I. Determine the amount of individual consumer surplus generated for each one of the following situations
1. Leon goes to the clothing store to buy a new T-shirt. He is willing to pay up to $10. He picks out one he likes with a price tag of exactly $10. When he is paying for it, he learns that the T-shirt has been discounted by 50%
2. Alberto goes to the music store hoping to find a used copy of an album for up to $30. The store has one copy of the record selling for $30, which he purchases at that price
3. After soccer practice, Stacey is willing to pay $2 for a bottle of mineral water. The 7-Eleven sells mineral water for $2.25 per bottle, so she declines to purchase it
II. Multiple Choice: Which of the following statements best describes the concept of consumer surplus?
A. "Safeway was having a sale on Dreyer's ice cream so I bought 3 quarts."
B. "I was all ready to pay $300 for a new leather jacket that I had seen in Macy's but I ended up paying only $180 for the same jacket."
C. "I paid $130 for a printer last week. This week the same store is selling the same printer for $110."
D. "I sold my Blu-ray copy of Ben-Hur for $18 at a garage sale even though I was willing to sell it for $10."
In: Economics
Define These Terms in Two Short Paragraph each. One Short Paragraph defining the term, and one short paragraph using it in an example. The terms have to relate to international business.
1-Patriotism-
2-Colonialism-
3-Ethnocentric-
4-Acculturation-
5-Developed World-
6-Social Cohesion-
7-Microcredit Banking-
8-Protectionism-
9-Culture-
10-Globalization-
In: Economics
1) What is the price of the following bonds? The bond will expire in 8 years, pay a 6% coupon, pay interest semi-annually, pay $1,000 when it expires, and you need a 5% return.
2) What is the maturity rate of the following bonds? The price of the bond is $985.00, the 14-year period is $1,000, the coupon rate is 4%, half-year payment.
3) You have a $500 investment. You have two options how to invest. Choosing "A" will allow you to invest 8% annually for two years. Choosing "B" will allow you to invest 7% in the first year and then reinvest your earnings for a year. What kind of rate of return do you need to earn in the second year of choosing "B" to expect you to receive the same return as choosing "A"?
4) Calculate the deadline for the following U.S. Treasury bills. Although the bill was originally issued for a period of five years, it currently has a two-year period. Bills pay interest semi-annually for a coupon rate of 3.00%. The market requires a yield of 2.40% of the bill.
5) Your bank plans to provide the customer with a loan of $15,000. The customer will have three instalments. Your bank will charge a 7% annual interest rate on the loan. What is the starting time of this loan?
6) You expect that the actual rate of return in the United States will reach 4% next year and the inflation rate will reach 2%. Based on the Fisher effect, what is the U.S. expected nominal interest rate for a one-year risk-free guarantee?
7) The one-year U.S. treasury bond's nominal interest rate is 3.04%. If the expected inflation rate for the next year is 1.4%, what is the expected actual economic rate of return based on the Fisher effect?
8) The yield curve of the internal I-region shows that the 1-year, 2-year, 1-year, 3-year and 4-year securities are 5%, 6%, 6.5% and 6.75%, respectively. Using PET, calculate: A) Expected annual rate for one year B) Expected two-year rate for one year C) Expected three-year rate for one year D) Two-year expected rate for two years
In: Finance
A manager of a holiday specialty store must determine how many temporary workers to hire for the holiday season. Estimated revenues (thousands of dollars) are based on poor, good, and excellent economic conditions and whether one, two or three workers are hired as follows:
| Economic | Condition | ||
| Workers Hired | Excellent | Good | Poor |
| One | 50 | 50 | 50 |
| Two | 100 | 60 | 20 |
| Three | 150 | 70 |
-10 |
22. If a Maximax strategy is used, how many workers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
23. If a Maximin strategy is used, how many workers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
24. If an Equally Likely strategy is used, how many workers should be hired?
a. one
b. two
c. three
d. either one or two
e. either two or three
25. If it’s determined that there’s a 20% chance of excellent, 30% chance of good, and 50% chance of poor economic conditions, what’s the expected value of alternative #2--hiring two workers?
a. $16000
b. $26000
c. $46000
d. $48000
e. $50000
26. A Risk Taker (decision maker) would choose the project with
a. The highest Coefficient of Variation
b. The highest Expected Value
c. The highest Standard Deviation
d. The lowest Coefficient of Variation
e. The lowest Standard Deviation
27. A Risk Averse (decision maker) would choose the project with
a. The highest Coefficient of Variation
b. The highest Expected Value
c. The highest Standard Deviation
d. The lowest Coefficient of Variation
e. The lowest Standard Deviation
28. A Risk Neutral (decision maker) would choose the project with
a. The highest Coefficient of Variation
b. The highest Expected Value
c. The highest Standard Deviation
d. The lowest Coefficient of Variation
e. The lowest Standard Deviation
In: Operations Management
Analyze the data set (e.g. mean, standard deviation, scatterplot, histogram, bar chart, etc.)and discuss important findings. Suggest courses of action related to the given situation.
| Variable Names: | |||||
| 1. VOL: Cubic feet of cab space | |||||
| 2. HP: Engine horsepower | |||||
| 3. MPG: Average miles per gallon | |||||
| 4. SP: Top speed (mph) | |||||
| 5. WT: Vehicle weight (100 lb) | |||||
| MAKE / MODEL | VOL | HP | MPG | SP | WT |
| GM/GeoMetroXF1 | 89 | 49 | 65.4 | 96 | 17.5 |
| GM/GeoMetro | 92 | 55 | 56 | 97 | 20 |
| GM/GeoMetroLSI | 92 | 55 | 55.9 | 97 | 20 |
| SuzukiSwift | 92 | 70 | 49 | 105 | 20 |
| DaihatsuCharade | 92 | 53 | 46.5 | 96 | 20 |
| GM/GeoSprintTurbo | 89 | 70 | 46.2 | 105 | 20 |
| GM/GeoSprint | 92 | 55 | 45.4 | 97 | 20 |
| HondaCivicCRXHF | 50 | 62 | 59.2 | 98 | 22.5 |
| HondaCivicCRXHF | 50 | 62 | 53.3 | 98 | 22.5 |
| DaihatsuCharade | 94 | 80 | 43.4 | 107 | 22.5 |
| SubaruJusty | 89 | 73 | 41.1 | 103 | 22.5 |
| HondaCivicCRX | 50 | 92 | 40.9 | 113 | 22.5 |
| HondaCivic | 99 | 92 | 40.9 | 113 | 22.5 |
| SubaruJusty | 89 | 73 | 40.4 | 103 | 22.5 |
| SubaruJusty | 89 | 66 | 39.6 | 100 | 22.5 |
| SubaruJusty4wd | 89 | 73 | 39.3 | 103 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.9 | 106 | 22.5 |
| HondaCivicCRX | 50 | 92 | 38.8 | 113 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.2 | 106 | 22.5 |
| FordEscort | 103 | 90 | 42.2 | 109 | 25 |
| HondaCivic | 99 | 92 | 40.9 | 110 | 25 |
| PontiacLeMans | 107 | 74 | 40.7 | 101 | 25 |
| IsuzuStylus | 101 | 95 | 40 | 111 | 25 |
| DodgeColt | 96 | 81 | 39.3 | 105 | 25 |
| GM/GeoStorm | 89 | 95 | 38.8 | 111 | 25 |
| HondaCivicCRX | 50 | 92 | 38.4 | 110 | 25 |
| HondaCivicWagon | 117 | 92 | 38.4 | 110 | 25 |
| HondaCivic | 99 | 92 | 38.4 | 110 | 25 |
| Subaru Loyale | 102 | 90 | 29.5 | 109 | 25 |
| VolksJettaDiesel | 104 | 52 | 46.9 | 90 | 27.5 |
| Mazda323Protege | 107 | 103 | 36.3 | 112 | 27.5 |
| FordEscortWagon | 114 | 84 | 36.1 | 103 | 27.5 |
| FordEscort | 101 | 84 | 36.1 | 103 | 27.5 |
| GM/GeoPrism | 97 | 102 | 35.4 | 111 | 27.5 |
| ToyotaCorolla | 113 | 102 | 35.3 | 111 | 27.5 |
| EagleSummit | 101 | 81 | 35.1 | 102 | 27.5 |
| NissanCentraCoupe | 98 | 90 | 35.1 | 106 | 27.5 |
| NissanCentraWagon | 88 | 90 | 35 | 106 | 27.5 |
| ToyotaCelica | 86 | 102 | 33.2 | 109 | 30 |
| ToyotaCelica | 86 | 102 | 32.9 | 109 | 30 |
| ToyotaCorolla | 92 | 130 | 32.3 | 120 | 30 |
| ChevroletCorsica | 113 | 95 | 32.2 | 106 | 30 |
| ChevroletBeretta | 106 | 95 | 32.2 | 106 | 30 |
| ToyotaCorolla | 92 | 102 | 32.2 | 109 | 30 |
| PontiacSunbirdConv | 88 | 95 | 32.2 | 106 | 30 |
| DodgeShadow | 102 | 93 | 31.5 | 105 | 30 |
| DodgeDaytona | 99 | 100 | 31.5 | 108 | 30 |
| EagleSpirit | 111 | 100 | 31.4 | 108 | 30 |
| FordTempo | 103 | 98 | 31.4 | 107 | 30 |
| ToyotaCelica | 86 | 130 | 31.2 | 120 | 30 |
| ToyotaCamry | 101 | 115 | 33.7 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 32.6 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 31.3 | 109 | 35 |
| ToyotaCamryWagon | 124 | 115 | 31.3 | 109 | 35 |
| OldsCutlassSup | 113 | 180 | 30.4 | 133 | 35 |
| OldsCutlassSup | 113 | 160 | 28.9 | 125 | 35 |
| Saab9000 | 124 | 130 | 28 | 115 | 35 |
| FordMustang | 92 | 96 | 28 | 102 | 35 |
| ToyotaCamry | 101 | 115 | 28 | 109 | 35 |
| ChryslerLebaronConv | 94 | 100 | 28 | 104 | 35 |
| DodgeDynasty | 115 | 100 | 28 | 105 | 35 |
| Volvo740 | 111 | 145 | 27.7 | 120 | 35 |
| FordThunderbird | 116 | 120 | 25.6 | 107 | 40 |
| ChevroletCaprice | 131 | 140 | 25.3 | 114 | 40 |
| LincolnContinental | 123 | 140 | 23.9 | 114 | 40 |
| ChryslerNewYorker | 121 | 150 | 23.6 | 117 | 40 |
| BuickReatta | 50 | 165 | 23.6 | 122 | 40 |
| OldsTrof/Toronado | 114 | 165 | 23.6 | 122 | 40 |
| Oldsmobile98 | 127 | 165 | 23.6 | 122 | 40 |
| PontiacBonneville | 123 | 165 | 23.6 | 122 | 40 |
| LexusLS400 | 112 | 245 | 23.5 | 148 | 40 |
| Nissan300ZX | 50 | 280 | 23.4 | 160 | 40 |
| Volvo760Wagon | 135 | 162 | 23.4 | 121 | 40 |
| Audi200QuatroWag | 132 | 162 | 23.1 | 121 | 40 |
| BuickElectraWagon | 160 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 175 | 19.5 | 121 | 45 |
| Mercedes500SL | 50 | 322 | 18.1 | 165 | 45 |
| Mercedes560SEL | 115 | 238 | 17.2 | 140 | 45 |
| JaguarXJSConvert | 50 | 263 | 17 | 147 | 45 |
| BMW750IL | 119 | 295 | 16.7 | 157 | 45 |
| Rolls-RoyceVarious | 107 | 236 | 13.2 | 130 | 55 |
In: Statistics and Probability
Analyze the data set (e.g. mean, standard deviation, scatterplot, histogram, bar chart, etc.)and discuss important findings. Suggest courses of action related to the given situation.
| Variable Names: | |||||
| 1. VOL: Cubic feet of cab space | |||||
| 2. HP: Engine horsepower | |||||
| 3. MPG: Average miles per gallon | |||||
| 4. SP: Top speed (mph) | |||||
| 5. WT: Vehicle weight (100 lb) | |||||
| MAKE / MODEL | VOL | HP | MPG | SP | WT |
| GM/GeoMetroXF1 | 89 | 49 | 65.4 | 96 | 17.5 |
| GM/GeoMetro | 92 | 55 | 56 | 97 | 20 |
| GM/GeoMetroLSI | 92 | 55 | 55.9 | 97 | 20 |
| SuzukiSwift | 92 | 70 | 49 | 105 | 20 |
| DaihatsuCharade | 92 | 53 | 46.5 | 96 | 20 |
| GM/GeoSprintTurbo | 89 | 70 | 46.2 | 105 | 20 |
| GM/GeoSprint | 92 | 55 | 45.4 | 97 | 20 |
| HondaCivicCRXHF | 50 | 62 | 59.2 | 98 | 22.5 |
| HondaCivicCRXHF | 50 | 62 | 53.3 | 98 | 22.5 |
| DaihatsuCharade | 94 | 80 | 43.4 | 107 | 22.5 |
| SubaruJusty | 89 | 73 | 41.1 | 103 | 22.5 |
| HondaCivicCRX | 50 | 92 | 40.9 | 113 | 22.5 |
| HondaCivic | 99 | 92 | 40.9 | 113 | 22.5 |
| SubaruJusty | 89 | 73 | 40.4 | 103 | 22.5 |
| SubaruJusty | 89 | 66 | 39.6 | 100 | 22.5 |
| SubaruJusty4wd | 89 | 73 | 39.3 | 103 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.9 | 106 | 22.5 |
| HondaCivicCRX | 50 | 92 | 38.8 | 113 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.2 | 106 | 22.5 |
| FordEscort | 103 | 90 | 42.2 | 109 | 25 |
| HondaCivic | 99 | 92 | 40.9 | 110 | 25 |
| PontiacLeMans | 107 | 74 | 40.7 | 101 | 25 |
| IsuzuStylus | 101 | 95 | 40 | 111 | 25 |
| DodgeColt | 96 | 81 | 39.3 | 105 | 25 |
| GM/GeoStorm | 89 | 95 | 38.8 | 111 | 25 |
| HondaCivicCRX | 50 | 92 | 38.4 | 110 | 25 |
| HondaCivicWagon | 117 | 92 | 38.4 | 110 | 25 |
| HondaCivic | 99 | 92 | 38.4 | 110 | 25 |
| Subaru Loyale | 102 | 90 | 29.5 | 109 | 25 |
| VolksJettaDiesel | 104 | 52 | 46.9 | 90 | 27.5 |
| Mazda323Protege | 107 | 103 | 36.3 | 112 | 27.5 |
| FordEscortWagon | 114 | 84 | 36.1 | 103 | 27.5 |
| FordEscort | 101 | 84 | 36.1 | 103 | 27.5 |
| GM/GeoPrism | 97 | 102 | 35.4 | 111 | 27.5 |
| ToyotaCorolla | 113 | 102 | 35.3 | 111 | 27.5 |
| EagleSummit | 101 | 81 | 35.1 | 102 | 27.5 |
| NissanCentraCoupe | 98 | 90 | 35.1 | 106 | 27.5 |
| NissanCentraWagon | 88 | 90 | 35 | 106 | 27.5 |
| ToyotaCelica | 86 | 102 | 33.2 | 109 | 30 |
| ToyotaCelica | 86 | 102 | 32.9 | 109 | 30 |
| ToyotaCorolla | 92 | 130 | 32.3 | 120 | 30 |
| ChevroletCorsica | 113 | 95 | 32.2 | 106 | 30 |
| ChevroletBeretta | 106 | 95 | 32.2 | 106 | 30 |
| ToyotaCorolla | 92 | 102 | 32.2 | 109 | 30 |
| PontiacSunbirdConv | 88 | 95 | 32.2 | 106 | 30 |
| DodgeShadow | 102 | 93 | 31.5 | 105 | 30 |
| DodgeDaytona | 99 | 100 | 31.5 | 108 | 30 |
| EagleSpirit | 111 | 100 | 31.4 | 108 | 30 |
| FordTempo | 103 | 98 | 31.4 | 107 | 30 |
| ToyotaCelica | 86 | 130 | 31.2 | 120 | 30 |
| ToyotaCamry | 101 | 115 | 33.7 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 32.6 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 31.3 | 109 | 35 |
| ToyotaCamryWagon | 124 | 115 | 31.3 | 109 | 35 |
| OldsCutlassSup | 113 | 180 | 30.4 | 133 | 35 |
| OldsCutlassSup | 113 | 160 | 28.9 | 125 | 35 |
| Saab9000 | 124 | 130 | 28 | 115 | 35 |
| FordMustang | 92 | 96 | 28 | 102 | 35 |
| ToyotaCamry | 101 | 115 | 28 | 109 | 35 |
| ChryslerLebaronConv | 94 | 100 | 28 | 104 | 35 |
| DodgeDynasty | 115 | 100 | 28 | 105 | 35 |
| Volvo740 | 111 | 145 | 27.7 | 120 | 35 |
| FordThunderbird | 116 | 120 | 25.6 | 107 | 40 |
| ChevroletCaprice | 131 | 140 | 25.3 | 114 | 40 |
| LincolnContinental | 123 | 140 | 23.9 | 114 | 40 |
| ChryslerNewYorker | 121 | 150 | 23.6 | 117 | 40 |
| BuickReatta | 50 | 165 | 23.6 | 122 | 40 |
| OldsTrof/Toronado | 114 | 165 | 23.6 | 122 | 40 |
| Oldsmobile98 | 127 | 165 | 23.6 | 122 | 40 |
| PontiacBonneville | 123 | 165 | 23.6 | 122 | 40 |
| LexusLS400 | 112 | 245 | 23.5 | 148 | 40 |
| Nissan300ZX | 50 | 280 | 23.4 | 160 | 40 |
| Volvo760Wagon | 135 | 162 | 23.4 | 121 | 40 |
| Audi200QuatroWag | 132 | 162 | 23.1 | 121 | 40 |
| BuickElectraWagon | 160 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 175 | 19.5 | 121 | 45 |
| Mercedes500SL | 50 | 322 | 18.1 | 165 | 45 |
| Mercedes560SEL | 115 | 238 | 17.2 | 140 | 45 |
| JaguarXJSConvert | 50 | 263 | 17 | 147 | 45 |
| BMW750IL | 119 | 295 | 16.7 | 157 | 45 |
| Rolls-RoyceVarious | 107 | 236 | 13.2 | 130 | 55 |
In: Statistics and Probability
Analyze the data set (e.g. mean, standard deviation, scatterplot, histogram, bar chart, etc.)and discuss important findings. Suggest courses of action related to the given situation.
| Variable Names: | |||||
| 1. VOL: Cubic feet of cab space | |||||
| 2. HP: Engine horsepower | |||||
| 3. MPG: Average miles per gallon | |||||
| 4. SP: Top speed (mph) | |||||
| 5. WT: Vehicle weight (100 lb) | |||||
| MAKE / MODEL | VOL | HP | MPG | SP | WT |
| GM/GeoMetroXF1 | 89 | 49 | 65.4 | 96 | 17.5 |
| GM/GeoMetro | 92 | 55 | 56 | 97 | 20 |
| GM/GeoMetroLSI | 92 | 55 | 55.9 | 97 | 20 |
| SuzukiSwift | 92 | 70 | 49 | 105 | 20 |
| DaihatsuCharade | 92 | 53 | 46.5 | 96 | 20 |
| GM/GeoSprintTurbo | 89 | 70 | 46.2 | 105 | 20 |
| GM/GeoSprint | 92 | 55 | 45.4 | 97 | 20 |
| HondaCivicCRXHF | 50 | 62 | 59.2 | 98 | 22.5 |
| HondaCivicCRXHF | 50 | 62 | 53.3 | 98 | 22.5 |
| DaihatsuCharade | 94 | 80 | 43.4 | 107 | 22.5 |
| SubaruJusty | 89 | 73 | 41.1 | 103 | 22.5 |
| HondaCivicCRX | 50 | 92 | 40.9 | 113 | 22.5 |
| HondaCivic | 99 | 92 | 40.9 | 113 | 22.5 |
| SubaruJusty | 89 | 73 | 40.4 | 103 | 22.5 |
| SubaruJusty | 89 | 66 | 39.6 | 100 | 22.5 |
| SubaruJusty4wd | 89 | 73 | 39.3 | 103 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.9 | 106 | 22.5 |
| HondaCivicCRX | 50 | 92 | 38.8 | 113 | 22.5 |
| ToyotaTercel | 91 | 78 | 38.2 | 106 | 22.5 |
| FordEscort | 103 | 90 | 42.2 | 109 | 25 |
| HondaCivic | 99 | 92 | 40.9 | 110 | 25 |
| PontiacLeMans | 107 | 74 | 40.7 | 101 | 25 |
| IsuzuStylus | 101 | 95 | 40 | 111 | 25 |
| DodgeColt | 96 | 81 | 39.3 | 105 | 25 |
| GM/GeoStorm | 89 | 95 | 38.8 | 111 | 25 |
| HondaCivicCRX | 50 | 92 | 38.4 | 110 | 25 |
| HondaCivicWagon | 117 | 92 | 38.4 | 110 | 25 |
| HondaCivic | 99 | 92 | 38.4 | 110 | 25 |
| Subaru Loyale | 102 | 90 | 29.5 | 109 | 25 |
| VolksJettaDiesel | 104 | 52 | 46.9 | 90 | 27.5 |
| Mazda323Protege | 107 | 103 | 36.3 | 112 | 27.5 |
| FordEscortWagon | 114 | 84 | 36.1 | 103 | 27.5 |
| FordEscort | 101 | 84 | 36.1 | 103 | 27.5 |
| GM/GeoPrism | 97 | 102 | 35.4 | 111 | 27.5 |
| ToyotaCorolla | 113 | 102 | 35.3 | 111 | 27.5 |
| EagleSummit | 101 | 81 | 35.1 | 102 | 27.5 |
| NissanCentraCoupe | 98 | 90 | 35.1 | 106 | 27.5 |
| NissanCentraWagon | 88 | 90 | 35 | 106 | 27.5 |
| ToyotaCelica | 86 | 102 | 33.2 | 109 | 30 |
| ToyotaCelica | 86 | 102 | 32.9 | 109 | 30 |
| ToyotaCorolla | 92 | 130 | 32.3 | 120 | 30 |
| ChevroletCorsica | 113 | 95 | 32.2 | 106 | 30 |
| ChevroletBeretta | 106 | 95 | 32.2 | 106 | 30 |
| ToyotaCorolla | 92 | 102 | 32.2 | 109 | 30 |
| PontiacSunbirdConv | 88 | 95 | 32.2 | 106 | 30 |
| DodgeShadow | 102 | 93 | 31.5 | 105 | 30 |
| DodgeDaytona | 99 | 100 | 31.5 | 108 | 30 |
| EagleSpirit | 111 | 100 | 31.4 | 108 | 30 |
| FordTempo | 103 | 98 | 31.4 | 107 | 30 |
| ToyotaCelica | 86 | 130 | 31.2 | 120 | 30 |
| ToyotaCamry | 101 | 115 | 33.7 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 32.6 | 109 | 35 |
| ToyotaCamry | 101 | 115 | 31.3 | 109 | 35 |
| ToyotaCamryWagon | 124 | 115 | 31.3 | 109 | 35 |
| OldsCutlassSup | 113 | 180 | 30.4 | 133 | 35 |
| OldsCutlassSup | 113 | 160 | 28.9 | 125 | 35 |
| Saab9000 | 124 | 130 | 28 | 115 | 35 |
| FordMustang | 92 | 96 | 28 | 102 | 35 |
| ToyotaCamry | 101 | 115 | 28 | 109 | 35 |
| ChryslerLebaronConv | 94 | 100 | 28 | 104 | 35 |
| DodgeDynasty | 115 | 100 | 28 | 105 | 35 |
| Volvo740 | 111 | 145 | 27.7 | 120 | 35 |
| FordThunderbird | 116 | 120 | 25.6 | 107 | 40 |
| ChevroletCaprice | 131 | 140 | 25.3 | 114 | 40 |
| LincolnContinental | 123 | 140 | 23.9 | 114 | 40 |
| ChryslerNewYorker | 121 | 150 | 23.6 | 117 | 40 |
| BuickReatta | 50 | 165 | 23.6 | 122 | 40 |
| OldsTrof/Toronado | 114 | 165 | 23.6 | 122 | 40 |
| Oldsmobile98 | 127 | 165 | 23.6 | 122 | 40 |
| PontiacBonneville | 123 | 165 | 23.6 | 122 | 40 |
| LexusLS400 | 112 | 245 | 23.5 | 148 | 40 |
| Nissan300ZX | 50 | 280 | 23.4 | 160 | 40 |
| Volvo760Wagon | 135 | 162 | 23.4 | 121 | 40 |
| Audi200QuatroWag | 132 | 162 | 23.1 | 121 | 40 |
| BuickElectraWagon | 160 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 140 | 22.9 | 110 | 45 |
| CadillacBrougham | 129 | 175 | 19.5 | 121 | 45 |
| Mercedes500SL | 50 | 322 | 18.1 | 165 | 45 |
| Mercedes560SEL | 115 | 238 | 17.2 | 140 | 45 |
| JaguarXJSConvert | 50 | 263 | 17 | 147 | 45 |
| BMW750IL | 119 | 295 | 16.7 | 157 | 45 |
| Rolls-RoyceVarious | 107 | 236 | 13.2 | 130 | 55 |
In: Statistics and Probability
BACKGROUND
Starbucks launched its prepaid (debit) Starbucks Card in November 2001. The card, which holds between $5 and $500 can be used at any Starbucks location. Suppose Starbucks management wants to study the reasons why some people purchase debit cards with higher prepaid amounts than do other people. Suppose a study of 25 randomly selected prepaid purchasers is taken. Respondents are asked the amount of the prepaid card, the customer’s age, the number of days per month the customer makes a purchase at Starbucks, the number of cups of coffee that customer drinks per day, and the customer’s income.
DATA
| Amount of Prepaid Card ($) | Age | Days per Month at Starbucks | Cups of Coffee per Day | Income ($1,000) |
| 5 | 25 | 4 | 1 | 20 |
| 25 | 30 | 12 | 5 | 35 |
| 10 | 27 | 10 | 4 | 30 |
| 5 | 42 | 8 | 5 | 30 |
| 15 | 29 | 11 | 8 | 25 |
| 50 | 25 | 12 | 5 | 80 |
| 10 | 50 | 8 | 3 | 30 |
| 15 | 45 | 6 | 5 | 35 |
| 15 | 32 | 16 | 7 | 25 |
| 15 | 23 | 10 | 1 | 20 |
| 20 | 40 | 18 | 5 | 40 |
| 35 | 35 | 12 | 3 | 40 |
| 40 | 28 | 10 | 3 | 50 |
| 15 | 33 | 12 | 2 | 30 |
| 200 | 40 | 15 | 5 | 80 |
| 15 | 37 | 3 | 1 | 30 |
| 40 | 51 | 10 | 8 | 35 |
| 5 | 20 | 8 | 4 | 25 |
| 30 | 26 | 15 | 5 | 35 |
| 100 | 38 | 19 | 10 | 45 |
| 30 | 27 | 12 | 3 | 35 |
| 25 | 29 | 14 | 6 | 35 |
| 25 | 34 | 10 | 4 | 45 |
| 50 | 30 | 6 | 3 | 55 |
| 15 | 22 | 8 | 5 | 30 |
QUESTIONS
(Please put the answers into a "report" style if possible)
1. Using these data, develop a multiple regression model to study how well the amount of the prepaid card can be predicted by the other variables and which variables seem to be more promising in doing the prediction.
2. Rerun your model based on the significant independent variables only and explain the results.
3. What sales implications might be evident from this analysis?
In: Statistics and Probability
A company is considering an investment that will cost $743,000 and have a useful life of 8 years. The cash flows from the project are expected to be $410,000 per year in the first two years then $142,000 per year for the last 6 years. If the appropriate discount rate is 12.7 percent per annum, what is the NPV of this investment (to the nearest dollar)?
Select one:
a. $394283
b. $1880283
c. $384492
d. $516026
In: Finance
A company is considering an investment that will cost $744,000 and have a useful life of 8 years. The cash flows from the project are expected to be $512,000 per year in the first two years then $108,000 per year for the last 6 years. If the appropriate discount rate is 15.0 percent per annum, what is the NPV of this investment (to the nearest dollar)?
Select one:
a. $397417
b. $1885417
c. $415178
d. $497087
In: Accounting