Suppose for your company, the probability an individual customer purchases something in-store is 0.74. The probability he or she purchases something online is 0.81. We have described a set of Bernoulli trials with this scenario:

            (a) There are two outcomes – purchase (a “success”) or no purchase,

            (b) The probability of a success is constant across trials, and

(c) Trials are independent of each other, assuming customers are not related or shopping together.

(1) What is the expected number of customers until the first one purchases something in-store?

(2) What is the expected number of customers until the first one purchases something online?

(3) What is the probability that the third customer is the first to purchase something in-store?

(4) What is the probability that the fifth customer is the first to purchase something online?

(5) What is the probability of exactly 7 of the next 12 customers purchasing something in-store?

(6) What is the probability that exactly 7 of the next 12 customers will purchase something online?

(7) What is the probability that no more than 6 of the next 9 customers will purchase something in-store?

(8) What is the probability that at least 8 of the next 11 customers will purchase something online?

Now we want to look at purchasing a specific item. Suppose the probability customers purchase that item in-store is 0.60, while the probability they purchase it online is 0.79.

(9) What is the probability exactly 4 out of the next 7 in-store customers will purchase that item?

(10) What is the probability at least 5 of the next 8 online customers will purchase that item?

(11) What is the probability the 4^th in-store customer will be the first to purchase that item?

(12) What is the probability no more than 5 of the next 11 online customers will purchase that item?

(13) What is the probability that at least 8 of the next 12 in-store customers will purchase that item?

(14) What is the probability the first online customer to purchase that item will be before the 5^th?

Suppose for your store, the mean number of customers at any time of the day is 4.8 (this would be λ). Determine the following probabilities. NOTE these are not based on Bernoulli trials.

(15) What is the probability of having no customers in the store at some point during the day?

(16) What is the probability of having at least 6 customers in the store at any given point?

(17) What is the probability of having no more than three customers in the store at any given point?

(18) What is the probability of having exactly 5 customers in the store at any given point?

(19) If I wanted to know the number of customers before the first one bought something, which model would I use?

            GEOMETRIC            BINOMIAL                POISSON            (circle one)

(20) If I wanted to know how many customers out of a certain number will buy something, which model would I use?

            GEOMETRIC            BINOMIAL                POISSON            (circle one)

Part 1.

About 24% of flights departing from New York's John F. Kennedy International Airport were delayed in 2009. Assuming that the chance of a flight being delayed has stayed constant at 24%, we are interested in finding the probability of 10 out of the next 100 departing flights being delayed. Noting that if one flight is delayed, the next flight is more likely to be delayed, which of the following statements is correct?

• We can use the geometric distribution with n = 100, k = 10, and p = 0.24 to calculate this probability.
• We cannot calculate this probability using the binomial distribution since whether or not one flight is delayed is not independent of another.
• We can use the binomial distribution with n = 100, k = 10, and p = 0.24 to calculate this probability.
• We can use the binomial distribution with n = 10, k = 100, and p = 0.24 to calculate this probability.

Part 2.

A July 2011 Pew Research survey suggests that 27% of adults say they regularly get news through Facebook, Twitter or other social networking sites. What's the probability that in a random sample of 10 people at most 1 of them get their news through social networking sites?

A July 2011 Pew Research survey suggests that 27% of adults say they regularly get news through Facebook, Twitter or other social networking sites. What's the probability that in a random sample of 10 people at most 1 of them get their news through social networking sites?

• 0.20
• 0.96
• 0.16
• 0.04
• 0.06

Part 3.

3.32 Arachnophobia: A 2005 Gallup Poll found that 7% of teenagers (ages 13 to 17) suffer from arachnophobia and are extremely afraid of spiders. At a summer camp there are 10 teenagers sleeping in each tent. Assume that these 10 teenagers are independent of each other.


(a) Calculate the probability that at least one of them suffers from arachnophobia.
(please round to four decimal places)
(b) Calculate the probability that exactly 2 of them suffer from arachnophobia?
(please round to four decimal places)
(c) Calculate the probability that at most 1 of them suffers from arachnophobia?
(please round to four decimal places)

Kingbird Hardware takes pride as the “shop around the corner” that can compete with the big-box home improvement stores by providing good service from knowledgeable sales associates (many of whom are retired local handymen). Kingbird has developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line.

1. Kingbird sells a specialty portable winch that is popular with many of the local customers for use at their lake homes (putting docks in and out, launching boats, etc.). The Kingbird winch is a standard manufacture winch that Kingbird modifies so the winch can be used for a variety of tasks. Kingbird sold 60 of these winches during 2017 at a total price of $19,200, with a warranty guarantee that the product was free of any defects. The cost of winches sold is $17,200. The assurance warranties extend for a 3-year period with an estimated cost of $1,800. In addition, Kingbird sold extended warranties related to 20 Kingbird winches for 2 years beyond the 3-year period for $430 each.

2. To bolster its already strong customer base, Kingbird implemented a customer loyalty program that rewards a customer with 1 loyalty point for every $10 of purchases on a select group of Kingbird products. Each point is redeemable for a $1 discount on any purchases of Kingbird merchandise in the following 2 years. During 2017, customers purchased select group products for $91,000 (all products are sold to provide a 45% gross profit) and earned 9,100 points redeemable for future purchases. The standalone selling price of the purchased products is $91,000. Based on prior experience with incentives programs like this, Kingbird expects 8,500 points to be redeemed related to these sales (Kingbird appropriately uses this experience to estimate the value of future consideration related to bonus points).

Prepare the journal entries for Kingbird related to the sales of Kingbird winches with warranties.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places.)

Account Titles and Explanation

Debit Credit

(To record sales)

(To record cost of goods sold)

Prepare the journal entries for the bonus point sales for Kingbird in 2017.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places.)

Account Titles and Explanation Debit Credit

(To record sales)

(To record cost of goods sold)

How much additional sales revenue is recognized by Kingbird in 2018, assuming 3,900 bonus points are redeemed? (Do not round intermediate calculations. Round final answers to 0 decimal places.)

Additional Sales Revenue $

you have calculated the following , fixed cost = $6000/month , variable cost = $3/unit, revenue = $8/ unit. 1. what is the break even point of the process. 2. quantity to produce for profit of $2000 per year

CASE STUDIES - AHIMA 4.16 - COMPETENCY IV.3

you have just been hired as the revenue cycle manager at a local acute care hospital. one of the first items of business is to review the processes in place for the revenue cycle, and you are surprised to see that no external coding audits have been done for several years. when you ask the coding manager why no external audits have been performed, she explains that the HIM director was told by the director of finance that the cost would not justify the expenditure. You decide to request a meeting with the finance director to present a case defending the need for external audits. Draft a recommendation with your rationale as to the importance of external audits and reasoning for how the expense of external audits can be mitigated.

How would an increase in $10 in deferred revenue affect all 3 financial statements?

How would a decrease in $10 affect the 3 financial statements?

Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue.

Fees received but not yet earned: _______________________________

Fees earned but not yet received: _______________________________

Paid premium on a one-year insurance policy: _____________________

Sales tax owed to be paid beginning of next year: __________________