The distribution of systolic blood pressures in a group of females with diabetes is approximately normal with unknown mean. Fortunately, the standard deviation is known: σ= 11.8 mm/Hg.

1. In a sample of 10 women from this group the mean systolic blood pressure was x̅= 130 mmHg. Calculate a two-sided 95% confidence interval for the true mean systolic blood pressure, μ, for the group of diabetic women
2. Repeat (a) but construct a 90% confidence interval instead.

How does the two confidence intervals compare

The term “free cash flow” is frequently applied to cash flows that differ from the definition for FCFF that should be used to value a firm. Two such definitions of free cash flow are given below. Compare these two definitions for free cash flow with the technically correct definition of FCFF used in the reading.

A. FCF = Net income + Depreciation and amortization − Cash dividends − Capital expenditures

B. FCF = Cash flow from operations (from the statement of cash flows) − Capital expenditures (130 words minimum)

You have completed a reaction and take the melting point of your resulting solid product and the melting point you measured on the melt-temp is 130 – 142°C. The product you were trying to make was chloramphenicol which has a literature melting point of 150 - 151.5°C.

(A) What are two possibilities for why your melting point is different from the literature melting point?

(B) How would you figure out which of your two possibilities actually happened?

Topic 7

Book: Operations and Supply Chain Management Jacobs & Chase 14e

14. Merrimac Manufacturing has always purchased a certain component part from a supplier on the East Coast for $40 per part. The supplier is reliable and has maintained the same price structure for years. Recent improvements in operations and reduced product demand have cleared up some capacity in Merrimac’s own plant for producing component parts. The particular part in question can be produced internally by Merrimac at $25 per part, with an annual fixed investment of $30,000.

a) Over what range (quantity) of product would each of the two options be the preferred one?

b) As an alternative, a new supplier located nearby is offering to produce parts on the following cost schedule. For the first 100 parts, the cost is $52 per part. For each part in excess of 100, the cost per unit drops to $35 per part. Considering just the two suppliers, over what range (quantity) of product would each supplier be the preferred one?

The time required to start a​ business, defined as the number of days needed to complete the procedures to legally operate a​ business, in 20 developed countries and 20 emerging countries is included in the accompanying table.

a. a. Assuming that the population variances for developed countries and emerging countries are​ equal, is there evidence of a difference in the mean time required to start a business between developed countries and emerging​ countries? (Use α=0.05.)

Let μ1 be the mean time required to start a business in developed countries and let μ2 be the mean time required to start a business in emerging countries. What are the null and alternative​ hypotheses?

b. What is the test​ statistic? ​(Round to two decimal places.)

c. What​ is/are the critical​ value(s)?  ​(Round to two decimal places.)

d. Determine the​ p-value in​ (a) and interpret its meaning. ​(Round to three decimal places.)

e. Construct a 95% confidence interval estimate of the difference between the population means of developed countries and emerging countries. (Round to two decimal places.)

find the mean,variance and standard deviation for the following probability distribution

0 2 4 7 9

15 22 40 34 8

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $50. However, once built, the machine will last for 20 years and will require no maintenance. The machine takes one year to build and it will cost $1,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 3% per year, what should your buddy do?

1. To make the decision you need to calculate the net present value (NPV) of the machine.

The NPV of the machine is $????. (round to the nearest dollar, if negativ use -)

2. You convince your friend to improve the machine so that the amount of produced money will increase every year by 2% over the 20 years.

The NPV of the new machine is $????. (round to the nearest dollar, if negativ use -)

3. What is the IRR of the machine in b.?

The IRR of the machine is ????%. (round to two decimals)

7. Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand P= 50-Q. and both have marginal cost, MC=$20. The equilibrium output this market will be: a) 15 b) 20 c) 30 d) 40

Tasty Snacks, Inc., a regional snack foods company (corn chips, potato chips, etc.) in the northeast, is considering two alternative proposals for expansion into southeastern states. Alternative 1: Construct a single plant in Chattanooga, Tennessee with a monthly production capacity of 250,000 cases, a monthly fixed cost of $265,000, and a variable cost of $45 per case. Alternative 2: Construct three plants, one each in Birmingham, Alabama, Tallahassee, Florida, and Charlotte, North Carolina, with capacities of 100,000, 80,000 and 70,000, respectively, and monthly fixed costs of $180,000, $150,000, and $135,000 each. Variable costs would be only $44 per case because of lower distribution costs. To achieve these cost savings, sales from each smaller plant would be limited to demand within its home state. The total estimated monthly sales volume of 175,000 cases in these three southeastern states is distributed as follows: 70,000 cases in Florida, 60,000 cases in North Carolina, and 45,000 cases in Alabama.

A.   Assuming a wholesale price of $50 per case, calculate the breakeven output quantities for each alternative.
  
B.   At a wholesale price of $50 per case in all states, and assuming sales at the projected levels, which alternative expansion scheme provides Tasty Snacks with the highest profit per month?
  
C.   If sales increase to production capacities, which alternative would prove to be more profitable?