A credit card company wondered whether giving frequent flier miles for every purchase would increase card usage. The population mean had been $2500 per year. A simple random sample of 22 credit card customers found the sample mean to be $2542 with a standard deviation of $110. Test the claim that the credit card mean usage for the population is now different than $2500 per year. (use the traditional approach).

A car company advertises that thir Super Spiffy Sedan averages 29mpg (miles per gallon). You randomly select a sample of Super Spiffies from local car dealerships and test their gas mileage under similar conditions.

You get the following MPG scores:

33 27 32 34 34 28 27 31

Note: SSx = 63.50

Using alpha =.01, conduct the 8 steps to hypothesis testing to determine whether the actual gas mileage for these cars differs significantly from 29mpg.

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types of fuel. One vehicle of each size is tested. Does this sample provide sufficient evidence to conclude that there is a significant difference in treatment means?

(b) Fill in the boxes. (Round your SS values to 3 decimal places, F values to 2 decimal places, and other answers to 4 decimal places.)

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types of fuel. One vehicle of each size is tested. Does this sample provide sufficient evidence to conclude that there is a significant difference in treatment means?

  Click here for the Excel Data File

(a) Choose the correct statement.

• Fuel type is the blocking factor and vehicle size is the treatment.

• Fuel type is the treatment and vehicle size is the blocking factor.

(b) Fill in the boxes. (Round your SS values to 3 decimal places, F values to 2 decimal places, and other answers to 4 decimal places.)

(c) Choose the correct statement. Use α = 0.05.

• Fuel type means differ significantly and vehicle size is also a significant factor.

• Fuel type means do not differ significantly, but vehicle size is a significant factor.

• Fuel type means differ significantly, but vehicle size is not a significant factor.

• Fuel type means do not differ significantly and vehicle size is not a significant factor.

(d) Which fuel types show a significant difference in average fuel economy? Use α = 0.01. (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.)

• Ethanol 10% and Ethanol 5%

• 89 Octane and 87 Octane

• Ethanol 5% and 91 Octane

• Ethanol 10% and 91 Octane

Let’s return to Tuftsville (Chapter 10) where everyone lives along Main Street, which is 10 miles long. There are 1,000 people uniformly spread up and down Main Street, and every day they each buy fruit smoothie from one of the two stores located at either end of the street. Customers ride their motor scooters to and from the store, using $0.50 worth of gas per mile. Customers buy their smoothies from the store offering the lowest price, which is the store’s price plus the customer’s travel expenses getting to and from the store. Ben owns the store at the west end of Main Street and Will owns the store at the east end of Main Street. The marginal cost of a smoothie is constant and equal to $1 for both Ben and Will. In addition, each of them pays Tuftsville $250 per day for the right to sell smoothies.

a. Ben sets his price p1 first and then Will sets his price p2. After the prices are posted consumers get on their scooters and buy from the store with the lowest price including travel expenses. What prices will Ben and Will set?

b. How many customers does each store serve and what are their profits?

QUESTION 48

Mason, a stockbroker, runs two miles every day after work because it reduces his level of stress. Mason's running habit is maintained by a ________ reinforcer.

1 points   

QUESTION 49

John is displaying behavior problems in his third grade classroom. He becomes disruptive whenever called to reading group. His teacher sends him down to the principal's office for discipline. His disruptions continue. A functional behavioral assessment on John, who has yet undiagnosed dyslexia, identifies being sent to the principal as a ______________.

1 points   

QUESTION 50

Every Saturday morning, Arnold quickly washes the family's breakfast dishes so that his father will allow him to wash his car. In this instance, washing the car is a(n)

1 points   

QUESTION 51

After one chimpanzee sees a second chimp open a box that contains a food reward, the first animal opens a similar box with great speed. This best illustrates

1 points   

QUESTION 52

Pets who learn that the sound of an electric can opener signals the arrival of their food illustrate

1 points   

QUESTION 53

Some information in our fleeting ________ is encoded into short-term memory.

Caterpillar, Inc., headquartered in Peoria, Illinois, is an American corporation with a worldwide dealer network which sells machinery, engines, financial products and insurance. Caterpillar is the world's leading manufacturer of construction and mining equipments, -diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Although providing financial services through its Financial Products segment, Caterpillar primarily operates through its three product segments of Construction Industries, Resource Industries, and Energy & Transportation. Founded in 1925, the company presently has sales and revenues of $55.2 billion, total assets of $78.5 billion, and 114,000 employees. Caterpillar machinery are commonly recognized by its trademark “Caterpillar Yellow” and it's “CAT” logo. Some of its manufactured construction products include: mini excavators, small-wheel loaders, backhoe loaders, multi-terrain loaders, and compact-wheel loaders. Other products include: machinery in mining and quarrying applications, reciprocating engines and turbines in power systems, the remanufacturing of CAT engines and components, and a wide range of financial alternatives to customers and dealers for Caterpillar machinery and engines.

Caterpillar tractors have undertaken and completed many difficult tasks since the company's beginning. In the late 1920s, the Soviet Grain Trust purchased 2,050 Caterpillar machines for use on its large farm cooperatives. This sale helped to keep Caterpillar's factories busy during the Great Depression. In the 1930s, Caterpillar track-type tractors helped construct the Hoover Dam, worked on the Mississippi Levee construction project, helped construct the Golden Gate Bridge, and were used in the construction of the Chesapeake & Delaware Canal. During this time period, CATs were also used in construction projects around the world in countries such as Palestine, Iraq, India, Canada, the Netherlands, Belgium and the building of the Pan American Highway. In World War II, Caterpillar built 51,000 track-type tractors for the U.S. military.

In the 1940s, Caterpillar tractors were used in the construction of the Alaskan highway; and between 1944 and 1956, they were used to help construct 70,000 miles of highway in the United States. In the 1950s and 60s, usage of Caterpillar tractors around the world exploded and were used in such countries as Australia, Austria, Ceylon, France, Germany, Italy, Nigeria, Philippines, Rhodesia, Russia, Sweden, Switzerland, Uganda, and Venezuela, in a wide variety of projects. In addition, Caterpillar products were used to help construct the St. Lawrence Seaway between Canada and the United States. In the 1970s and 80s, Caterpillar equipment were used in numerous dam, power, and pipeline projects. Since then, Caterpillars have been used in the construction of several projects such as Japan's Kansai International Airport as a marine airport approximately three miles offshore in Osaka Bay, the Chunnel between France and England, the “Big Dig” in Boston, Panama Canal expansion, and several Olympic Games sites.

Discussion

1. The United States Department of Agriculture (USDA), in conjunction with the Forest Service, publishes information to assist companies in estimating the cost of building a temporary road for such activities as a timber sale. Such roads are generally built for one or two seasons of use for limited traffic and are designed with the goal of reestablishing vegetative cover on the roadway and adjacent disturbed area within ten years after the termination of the contract, permit, or lease. The timber sale contract requires out sloping, removal of culverts and ditches, and building water bars or cross ditches after the road is no longer needed. As part of this estimation process, the company needs to estimate haul costs. The USDA publishes variable costs in dollars per cubic-yard-mile of hauling dirt according to the speed with which the vehicle can drive. Speeds are mainly determined by the road width, the sight distance, the grade, the curves and the turnouts. Thus, on a steep, narrow, winding road, the speed is slow; and on a flat, straight, wide road, the speed is faster. Shown below are data on speed, cost per cubic yard for a 12 cubic yard end-dump vehicle, and cost per cubic yard for a 20 cubic yard bottom-dump vehicle. Use these data and simple regression analysis to develop models for predicting the haul cost by speed for each of these two vehicles. Discuss the strength of the models. Based on the models, predict the haul cost for 35 mph and for 45 mph for each of these vehicles.

Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $88,000. The life of the investment is 7 years with a residual value of $4,000. If the project produces net annual cash inflows of $16,000, what is the accounting rate of return?

In what ways are the Payback Period and Accounting Rate of Return methods of capital budgeting alike?

ABC Company is adding a new product line that will require an investment of $1,500,000. The product line is estimated to generate cash inflows of $300,000 the first year, $250,000 the second year, and $200,000 each year thereafter for ten more years. What is the payback period?

Bonneville Manufacturing is considering an investment that would require an initial net investment of $650,000. The following annual revenues/expenses relate exclusively to the investment: Sales $350,000 -Variable expenses -$40,000 -Salaries expense -$28,000 -Rent expense -$20,000 -Depreciation expense -$40,000 Operating income $222,000 The investment will have a residual value of $50,000 at the end of its 15 year useful life. What is the payback period for this investment?

An annuity is best described as which of the following statements? A stream of interest payments on a principal amount invested, Another term used for future value, A stream of equal cash installments made at equal time intervals

Another term used for present value Concose Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $330,000. The annual cost savings if the new machine is acquired will be $85,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $32,000. Concose Park Department is assuming no tax consequences. If Concose Park Department has a required rate of return of 10%, what is the NPV of the project?

Norwood, Inc. is considering three different independent investment opportunities. The present value of future cash flows for each are as follows: Project A =$600,000, Project B = $550,000 & Project C = $500,000. The initial investment of each project is as follows: Project A =$320,000, Project B = $300,000 & Project C = $230,000. Use the Profitability index to determine what order should Norwood prioritize investment in the projects?

The discount rate that sets the present value of a project’s cash inflows equal to the present value of the project’s investment is called: NPV, ARR, IRR, payback period

Chris Tellson invested in a project with a payback period of 4 years. The project earns $30,000 cash each year for 8 years. Chris’s required minimum rate of return is 8%. How much did Chris initially invest?

The time value of money is considered in the following capital budgeting method(s)? Profitability Index. NPV, All answers given use the time value of $, IRR