Problem 1
The time for an employee to complete a certain manufacturing task was was approximately Normally distributed with a mean of 138 seconds and a standard deviation of 39 seconds. Suppose you plan to take an SRS of 250 employees and look at the average manufacturing time.
a) Determine the mean and standard deviation of the distribution of sample means.
b) Calculate the probability of coming up with a sample that shows a manufacturing time of 114 seconds or less.
Problem 2
You want to research the cost of a certain trendy ergonomic chair. In your online search of the cost of that chair on 20 different sites, you note that the mean cost of the chair is $562. Assume that the SD of the chair among all sites is $74. Find the 90%, 95%, and 99% confidence intervals for the mean cost of this chair.
Look at the 95% confidence interval and say whether the following statement is true or false. “This interval describes the price of 95% for all chairs of this model that are being sold.” If you think this is incorrect, be sure to explain why.
Problem 3
A credit card company wants to estimate the average length of client churn (turning over their card for a different one). In a sample of 5000 customers obtained at random from the company’s database, the mean churn is 418. The the standard deviation of the calls from that sample is 93. Provide the mean and SD of the distribution of this sample.
Problem 4
A web-based travel search engine is designed to complete searches for cruise ships involving price retrieval and scheduling information. You need to analyze how long it takes to complete a typical search. The search time for 2500 randomly selected searches is recorded and detreemined as sample mean = 0.94 seconds and sample standard deviation = 0.36 seconds. Choose the most typical value for C and provide the confidence interval.
In: Statistics and Probability
Need solution for 3rd question
I solved first part below is my answers so far. Really need help on second question.
Below is the Background, What I need to do, and the price data
to start with. Any help with getting me started is appreciated.
Background
The Book Emporium wants to price books to optimize profits. The
spreadsheet for this homework has
sales data on Harry Potter book 7. For each week, the Book Emporium
varied prices on Harry Potter
7 to determine a demand curve. The percent of customers who visited
BookEmporium.com and purchased
Harry Potter book 7 is shown in the spreadsheet. J.K. Rowling has
announced a sequel to the Harry
Potter series. Determine the price for the sequel.
Definitions
Price what you will charge each customer who purchases the new book
Book Cost
what you must pay the publisher for each book
% purchased in your pricing test, the percent of people who bought
at that price Predicted %
your regression model estimate of the percent sold based on price
Predicted sales estimate of
number of customers who buy the book from you Revenue total revenue
generated (price *
predicted sales)
Profit (price – book cost) * predicted sales
Assumptions
1. Assume that the demand for the book sequel will be similar to
Harry Potter 7.
2. Assume that 100,000 customers will consider purchasing a book
from you
3. The data is not an entirely accurate prediction of the demand,
but a regression on the data
using a power model will give a reasonable prediction
4. Assume that you pay the publisher $5.00 for each book.
Outline and grading criteria:
1. Regression analysis (40%)
a. Graph the percent purchased against price (5%)
b. Perform a regression using power regression to determine the
predicted % column.
i. Graph the new curve (5%)
ii. Estimate the equation of the line (5%)
iii. What does the R2 mean? (5%)
c. Assuming there are 100,000 customers who visit your website and
the publisher cost is $5.00,
estimate the number of books sold (predicted sales column)
(5%)
d. Calculate the revenue column (price * predicted sales)
(5%)
e. Calculate the profit column ((price – book cost) * predicted
sales) (5%)
f. Use conditional formatting to highlight the profit values for
all prices (5%)
2. Optimization analysis (with constraints) (30%)
a. Calculate the price point for the highest profit possible
i. The publisher will sell the books to you at $5.00 each with no
minimum order (10%)
ii. The publisher has agreed to sell you the books at $4.50 each if
you sell at least 30,000
(10%)
iii. The publisher has agreed to sell you the books at $4.00 each
if you sell at least 50,000
(10%)
b. Run a constrained optimization for each of the above situations
to determine which cost point
(from the publisher) and price (to your customer) maximizes your
profit. Which cost point should
you accept from the publisher?
3. Discussion (30%)
a. What are the risks of using Harry Potter 7 data in predicting
your new demand curve for the
Harry Potter sequel? (15%)
b. What other data would you like to have to perform your analysis?
(15%)
|
Price |
% Purchased |
Predicted % |
Predicted Sales |
Revenue |
Profit |
|
$ 5.00 |
65% |
||||
|
$ 6.00 |
50% |
||||
|
$ 7.00 |
40% |
||||
|
$ 8.00 |
32% |
||||
|
$ 9.00 |
25% |
||||
|
$ 10.00 |
20% |
||||
|
$ 11.00 |
16% |
||||
|
$ 12.00 |
13% |
||||
|
$ 13.00 |
11% |
||||
|
$ 14.00 |
10% |
||||
|
$ 15.00 |
8% |
||||
|
$ 16.00 |
7% |
||||
|
$ 17.00 |
6% |
||||
|
$ 18.00 |
6% |
||||
|
$ 19.00 |
5% |
||||
|
$ 20.00 |
5% |
||||
|
$ 21.00 |
5% |
||||
|
$ 22.00 |
4% |
||||
|
$ 23.00 |
4% |
||||
|
$ 24.00 |
4% |
||||
|
$ 25.00 |
4% |
||||
|
Book Cost |
$ 5.00 |
||||
In: Statistics and Probability
Budget Preparation Westport Company is preparing its master budget for May. Use the estimates
provided to determine the amounts necessary for each of the following requirements. (Estimates may
be related to more than one requirement.)
a. What should total sales revenue be if territories E and W estimate sales of 50,000 and 100,000
units, respectively, and the unit selling price is $27?
b. If the beginning finished goods inventory is an estimated 7,000 units and the desired ending in-
ventory is 6,000 units, how many units should be produced?
c. What dollar amount of material should be purchased at $2 per pound if each unit of product re-
quires 2.5 pounds and beginning and ending materials inventories should be 13,500 and 12,000
pounds, respectively?
d. How much direct labor cost should be incurred if each unit produced requires 0.5 hours at an
hourly rate of $11?
e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is
$45,000 and variable manufacturing overhead is $1.30 per direct labor hour?
In: Accounting
In the various sales and service industries, the satisfaction of the customer is paramount to the success of a product and company. Share at least two dominant factors for a company to consider in order to earn the satisfaction of the customer and keep the customers satisfied.
In: Economics
The company Furniture A/S produces a very well known chair which is sold all over Europe.
Would it be legal for the company to set recommended sales prices that are in fact binding to its customers?
In: Economics
ABC Company is preparing to launch a new product. They are considering three different product designs and will select only the one product that yields the highest revenue. A feasibility study suggest that product development, regardless of which of the three products is selected, will cost $1,250,000 initially, which includes all design, testing, set-up and initial operating costs. Annual operating cost, once the selected product is placed into production, will cost $125,000 and the net revenue for the first year is projected to be $450,000. Both the project costs and revenues are independent of the option selected. Market analysis for each of the three products suggest that subsequent revenues, i.e. the revenues received at the end of each year starting in year 2, will differ as described below
Design 1: The revenue will increases by $75,000 per year.
Design 2: Revenues will remain the same for the next two years (i.e. years 2 and
3) and then will increase by 10% each year, over the previous year, in each
subsequent year.
Design 3: Revenues will increase in years 2 through 4 by 10% per year, then in
years five through seven, revenues will be $300,000, $225,000, and 150,000 per year, respectively.
If the product’s life is 7 years and the market interest rate is 8% per year, which of the threeproduct designs should ABC Company launch? To answer this question compare the future values of the cash flows for each of the three designs over the first seven years.
In: Economics
The following transactions occurred during the month of October, 2019 at the Tree Company. The balance sheet for the Tree Company at September 30, 2019 was as follows: Balance Sheet Assets ---------------------------------------Liabilities Cash $ 4,500 ---------------- Accounts payable $ 16,000 Accounts receivable 24,000 -------- Notes payable 30,000 Supplies on hand 8,000 ---------------- Wages & salaries payable 5,000 Equipment 51,000 ----------------Invested capital 50,000 Truck 20,000 --------------------- Retained earnings 6,500 TOTAL $107,500 ----------- $107,500 According to the Chart of Accounts at Tree Company, the following accounts besides those listed in the balance sheet above are available: Advertising expense Bonus expense Bonus payable Decline in value of equipment (expense) Decline in value of truck (expense) Insurance expense Interest expense Prepaid insurance Rent expense Service revenue Supplies expense Utilities expense Wage and salaries expense Record the opening balances in the appropriate T-accounts, and then make the entries required to record the following: a) Mr. Tree, the owner, invested an additional $20,000 in the business. b) Rent in the amount of $7000 was paid in cash for the month of October. c) Supplies were purchase on credit at a cost of $3000. d) Credit customers were sent invoices totaling $23,000 for services rendered during the month. e) Cash customers paid $10,000 for services rendered to them during October (Note: Total of credit and cash sales was $33,000). f) Cash in the amount of $17,000 was received from customers for services rendered in previous months. g) A six-month insurance policy, with coverage beginning on October 1, 2001, was purchased for $3000 in cash. h) The invoice from the utility company in the amount of $3800 was received and paid. i) The accountant for Tree estimated that the truck declined in value by $1000 and that the equipment declined in value by $2500 during October. j) Additional equipment to be used in the service activity was purchased on credit at a price of $7500. k) Wages and salaries earned by employees for the month totaled $13,000. l) Total cash payment of wages and salaries during the month was $12,000, including $5000 that was payable at the beginning of the month. m) Invoices from suppliers for supplies and equipment received in previous months were paid in the amount of $14,500. n) A count and valuation of supplies on hand at the end of the month revealed an end of month balance of $6500. o) Tree Company paid $5500 to the bank from which the company was borrowing: $5000 in principal repayment and $500 interest. p) Advertising for the month totaled $1750, paid in cash. q) In return for extra services that the general manager rendered to the company during October, Mr. Tree agreed that the company would pay a bonus to the general manager equal to 10 percent of Octobers’ sales; this bonus is to be paid on November 10. Prepare an income statement for the month of October and a balance sheet as of October 31, 2019.
In: Accounting
|
Fragrant sold $4,000 worth of perfume to customers, of which 90% paid in cash and the rest still owe. The cost of the perfume was $1,000 as has not been paid yet. All other operating costs incurred, totaling $1,200, have been paid. How much does accrual basis income differ from cash basis income?: * |
||||||||||||
|
|
3. Blades Inc. sold off the roller skate segment of its business during the year, incurring a $125,000 loss on the sale of the segment’s assets and recognizing $15,000 of profit for the partial period that the roller skate segment operated during the year. The applicable tax rate is 30%. What is the amount reported as discontinued operations after the subtotal “Income from Continuing Operations?”: * |
|||||||||||||||||||||||||||||||||||||
|
In: Accounting
Financial Accounting for MBAs 7th Edition. P5-48 (page 5-43)
Target Corporation reported total sales of $73,785 million in 2015, $72,618 million in 2014, and $71,279 million in 2013. In 2015, cost of sales was $51,997 million.
The revenue recognition footnote from Target’s 2015 annual report includes the following:
Gift Card Information: $millions
Gift card balance May 1..................$198
New gift cards sold..........................148
Gift cards redeemed.......................(172)
Gift card balance May 31................$174
1. Use the financial statement effects template to record retail sales of $1,000 in a state with a sales-tax rate of 8%. For this question, assume 10% of all merchandise sold is returned within 90 days.
2. Use the financial statement effects template to record the following transaction: On March 4, an internet customer places an order for $2,000 and pays online with a credit card (which is equivalent to cash for accounting purposes). The goods are shipped from the warehouse on March 6, and FedEx confirms delivery on March 7. Ignore shipping costs, sales tax, and returns.
3. Use the financial statement effects template to record the gift card activity during May. Ignore sales tax and returns. Details are on page 1.
4. Determine the amount of revenue Target collected from customers who used their loyalty card (REDcard™) for 2013 to 2015. What proportion of total revenues comes from REDcard™ customers each year? Does the loyalty program seem to be working? Explain.
In: Accounting
Preparing sandwiches
Baking bread and cookies
Making sure that shelves and displays are organized and attractive
Working at the cash register
Assisting customers with their questions about merchandise
Providing efficient service
Helping customers during checkout
Employees are expected to be helpful, friendly, and fun. The company emphasizes good quality customer service to build customer loyalty.
If you were designing a performance management system for this company, what would it look like? Assuming that the company is interested in providing feedback to employees on a regular basis but also in tying pay to performance, propose a performance management system for the company. Please make sure that your answer includes specific details such as the forms to be used and the criteria with which performance will be measured.
In: Operations Management