Q8. One store notes that the probability of some type of error in a telephone order is 0.2. A supervisor randomly selects telephone orders and carefully inspects each one.

1. (2pts) What is the probability that the third telephone order selected will be the first to contain an error?

2. (3pts) What is the probability that the supervisor will inspect between two and six (inclusive) telephone orders before finding an error?

3. (3pts) What is the probability that the inspector will examine at least seven orders before finding an error?

4. (4pts) Suppose the first four telephone orders contain no errors, what is the probability that the first error will be on the eighth order or later?

Comparison of returns. WG Investors is looking at three different investment opportunities. Investment one is a​ five-year investment with a cost of ​$410 and a promised payout of ​$820 at maturity. Investment two is a​ seven-year investment with a cost of ​$410 and a promised payout of ​$1 comma 025. Investment three is a​ ten-year investment with a cost of ​$410 and a promised payout of ​$1 comma 845. WG Investors can take on only one of the three investments. Assuming that all three investment opportunities have the same level of​ risk, calculate the effective annual return for each​ investment, and select the best investment choice.

he file Utility contains the electricity costs, in dollars, during July of a recent year for a random sample of 50 one-bedroom apartments in a large city: SELF TEST 96 171 202 157 185 90 141 149 206 95 163 150 108 119 183 178 147 116 172 175 123 154 130 151 114 102 153 111 148 128 144 143 187 135 191 197 127 82 213 130 165 168 109 167 166 139 149 137 129 158 Decide whether the data appear to be approximately normally distributed by a. comparing data characteristics to theoretical properties. b. constructing a normal probability plot.

Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the​ moment, the firm has three​ alternatives: stay where it is but enlarge the​ facility; locate along the main street in nearby

Newbury​;

or locate in a new shopping mall in

Hyde Park.

The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as​ shown:

​a) Based on the given​ information, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

​, with a total weighted score of

54.5054.50.

​(Enter your response rounded to two decimal​ places.)

​b) A new subway station is scheduled to open across the street from the present location in about a​ month, so its third factor score should be raised to

40.

​Then, the best location for Marilyn Helm Retailers is to open the new retail outlet in

Hyde Park

Hyde Park

Newbury

Present Location

​, with a total weighted score of

nothing.

​(Enter your response rounded to two decimal​ places.)

2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following:

a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round all other intermediate calculations to nearest whole dollar.)

Net present value ?:____________

b. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)?

the international rate of return is between _______and _______

c. Reset the discount rate to 13%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive present value?

min. salvage value required to generate a postive present value_______________-

1. Find P₃₃ , min-value, Q₁ , median, Q₃ , and maximum of the following set of numbers:

36, 39, 39, 41, 43, 44, 44, 47, 50, 53, 54, 55, 56, 56, 57, 58, 59, 61, 61, 65, 69, 69, 70, 77

Kinston Industries has come up with a new mountain bike prototype and is ready to go ahead with pilot production and test marketing. The pilot production and test marketing phase will last for one year and cost $500,000. Your management team believes that there is a 50% chance that the test marketing will be successful and that there will be sufficient demand for the new mountain bike. If the test-marketing phase is successful, then Kinston Industries will invest $3 million in year one to build a plant that will generate expected annual after tax cash flows of $400,000 in perpetuity beginning in year two. If the test marketing is not successful, Kinston can still go ahead and build the new plant, but the expected annual after tax cash flows would be only $200,000 in perpetuity beginning in year two. Kinston has the option to stop the project at any time and sell the prototype mountain bike to an overseas competitor for $300,000. Kinston's cost of capital is 10%.

A) Assuming that Kinston has the ability to sell the prototype in year one for $300,000

The NPV of the Kinston Industries Mountain Bike Project is _________$. (round to full dollar)

B) Assuming that Kinston does not have the ability to sell the prototype in year one for $300,000,

the NPV of the Kinston Industries Mountain Bike Project is __________$. (round to full dollar)

C) Assuming that Kinston has the ability to ignore the pilot production and test marketing and to go ahead and build their manufacturing plant immediately.

Suppose that the probability of high or low demand is still 50%, then the NPV of the Kinston Industries Mountain Bike Project is ____________$. (round to full dollar)

D) Assuming that Kinston has the ability to ignore the pilot production and test marketing and to go ahead and build their manufacturing plant immediately.

Suppose that the probability of high or low demand is still 50%. What is the value of the option to do pilot production and test marketing? The value is _______$. (round to full dollar)

An engineer is going to redesign an ejection seat for an airplane. The seat was designed for pilots weighing between 130 lb and 191 lb. The new population of pilots has normally distributed weights with a mean of 140 lb and a standard deviation of 26.2 lb.

a. If a pilot is randomly​ selected, find the probability that his weight is between 130 lb and 191 lb. The probability is approximately nothing. ​(Round to four decimal places as​ needed.)

b. if 40 different pilots are randomly selected, find the probability that their mean weight is between 130 lb and 191 lb.

.2. The price of a stock is $40. The price of a one-year European put option on the stock with a strike price of $30 is quoted as $7 and the price of a one-year European call option on the stock with a strike price of $50 is quoted as $5. Suppose that an investor buys 100 shares, shorts 100 call options, and buys 100 put options.

Draw a diagram illustrating how the investor’s profit or loss varies with the stock price over the next year. How does your answer change if the investor buys 100 shares, shorts 200 call options, and buys 200 put options?

Two computers have 7-stage fetch-execute cycles where branches are determined in stage 4. One computer is not pipelined, and the other is pipelined. Assuming that tp = 1, answer the following questions when running a program with 50,000 instructions where 1,000 of the instructions are conditional branches and each branch, if taken, skips over 10 instructions.a.How much faster is the pipelined machine over the non-pipelined machine assuming that no branches are taken.b.How much faster is the pipelined machine over the non-pipelined machine assuming that all branches are taken.c.Bonus question: How many branches would the program have to have assuming every branch is taken (and every branch skips over 10 instructions) for the non-pipelined machine to execute the program in the same time as the pipelined machine?