Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:

To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales:

60 percent in the month of sale.

20 percent in the month following sale.

15 percent in the second month following sale.

5 percent uncollectible.

The company gives a 1 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $29,000, of which $8,000 represents uncollected March sales and $21,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.

Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:

To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales:

• 60 percent in the month of sale.
• 20 percent in the month following sale.
• 15 percent in the second month following sale.
• 5 percent uncollectible.

The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $22,000, of which $7,000 represents uncollected March sales and $15,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.

Technology advancements have become a driving force for national and economic growth to transact across the global. Service providers have become so alarmed with the rate at which customers are able to download a web page. In one of the optic fiber survey, it was noted that the most customers tend to experience a mean download time of a resource web page is normally distributed to 8.5 seconds. After analysis by the census office, the data obtained had a standard deviation of 4.5 seconds.

1. What probability of page downloads take less than 5 seconds?
2. What is the probability that the download time will be between 5 and 11 seconds?
3. How many seconds elapse before 25% of downloads are complete?
4. If 10 downloads are randomly selected, how many downloads are expected to take more than 12 seconds
5. What is the probability that the download time will be between 10 and 12 seconds

Technology advancements have become a driving force for national and economic growth to transact across the global. Service providers have become so alarmed with the rate at which customers are able to download a web page. In one of the optic fiber survey, it was noted that the most customers tend to experience a mean download time of a resource web page is normally distributed to 8.5 seconds. After analysis by the census office, the data obtained had a standard deviation of 4.5 seconds.

1. What probability of page downloads take less than 5 seconds?
2. What is the probability that the download time will be between 5 and 11 seconds?
3. How many seconds elapse before 25% of downloads are complete?
4. If 10 downloads are randomly selected, how many downloads are expected to take more than 12 seconds
5. What is the probability that the download time will be between 10 and 12 seconds

A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied. Day Income Occupied Day Income Occupied 1 $ 1,452 20 14 $ 1,425 31 2 1,361 20 15 1,445 51 3 1,426 21 16 1,439 62 4 1,470 80 17 1,348 45 5 1,456 70 18 1,450 41 6 1,430 29 19 1,431 62 7 1,354 70 20 1,446 47 8 1,442 21 21 1,485 43 9 1,394 15 22 1,405 38 10 1,459 36 23 1,461 36 11 1,399 41 24 1,490 30 12 1,458 35 25 1,426 65 13 1,537 51 PictureClick here for the Excel Data File Use a statistical software package to answer the following questions.

b. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.) Pearson correlation State the decision rule for 0.01 significance level: H0: ρ ≤ 0; H1: ρ > 0 (Round your answer to 3 decimal places.) Reject H0 if t > Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic

c. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level. H0, There is a between revenue and occupied rooms.

d. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.) % of the variation in revenue is explained by variation in occupied rooms.

A popular U.S. automobile manufacturer has​ 10,000 dealerships located throughout the country. The automobile manufacturer has multiple brands within its​portfolio: a value brand that caters to younger​ clientele, a moderate brand that caters to middle class customers and​ finally, a premium brand which is marketed to wealthy clientele. The​ company's leadership, located at corporate​ headquarters, is very interested in the relationship between the median salary of potential customers and the​ company's revenue.​ Specifically, the company is concerned that if potential​ customers' salaries continue to not increase in the​ future, the​company's revenue will remain​ stagnant, which will in turn steer away potential investors and shareholders. The​ company's research department recently collected data for analysis in order to support​ leadership's upcoming discussion with shareholders and investors about the​ company's future revenue forecast. Sales figures from a random sample of 1000 dealerships were collected. The research division also conducted statistical​ analysis, using data provided by the Bureau of Labor and​ Statistics, to calculate the median salary of people living in the vicinity of these​ 1,000 dealerships. The Dealership​ Number, State, Median​ Salary, Annual​Sales, Number of Vehicles​ Sold, Square Footage and Quality Award Winner data were collected for these 1000 dealerships.

We have an interest in finding out if the different dealerships sell different kinds of cars. Although our data set does not contain a lot of​ detail, one way to find such differences is by looking at the combination of Annual Sales and Number of Vehicles Sold for each dealership.

Find the median values of Annual Sales and Number of Vehicles Sold.

The median value for Annual Sales is ​$__ ,and the median value for Number of Vehicles Sold is ​$__.

Create two new indicator variables that indicate if a dealership has above median Annual Sales and above median Number of Vehicles Sold​ (so called​median-splits). In order to obtain the indicator variables with​ StatCrunch, use the following menu and option​ selections, where the expressions have the format​"Annual

​Sales">​xxx,

xxx being the calculated median value​ (same for Number of Vehicles​ Sold).

Data​ > Compute​ > Expression​ > Build Expression​ > Compute

Now create the contingency table of these two new indicator variables.

What values do you find on the diagonal of this contingency table​ (upper-left and​ lower-right cells)?

The value in the​ upper-left cell is__, and the value in the​ lower-right cell is __ .

What values do you find on the​ anti-diagonal of this contingency table​ (upper-right and​ lower-left cells)?

The value in the​ upper-right cell is __ , and the value in the​ lower-left cell is __ .

Based on this contingency​ table, what is the conditional probability of a dealership with above median Number of Vehicles Sold having above median Annual​Sales?

The conditional probability is__ .

Based on this contingency​ table, what is the conditional probability of a dealership with above median Number of Vehicles Sold having below median Annual​Sales?

The conditional probability is__.

How would you describe the events dealership having above median Number of Vehicles Sold and dealership having below median Annual​ Sales?

Independent

or

Disjoint

Make a scatterplot of Annual Sales against Number of Vehicles Sold. In order to obtain the scatterplot with​ StatCrunch, use the following menu and option selections.

Graph​ > Scatter Plot​ > Select X​ & Y variable​ > Compute

Describe the relationship between Annual Sales against Number of Vehicles Sold.

Consider the piston ring data in the following table. Assume that specifications are 74.00 ± 0.035 mm. Estimate the process capability (C_p and C_pk) using:

1. Sample Range Measurements
2. Sample Std Dev. Measurements

Convert the C_p found above into approximate dpm.

Inside Diameter Measurements (mm) for Automobile Piston Rings

Equity Multiplier

Accounts Receivable Days

ROE (in decimal form, not %)

EPS

P/E

Fixed Asset Turnover:

Operating Margin (in decimal form, not %)

Inventory Turnover

Interest Coverage Ratio (TIE)

Quick Ratio

A magazine provided overall customer satisfaction scores for AT&T, Sprint, T-Mobile, and Verizon cell-phone services in major metropolitan areas throughout the United States. The rating for each service reflects the overall customer satisfaction considering a variety of factors such as cost, connectivity problems, dropped calls, static interference, and customer support. A satisfaction scale from 0 to 100 was used with 0 indicating completely dissatisfied and 100 indicating completely satisfied. The ratings for the four cell-phone services in 20 metropolitan areas are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

a. Consider T-Mobile first. What is the median rating (to 1 decimal)?

b. Develop a five-number summary for the T-Mobile service.

c. Are there outliers for T-Mobile?

_________Yes, the data contain outliersNo, the data do not contain outliers

d. Repeat parts (b) and (c) for the other three cell-phone services.

Are there outliers for AT&T?

_________Yes, the data contain outliersNo, the data do not contain outliers

Are there outliers for Sprint?

_________Yes, the data contain outliersNo, the data do not contain outliers

Are there outliers for Verizon?

_________Yes, the data contain outliersNo, the data do not contain outliers

e. Which of the following box plots accurately displays the data set?

_________Box plot #1Box plot #2Box plot #3Box plot #4

Which service did the magazine recommend as being best in terms of overall customer satisfaction?

_________AT&TSprintT-MobileVerizon

GASB suggests that there are 4 major differences between governments and businesses:

1. Organizational Purpose

2. Revenue Process and Sources

3. Longevity

4. Relationship with Stakeholders

5. Importance of Budget

Explain the difference between governments and for-profit businesses in each of these 5 areas.

4. A manager for an insurance company believes that customers have the following preferences for life insurance products: 40% prefer Whole Life, 30% prefer Universal Life, and 30% prefer Life Annuities. The results of a survey of 320 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?

Product   Number
Whole         24
Universal   96
Annuities   200

Step 1 of 10: State the null and alternative hypothesis.

H0: Preferences for life insurance products are as per the manager's belief.

Ha: Preferences for life insurance products are not as per the manager's belief.

or

H0: Preferences for life insurance products are not as per the manager's belief.

Ha: Preferences for life insurance products are as per the manager's belief.

Step 2 of 10: What does the null hypothesis indicate about the proportions of customers who prefer each insurance product?

a. The proportions of customers who prefer each insurance product are all thought to be equal.
b. The proportions of customers who prefer each insurance product are different for each category (and equal to the previously accepted values).

Step 3 of 10: State the null and alternative hypothesis in terms of the expected proportions for each category.

P whole=

P universal=

P annuities =

Step 4 of 10: Find the expected value for the number of customers who prefer Whole Life. Round your answer to two decimal places.

E( whole) =

Step 5 of 10: Find the expected value for the number of customers who prefer Life Annuities. Round your answer to two decimal places.

E (annuities)

Step 6 of 10:Find the value of the test statistic. Round your answer to three decimal places.

Step 7 of 10: Find the degrees of freedom associated with the test statistic for this problem.

Step 8 of 10:Find the critical value of the test at the 0.05 level of significance. Round your answer to three decimal places.

Step 9 of 10:Make the decision to reject or fail to reject the null hypothesis at the 0.05 level of significance.

Step 10 of 10:State the conclusion of the hypothesis test at the 0.05level of significance.

a. There is not enough evidence to refute the manager's claim about the proportions of customers who prefer each product.
b. There is enough evidence to refute the manager's claim about the proportions of customers who prefer each product.