Suppose you determine that a firm's real sales in 2006 would be $10 million (in terms of 2004 dollars). What would the firm's nominal 2006 sales be assuming an annual inflation of 3% in both 2005 and 2006?

Group of answer choices

$10.609 million

$9.709 million

$9.426 million

Not possible to compute this without knowing CPIs in 2004 and 2006

$10.3 million

Below is the income statement of a publicly-traded biotech company from 2004 until 2007:

The company’s stock was trading for $2 in 2004 and is now trading for $7. Are investors irrational? Should the stock be sold short? Is it possible for a company in the biotech business to be worth something even though it has no current sales? What can justify the billion-dollar values of technology companies which have yet to earn any profits?

On October 17, 2007, the classified ads on the web site of The Seattle Times listed the following 13 used Toyota Prius automobiles for sale; the data set below shows the year, color, mileage (in miles) and asking price (in U.S. dollars) for each car:

year     color      mileage     price
2006     green        17043     25995
2007     gray         12628     24980
2005     maroon       24039     24885
2005     silver       48226     23995
2006     black        10522     22995
2004     silver       66345     21995
2007     white         5611     21995
2005     gold         24479     21595
2004     white        14618     20995
2005     silver       53699     20980
2004     silver       47649     17995
2003     white        39600     17500
2005     black       103126     16995

1. compute the correlation between mileage and price:

A leisure company operates three amusement arcades in the UK: at Redcar, Skegness and Torquay. As part of a performance review the duration in minutes of the period spent in the arcades by each of a sample of customers visiting was recorded.

The durations of visits made by 21 customers visitng the Redcar arcade were :

23 8 39 72 73 13 44 74 37 37 21

21 27 27 34 31 32 43 74 44 36 36 23  

The figures for 18 customers visiting the Skegness arcade were:

31 51 69 12 53 28 36 28 36 30

35 45 48 25 9 32 60 66

The figures for 20 customers visiting the Torquay arcade were:

3 19 1 15 21 9 7 20 10 2

6 2 11 37 10 6 10 14 3 5

(A) Classify both sets of data into grouped frequency distributions

(B) Calculate the relative frequency for each class of all three distributions

(C) The company expects customers to spend at least 20 minutes on visits to their arcades.

Use your relative frequency figures to compare the performances of the arcades in this respect.

The polling organization Ipsos conducted telephone surveys in March of 2004, 2005 and 2006. In each year, 1001 people age 18 or older were asked about whether they planned to use a credit card to pay federal income taxes that year. The data are given in the accompanying table. Is there evidence that the proportion falling in the three credit card response categories is not the same for all three years? Test the relevant hypotheses using a .05 significance level. (Use 2 decimal places.)

χ² =  
P-value interval

p < 0.0010.001 ≤ p < 0.01    0.01 ≤ p < 0.050.05 ≤ p < 0.10p ≥ 0.10

The polling organization Ipsos conducted telephone surveys in March of 2004, 2005 and 2006. In each year, 1001 people age 18 or older were asked about whether they planned to use a credit card to pay federal income taxes that year. The data are given in the accompanying table. Is there evidence that the proportion falling in the three credit card response categories is not the same for all three years? Test the relevant hypotheses using a .05 significance level. (Use 2 decimal places.)

χ² =  
P-value interval

p < 0.001

0.001 ≤ p < 0.01    

0.01 ≤ p < 0.05

0.05 ≤ p < 0.10

p ≥ 0.10

The polling organization Ipsos conducted telephone surveys in March of 2004, 2005 and 2006. In each year, 1001 people age 18 or older were asked about whether they planned to use a credit card to pay federal income taxes that year. The data are given in the accompanying table. Is there evidence that the proportion falling in the three credit card response categories is not the same for all three years? Test the relevant hypotheses using a .05 significance level. (Use 2 decimal places.) Intent to Pay Taxes with a Credit Card 2004 2005 2006 Definitely/Probably Will Might/Might Not/Probably Not Definitely Not 46 172 791 47 173 761 49 182 800 χ2 = P-value interval p < 0.001 0.001 ≤ p < 0.01 0.01 ≤ p < 0.05 0.05 ≤ p < 0.10 p ≥ 0.10

The Company:

Telemarketing Incorporated (TI) is a service company with their primary business base in the Rocky Mountain region. TI is a service organization in the business of collecting and selling information for contracted clients.

Production Information:

TI made 5,221,782 calls in 2004 to households all over the Rocky Mountain region from their main telemarketing facility in Colorado Springs. There were a total of 330 working days in 2004, which TI conducted telemarketing calls. In 2004 TI completed, on average, over 15,800 calls a day.

TI’s main facility was designed to achieve a capacity level of between 17000-18000 calls a day (from 7:00 a.m. to 12:00 midnight). However, company analysis has shown that the best operation level (BOL) for TI is 17,600 calls a day. At the BOL level TI is able to achieve its lowest unit cost per call given several variables associated with the information collected and calling costs as contracted with clients.

TI has a company policy, which states, “Any one-month period where total calls exceed 500,000 the excess is considered service cushion or capacity cushion.” (Look at capacity cushion in this line of work along the line of a product-focused company that produces bottles, cars, computers or some other tangible product in excess of demand.) The company is compensated for these “cushion” periods at a rate of $10 per call over 500,000, with a cap of 11,500 over the 500,000.

The following is a monthly breakdown of TI’s service call rates for all of 2004. This information was obtained in its raw form and some normalizing of the data is required.

Table Information:

You’ll need to normalize Table 1 below before completing the fourteen (14) questions that follow.

Table 1 – TI’s 2004 Monthly/Daily Production Data (Requiring Normalization)

Month               Production Numbers   Number of Working Days During Month

January       15000 units/day       27 working days

February       15900 units/day       26 working days

March       419720 units/month            28 working days

April           16790 units/day       27 working days

May           504900 units/month   27 working days

June           17600 units/day       28 working days

July           391972 units/month   28 working days

August       12897units/day       29 working days

September       11569 units/day       27 working days

October       463681 units/month   29 working days

November       17689 units/day       27 working days

December       19000 units/day       27 working days

Total                                    330

Notes:

• When completing this problem a symmetrical curve for both economies and diseconomies of scale is assumed.

• Calculate capacity utilization rates as compared to the ideal BOL level.

Answer the Following Questions Based on the

Information Provided

Normalize data

Possible Points – There is a total of 20 possible.

1. Based on 2004 information what is TI’s annual design capacity production range (quantity)

2. What was its annual capacity utilization rate for 2004 as compared to the company’s BOL?

3. What would the company’s annual calls completed output be if it produced at its BOL for all of 2004 year?

4. Which are the second, third and fifth most underutilized months with regard to capacity utilization?

5. What is the capacity underutilization percentage for these three months (reference: Question 4)?

6. What three months did TI complete calls at the lowest per unit cost?

7. What three months did TI complete calls at the highest per unit cost?

8.     a) Was/were there any month/s were service or capacity    cushion applied?

       b) If so, what was/were the month/s?

       c) What was the cushion in calls (quantity) and capacity cushion percentage for the month or months in question?

9. Based on the completion of Question 8 and other information provided what was TI’s total “cushion” compensation for 2004 ( please show in total dollars)?

10. What month/s fall under the term - economies of scale, excluding    the BOL month/s should there be any?   

11.    a) Comparing the underutilized capacity of February with    September, which of these two months better utilized the capacity excluding the  

b) Which of these two months most likely had a higher per call rate cost for the company?

12.    a) Were there any months where the company achieved a BOL?   

b) What month/s?

       c) Respond to this statement “The BOL is not sustainable    because……………”

13. What was the cost of January’s underutilization performance (think along the lines of the BOL) if each unit not produced cost the company $15? (Think along the lines of what was produced and what could have been produced.)

14. If you were the operations manager and the growth profile forecast for 2005 reflected a 10% growth in the number of calls made over 2004, an 8% growth in 2006 over 2005 and a 7% growth in 2007 over 2006 what business strategies would you be considering for the company? Note: Do not exceed 1.5-pages in your discussion of this question. Single or 1½ spacing is fine. Do not double space your work on this final question.)

A polling organization conducted telephone surveys in March of 2004, 2005 and 2006. In each year, 1001 people age 18 or older were asked about whether they planned to use a credit card to pay federal income taxes that year. The data are given in the accompanying table. Is there evidence that the proportion falling in the three credit card response categories is not the same for all three years? Test the relevant hypotheses using a 0.05 significance level. (Round your answer to two decimal places.)

χ² =

P-value interval

p < 0.001

0.001 ≤ p < 0.01   

0.01 ≤ p < 0.05

0.05 ≤ p < 0.10

p ≥ 0.10

Conclusion

The proportion falling in the three credit card response categories is the same for all three years.

The proportion falling in the three credit card response categories is not the same for all three years.    

You may need to use the appropriate table in Appendix A to answer this question.

Please asnwer all parts of question 2

Question 2:         Use Data2 Sheet

2a.          Conduct a 2-level sort: on Fiscal Year (Largest to Smallest) and then on Company code (Z to A).

                                Report company code and year of 5^th record (do not count the header of the table).

                                In Answer Sheet, put Company code and year continuously like: K2002

2b.          For each company, calculate the annual sales growth. Report the company code and year of the 8^th Highest growth number.

                Annual sales growth = Sale year (i)/Sale year (i-1) -1

                                In Answer Sheet, put Company code and year continuously like: K2002

2c.          For each year, if you want to find a firm with the smallest Sales, how will you sort the data so that you can systematically identify these records? (this sort answers a question such as: in 2002, which firm has the lowest sales number?)

                                Sort first by:

                                Then by:

                                Then by:

                                Then by:

In Answer Sheet, we use column A, B, C, D instead of typing Fiscal year (column A), Company code (column B), Sales (column C) …

So if you think you should sort on Fiscal Year (column A), then on Company Code (column B), then on Sales (column C), simply type ABC