What is the relationship between the attendance at a major league ball game and the total number of runs scored? Attendance figures (in thousands) and the runs scored for 11 randomly selected games are shown below.

Attendance4135464445201310573315

Runs6411910354851

Find the correlation coefficient: r=r=    Round to 2 decimal places.

The null and alternative hypotheses for correlation are:
H0:H0: ? μ r ρ  == 0
H1:H1: ? r μ ρ   ≠≠ 0
The p-value is:    (Round to four decimal places)

Use a level of significance of α=0.05α=0.05 to state the conclusion of the hypothesis test in the context of the study.

There is statistically significant evidence to conclude that there is a correlation between the attendance of baseball games and the runs scored. Thus, the regression line is useful.

There is statistically significant evidence to conclude that a game with a higher attendance will have more runs scored than a game with lower attendance.

There is statistically insignificant evidence to conclude that there is a correlation between the attendance of baseball games and the runs scored. Thus, the use of the regression line is not appropriate.

There is statistically significant evidence to conclude that a game with higher attendance will have fewer runs scored than a game with lower attendance.

r2r2 =  (Round to two decimal places) (Round to two decimal places)

Interpret r2r2 :

Given any fixed attendance, 61% of all of those games will have the predicted number of runs scored.

There is a 61% chance that the regression line will be a good predictor for the runs scored based on the attendance of the game.

61% of all games will have the average number of runs scored.

There is a large variation in the runs scored in baseball games, but if you only look at games with a fixed attendance, this variation on average is reduced by 61%.

The equation of the linear regression line is:   
ˆyy^ =  + xx   (Please show your answers to two decimal places)

Use the model to predict the runs scored at a game that has an attendance of 25,000 people.
Runs scored =  (Please round your answer to the nearest whole number.)

Interpret the slope of the regression line in the context of the question:

The slope has no practical meaning since the total number runs scored in a game must be positive.

For every additional thousand people who attend a game, there tends to be an average increase of 0.15 runs scored.

As x goes up, y goes up.

Interpret the y-intercept in the context of the question:

The y-intercept has no practical meaning for this study.

The average runs scored is predicted to be 1.

If the attendance of a baseball game is 0, then 1 runs will be scored.

The best prediction for a game with 0 attendance is that there will be 1 runs scored.

Smith Corporation runs two convenience stores, one in Chicago and one in Denver. Operating income for each store in 2019 is as follows. Each store faces different competitive challenges. In a senior management meeting, you make the following statement, "we face two options: a) keep both stores open and try to increase profits in Denver or b) close the Denver store and keep the Chicago store.”

Your statement is based on an analysis where equipment has a zero disposal value and leased on an annual contract. A further estimate is that sales, product mix and variable cost in Chicago and Denver are approximately the same for the foreseeable future. Allocated corporate cost will decrease by $30,000 if the Denver store is closed.

Requirement:

Prepare two reports in proper decision-making format on separate sheets showing the two options. Write a one-page memo supporting your decision, a or b, assuming profit maximization and qualitative issues are taken into consideration in making the decision. In answering take into consideration the careful discussion we had in class regarding the use of the contribution margin ratio in decision-making and the best approach in serving a customer/client.

Turn in order:

1. Memo
2. Option a
3. Option b

For option A and B, please include contribution margin and contribution margin percentage,

Charlotte Company runs two candy stores, one in Gastonia and one in Concord. Operating income for each store is as follows: Gastonia Store Concord Store Total Revenue $200,000 $120,000 $ 320,000 Operating costs: Cost of goods sold 75,000 60,000 135,000 Rent (renewable each year) 12,000 7,000 19,000 Hourly wages 35,000 26,000 61,000 Depreciation of equipment 10,000 10,000 20,000 Utilities 4,000 3,000 7,000 Allocated corporate overhead 30,000 20,000 50,000 Total operating costs 166,000 126,000 292,000 Operating income (loss) $34,000 ($6,000) $28,000 The company’s management is contemplating closing the Concord Store because it has been consistently reporting a loss. The equipment has a zero disposal value. By closing down the Concord Store, the company can reduce overall corporate overhead costs by $5,000. 5. What will be the effect on Charlotte Company’s operating income if the Concord Store is closed? A) increase by $19,000 B) increase by $6,000 C) decrease by $19,000 D) decrease by $6,000 6. Refer to the original data. For the next year, the company is considering keeping the Concord Store open and adding a new store in Pineville. The budgeted revenues and costs for the Pineville Store are identical to the revenues and costs of the Concord Store except for (a) no new equipment will be purchased, but instead equipment will be rented for $10,000 per year and (b) opening the Pineville Store will increase corporate overhead costs by $12,000. If the Pineville store is open, what will be the company’s budgeted operating income for next year? A) $22,000. B) $30,000. C) $37,000. D) $10,000.

Two nations are located next to one another. In Nation A, people are very thrifty and spend much less than their incomes; moreover, Nation A’s government runs a balanced budget every year. In Nation B, people spend all of their incomes, but their government runs consistent deficits. If Nation A’s puts the extra savings to Nation B, what happens to equilibrium interest rate in Nation B?

1. Compute the probability of no successes in a random sample of three items obtained from a population of 12 items that contains two successes. What are the expected number and standard deviation of the number of successes from the sample?

a) what is the expected number of the sample?

b) what is the standard deviation of the number of successes from the sample?

2. A professor of management has heard that 8 students in his class of 40 have landed an internship for the summer. Suppose he runs into three of his students in the corridor.

a) find the probability that none of these students has landed an internship.

b) find the probability that at least one of these students has landed an internship.

1. weight vs. age α ̇=.01/2

Step 1:                       Ho:    __   _   ___

                                   Ha:    __   _ ___

Step 2:                       Alpha level = _____

Step 3:           Sampling distribution is df = _____

Step 4:           Decision Rule: I will reject the Ho if the |_robs_| value falls at or beyond
                          the |_rcrit_| of ____, otherwise I will fail to reject

Step 5:           Calculation: \_robs_/ = _____

Step 6:           Summary: Since the |_robs_| of ____     _____________ the |_rcrit_| of

                       _____, I therefore reject/fail to reject (choose one) the Ho.

Step 7:           Conclusion: Since _______ occurred, I conclude ___________________________________________________________________.

2. height vs. shoe size α ̇=.02/2

Step 1:                       Ho:    __   _   ___
                                   Ha:    __   _ ___

Step 2:                       Alpha level = _____

Step 3:           Sampling distribution is df = _____

Step 4:           Decision Rule: I will reject the Ho if the |_robs_| value falls at or beyond
                          the |_rcrit_| of ____, otherwise I will fail to reject

Step 5:           Calculation: \_robs_/ = _____

Step 6:           Summary: Since the |_robs_| of ____     _____________ the |_rcrit_| of

                       _____, I therefore reject/fail to reject (choose one) the Ho.

Step 7:           Conclusion: Since _______ occurred, I conclude ___________________________________________________________________.

3.Explain the correlation coefficient of determination.

Imagine that you buy a new computer system with independent components including a new desktop computer (with a CPU and a graphics card), new software, and a new monitor. You want to play games on the new system, but it runs games very slowly. You assume that the keyboard and mouse are not creating the problem; so, to figure out what is making the system run so slowly, you experiment with combinations of your old equipment with the new equipment. Here are your experiments and results:

Experiment 1: New computer, new software, and new monitor — and it runs slowly.
Experiment 2: New computer, new software, and old monitor — and it runs slowly.
Experiment 3: New computer, old software, and new monitor — and it runs fast.
Experiment 4: New computer, old software, and old monitor — and it runs fast.
Experiment 5: Old computer, new software, and new monitor — and it runs fast.
Experiment 6: Old computer, new software, and old monitor — and it slowly.
Experiment 7: Old computer, old software, and new monitor — and it runs fast.
Experiment 8: Old computer, old software, and old monitor — and it runs fast.

Based on this data, which experiment shows that the conjunction of new computer and the old monitor is NOT SUFFICIENT for the system to run slowly?

Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.

Additional production information about its two product lines follows.

Required:
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa.
2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style.
3.a. If the market price of Extra Fine Salsa is $18 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product.
3.b. What might management conclude about the Family Style Salsa product line?

Concord, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:

Saran Company has contacted Concord with an offer to sell it 5700 of the wickets for $19 each. If Concord makes the wickets, variable costs are $17 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Concord make or buy the wickets?