A small local government has decided to borrow money to improve infrastructure by floating bonds or levying special assessments on the local community for using the transportation facilities created due to increasing number of city dwellers moving into the town. They work in the city and need to commute to work.

Required: Discuss the implications for the local government’s credit rating and debt limits.

Consider a remote town in which two restaurants, All-You-Can-Eat Cafe? and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning.

If neither restaurant cleans, each will earn $13,000; alternatively, if they both hire workers to clean, each will earn only $10,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $18,000, and the other restaurant will make only $6,000.

If All-You-Can-Eat Cafe? and GoodGrub Diner decide to collude, the outcome of this game is as follows: All-You-Can-Eat Cafe? and GoodGrub Diner .

If both restaurants decide to cheat and behave noncooperatively, the outcome reflecting the unique Nash equilibrium of this game is as follows: All-You-Can-Eat Cafe? , and GoodGrub Diner .

Please show excel functions or equations to arrive at the answer

Data

On January 1, Town Spa Pizza purchased a delivery truck for $36,000. The truck has an estimated useful life of 10 years or 140,000 miles and an estimated residual value of $8,000. Town Spa’s fiscal year is the calendar year. Calculate the amounts requested below.

1)Depreciation Expense for the year, using the production method. Assume 22,000 miles were driven this year:

2)The total accumulated depreciation after the truck has been used for 5 years, using the straight-line method.

3) Depreciation Expense for year 3 of use, using the double-declining balance method.

4)Assume the truck was purchased on September 20. The depreciation expense for calendar year 2 of use, using the double-declining balance method, would be:

1. A certain town has 9,000 families.Population average mileage driven per family is 15,000 miles per year and the population SD is 2,000 miles per year. Fifteen percent of these families have no cars at all. As part of an opinion survey, a simple random sample of 900 families (from this town) is chosen. What is the chance that sample average mileage driven per family is between 14,950 and 15,100 miles per year? Use the normal approximation method with continuity correction.

2. Somebody picks one ticket at random from a normal population (sample size is equal to 1). The ticket shows a “2”, i.e. the sample average is “2”. Assuming that the SD of the box is 3, determine the 95% confidence interval for the average of the box. (Remark: You should be able to construct a z or t confidence interval.)

3. Determine a 99% confidence interval for the population average of a normal distribution, given a random sample of size 12 with sample average = 2 and sample SD = 3.

This problem has 3 parts.

The power company wants to deliver electrical service of 110 volts plus or minus 5 volts (105 to 115 volts), at 60 hertz frequency across a 10 kilometer transmission line to a small town. The transmission line voltage is 4,000 volts. There is a transformer available with a primary coil of 15,000 turns and secondary coils of 82 , 132, 164 and 187 turns.

part a - Which, if any, of the secondary coils can be used to deliver the power within the 105 to 115 volt range, include your calculations

part b - If a transformer is used that delivers an exact 110 volts, and the town requires a peak (maximum) of 800 kilowatts of power, how much current will flow through the 10 kilometer transmission line during the peak.

part c - Is a transformer has a secondary coil of 220 turns, how many turns are needed on the primary coil to get the 110 volts with an error of less than 1 percent?

(3) A family owns a restaurant that has two locations: one in the town of Rabbit Hash, Kentucky and the other in the town of Deer Lick, Kentucky. The owners of the restaurants want to know if there is a difference in the tenure of their employees (how long an employee works there from hiring to quitting / firing) between the two locations. They collect the following data on the tenure of six recent employees. The data is the number of years the employee worked at that location.

• (a) Make a Q-Q plot for the Rabit Hash location.
• (b) Estimate a 95% confidence interval for the difference in the median tenure between the two locations.
• (c) Using the Wilcoxon Rank Sum Test, determine if there is a difference in the tenure between the two locations. Use a fixed type I error rate of 0.10.
• (d) What is the level of significance of the test that you conducted in part (c).

The National Institute of Mental Health published an article that in any one year-period, approximately 9.5 % of American adults suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, seven of them suffered from depression or a depressive illness. Conduct a hypothesis test to determine if the true proportion of people in that town suffering from depression or a depressive illness is lower than the percent in the general adult American population at a level of significance, ?=0.05.

a. Set up the appropriate null and alternative hypotheses.

b. Sketch the rejection region indicating the critical value and the appropriate shaded area.

c. Compute the test statistic and find the p-value.

d. State your conclusion to the hypothesis test using both the critical value and p-value approach.(Be sure to explain the reasoning for your conclusion and state the meaning of your conclusion in terms of the hypotheses and the context of the application of the problem).

(i). Critical value approach

(ii). P-value approach

Homework Question #1:

The Following Table shows total annual sales for 10 high-end supermarket stores and the median age of residents of each town where these stores are located. Supermarket executives believe that their store products appeal to a younger generation. (obtain all graphs and calculations from minitab, but provide all manual calculations)

1. Obtain a scatterplot and examine/describe the general relationship between sales and median age of the town residents
2. Do you think the linear model is appropriate? Explain
3. The marketing manager fit the regression line. What is the equation of that line? Is the regression significant? What is the R-Square value?
4. From a “Regression Analysis” report obtained from minitab, do you have any reservations about the prediction you found in (d)? Explain