Audubon Advisors is a volunteer student organization that uses business skills they’ve learned in their MBA program to advise local charity groups about business decisions. One charity group is planning to make and sell cutting boards at a major cooking show. The boards cost $6 each to make and will sell for $20 each. The boards will be made by volunteers at the show and all materials not used can be returned. That is, the group will make only the number of boards it can actually sell. The cooking show allows three options for groups selling at the show:

A. Pay a fixed booth fee of $5,600

B. Pay a fee of $3,800 plus 10% of all revenue from the boards sold at the show

C. Pay 25% of all revenues from boards sold at the show.

1. Compute the CM per board under each of the three options.

2. Compute the breakeven point in number of boards for each of the three options.

3. Which payment plan has the lowest risk of loss for the charity group? Why?

4. Which payment plan has the highest profit potential assuming that there is very high demand for the boards? Why?

Use Excel to answer. A college admission officer for an MBA program determines that historically candidates have undergraduate grade averages that are normally distributed with standard deviation of .45. A random sample of 25 applications from the current year yields a sample mean grade point average of 2.90.

1. Find a 95% confidence interval for the population mean, μ. (Round the boundaries to 2 decimal places.)

2. Based on the same sample results, a statistician computes a confidence interval for the population mean as 2.81< μ < 2.99. Find the α for this interval and the probability content (1- α) as well. (Round to 4 digits.) (Note: the correct α is a higher number than traditional α used; so don’t worry if your number “looks” wrong!)

Hint: first calculate α/2 using either the lower bound (2.81) or upper bound (2.99); then calculate α. Finally, calculate the probability content of the interval, which is (1- α). And make sure you use the standard error, not the standard deviation, to calculate α/2.

You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-foods area, maybe two (if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is three years. After three years you will sell off your investment and go on to something else.

You have narrowed your selection down to two choices; (1) Franchise L, Lisa’s Soups, Salads, & Stuff and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast of how each franchise will do over the three-year period. Franchise L’s cash flows will start off slowly but will increase rather quickly as people become more health conscious, while Franchise S’s cash flows will start off high but will trail off as other chicken competitors enter the marketplace and as people become more health conscious and avoid fried foods. Franchise L serves breakfast and lunch, while Franchise S serves only dinner, so it is possible for you to invest in both franchises. You see these franchises as perfect complements to one another: You could attract both the lunch and dinner crowds and the health conscious and not so health conscious crowds without the franchises directly competing against one another.

Here are the net cash flows (in thousands of dollars):

                                                                                 Expected Net Cash Flows

                                            Year                 Franchise L                    Franchise S

                                                               0                             ($100)                             ($100)

                                               1                                  10                                   70

                                               2                                  60                                   50

                                               3                                  80                                   20

Depreciation, salvage values, net working capital requirements, and tax effects are all included in these cash flows.

You also have made subjective risk assessments of each franchise, and concluded that both franchises have risk characteristics that require a return of 10%. You must now determine whether one or both of the franchises should be accepted.

What is each franchise’s IRR?

How is the IRR on a project related to the YTM on a bond? For example, suppose the initial cost of a project is $100 and it has cash flows of $40 at Years 1, 2, and 3. What is its IRR?

What is the logic behind the IRR method? According to IRR, which franchises should be accepted if they are independent? Mutually exclusive?

Would the franchises’ IRRs change if the cost of capital changed?

Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after graduation is $156,000. Assume the standard deviation is $42,000. Suppose you take a simple random sample of 49 graduates. Round all answers to four decimal places if necessary.

1. What is the distribution of XX? XX ~ N(,)
2. What is the distribution of ¯xx¯? ¯xx¯ ~ N(,)
3. For a single randomly selected graduate, find the probability that her salary is between $150,400 and $159,100.
4. For a simple random sample of 49 graduates, find the probability that the average salary is between $150,400 and $159,100.
5. For part d), is the assumption of normal necessary? NoYes

Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after graduation is 160000 dollars. Assume the standard deviation is 42000 dollars. Suppose you take a simple random sample of 100 graduates.

Find the probability that a single randomly selected policy has a mean value between 155800 and 157900 dollars. P(155800 < X < 157900) = (Enter your answers as numbers accurate to 4 decimal places.)

Find the probability that a random sample of size n = 100 n=100 has a mean value between 155800 and 157900 dollars. P(155800 < M < 157900) =

(Enter your answers as numbers accurate to 4 decimal places.)

Scenario: Upon successful completion of the MBA program, imagine you work in the analytics department for a consulting company. Your assignment is to analyze one of the following databases:

• Manufacturing
• Hospital
• Consumer Food
• Financial

Select one of the databases based on the information in the Signature Assignment Options.

Provide a 1,600-word detailed, four part, statistical report with the following sections:

• Part 1 - Preliminary Analysis
• Part 2 - Examination of Descriptive Statistics
• Part 3 - Examination of Inferential Statistics
• Part 4 - Conclusion/Recommendations

Part 1 - Preliminary Analysis

Generally, as a statistics consultant, you will be given a problem and data. At times, you may have to gather additional data. For this assignment, assume all the data is already gathered for you.

State the objective:

• What are the questions you are trying to address?

Describe the population in the study clearly and in sufficient detail:

• What is the sample?

Discuss the types of data and variables:

• Are the data quantitative or qualitative?
• What are levels of measurement for the data?

Part 2 - Descriptive Statistics

Examine the given data.

Present the descriptive statistics (mean, median, mode, range, standard deviation, variance, CV, and five-number summary).

Identify any outliers in the data.

Present any graphs or charts you think are appropriate for the data.

Note: Ideally, we want to assess the conditions of normality too. However, for the purpose of this exercise, assume data is drawn from normal populations.

Part 3 - Inferential Statistics

Use the Part 3: Inferential Statistics document.

• Create (formulate) hypotheses
• Run formal hypothesis tests
• Make decisions. Your decisions should be stated in non-technical terms.

Hint: A final conclusion saying "reject the null hypothesis" by itself without explanation is basically worthless to those who hired you. Similarly, stating the conclusion is false or rejected is not sufficient.

Part 4 - Conclusion and Recommendations

Include the following:

• What are your conclusions?
• What do you infer from the statistical analysis?
• State the interpretations in non-technical terms. What information might lead to a different conclusion?
• Are there any variables missing?
• What additional information would be valuable to help draw a more certain conclusion?

Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after graduation is 190000 dollars. Assume the standard deviation is 39000 dollars. Suppose you take a simple random sample of 96 graduates. Find the probability that a single randomly selected salary has a mean value between 184029.4 and 194776.5 dollars.

P(184029.4 < X < 194776.5) = (Enter your answers as numbers accurate to 4 decimal places.) Find the probability that a random sample of size n = 96 has a mean value between 184029.4 and 194776.5 dollars.

P(184029.4 < ¯ x < 194776.5) = (Enter your answers as numbers accurate to 4 decimal places.)

You have just graduated from the MBA program of a large university, and one of your favorite courses was Today’s Entrepreneurs. In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-foods area, maybe two (if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on to something else. You have narrowed your selection down to two choices: (1)Franchise L, Lisa’s Soups, Salads & Stuff, and (2)Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows that follow include the price you would receive for selling the franchise in Year 3 and the forecast of how each franchise will do over the 3-year period. Franchise L’s cash flows will start off slowly but will increase rather quickly as people become more health-conscious, while Franchise S’s cash flows will start off high but will trail off as other chicken competitors enter the marketplace and as people become more health-conscious and avoid fried foods. Franchise L serves breakfast and lunch, whereas Franchise S serves only dinner, so it is possible for you to invest in both franchises. You see these franchises as perfect complements to one another: You could attract both the lunch and dinner crowds and the health-conscious and not-so-health-conscious crowds without the franchises directly competing against one another.

Here are the net cash flows (in thousands of dollars):

Depreciation, salvage values, net working capital requirements, and tax effects are all included in these cash flows.

You also have made subjective risk assessments of each franchise and concluded that both franchises have risk characteristics that require a return of 10%. You must now determine whether one or both of the franchises should be accepted.

Question: Please show all your work including formulas in excel if used.

You are also considering another project that has a physical life of 3 years—that is, the machinery will be totally worn out after 3 years. However, if the project were terminated prior to the end of 3 years, the machinery would have a positive salvage value. Here are the project’s estimated cash flows:

Using the 10% cost of capital, what is the project’s NPV if it is operated for the full 3 years? Would the NPV change if the company planned to terminate the project at the end of Year 2? At the end of Year 1? What is the project’s optimal (economic) life?

Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after graduation is $128,000. Assume the standard deviation is $43,000. Suppose you take a simple random sample of 15 graduates. Round all answers to four decimal places if necessary.

1. What is the distribution of XX? XX ~ N(,)
2. What is the distribution of ¯¯¯XX¯? ¯¯¯XX¯ ~ N(,)
3. For a single randomly selected graduate, find the probability that her salary is between $119,846 and $126,097.
4. For a simple random sample of 15 graduates, find the probability that the average salary is between $119,846 and $126,097.
5. For part d), is the assumption of normal necessary? NoYes

Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after graduation is $167,000 dollars. Assume the standard deviation is $32,000. Suppose you take a simple random sample of 96 graduates.

1) What is the standard deviation of the sampling distribution for this situation? Round to four places. Show work and answer using proper notation.

2) Find the probability that a single randomly selected salary has a value between $172,552 and $178,104. Your write up should include all of the following:

• Define the variable you are using.
• Use correct notation to label all quantities.
• Show the calculations for the relevant z-scores using proper notation.
• State or show how you found your final probability. You can use tables or StatCrunch, just specify what you did.
• Write your answer using full and correct probability notation. Round to four places.

3) Find the probability that a random sample of size n=96n=96 has a mean value between $172,552 and $178,104.

• Define the variable you are using.
• Use correct notation to label all quantities.
• Show the calculations for the relevant z-scores using proper notation.
• State or show how you found your final probability. You can use tables or StatCrunch, just specify what you did.
• Write your answer using full and correct probability notation. Round to four places.

Write your answers in complete sentence form.

Please be correct because this homework is very important for me. Thanks