client between $ 1954.13 and $ 2311.87 .

orchestra answered 2 years ago

Listed below are costs found in various organizations. Required: For each cost item, indicate whether it...

Listed below are costs found in various organizations. Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. Manufacturing Cost Cost Item Variable or Fixed Selling Cost Admin....

A worker-machine operation was found to involve 4.6 minutes of machine time per cycle in the...

A worker-machine operation was found to involve 4.6 minutes of machine time per cycle in the course of 40 cycles of stopwatch study. The worker’s time averaged 3.1 minutes per cycle, and the worker was given a rating of 121 percent (machine rating is 100 percent). Midway through the study, the worker took a 10-minute rest break. Assuming an allowance percentage of 13 percent of work time which is applied only to the worker element (not the machine element), determine...

A. Cost Containment per Textbook. Cost containment is very prevalent in organizations today. What is the...

A. Cost Containment per Textbook. Cost containment is very prevalent in organizations today. What is the biggest cost-containment strategy in recent years, according to your textbook? B. Company Cost Containment Measures. What cost containment measures has your company undergone in recent months? Why? What has been their impact on (a) the organization and (b) the employees? C. Crangle Fixtures As HR director at Crangle Fixtures, your bonus this year is based on your ability to cut employee benefit costs. Your...

12 - What is target cost per unit? A.Target cost per unit is the average total...

12 - What is target cost per unit? A.Target cost per unit is the average total unit cost over the product's life cycle. B.Target cost per unit is the average total unit cost over the contribution margin ratio. C.Target cost per unit is the contribution margin per unit over the average total unit cost. D.Target cost per unit is the variable unit cost over the product's life cycle. 13 - What is value engineering? A.Charging different prices to different customers...

A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $9 and fixed cost per period is $1680.

A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $9 and fixed cost per period is $1680.Capacity per period is 1800 units.(a) Develop an algebraic statement for the revenue function and the cost function.(b) Determine the number of units required to be sold to break even.(c) Compute the break-even point as a percent of capacity.(d) Compute the break-even point in sales dollars.(a) The revenue function isTR=nothing.

Determine the estimated total cost and cost per unit of each product

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $15,680. The booth will be open 32 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $188 per package. She will continue to sell the existing product, EZRecords, which costs $108 per package. Ms. Ortega...

Find estimated total cost and cost per unit of each product

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $7,500. The booth will be open 30 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $150 per package. She will continue to sell the existing product, EZRecords, which costs $100 per package. Ms. Ortega...

A retail outlet sells a perishable product for $12 per unit. The cost of the product...

A retail outlet sells a perishable product for $12 per unit. The cost of the product is $6 per unit. The product not sold has the salvage value of $1. a) Compute the overage cost and underage cost per unit. b) If the demand follows the normal distribution with the average of 400, and the standard deviation of 100. What is the optimal order quantity to maximize the expected profit? c) What is the optimal ordering quantity if the retailer...

Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit...

Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit Selling expenses $5,100 plus 5% of selling price Administrative expenses $3,000 plus 20% of selling price note Note that some costs have variable components such as commissions on sales and shipping costs. The contribution margin ratio would be: A) 70%. B) 45%. C) 75%. D) 55%.

Scores were obtained from a hypothetical test A. Only 12 scores from a large group in...

Scores were obtained from a hypothetical test A. Only 12 scores from a large group in which the distribution of scores is approximately normal are presented here. 75 61 93 84 11 50 36 42 57 76 46 70 Mean=58 SD=23 58.41667 23.00774 Using normal distribution to estimate approximately what percent of students in the group would score lower than 75? Approximately what percent of students in the group would have a score between 42 and 75?