Question 1:
Suppose that your group is the executive sales team for Starbucks. The CEO has just proposed lowering the price of regular coffee and increasing the price of specialty coffee drinks. The belief is that our customers are sensitive to a price change of regular coffee but much less sensitive to a change in the price of specialty coffee. As such, your team is tasked with providing an analysis on this proposal. In order to provide your analysis, you need to find out if the CEO’s theory about customer behavior, and their sensitivity to price changes for regular and specialty coffee, is correct. In order to find out how sensitive customers are to a price change, you will need to calculate the price elasticity of demand, describe what that means, and evaluate the impact on revenues.
For this activity, use the standard percent change formula (also known as the point method).
You have been given the following data on prices and changes in quantity demanded.
Regular Coffee:
Current Price per cup: $2.00 and quantity sold per month is 1 million
Proposed Price per cup: $1.80 and estimated quantity sold per month is 1.5 million
Specialty Coffee:
Current Price per cup: $4.00 and quantity sold per month is 50 million
Proposed Price per cup: $4.40 and estimated quantity sold per month is 47 million
Part 1: Find the elasticity of demand for regular and specialty coffee.
Part 2: Find the total change in revenue for regular and specialty coffee.
Part 3: Use a demand curve graph to explain the change in revenue. You only need to show the demand curve on your graph.
You may upload a picture/file of your graph or use the creately template.
In: Economics
what are the journal entires for the following events based off the following accounts?
The accounts that can be used incude:
Cash
Notes Payable
Interest Payable
Supplies
Unearned Revenue
Common Stock
Accounts Payable
Dividends
Accounts Recievable
Utilites Payable
Retained Earnings
Prepaid Advertising
Equipment
Income trax Payable
Income Summary
Accum. Depreciation- Equipment
Salaries and wages Payable
Depreciation Expense
Interest Expense
Service Revenue
Depreciation Expense
Insurance Expense
Rent Expense
Utilities Expense
Advertising Expense
Income Tax Expense
Supplies Expense
| Issued common stock in exchange for $4,000 cash. | ||||||||
| Borrowed $5,000 by issuing a 2-year, 10% note payable to SunTrust Bank. | ||||||||
| Paid $900 for January rent. | ||||||||
| Purchased supplies on account for $450 from Traveler's Supply Company. | ||||||||
| Purchased equipment for $7,200 cash from DSI Computer Company. The equipment has a 3 year life and a $1,200 salvage value. | ||||||||
| Purchased additional equipment from Bebo's Office Supply Co., paying cash of $1,350 and putting $1,500 on account. The equipment has a 5 year life and $450 salvage value. | ||||||||
| Paid $125 for advertisements to run in the current month and $375 for ads to run in February-April. | ||||||||
| Paid the January insurance premium of $225. | ||||||||
| Performed services for $2,625 cash. | ||||||||
| Received cash advance of $5,125 for services to be performed on a 5- month contract beginning in January. | ||||||||
| Performed services and billed customers $1,500. | ||||||||
| Made a $600 payment on account to Traveler's Office Supply Company . | ||||||||
| Collected $1,300 from customers on account. | ||||||||
| Declared and paid dividends of $1,000 cash | ||||||||
In: Accounting
|
The U.S. Dairy Industry wants to estimate the mean yearly milk consumption. A sample of 21 people reveals the mean yearly consumption to be 74 gallons with a standard deviation of 16 gallons. Assume that the population distribution is normal. (Use t Distribution Table.) |
| a-1. | What is the value of the population mean? | ||||||
|
| a-2. | What is the best estimate of this value? |
| Estimate population mean |
| c. |
For a 90% confidence interval, what is the value of t? (Round your answer to 3 decimal places.) |
| Value of t |
| d. |
Develop the 90% confidence interval for the population mean. (Round your answers to 3 decimal places.) |
| Confidence interval for the population mean is and . |
| e. | Would it be reasonable to conclude that the population mean is 68 gallons? | ||||||
|
In: Statistics and Probability
|
The U.S. Dairy Industry wants to estimate the mean yearly milk consumption. A sample of 21 people reveals the mean yearly consumption to be 74 gallons with a standard deviation of 16 gallons. Assume that the population distribution is normal. (Use t Distribution Table.) |
| a-1. | What is the value of the population mean? | ||||||
|
| a-2. | What is the best estimate of this value? |
| Estimate population mean |
| c. |
For a 90% confidence interval, what is the value of t? (Round your answer to 3 decimal places.) |
| Value of t |
| d. |
Develop the 90% confidence interval for the population mean. (Round your answers to 3 decimal places.) |
| Confidence interval for the population mean is and . |
| e. | Would it be reasonable to conclude that the population mean is 68 gallons? | ||||||
|
In: Statistics and Probability
Consider all observations as one sample of X (1st column) and Y (Second column) values. Answer the following questions:
|
78 |
4.4 |
|
74 |
3.9 |
|
68 |
4 |
|
76 |
4 |
|
80 |
3.5 |
|
84 |
4.1 |
|
50 |
2.3 |
|
93 |
4.7 |
|
55 |
1.7 |
|
76 |
4.9 |
|
58 |
1.7 |
|
74 |
4.6 |
|
75 |
3.4 |
|
80 |
4.3 |
|
56 |
1.7 |
|
80 |
3.9 |
|
69 |
3.7 |
|
57 |
3.1 |
|
90 |
4 |
|
42 |
1.8 |
|
91 |
4.1 |
|
51 |
1.8 |
a) Calculate the correlation coefficient r
b) Fit the regression model (prediting Y from X) and report the estimated intercept and slope
c) Test whether the slope equals 0. Report your hypothesis, test statistic, p-value
In: Statistics and Probability
A question of medical importance is whether jogging leads to reduction in one’s pulse rate. To test this hypothesis, eight non-jogging volunteers have agreed to begin a one-month jogging program. At the end of the month their pulse rates were determined and compared with their earlier values. Subject 12345678 Pulse rate before program 74 86 98 102 78 84 79 70 Pulse rate after program 70 85 90 107 71 80 69 74
(a) State the hypotheses.
(b) Calculate the test statistic, state the degrees of freedom and approximate the p- value.
(c) Would you reject H0 or fail to reject H0 at 5% level of significance? (d) What do you conclude about the effect of jogging for one month on pulse rate?
In: Statistics and Probability
A question of medical importance is whether jogging leads to reduction in one’s pulse rate. To test this hypothesis, eight non-jogging volunteers have agreed to begin a one-month jogging program. At the end of the month their pulse rates were determined and compared with their earlier values. Subject 12345678 Pulse rate before program 74 86 98 102 78 84 79 70 Pulse rate after program 70 85 90 107 71 80 69 74
(a) State the hypotheses.
(b) Calculate the test statistic, state the degrees of freedom and approximate the p- value.
(c) Would you reject H0 or fail to reject H0 at 5% level of significance? (d) What do you conclude about the effect of jogging for one month on pulse rate?
In: Statistics and Probability
The data below show sport preference and age of participant from a random sample of members of a sports club. Test if sport preference is independent of age at the 0.02 significant level.
H0: Sport preference is independent of age
Ha: Sport preference is dependent on age
| 18-25 | 26-30 | 31-40 | 41 and over | |
|---|---|---|---|---|
| Tennis | 43 | 60 | 56 | 44 |
| Swimming | 58 | 76 | 50 | 63 |
| Basketball | 74 | 61 | 65 | 49 |
a. Complete the table: Give all answers as decimals rounded to 4 places.
| Observed Frequency |
Expected Frequency |
(O−E)2E(O-E)2E |
|---|---|---|
| 43 | ||
| 60 | ||
| 56 | ||
| 44 | ||
| 58 | ||
| 76 | ||
| 50 | ||
| 63 | ||
| 74 | ||
| 61 | ||
| 65 | ||
| 49 | ||
| Total |
(b) What is the chi-square test-statistic for this data?
In: Statistics and Probability
A study entitled "Antidepressant Medication and Breast Cancer Risk" (Amer. J. of Epi, late 1990's) stated in the methods section of the paper that "Cases were an age-stratified (< 50 and ≥ 50 years of age) random sample of women aged 25-74 years diagnosed with primary breast cancer during 1995 and 1996 (pathology report confirmed) and recorded in the population-based Ontario Cancer Registry. As the 1-year survival for breast cancer is 90%, surrogate respondents were not used. Population controls, aged 25-74 years, were randomly sampled from the property assessment rolls of the Ontario Ministry of Finance; this database includes all home owners and tenants and lists age, sex, and address."
Question: Discuss the authors' approach to the identification of cases with respect to the potential for selection bias.
In: Statistics and Probability
Refer to Figure 15.1, which lists the prices of various Microsoft options. Use the data in the figure to calculate the payoff and the profit/loss for investments in each of the following July 2017 expiration options on a single share, assuming that the stock price on the expiration date is $72. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated by a minus sign. Round "Profit/Loss" to 2 decimal places.)
Figure 15.1:
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In: Statistics and Probability