A manager for an insurance company believes that customers have the following preferences for life insurance products: 20% prefer Whole Life, 20% prefer Universal Life, and 60% prefer Life Annuities. The results of a survey of 200 customers were tabulated. Is it possible to refute the sales manager's claimed proportions of customers who prefer each product using the data?

Step 1 of 10: State the null and alternative hypothesis.

Step 2 of 10: What does the null hypothesis indicate about the proportions of customers who prefer each insurance product?

Step 3 of 10: State the null and alternative hypothesis in terms of the expected proportions for each category. (Ho: Pwhole= , Puniversal=, Pannuities=)

Step 4 of 10: Find the expected value for the number of customers who prefer Whole Life. Round your answer to two decimal places.

Step 5 of 10: Find the expected value for the number of customers who prefer Universal Life. Round your answer to two decimal places.

Step 6 of 10: Find the value of the test statistic. Round your answer to three decimal places.

Step 7 of 10: Find the degrees of freedom associated with the test statistic for this problem.

Step 8 of 10: Find the critical value of the test at the 0.05 level of significance. Round your answer to three decimal places.

Step 9 of 10: Make the decision to reject or fail to reject the null hypothesis at the 0.05 level of significance.

Step 10 of 10: State the conclusion of the hypothesis test at the 0.05 level of significance.

A car insurance company advertises that customers switching to their insurance save, on average, $435 on their yearly premiums. A market researcher at a competing insurance discounter is interested in showing that this value is an overestimate so he can provide evidence to government regulators that the company is falsely advertising their prices. He randomly samples 83 customers who recently switched to this insurance and finds an average savings of $399, with a standard deviation of $103.

(a) Are conditions for inference used in the lectures satisfied?

(b) What is your null hypothesis?

(c) What is your alternative hypothesis?

(d) Calculate the p-value for a one-sided hypothesis test.

(e) What is your conclusion if the test was conducted at the 95% level?

(f) Do you agree with the market researcher that the amount of savings advertised is an overestimate? Make sure you can explain your reasoning.

(g) Calculate a 90% confidence interval for the average amount of savings of all customers who switch their insurance.

(h) Do your results from the hypothesis test and the confidence interval agree? Make sure you can explain your reasoning.

The Lynbrook Rentals Company offers credit terms to all of its customers. At the end of 2019, accounts receivables totaled $3,400,000. During 2020 credit sales were $2,100,000 and cash collections from customers were $3,700,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2020 and $70,000 in receivables were written off during the year as uncollectible. In addition, $20,000 was collected from a customer whose account was written off in 2019. The allowance for uncollectible accounts is determined by an ageing of accounts receivable. An aging of accounts receivable at December 31, 2020, reveals the following:

Age Group 0-60 days 61-90 days 91-120 days Over 120 days

Required:

Percentage of Year-end Percent Receivable in Group Uncollectible

55% 5% 30 15 10 45 5 60

a. Prepare journal entries to record the write-off of receivables, collection of the accounts receivable previously written off, and the year-end adjusting entry for bad debt expense.
b. Show how accounts receivables would be presented in the 2020 year-end balance sheet?

What are some ways that a company can track accounts receivable to ensure that customers are paying on time. What are some consequences of a customer not paying the balance owed on accounts receivable? Please provide three specific consequences.

The Lynbrook Rentals Company offers credit terms to all of its customers. At the end of 2019, accounts receivables totaled $3,400,000. During 2020 credit sales were $2,100,000 and cash collections from customers were $3,700,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2020 and $70,000 in receivables were written off during the year as uncollectible. In addition, $20,000 was collected from a customer whose account was written off in 2019. The allowance for uncollectible accounts is determined by an ageing of accounts receivable. An aging of accounts receivable at December 31, 2020, reveals the following:

Age Group   Percentage of Year-end Receivable in Group Percent Uncollectible

0-60 days 55%   5%

61-90 days 30 15

91-120 days 10 45

Over 120 days 5 60

Required:

a. Prepare journal entries to record the write-off of receivables, collection of the accounts receivable previously written off, and the year-end adjusting entry for bad debt expense.
b. Show how accounts receivables would be presented in the 2020 year-end balance sheet?

The Brown Bag company makes a two varieties of bags for its customers. The first is an organically created, Non-GMO, totally biodegradable bag used at a large number of Whole Foods stores and various other high end groceries. The company sells these bags for $10.00 per hundred (1 unit). The second bag is a reusable bag that sells for $5.00 each. The company currently uses a plant-wide allocation for factory overhead based upon machine hours, however, the company feels like there is something amiss since they believe the biodegradable bag should be its greatest profit center but the results of the plant-wide allocation seem to be allocating in a manner not consistent with the true allocation. The company has hired your firm to give a budget, by product type, under both the plant-wide and activity based costing method and are seeking you to explain the results and give any recommendations. They are seeking a budgeted income statement under both methods for both products.

The direct materials for the Biodegradable bags is $1.50 per hundred/per unit (please note for the purposes of presentation and internal books, the company considers 100 of these bags to be 1 unit). The cost for materials for the reusable bag is $0.50 per unit. In addition, the direct labor for the biodegradable is $1.50 per unit, whereas for the reusable it is a $1.00 per unit.

The company expects to sell 50,000 units of the biodegradable units (5,000,000 individual bags) and 50,000 of the reusable bags.

The following information has been given regarding production, factory overhead.

In addition, the company pays $0.25 sales commission per unit for the biodegradable bags and $0.50 for the reusable bags.   Last, the company has other general and administrative expenses, i.e. fixed expenses, in the amount of $40,000.

Please prepare the required income statements, analysis and explanation. For the biodegradable bags, please give in units not per bag, for the reusable use per unit which equals one bag.

After you finished your budget, the company came and reported the following, they want you to do a comparison and determine the variances and give any other items you view as important. An actual contribution margin might be helpful.

The company sold 52,000 units of the bio-bags, and 55,000 units of the reusable bags at the expected sales price.

The overall labor costs for the bio-bag per unit was $1.55 and for the reusable it was $0.90. For the direct materials, there was a bio-material shortage, so the cost per unit of the bio-bag was $2.00, whereas plastic fibers went down and the cost was $0.45 per unit.

For the variable overhead above, the material handing was actually $275,000, production and packing and shipping were the same as budgeted.

Please prepare a variance report based upon the actual versus budgeted on a flexible budget methodology.

Periodically, customers of a financial services company are asked to evaluate the company's financial consultants and services. Higher ratings on the client satisfaction survey indicate better service, with 7 the maximum service rating. Independent samples of service ratings for two financial consultants are summarized here. Consultant A has 10 years of experience, whereas consultant B has 1 year of experience. Use

α = 0.05

and test to see whether the consultant with more experience has the higher population mean service rating. Assume the population variances are unequal.

(a)

State the null and alternative hypotheses.

H₀:

μ₁ − μ₂ = 0

H_a:

μ₁ − μ₂ ≠ 0

H₀:

μ₁ − μ₂ = 0

H_a:

μ₁ − μ₂ > 0

H₀:

μ₁ − μ₂ > 0

H_a:

μ₁ − μ₂ = 0

H₀:

μ₁ − μ₂ ≠ 0

H_a:

μ₁ − μ₂ = 0

H₀:

μ₁ − μ₂ = 0

H_a:

μ₁ − μ₂ = 0

(b)

Compute the value of the test statistic. (Round your answer to three decimal places.)

(c)

What is the p-value? (Round your answer to four decimal places.)

p-value =

(d)

What is your conclusion?

Do not reject H₀. There is insufficient evidence to conclude that the consultant with more experience has a higher population mean rating. Reject H₀. There is sufficient evidence to conclude that the consultant with more experience has a higher population mean rating.     Reject H₀. There is insufficient evidence to conclude that the consultant with more experience has a higher population mean rating. Do not Reject H₀. There is sufficient evidence to conclude that the consultant with more experience has a higher population mean rating.

QUESTION ONE
Products and services are often the first thing that customers see of a company, so they should have an impact. Although operations managers may not have direct responsibility for product and service design, they always have an indirect responsibility to p rovide the information and advice upon which successful product or service development depends. I ncreasingly, operations managers are expected to take a more active part in product and service design. Unless a product, however well designed, can be produce d to a high standard, and unless a service, however well conceived, can be implemented, the design can never bring its full benefits.
i.Why is good product and service design important? ( 5 marks)
ii.What are the stages in product and service design?
iii.Why should product and service design and process design be considered interactively?

1. A U.S. company sells to customers in Canada and buys from suppliers in Singapore. At December 31, 2019, the company’s year-end, the following items are reported on its balance sheet:

Accounts receivable (C$2,500,000)..…………………… $2,125,000

Accounts payable(S$1,400,000)………………………….. 1,061,200

On January 22, 2020, when the spot rate is $0.845/C$, the company collects C$1,000,000 from customers. It collects the remaining C$1,500,000 on February 16, 2020, when the spot rate is $0.856. On February 23, 2020, when the spot rate is $0.762, the company pays suppliers S$800,000. On March 6, 2020, when the spot rate is $0.768, the company pays suppliers the remaining S$600,000. Using the attached T-account template, record the 12/31/19 balances (labeled “BAL”) and then prepare the necessary entries to recognize the above transactions.

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 880 Second birthday: $ 880 Third birthday: $ 980 Fourth birthday: $ 980 Fifth birthday: $ 1,080 Sixth birthday: $ 1,080 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $420,000. If the relevant interest rate is 12 percent for the first six years and 7 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)