Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

1.Consider the following hypotheses: H0: μ = 7,300 HA: μ ≠ 7,300 The population is normally distributed with a population standard deviation of 700. Compute the value of the test statistic and the resulting p-value for each of the following sample results. For each sample, determine if you can "reject/do not reject" the null hypothesis at the 10% significance level. (You may find it useful to reference the appropriate table: z table or t table) (Negative values should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places. Round "test statistic" values to 2 decimal places and "p-value" to 4 decimal places.)

2. It is advertised that the average braking distance for a small car traveling at 65 miles per hour equals 120 feet. A transportation researcher wants to determine if the statement made in the advertisement is false. She randomly test drives 34 small cars at 65 miles per hour and records the braking distance. The sample average braking distance is computed as 116 feet. Assume that the population standard deviation is 22 feet. (You may find it useful to reference the appropriate table: z table or t table)

b. Calculate the value of the test statistic and the p-value. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
  

In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 8, 7, 16, 8, 16.

(a) Use the defining formula, the computation formula, or a calculator to compute s. (Round your answer to one decimal place.)
s =  

(b) Multiply each data value by 2 to obtain the new data set 16, 14, 32, 16, 32. Compute s. (Round your answer to one decimal place.)
s =  

(c) Compare the results of parts (a) and (b). In general, how does the standard deviation change if each data value is multiplied by a constant c?

Multiplying each data value by the same constant c results in the standard deviation remaining the same.Multiplying each data value by the same constant c results in the standard deviation increasing by c units.    Multiplying each data value by the same constant c results in the standard deviation being |c| times smaller.Multiplying each data value by the same constant c results in the standard deviation being |c| times as large.

(d) You recorded the weekly distances you bicycled in miles and computed the standard deviation to be s = 2.6 miles. Your friend wants to know the standard deviation in kilometers. Do you need to redo all the calculations?

YesNo    

Given 1 mile ? 1.6 kilometers, what is the standard deviation in kilometers? (Enter your answer to two decimal places.)
s =  km

1. Each of the following situations requires a significance test about a population mean μ. State the appropriate null hypothesis, H0, and alternative hypothesis, Ha, in each case. [Use words and/or symbols to state these]

• Larry’s car averages 32 miles per gallon on the highway. He switches to a new motor oil that is advertised as increasing gas mileage. After driving 3000 highway miles with the new oil, he wants to determine if his gas mileage actually has increased.
• A university gives credit in a French language course to students who pass a placement test. The language department wants to know if students who get credit in this way differ in their understanding of spoken French from students who actually take the French course. Some faculty think the students who test out of the course are better, but others argue that they are weaker in oral comprehension. Experience has shown that the mean score of students in the course on a standard listening test is 24. The language department gives the same listening test to a sample of 40 students who passed the placement test to see if their performance is different.
• Experiments on learning in animals sometimes measure how long it takes a mouse to find its way through a maze. The mean time is 18 seconds for one particular maze. A student thinks that a loud noise will cause the mice to complete the maze faster. She measures how long each of 10 mice takes with a noise as stimulus.

In an article in the Journal of Marketing, Bayus studied the differences between "early replacement buyers" and "late replacement buyers" in making consumer durable good replacement purchases. Early replacement buyers are consumers who replace a product during the early part of its lifetime, while late replacement buyers make replacement purchases late in the product's lifetime. In particular, Bayus studied automobile replacement purchases. Consumers who traded in cars with ages of zero to three years and mileages of no more than 35,000 miles were classified as early replacement buyers. Consumers who traded in cars with ages of seven or more years and mileages of more than 73,000 miles were classified as late replacement buyers. Bayus compared the two groups of buyers with respect to demographic variables such as income, education, age, and so forth. He also compared the two groups with respect to the amount of search activity in the replacement purchase process. Variables compared included the number of dealers visited, the time spent gathering information, and the time spent visiting dealers. Regard the sample of 500 late replacement buyers for which σ = .58. How large a sample of late replacement buyers is needed to make us (Round up your answers to the next whole number.):

(a) 99 percent confident that ¯ x¯ , the sample mean number of dealers visited, is within a margin of error of .04 of µ, the population mean number of dealers visited? n______ buyers

(b) 99.73 percent confident that ¯ x¯ is within a margin of error of .05 of µ? n_____ buyers

A state highway department is considering improvements to an existing highway in order to reduce the frequency of accidents on the highway. The type and frequency of accidents on the highway, studied over several years, showed that there were into three classes of accidents: fatal accidents, non-fatal injury accidents, and property damage accidents. On the average, there were 35 non-fatal accidents and 240 property damage accidents for each fatal accident. The calculated costs of such accidents embrace lost wages, medical expenses, and physical damage. Assuming that the average present cost of these three classes of accidents is found to be:

            Fatality, per person                                           $900,000

            Non-fatal injury, per accident                              $10,000

            Property damage, per accident                               $1,800

The death rate on the highway in question has been 8 deaths per 100,000,000 vehicle miles. A proposal to add a median barrier is under consideration. It is estimated that the cost per mile will be $1,500,000, the service life of the improvement will be 30 years, and the annual maintenance cost will be 3% of the capital (first) cost. The traffic density on the highway is 10,000 vehicles per day and the interest rate is 7%. It is estimated that the death rate will decrease to 4 deaths per 100,000,000 vehicle miles. Although other benefits will results from the project, it is argued that the reduction in accidents is sufficient to justify the expenditure. Using benefit-cost analysis, determine whether the median should be constructed. (Hint: find the benefit per mile and assume ratio of the different types of accidents remain the same when the median is constructed)

please answer.

1. Each of the following situations requires a significance test about a population mean μ. State the appropriate null hypothesis, H0, and alternative hypothesis, Ha, in each case. [Use words and/or symbols to state these]

• Larry’s car averages 32 miles per gallon on the highway. He switches to a new motor oil that is advertised as increasing gas mileage. After driving 3000 highway miles with the new oil, he wants to determine if his gas mileage actually has increased.

• A university gives credit in a French language course to students who pass a placement test. The language department wants to know if students who get credit in this way differ in their understanding of spoken French from students who actually take the French course. Some faculty think the students who test out of the course are better, but others argue that they are weaker in oral comprehension. Experience has shown that the mean score of students in the course on a standard listening test is 24. The language department gives the same listening test to a sample of 40 students who passed the placement test to see if their performance is different.

• Experiments on learning in animals sometimes measure how long it takes a mouse to find its way through a maze. The mean time is 18 seconds for one particular maze. A student thinks that a loud noise will cause the mice to complete the maze faster. She measures how long each of 10 mice takes with a noise as stimulus.

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

In an article in the Journal of Marketing, Bayus studied the differences between "early replacement buyers" and "late replacement buyers" in making consumer durable good replacement purchases. Early replacement buyers are consumers who replace a product during the early part of its lifetime, while late replacement buyers make replacement purchases late in the product's lifetime. In particular, Bayus studied automobile replacement purchases. Consumers who traded in cars with ages of zero to three years and mileages of no more than 35,000 miles were classified as early replacement buyers. Consumers who traded in cars with ages of seven or more years and mileages of more than 73,000 miles were classified as late replacement buyers. Bayus compared the two groups of buyers with respect to demographic variables such as income, education, age, and so forth. He also compared the two groups with respect to the amount of search activity in the replacement purchase process. Variables compared included the number of dealers visited, the time spent gathering information, and the time spent visiting dealers. Regard the sample of 500 late replacement buyers for which σ = .50. How large a sample of late replacement buyers is needed to make us (Round up your answers to the next whole number.):

(a) 99 percent confident that x¯x¯ , the sample mean number of dealers visited, is within a margin of error of .04 of µ, the population mean number of dealers visited?

n ___________    buyers

(b) 99.73 percent confident that x¯x¯ is within a margin of error of .05 of µ?

n ___________      buyers

Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacific Northwest. The company's general pricing policy is to set prices at $128 per cubic yard. Deliveries for 2019 were 380,000 cubic yards, and total costs were:

$4,218,000 of the estimated total yard operation costs were variable, and all of the administrative costs were fixed. In addition to the costs above, estimated fixed delivery costs were $190,000 for the year, and estimated variable delivery costs were $6.00 per mile and $42.50 per truck hour. The rate per mile reflects the fact that more miles result in more gas, oil, and maintenance. The rate per truck hour reflects the fact that trucks that are waiting at a jobsite are kept running (so the concrete mix won't solidify), and drivers continue to get paid during that time.

Near the end of 2019, Fairview Construction Company asked for a delivery of 4,600 cubic yards of concrete but was unwilling to pay the regular price; it was only willing to pay $82 per cubic yard. Preston estimated that the job would require 7,200 miles of driving and 290 truck hours. The housing market in the Pacific Northwest had slowed during recent months, leaving Preston with enough capacity to fill the order, but its sales manager was reluctant to commit to such a reduced price.

REQUIRED

If Preston accepted the offer, what would the profit or loss be (enter a loss as a negative number)?