A. Fair, Inc. is considering an investment in one of two common stocks. Given the information
that follows, which investment is better, based on risk (as measured by the standard deviation)
and return?

F.J. Brewerton Retailers, Inc., must decide whether to build a small or a large facility at a new location in Omaha. Demand at the location will either be low or high, with probabilities 0.4 and 0.6, respectively. If Brewerton builds a small facility and demand proves to be high, he then has the option of expanding the facility. If a small facility is built and demand proves to be high, and then the reatiler expands the facitliy, the payoff is $270,000. If a small facility is built and demand proves to be high, but Brewerton then decides not to expand the facility, the payoff is $223,000.

If a small facility is built and demand proves to be low, then there is not option to expand and the payoff is $200,000. If a large facility is built and demand proves to be low, Brewerton then has the option of stimulating demand through local advertising. If he does not exercise this option, then the payoff is $40,000. If he does exercise the advertising option, then the response to advertising will either be modest or sizable, with probabilities of 0.3 and 0.7 respectively. If the response is modest, the payoff is $20,000. If it is sizable, the payoff is $220,000. Finally, if a large facility is built and demand proves to be high, then no advertising is needed and the payoff is $800,000.

a.) What should Brewerton do to maximize his expected payoff?

b.) What is the value of this expected payoff?

Suppose that for all Miami University STA 261 students, the average distance that they live from campus is 12.2 miles with a standard deviation of 8.0 miles. A random sample of 49 Miami university STA 261 students was taken, and the sample average distance that they live from campus was calculated.

a. what is the shape of the population distribution? Briefly explain your response

b. What is the probability that a randomly selected MU STA 261 student lives at least 10 miles from campus?

c. What is the probability that the sample average will have a value of at least 10 miles?

74. 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. From 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 inconsistent with the claim?

In other words, is there convincing evidence (at the 5% significance level) that the deluxe tires actually average less than 50,000 miles before needing to be replaced?

The police that patrol a heavily traveled highway claim that the average driver exceeds the 65 miles per hour speed limit by more than 10 miles per hour. Seventy-two randomly selected cars were clocked by airplane radar. The average speed of the 72 cars was 77.40 miles per hour, and the standard deviation of these speeds was 5.90 miles per hour. Test a 5% level of significance whether the average speed by all drivers is more than 75 mph. Make sure to show all of your work and include every step.

The answer and solutions are not given. Solve everything from a through f.  

An automobile takes 9.89 seconds to accelerate from rest to 60 miles per hour. a) Find the automobile's acceleration (assuming that is constant) and b) the distance traveled in reaching 60.0 miles per hours. Assuming that this acceleration remains constant over 0.25 miles, predict c) the time it takes to cover this distance and d) the car's velocity at the end. e) convert this velocity to miles per hour. f) sketch graphs of position, velocity, and acceleration versus time for this automobile.   

Imagine you are an automotive engineer for Toyoto Motor Corporation. You are test driving a new cruise control system, and you are driving around the test track at 55 miles per hour. You set the cruise control to 57miles per hour. The cruise controller takes over and speeds up to 59 miles per hour, then slows to 56 miles per hour, and finally settles at 58 miles per hour. Given this result, what adjustments would you make to the car's cruise control system to improve overall performance?  

Transit Railroads is interested in the relationship between travel distance and ticket class purchased. A random sample of 200 passengers is taken. The table below shows the results. The railroad wants to know if a passenger’s choice in ticket class is independent of the distance they must travel.

Three different companies each purchased trucks on January 1, 2018, for $76,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 81,000 miles in 2018, 55,000 miles in 2019, 46,000 miles in 2020, and 71,000 miles in 2021. Each of the three companies earned $65,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)