1. A sociologist was hired by a large city hospital to investigate the relationship between the number of unauthorized days that employees are absent per year and the distance (miles) between home and work for the employees. A sample of 10 employees was chosen, and the following data were collected. Distance to Work Days Absent 1 8 3 5 4 8 6 7 8 6 10 3 24 5 14 2 14 4 18 2 a. Which variable is the dependent/response variable? b. Which is the independent/explanatory variable? Enter the data into your Excel file c. Develop a scatterplot for these data. Interpret the scatterplot. Run a regression analysis of the data on Excel using Data/Data Analysis d. What is the correlation between distance to work and days absent? What does it say about the strength of the relationship? e. What is the coefficient of determination? How would you interpret it? f. Write the hypotheses for the test of the slope. g. What do you conclude about the slope of the line? What are you basing your conclusion on? h. What is the regression formula that represents the relationship between Distance and Days Absent? i. Use your formula to predict the number of days absent for an employee who lives 15 miles from work. j. Use your formula to predict the number of days absent for an employee who lives 11 miles from work

Suppose you want to buy a new car and trying to choose between two models:

Model A: costs $17,000 and its gas mileage is 20 miles per gallon and its insurance is $200 per year.

Model B: costs $25,000 and its gas mileage is 35 miles per gallon and its insurance is $400 per year.

If you drive approximately 40,000 miles per year and the gas costs $3 per gallon:

Find a formula for the total cost of owning Model A where the number of years is the independent variable.

Find a formula for the total cost of owning Model B where the number of years is the independent variable.

Find the total cost for each model for the first five years.

If you plan to keep the car for four years, which model is more economical? How about if you plan to keep it for six years?

Find the number of years in which the total cost to keep the two cars will be the same.

Identify the number of months where neither car holds a cost of ownership advantage.

What effect would the cost of gas doubling have on cost of ownership? Graph or show hand calculations.

If you can sell neither car for 40% of its value at any time, how does the analysis change? Graph or show hand calculations.

Depreciation for Partial Periods

Chambers Delivery Company purchased a new delivery truck for $46,200 on April 1, 2016. The truck is expected to have a service life of 10 years or 130,800 miles and a residual value of $4,680. The truck was driven 9,700 miles in 2016 and 13,400 miles in 2017. Chambers computes depreciation to the nearest whole month.

Required:

Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places. Round your final answers to the nearest dollar.
Straight-line method

Sum-of-the-years'-digits method

Double-declining-balance method

Activity method

For each method, what is the book value of the machine at the end of 2016? At the end of 2017?
(Round your answers to the nearest dollar.)
Straight-line method

Sum-of-the-years'-digits method

Double-declining-balance method

Activity method

The book value of the asset in the early years of the asset's service will be(about the same, higher, or lower) under an accelerated method as compared to the straight-line method. The (activity, double declining,sum of , straight) method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

For the following scenarios calculate the appropriate test statistic and make a decision based on the provided decision rule. Be sure to explain what your decision means in the context of the problem.

a. The owner of a heating and air company would like to know whether there is a difference in the mean number of service calls made per day by two employees. To test this he conducts a hypothesis test at the .05 significance level with the following hypotheses:

H0: µA = µB

H1: µA ≠ µB

A random sample of 45 days for employee A shows he made an average of 19.3 calls per day. For a sample of 35 days, employee B made an average of 17.2 calls per day. Assume the population standard deviation for employee A is 2.3 calls and for employee B is 3.0 calls.

i. Test Statistic:

ii. What is your conclusion if the critical values for a two tail test are -1.96 and 1.96?

b. The manufacturer of a tire claims that the mean mileage the tire can be driven before the tread wears out is 65,000 miles. Assume the mileage wear follows the normal distribution and the standard deviation of the distribution is 5,400 miles. A truck company buys 50 tires and finds that the mean mileage for its trucks is 63,000 miles. Conduct a hypothesis test to determine if the company should believe the manufacturer’s claim at a .05 significance level

i. Test Statistic:

ii. What is your conclusion if the critical value for a left tail test is -1.645

Payback Period and NPV of a Cost Reduction Proposal—Differential Analysis
Katy Zimmerman decided to purchase a new automobile. Being concerned about environmental issues, she is leaning toward the hybrid rather than the completely gasoline four-cylinder model. Nevertheless, as a new business school graduate, she wants to determine if there is an economic justification for purchasing the hybrid, which costs $1,200 more than the regular VUE. She has determined that city/highway combined gas mileage of the Green VUE and regular VUE models are 27 and 23 miles per gallon respectively. Mary anticipates she will travel an average of 12,000 miles per year for the next several years. (Round your answers to two decimal places.)

Determine the payback period of the incremental investment if gasoline costs $3.50 per gallon.

Answer (in years)

Assuming that Mary plans to keep the car five years and does not believe there will be a trade-in premium associated withthe hybrid model, determine the net present value of the incremental investment at an eight percent time value of money. (Use a negative sign with your answer.)

Answer (in dollars)

Determine the cost of gasoline required for a payback period of three years.

Answers (4 in gallon)

At $3.50 per gallon, determine the VUE Green combined gas mileage required for a payback period of three years.

Answer (miles per gallon)

6.45 Fuel efficiency in metric units. In the previous
exercise, you found an estimate with a margin of error
for the average miles per gallon. Convert your estimate
and margin of error to the metric units kilometers per
liter (kpl). To change mpg to kpl, use the fact that
1 mile = 1.609 kilometers and 1 gallon = 3.785 liters.

6.44 Fuel efficiency. Computers in some vehicles
calculate various quantities related to performance. One
of these is the fuel efficiency, or gas mileage, usually
expressed as miles per gallon (mpg). For one vehicle
equipped in this way, the car was set to 60 miles per
hour by cruise control, and the mpg were recorded
at random times.13 Here are the mpg values from the
experiment:
37.2 21.0 17.4 24.9 27.0 36.9 38.8 35.3 32.3 23.9
19.0 26.1 25.8 41.4 34.4 32.5 25.3 26.5 28.2 22.1
Suppose that the standard deviation of the population of
mpg readings of this vehicle is known to be s 5 6.5 mpg.
(a) What is sx, the standard deviation of x?
(b) Based on a 95% confidence level, what is the margin
of error for the mean estimate?
(c) Given the margin of error computed in part (b), give a
95% confidence interval for m, the mean highway mpg for
this vehicle. The vehicle sticker information for the vehicle
states a highway average of 27 mpg. Are the results of this
experiment consistent with the vehicle sticker?

On October 17, 2007, the classified ads on the web site of The Seattle Times listed the following 13 used Toyota Prius automobiles for sale; the data set below shows the year, color, mileage (in miles) and asking price (in U.S. dollars) for each car:

year     color      mileage     price
2006     green        17043     25995
2007     gray         12628     24980
2005     maroon       24039     24885
2005     silver       48226     23995
2006     black        10522     22995
2004     silver       66345     21995
2007     white         5611     21995
2005     gold         24479     21595
2004     white        14618     20995
2005     silver       53699     20980
2004     silver       47649     17995
2003     white        39600     17500
2005     black       103126     16995

We wish to investigate a possible association between the mileageof each Prius and its price. You should construct a scatterplot of this data.

assume that a linear model is appropriate, regardless of your answer to the previous question.

1. Find the equation of the regression line for this data that predicts price based upon mileage:

2. Use the model to predict the asking price of a Toyota Prius with 450,000 miles, or explain why such a prediction is not appropriate:

3. Use the model to predict the asking price of a Toyota Prius with 45,000 miles, or explain why such a prediction is not appropriate:

4. Compute the residual for the green Prius:

Depreciation for Partial Periods

Bar Delivery Company purchased a new delivery truck for $52,200 on April 1, 2016. The truck is expected to have a service life of 10 years or 144,000 miles and a residual value of $1,920. The truck was driven 9,200 miles in 2016 and 11,300 miles in 2017. Bar computes depreciation to the nearest whole month.

Required:

Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar.
Straight-line method

Sum-of-the-years'-digits method

Double-declining-balance method

Activity method

For each method, what is the book value of the machine at the end of 2016? At the end of 2017?
(Round your answers to the nearest dollar.)
Straight-line method

Sum-of-the-years'-digits method

Double-declining-balance method

Activity method

The book value of the asset in the early years of the asset's service will be (about the same/higher/lower) under an accelerated method as compared to the straight-line method. The (activity/double-declining balance/straight-line/sum-of-the-years-digits) method is appropriate when the service life of the asset is affected primarily by the amount the asset is used.

A particular brand of tires claims that its deluxe tire averages at least 50,000 miles before it needs to be replaced. From past studies of this tire, the standard deviation is known to be 8,000. A survey of owners of that tire design is conducted. Of the 28 tires surveyed, the mean lifespan was 46,500 miles with a standard deviation of 9,800 miles. Using alpha = 0.05, is the data highly consistent with the claim? Note: If you are using a Student's t-distribution for the problem, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.) A.) State the distribution to use for the test. (Round your answers to two decimal places.) B.) What is the test statistic? (If using the z distribution round your answers to two decimal places, and if using the t distribution round your answers to three decimal places.) C.) What is the p-value? (Round your answer to four decimal places.) D.) Indicate the correct decision ("reject" or "do not reject" the null hypothesis), the reason for it, and write an appropriate conclusion. (i) Alpha (Enter an exact number as an integer, fraction, or decimal.) E.) Construct a 95% confidence interval for the true mean. Sketch the graph of the situation. Label the point estimate and the lower and upper bounds of the confidence interval. (Round your lower and upper bounds to the nearest whole number.)

On

JanuaryJanuary

22​,

20182018​,

SwiftySwifty

Delivery Service purchased a truck at a cost of

$ 67 comma 000$67,000.

Before placing the truck in​ service,

SwiftySwifty

spent

$ 2 comma 200$2,200

painting​ it,

$ 800$800

replacing​ tires, and

$ 4 comma 700$4,700

overhauling the engine. The truck should remain in service for five years and have a residual value of

$ 5 comma 100$5,100.

The​ truck's annual mileage is expected to be

20 comma 00020,000

miles in each of the first four years and

12 comma 80012,800

miles in the fifth

yearlong dash—92 comma 80092,800

miles in total. In deciding which depreciation method to​ use,

Jordan LipnikJordan Lipnik​,

the general​ manager, requests a depreciation schedule for each of the depreciation methods​ (straight-line, units-of-production, and​ double-declining-balance).Read the requirements

LOADING...

.

Requirement 1. Prepare a depreciation schedule for each depreciation​ method, showing asset​ cost, depreciation​ expense, accumulated​ depreciation, and asset book value.

Begin by preparing a depreciation schedule using the​ straight-line method.