GM's business-level strategy is arguably Low-Cost Leadership (as is Ford's). In most categories of vehicle, GM and Ford are the standard, low cost and usually lower priced, alternatives to comparable premium products from Mercedes, BMW, and others. SAAB's pre-GM business-level strategy was Differentiation as were the other non-American car companies purchased by GM and Ford in the 1980s and 1990s. Why were GM and Ford unable to successfully manage these foreign high-end car companies?

Questions based on HBR Case Study:

Cola Wars Continue: Coke vs. Pepsi in the 1990s

Companies that are involved in the production of retail goods make use different methods to produce and deliver these goods to customers. Based on the information given in the case, describe the way that Coke and Pepsi organized their business before the 1980’s. Specifically, how did these firms produce and deliver the final product to the retail customer? Based on the course materials, explain the issues that this organizational form addressed.

Open excel

In one column enter 8 heights for 10 year old boys (inches) and in the second column enter 8 weights for 10 year old boys (pounds).  Ten year old boys height ranges from 42 inches to 62 inches while the weight ranges from 60 to 90 pounds. You can make these up as long as they are reasonable if you do not have access to any data. We want to see if there is a correlation.

Move your mouse to put a box around the numbers.

From the insert menu select scatter or the chart that says scatter and then select the chart at the top left on the dropdown

Click on one of the points

Select Add Trendline

The default radio button is linear, keep it checked

Check display equation on chart and click on the display r-squared value

The equation is your least squares line

On the least squares line the slope is in front of the x value. Also, you can look at the slope of the scatter plot to see if the slope is positive. This will let you know whether to make the r value positive or negative when you take the square root of r^2.

If the r^2 value is say .0382 then you will click on an excel cell and type

=.0382^.5

Note the ^ key is above the 6 key

This will be your r value and you will make it negative if your slope is negative otherwise leave it positive.

If you have a different version of excel then you may want to search to see how to form a trendline. These instructions work with Office 365 and Office 2010.

Then follow these instructions:

Attach your scatter plot if possible. What did you get for your regression line? What was your r value? What did this tell you?

What would be a scenario where you might need to use this application?

Explain in a minimum of 250 words

Open excel In one column enter 8 heights for 10 year old boys (inches) and in the second column enter 8 weights for 10 year old boys (pounds). Ten year old boys height ranges from 42 inches to 62 inches while the weight ranges from 60 to 90 pounds. You can make these up as long as they are reasonable if you do not have access to any data. We want to see if there is a correlation. Move your mouse to put a box around the numbers. From the insert menu select scatter or the chart that says scatter and then select the chart at the top left on the dropdown Click on one of the points Select Add Trendline The default radio button is linear, keep it checked Check display equation on chart and click on the display r-squared value The equation is your least squares line On the least squares line the slope is in front of the x value. Also, you can look at the slope of the scatter plot to see if the slope is positive. This will let you know whether to make the r value positive or negative when you take the square root of r^2. If the r^2 value is say .0382 then you will click on an excel cell and type =.0382^.5 Note the ^ key is above the 6 key This will be your r value and you will make it negative if your slope is negative otherwise leave it positive. If you have a different version of excel then you may want to search to see how to form a trendline. These instructions work with Office 365 and Office 2010. Then follow these instructions: Attach your scatter plot if possible. What did you get for your regression line? What was your r value? What did this tell you? What would be a scenario where you might need to use this application? Explain in a minimum of 250 words

Numerous studies have shown that watching too much television hurts school grades. Others have argued that television is not necessarily a bad thing for children (Psychology Today, October 22, 2012). Like books and stories, television not only entertains, it also exposes a child to new information about the world. While watching too much television is harmful, a little bit may actually help. Researcher Matt Castle gathers information on the grade point average (GPA) of 28 middle school children and the number of hours of television they watched per week. A portion of the data is shown in the accompanying table.

1. Estimate a quadratic regression model where the GPA of middle school children is regressed on hours and hours-squared ( Round answer to 4 decimal places)

Constant?

Hours?

Hours Squared?

2. Find the optimal number of weekly hours of TV for middle school children (Round answer to 2 decimal places)

Optimal number of hours weekly?

Here are summary statistics for randomly selected weights of recent​ girls: n equals 168​, x = 27.2 ​hg, s = 7.5 hg. Construct a confidence interval estimate of the mean. Use a 99​% confidence level. Are these results very different from the confidence interval 25.4 hg < u < 29.4 hg with only 19 sample​ values, x= 27.4 ​hg, and s =n3.1 ​hg?

Here are summary statistics for randomly selected weights of newborn​ girls: n=210​, x =26.9 ​hg, s=6.1 hg. Construct a confidence interval estimate of the mean. Use a 90​% confidence level. Are these results very different from the confidence interval 25.8 hg <ul <27.4 hg with only 16 sample​ values, x =26.6 ​hg, and s =1.9 ​hg?

Here are summary statistics for randomly selected weights of newborn​ girls: n=187​, x =30.8 ​hg, s=7.9 hg. Construct a confidence interval estimate of the mean. Use a 90​% confidence level. Are these results very different from the confidence interval 29.0 hg-mu-t32.4 hg with only 14 sample​ values, x=30.7 ​hg, and s=3.6 ​hg

Carly’s Winery was founded 10 years ago by owner manager Carla. Carly’s Winey is buying wines from wholesalers and sell them to retailers. Carla decided to start producing wine. She thinks that the company can produce wines for the next 7 years. In order to produce wines the company needs a new grape masher. The masher will cost $80,000 and an extra $10,000 will be needed for shipping and installation. This masher will be depreciated as a 5-year MACRS asset. Carla expects to sell the masher at the end of year 7 for $10,000. Carla estimates that the revenues will be $35,000 during year 1 and the revenues will grow by 10 percent per year for the next 7 years. Also she forecasts that annual year 1 operating expenses will be $10,000 and the expenses will grow at an annual rate of 5 percent per annum. For this new production Carla plans to use a factory which has been rented out for $7,500 per year for now. At the time the masher is purchased, Carla will invest $5,000 in net working capital. Additional investments in net working capital are required at the end of year 1 ($3,000) and year 2 ($2,000). The marginal tax rate for Carly’s Winery is 40% and the required rate of return for Carly’s Wineryis 12%.

a) Calculate the relevant cash flows for the evaluation of this project.

b) DecidewhetherCarlashouldinvestinthisproductionlineornot.

c) You think that this new production is riskier that Carly’s Winery’s ongoing operations. Briefly discuss if this new information changes your decision in part (b).

Consider the national market for electric school buses with the demand given by Qd=600-2P and supply given by Qs=3P-150. (Note: the price is in thousands of US$ and quantity is in thousands of buses).

1. (10pts) Calculate the Total Surplus at the equilibrium point and provide a succinct argument as to why the equilibrium represents an efficient allocation of resources in this market.

2. (10pts) Consider now that the price of electric school buses increases by $60 (thousands) above the equilibrium price due to a tax on e-waste containing products. Will there be any efficiency losses (i.e. decrease in Total Surplus)? Calculate the new Total Surplus and find the Deadweight Loss due to this tax.

3. (10pts) Compute the Leakage that occurs after the tax in c is implemented (hint: use the DWL only from the consumer side). What is the significance of this number? Why is it important from a tax policy perspective?