Medical Bill=1+2 drink+3 smoke+4 drink*smoke+other
a) How much is the difference in medical bill between a person who both drinks and smokes and a person who doesn’t drink but smokes? (10pts)
b) Will you be able to test if this difference is statistically significant if you are given all the standard errors? Say “yes” or ‘no”, then explain. (10pts)
drive=0.3+0.2 employed+0.003 age+0.4 married
The command in STATA is: reg drive employed age married
a) Interpret the coefficient 0.2 on employed. (10pts)
b) Predict the probability of owning a vehicle for a person who is employed, 60 years of age and married. (10pts)
c) The answer you got from the previous question is actually greater than 1. Explain why that is. (10pts)
d) Will you be able to test the significance of the coefficients if you were given all the standard errors and/or p-values? Say “yes” or ‘no”, then explain. (10pts)
In: Economics
2.a. You are running a batch reactor. Each batch takes about four hours to run. You measure the purity of the batch four times in the last hour to ensure that it has stabilized. You want to monitor the results using an X-R chart. The data you have collected for the first 10 batches are given the table below. X1, X2, X3 and X4 are the four samples you pull from the batch in the last hour. Using all the data, find trial control limits for and R charts, construct the chart, and plot the data. (30 pts)
2.b. Is the process in statistical control? Identify out-of-control points. (30 pts)
|
Subgroup |
X1 |
X2 |
X3 |
X4 |
X |
R |
|
1 |
98.4 |
98.6 |
98.3 |
98.7 |
98.5 |
0.4 |
|
2 |
97.5 |
97.6 |
98.0 |
97.6 |
97.7 |
0.5 |
|
3 |
98.8 |
98.9 |
98.4 |
98.7 |
98.7 |
0.5 |
|
4 |
99.1 |
99.3 |
99.4 |
99.2 |
99.3 |
0.3 |
|
5 |
97.8 |
98.0 |
98.2 |
98.0 |
98.0 |
0.4 |
|
6 |
98.3 |
98.5 |
98.5 |
98.5 |
98.5 |
0.2 |
|
7 |
98.9 |
99.0 |
98.6 |
99.0 |
98.9 |
0.4 |
|
8 |
97.5 |
97.7 |
97.6 |
97.9 |
97.7 |
0.4 |
|
9 |
99.3 |
99.3 |
99.2 |
99.4 |
99.3 |
0.2 |
|
10 |
98.5 |
98.7 |
98.7 |
98.3 |
98.6 |
0.4 |
In: Statistics and Probability
a. Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:
| Proportion of Services Used by | |||||||||||
| Department | Direct Costs | Maintenance | Cafeteria | Machining | Assembly | ||||||
| Machining | $ | 98,000 | |||||||||
| Assembly | 74,400 | ||||||||||
| Maintenance | 46,000 | — | 0.2 | 0.6 | 0.2 | ||||||
| Cafeteria | 37,000 | 0.6 | — | 0.1 | 0.3 | ||||||
Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-2)
Required:
Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)
b. Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:
| Machining | Assembly | ||||
| Job CM-22: | Machine-hours | 230 | 60 | ||
| Labor-hours | 20 | 20 | |||
| Job CM-23: | Machine-hours | 20 | 40 | ||
| Labor-hours | 30 | 100 | |||
Required:
How much of the service department costs allocated to Machining and
Assembly in the direct method should be allocated to Job CM-22? How
much should be allocated to Job CM-23?
In: Accounting
Capital Gains = 125-100 = 25 and Dividend Yield = $2
Total return percent = (25+2)/100 = 27/100 = 27%
Capital Gain return = 25/100 = 25%
Dividend Yield = 2/100 = 2%
Dividend = 4% of 100 = $4. The capital gain = 120-100 = 20
Total return for last year = $24 = 24%
CAPM - Expected return of Stock = Rf + beta*(Rm - Rf) = 5 +1.2*(12-5) = 13.4%
We*Re + Wd*Rd*(1-T) = 0.8*12 + 0.2*7*(1-0.3) = 10.58%
125 million will be raised by issuing both debt and equity so that D/E remains 0.75.
D = 0.75E
E + 0.75E = 125
E = 71.43, D =125- 71.43 = 53.57
Initial cost of the plant will be = 125 + 71.43*0.10 + 53.57*0.04 = 125 + 9.2858 = 134.2858
Capital Gains = 125-100 = 25 and Dividend Yield = $2
Total return percent = (25+2)/100 = 27/100 = 27%
Capital Gain return = 25/100 = 25%
Dividend Yield = 2/100 = 2%
Dividend = 4% of 100 = $4. The capital gain = 120-100 = 20
Total return for last year = $24 = 24%
CAPM - Expected return of Stock = Rf + beta*(Rm - Rf) = 5 +1.2*(12-5) = 13.4%
We*Re + Wd*Rd*(1-T) = 0.8*12 + 0.2*7*(1-0.3) = 10.58%
125 million will be raised by issuing both debt and equity so that D/E remains 0.75.
D = 0.75E
E + 0.75E = 125
E = 71.43, D =125- 71.43 = 53.57
Initial cost of the plant will be = 125 + 71.43*0.10 + 53.57*0.04 = 125 + 9.2858 = 134.2858
Based on the above answers explain how companies make financial decisions
In: Finance
Case Assignment: Tesla Motors
Tesla Motors was founded with innovation in mind. Launched in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could replace gasoline-powered automobiles, Tesla’s mission is to accelerate the world’s transition to sustainable energy.
The Tesla Roadster was launched in 2008 and can travel 245 miles per charge of its lithium ion battery. There are now more than 2,400 Roadsters being driven in more than 30 countries. The Roadster was followed by the Tesla Model S in 2012. The Model S can travel 265 miles per charge and has room for seven passengers with 64 cubic feet of storage. The Model S was named Motor Trend’s 2013 Car of the Year and achieved a 5-star safety rating from the U.S. National Highway Traffic Safety Administration.
Next came the Model X, which Tesla began delivering in 2015, and the new Model 3 will begin production in mid-2017 with estimated delivery for new reservations at mid-2018 or later. Model 3 is Tesla’s most affordable model to date, starting at $35,000. It has seating for five adults and can travel 215 miles per charge.
Improvements to battery life and safety features weren’t the only upgrades Tesla had quietly been putting together. They created a roar in the automobile industry when they announced in October 2016 that, moving forward, all vehicles produced in Tesla factories would have the hardware needed for full self-driving capabilities at a safety level higher than that of a human driver. Model S and Model X vehicles with the new hardware are already in production, and the hardware will be included on the new Model 3 when it goes into production.
This hardware includes eight surround cameras providing 360-degree visibility around the car up to 250 meters of range; two updated ultrasonic sensors; forward-facing radar that can see through heavy rain, fog, dust, and even the car ahead; and a new onboard computer with more than 40 times the computing power of previous generations.
Tesla’s move was unprecedented compared to that of other car companies, but not as much for them. While Tesla will be creating cars with the hardware needed for self-driving capabilities, they do not have the software finished yet. They will update the software in the cars produced now using over-the-air software updates. This is a method that Tesla already employs to enhance performance and fix security bugs; it allows them to continually improve cars even after they are on the road and to stay ahead of automakers who do not operate under this model.
Tesla still has to complete millions of miles of real-world testing before the software can be implemented. They will run the software in the background while a professional drives the car and then compare what the computer would have done with what the person did do. The goal is for self-driving cars to be even better than humans at avoiding crashes.
Tesla must also achieve regulatory approvals of full self-driving cars before they can legally drive on public roadways. So it is still unclear when customers (even those currently purchasing models featuring the new hardware) will be able to experience fully autonomous driving.
TRUE/FALSE
1. Telsa’s new products have been successful, in part, because they have a well-defined new product strategy at their core and are driven by the corporate objectives and strategies of using electricity over gasoline when designing automobiles.
ANS:
2. A new-product strategy is a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
ANS:
3. The business analysis to determine if Tesla should equip their cars with the self-driving hardware before the software was complete would have been a simple process.
ANS:
4. Tesla employed simultaneous product development by having their hardware and their software design teams work together on the autonomous automobile initiative.
ANS:
5. Tesla will use test marketing to teach the self-driving software how to appropriately respond in different driving situations.
In: Operations Management
Say that a sample of size 49 taken from a normally distributed population, has variance = 1. The sample has a mean of 0.49. Then, a 95% confidence interval for µ will be
|
0.49 – (1.96)(1/7) < µ < 0.49 + (1.96)(1/7) |
||
|
0.49 – (2.575)(1/7) < µ < 0.49 + (1.96)(1/7) |
||
|
49 – (1.96)(1/0.7) < µ < 49 + (1.96)(1/0.7) |
||
|
49 – (2.575)(1/0.7) < µ < 49 + (2.575)(1/0.7) |
In: Statistics and Probability
A well-known brokerage firm executive claimed that 70% of
investors are currently confident of meeting their investment
goals. An XYZ Investor Optimism Survey, conducted over a two week
period, found that in a sample of 800 people, 67% of them said they
are confident of meeting their goals.
Test the claim that the proportion of people who are confident is
smaller than 70% at the 0.005 significance level.
The null and alternative hypothesis would be:
H0:p≥0.7H0:p≥0.7
H1:p<0.7H1:p<0.7
H0:μ=0.7H0:μ=0.7
H1:μ≠0.7H1:μ≠0.7
H0:μ≥0.7H0:μ≥0.7
H1:μ<0.7H1:μ<0.7
H0:p=0.7H0:p=0.7
H1:p≠0.7H1:p≠0.7
H0:p≤0.7H0:p≤0.7
H1:p>0.7H1:p>0.7
H0:μ≤0.7H0:μ≤0.7
H1:μ>0.7H1:μ>0.7
The test is:
left-tailed
two-tailed
right-tailed
The test statistic is: (to 3 decimals)
The p-value is: (to 4 decimals)
Based on this we:
Fail to reject the null hypothesis
Reject the null hypothesis
2) Test the claim that the proportion of men who own cats is significantly different than 60% at the 0.05 significance level.
The null and alternative hypothesis would be:
H0:p=0.6H0:p=0.6
H1:p<0.6H1:p<0.6
H0:μ=0.6H0:μ=0.6
H1:μ<0.6H1:μ<0.6
H0:μ=0.6H0:μ=0.6
H1:μ≠0.6H1:μ≠0.6
H0:p=0.6H0:p=0.6
H1:p≠0.6H1:p≠0.6
H0:μ=0.6H0:μ=0.6
H1:μ>0.6H1:μ>0.6
H0:p=0.6H0:p=0.6
H1:p>0.6H1:p>0.6
The test is:
two-tailed
left-tailed
right-tailed
Based on a sample of 20 people, 65% owned cats
The test statistic is: (to 2 decimals)
The positive critical value is: (to 2 decimals)
Based on this we:
Fail to reject the null hypothesis
Reject the null hypothesis
In: Statistics and Probability
Lynch was the loan officer at First Bank. Patterson applied to borrow $25,000. Bank policy required that Lynch obtain a loan guaranty from Patterson’s employer, a milk company. The manager of the milk company visited the bank and signed a guaranty on behalf of the company. The last paragraph of the guaranty stated, “This guaranty is signed by an officer having legal right to bind the company through authorization of the Board of Directors.” Should Lynch be satisfied with this guaranty? Would he be satisfied if the president of the milk company, who was also a director, affirmed that the manager had authority to sign the guaranty? Explain.
Ralph owned a retail meat market. Ralph’s agent Sam, without authority but purporting to act on Ralph’s behalf, borrowed $7,500 from Ted. Although he never received the money, Ralph repaid $700 of the alleged loan and promised to repay the rest. If Sam had no authority to make the loan, is Ralph liable? Why?
A guest arrived early one morning at the Hotel Ohio. Clemens, a person in the hotel office who appeared to be in charge, walked behind the counter, registered the guest, gave him a key, and took him to his room. The guest also checked valuables (a diamond pin and money) with Clemens, who signed a receipt on behalf of the hotel. Clemens in fact was a roomer at the hotel, not an employee, and had no authority to act on behalf of the hotel. When Clemens absconded with the valuables, the guest sued the hotel. Is the hotel liable? Why?
In: Operations Management
You have recently been promoted to General Manager at Creekview Lodge, a 50 room hotel in Gatlinburg, Tennessee. You started working at the lodge in high school in the restaurant and after college, returned to Creekview as one of the assistant managers before being promoted to hotel manager. Recently, a 200-room hotel opened not far from Creekview Lodge, and although Creekview still maintains near 100% capacity there has been quite a bit of turnover. More than ten employees left to work for the larger hotel which boasted higher pay and better health insurance.
You were informed this morning by the front desk team that the latest customer survey results show a drop in the satisfaction rating for guest room cleanliness. The current report indicates that 73% of guests responded “completely satisfied”, 12% responded “satisfied”, 10% responded “neither satisfied nor unsatisfied”, and 5% responded “unsatisfied.” The housekeeping staff lost four employees to the new hotel, so although disappointed, you aren’t surprised by this news. Still, you could not remember a time that the hotel had received such a low satisfaction rating.
As manager of Creekview Lodge, what is your next step in addressing the problem?
A)Take immediate action and require that all rooms be inspected by the hotel manager (you) or an assistant manager before being made available to customers
D)Review the standards of performance and compare to current performance
In: Operations Management
Section A – Hotel Business in Hong Kong Question A1 Answer the below short questions (a) to (i) according to A Statistical Review of Hong Kong Tourism 2018, published by Hong Kong Tourism Board in June 2019.
a) What is the total number of visitor arrival to Hong Kong upon 2018? How many visitors stayed overnight?
b) Identify Hong Kong’s top THREE source markets of visitors’ arrival to Hong Kong in 2018.
c) Which month contained the highest visitor arrivals number in 2018?
d) Briefly describe the hotel performance in 2018.
e) Which hotel category noted a highest gain percentage in room occupancy compare with 2017?
f) State TWO districts which recorded the highest room occupancy rate in Hong Kong.
g) In 2017, which department in the hotel earn the second highest revenue and what is the total percentage.
h) Refer to the hotel room occupancy rate and average achieved hotel room rate in 2018, illustrate TWO indicators or messages reflected from those figures.
i) The percentage distribution of visitor arrivals by months 2018 were quite steady along the year, the range of percentage starting from 7.2% to 10.1%. If you were the manager of a hotel, try to briefly explain the reasons behind of the distributions. (For example: What is/are the factor(s) may affect the percentage of arrival on Dec 2018.)
In: Operations Management