A regional planner employed by a public university is studying the demographics of nine counties in the eastern region of an Atlantic seaboard state. She has gathered the following data:
| ounty | Median Income | Median Age | Coastal | ||
| A | $ | 48,952 | 48.3 | 1 | |
| B | 46,669 | 58.8 | 1 | ||
| C | 47,780 | 48.0 | 0 | ||
| D | 46,855 | 39.2 | 1 | ||
| E | 37,724 | 51.9 | 1 | ||
| F | 35,414 | 56.2 | 1 | ||
| G | 34,389 | 49.1 | 0 | ||
| H | 38,128 | 30.3 | 0 | ||
| I | 30,384 | 38.9 | 0 | ||
Include the aspect that the county is "coastal" or not in a multiple linear regression analysis using a "dummy" variable. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Income= _____________ + ______________ Median Age + ____________ Coastal
Test each of the individual coefficients to see if they are significant. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
Predictor t p-value
Constant
Median Age
Coastal
In: Statistics and Probability
The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each corporate member of the center (there are currently 10) receives seven free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event:
| Rental cost for the auditorium: | $150 |
| Registration Processing: | $8.50 per person |
| Speaker Costs: | 3@$800 = $2,400 |
| Continental Breakfast: | $4.00 per person |
| Lunch: | $7.00 per person |
| Parking: | $5.00 per person |
| (a) | The Center for Business Analytics is considering a refund policy for no-shows. No refund would be given for members who do not attend, but nonmembers who do not attend will be refunded 50% of the price. Build a spreadsheet model that calculates a profit or loss based on the number of nonmember registrants. Account for the fact that, historically, 25% of members who registered do not show and 10% of registered nonmembers do not attend. The center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the center only pays for parking for those who attend. What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register? If required, round your answers to two decimal places. | ||||||||||||||||||||||||||||
| $ | |||||||||||||||||||||||||||||
| (b) | Use a two-way data table to show how profit changes as a function of number of registered nonmembers and the no-show percentage of nonmembers. Vary number of nonmember registrants from 80 to 160 in increments of 5 and the percentage of nonmember no-shows from 10% to 30% in increments of 2%. In which interval of nonmember registrants does breakeven occur if the percentage of nonmember no-shows is 22%? | ||||||||||||||||||||||||||||
| Breakeven appears in the interval of to registered nonmembers. | |||||||||||||||||||||||||||||
| (c) | Consider three scenarios: | ||||||||||||||||||||||||||||
|
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| All other inputs are the same as in part (a). Use Scenario Manager to generate a summary report that gives the profit for each of these three scenarios. What is the highest profit? What is the lowest profit? If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign. | |||||||||||||||||||||||||||||
| The highest profit is $ . | |||||||||||||||||||||||||||||
| The lowest profit is $ . | |||||||||||||||||||||||||||||
In: Accounting
Winnipeg district sales manager of Far End Inc. a university textbook publishing company, claims that the sales representatives makes an average of 40 calls per week on professors. Several representatives say that the estimate is too low. To investigate, a random sample of 28 sales representatives reveals that the mean number of calls made last week was 42 and variance is 4.41. Conduct an appropriate hypothesis test, at the 5% level of significance to determine if the mean number of calls per salesperson per week is more than 40.
(a) Provide the hypothesis statement
(b) Calculate the test statistic value
(c) Determine the probability value
(d) Provide an interpretation of the P-value (1 Mark)
Note: if you need to use symbols , please use "u" for population mean "μ", Ho and Ha for for the null and alternate hypothesis, "Y-hat" for "ŷ", "alpha" for α Please provide your answers to the above questions by typing your answers using simple text. You need not show the work in detail.
In: Statistics and Probability
Winnipeg district sales manager of Far End Inc. a university textbook publishing company, claims that the sales representatives makes an average of 20 calls per week on professors. Several representatives say that the estimate is too low. To investigate, a random sample of 28 sales representatives reveals that the mean number of calls made last week was 44 and variance is 2.41.
Conduct an appropriate hypothesis test, at the 5% level of significance to determine if the mean number of calls per salesperson per week is more than 40.
(a) Provide the hypothesis statement
(b) Calculate the test statistic value
(c) Determine the probability value
(d) Provide an interpretation of the P-value (1 Mark)
In: Statistics and Probability
You have been hired by the Coca-Cola Company to determine if students at Oregon State University prefer Coke or Pepsi. A taste test was performed where students were given two identical cups and were asked to taste both drinks. They had to report which drink they prefer. It was found that 69 out of 125 students indicated they preferred cup that contained Coke.
1. (4 pts) What is the random variable in this problem? Does the random variable have a binomial distribution? Explain. (Recall, there are 4 checks for a discrete random variable to have a binomial distribution – make sure you list all 4. Discuss in detail if you think the “observations are independent of each other”.)
2. (1 pt) What does ?? represent in the context of this study?
3. (1 pt) Calculate the sample proportion, ??̂, of students in the sample prefer Coke. Show work.
4. Perform a hypothesis test to determine if OSU students prefer one brand over the other by answering the following questions:
a. (3 pts) State the null and alternative hypotheses in statistical notation. Define any notation used. (Hint: if there really is no preference, would be expect 50% to prefer Coke and 50% to prefer Pepsi?)
b. (3 pts) Report the p-value and state a conclusion in a complete sentence in the context of the problem.
c. (3 pts) Report a 95% confidence interval for the proportion of all OSU students who prefer Coke. Interpret this confidence interval in the context of the problem.
5. (2 pts) Do you believe it is legitimate to use the results of this hypothesis test and confidence interval to make a conclusion about all OSU students? Why or why not?
In: Statistics and Probability
United Snack Company sells 60-pound bags of peanuts to
university dormitories for $28 a bag. The fixed costs of this
operation are $240,700, while the variable costs of peanuts are
$0.19 per pound.
a. What is the break-even point in bags?
b. Calculate the profit or loss (EBIT) on
11,000 bags and on 24,000 bags.
c. What is the degree of operating leverage at
19,000 bags and at 24,000 bags? (Round your answers to 2
decimal places.)
d. If United Snack Company has an annual interest
expense of $19,000, calculate the degree of financial leverage at
both 19,000 and 24,000 bags. (Round your answers to 2
decimal places.)
e. What is the degree of combined leverage at
both a sales level of 19,000 bags and 24,000 bags? (Round
your answers to 2 decimal places.)
In: Finance
United Snack Company sells 40-pound bags of peanuts to university
dormitories for $60 a bag. The fixed costs of this operation are
$671,600, while the variable costs of peanuts are $0.35 per
pound.
a. What is the break-even point in bags?
|
b. Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags.
|
c. What is the degree of operating leverage at
19,000 bags and at 24,000 bags? (Round your answers to 2 decimal
places.)
|
d. If United Snack Company has an annual interest
expense of $35,000, calculate the degree of financial leverage at
both 19,000 and 24,000 bags. (Round your answers to 2 decimal
places.)
|
e. What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? (Round your answers to 2 decimal places.)
|
In: Accounting
United Snack Company sells 40-pound bags of peanuts to
university dormitories for $42 a bag. The fixed costs of this
operation are $417,120, while the variable costs of peanuts are
$0.26 per pound.
a. What is the break-even point in bags?
b. Calculate the profit or loss (EBIT) on
12,000 bags and on 25,000 bags.
c. What is the degree of operating leverage at
20,000 bags and at 25,000 bags? (Round your answers to 2
decimal places.)
d. If United Snack Company has an annual
interest expense of $26,000, calculate the degree of financial
leverage at both 20,000 and 25,000 bags. (Round your
answers to 2 decimal places.)
e. What is the degree of combined leverage at
both a sales level of 20,000 bags and 25,000 bags? (Round
your answers to 2 decimal places.)
In: Finance
United Snack Company sells 60-pound bags of peanuts to university dormitories for $58 a bag. The fixed costs of this operation are $545,200, while the variable costs of peanuts are $0.34 per pound.
a. What is the break-even point in bags?
b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags.
c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.)
d. If United Snack Company has an annual interest expense of $34,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags. (Round your answers to 2 decimal places.)
e. What is the degree of combined leverage at both a sales level of 20,000 bags and 25,000 bags? (Round your answers to 2 decimal places.)
In: Finance
United Snack Company sells 60-pound bags of peanuts to
university dormitories for $40 a bag. The fixed costs of this
operation are $305,000, while the variable costs of peanuts are
$0.25 per pound.
a. What is the break-even point in bags?
|
b. Calculate the profit or loss (EBIT) on 5,000 bags and on 18,000 bags.
|
c. What is the degree of operating leverage at 17,000 bags and at 22,000 bags? (Round your answers to 2 decimal places.)
| Bags | Degree of Operating Leverage | |
| 17,000 | ||
| 22,000 | ||
d. If United Snack Company has an annual interest expense of $25,000, calculate the degree of financial leverage at both 17,000 and 22,000 bags. (Round your answers to 2 decimal places.)
| Bags | Degree of Financial Leverage | |
| 17,000 | ||
| 22,000 | ||
e. What is the degree of combined leverage at
both a sales level of 17,000 bags and 22,000 bags? (Round
your answers to 2 decimal places.)
| Bags | Degree of Combined Leverage | |
| 17,000 | ||
| 22,000 | ||
In: Finance