2.         Complete the following in regard to the footlength and height categories of the data set:                                                                                                     

a.   In the region to the right, produce a scatterplot of the height versus footlength data (remember this means footlength runs along the horizontal axis as the independent variable and height along the vertical axis as the dependent variable.)  Based upon your scatterplot, briefly discuss below your thoughts on whether the “visual” trend between the individuals’ footlength and height appears linear, curvilinear, or has no general trend at all.                                                                                      

b.  Complete the following:                                                                                      

      i.           Include the trend line's graph and equation on the scatterplot created in part a.  Give the line's equation below and explain within this context what the "x" and "y" variables represent in the equation.                                                                                

ii.         Below, explicitly state the slope of your trend line and discuss what the value of the slope signifies in terms of this context.   

c.          Determine the value of the correlation coefficient (r) for this paired data.  Explain what this value tells you regarding these two variables.  Determine the value of the coefficient of determination (r^2) for this paired data.  Explain what this value tells you regarding these two variables.                                                                    

d.         Using the predicition equation from part bi. above, predict the height of an individual whose footlength is 24.5 cm.                                                                   

e.         Finally, critique the statement “since the correlation coefficient is statistically significant then this means that having a long foot causes one to be tall.”  Specifically, address the issue of “causation” in relation to significant statistical correlation.

The Stellar Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Stellar has decided to locate a new factory in the Panama City area. Stellar will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs.

Building A: Purchase for a cash price of $610,000, useful life 27 years.

Building B: Lease for 27 years with annual lease payments of $70,500 being made at the beginning of the year.

Building C: Purchase for $656,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,570. Rental payments will be received at the end of each year. The Stellar Inc. has no aversion to being a landlord.

Click here to view factor tables

In which building would you recommend that The Stellar Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The Sarasota Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Sarasota has decided to locate a new factory in the Panama City area. Sarasota will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $610,000, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $70,500 being made at the beginning of the year. Building C: Purchase for $656,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,570. Rental payments will be received at the end of each year. The Sarasota Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Sarasota Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value Building A $enter a dollar amount rounded to 0 decimal places Building B $enter a dollar amount rounded to 0 decimal places Building C $enter a dollar amount rounded to 0 decimal places The Sarasota Inc. should locate itself in select a building

The Indigo Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Indigo has decided to locate a new factory in the Panama City area. Indigo will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $610,000, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $70,500 being made at the beginning of the year. Building C: Purchase for $656,700 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,570. Rental payments will be received at the end of each year. The Indigo Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Indigo Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Net Present Value Building A $Entry field with correct answer Building B $Entry field with incorrect answer Building C $Entry field with correct answer The Indigo Inc. should locate itself in Entry field with correct answer

The Larkspur Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Larkspur has decided to locate a new factory in the Panama City area. Larkspur will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs.

Building A: Purchase for a cash price of $610,600, useful life 27 years.

Building B: Lease for 27 years with annual lease payments of $70,870 being made at the beginning of the year.

Building C: Purchase for $657,200 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,110. Rental payments will be received at the end of each year. The Larkspur Inc. has no aversion to being a landlord.

Click here to view factor tables

In which building would you recommend that The Larkspur Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Net Present Value

Building A

$enter a dollar amount rounded to 0 decimal places

Building B

$enter a dollar amount rounded to 0 decimal places

Building C

$enter a dollar amount rounded to 0 decimal places

show work and explain

A large advertising firm specializes in creating television commercials for children’s products. The firm wants to design a study to investigate factors that may affect the lengths of time a commercial is able to hold a child’s attention. A preliminary study determines that two factors that may be important are the age of the child and the type of product being advertised. The firm wants to determine whether there were large differences in the mean length of time that the commercial is able to hold the child’s attention depending on these two factors. If there proves to be a difference, the firm would then attempt to determine new types of commercials depending on the product and targeted age group. Three age groups are used: A1: 5-6 years, A2: 7-8 years, and A3: 9-10 years. The types of products selected are P1: Breakfast cereals and P2: Video games. The data are below:

a. Create a two-way ANOVA table in Excel.

b. Summarize your findings.

CASE 1-WI-FI INC.

OVERVIEW

Attach Wi-Fi to a broadband modem and any nearby computer equipped with Wi-Fi receptors and you can log on to the Net. Wi-Fi networks, known as hot spots have popped up so tfast that more than 18 million people worldwide have logged on, and the numbers are growing daily. The challenge is to transform this innovation into a global business, developing coherent and dependable networks, coming up with billing systems, roaming agreements, and technical standards. Wi-Fi could extend dramatically the range and expanse of the Web, changing its vary nature.

The potential productivity gains are so compelling that many companies are investing in custom-built systems, without waiting for a fine-tuned industrial version of Wi-Fi to hit the market. As more companies compete, prices are plummeting. It costs only $2,000 to install a hot spot, one-fifth what it was two years ago. Although corporations are interested in the power and flexibility of Wi-Fi networks, many are postponing rollouts in strategic areas until they are convinced it is secure. A possible solution is the overlap between Wi-Fi and the high-speed cellular system, known as Third Generation (3G) that also promises a wireless internet access with broader coverage.

The benefits are impressive: Wi-Fi turns every machine, from laptops to cash registers into network devices. And it fuels demand for always-on broadband connections. The consumer-electronics industry is counting on Wi-Fi, to link a host of appliances in the home. Cellular manufacturers are working on Wi-Fi phones that would let people move seamlessly from Wi-Fi to cellular networks. Starbucks and McDonald’s have installed Wi-Fi networks in their stores to attract new customers and boost sales.

The challenge is to build Wi-Fi into a solid pillar of the networked world. Intel assigned 800 engineers to work on Wi-Fi and in December 2002 joined IBM and AT&T to launch Cometa to build and have running 5,000 hot spots by March 2004. Intel is also building new chips; The Centrino family of chips embeds a Wi-Fi receptor into a laptop computer. Every Dell computer laptop and 70% of H-P consumer offerings will be Wi-Fi ready. However, Wi-Fi isn’t likely to become rock-solid standard until hot spots are dependable, and security systems satisfy the most demanding customers.

DISCUSSION QUESTIONS:

1. Define the product-market within which wireless networks are positioned.

B)Analyze the wireless network market, forecast the future directions of the market, and identify the possible consequences.

C)Indicate possible variables that may be useful in segmenting the wireless networks market

D)-Discuss the innovation challenges confronting companies competing in the wireless network market.

A group of 20 prisoners in a particular cellblock were tested on their knowledge of the

rules of the institution. The marks (out of a possible score of 70) were as follows:

31, 28, 27, 19, 18, 18, 41, 0, 30, 27, 27, 36, 41, 64, 27, 39, 20, 28, 35, 30.

a) Calculate the range, variance and standard deviation for these data.

b) Remove the largest and smallest scores. Re-calculate the range, variance and

standard deviation.

c) Compare the measures of dispersion for the two distributions. Are there any

differences? If so, how would you account for them?

1. If a monopolistic competitive firm raises its price, then a.it should expect to lose all of its customers because there are many other sellers of the product b.this is a trick question because the firm does not have the ability to change its price c.it should expect to lose some but not all of its customers d.it will be able to increase its profits e.it can sell all it wants because it faces a horizontal demand curve

2. Compared to a monopolistic competitor a monopolist produces a good with ____ substitutes and so has a ____ elastic demand curve. A.fewer, more b.fewer, less c.more, more d.more, less

3. The demand curve facing a monopolistic competitive firm will be ____ than the demand curve facing a perfectly competitive firm because the price elasticity of demand for the monopolistic competitive firm’s product is ____ than that for the perfectly competitive firm. A.steeper, greater b.flatter, greater c.steeper, less d.flatter, less

4. The relationship between a monopolistic competitor’s marginal revenue curve and its demand curve is that the a.two curves coincide and are horizontal at the market price b.marginal revenue curve lies above the demand curve and the demand curve is horizontal at the market price c.marginal revenue curve lies below the demand curve and both are downward sloping d.two curves coincide and are downward sloping to the right e.marginal revenue curve lies above the demand curve and both are downward sloping

5. Why cant an economist say for certain that a monopolistic competitive firm will always earn zero economic profits in the long run? A.barriers to entry-exit b.the very large number of buyers indicates that there will always be demand for the firm’s product c.the firms in the industry do not produce identical products d.the firms practice price competition so at least some forms will always be charging a lower price than other firms and will sell more as a result e.the firms face a horizontal demand curve

6. If a perfectly competitive firm and a monopolistic competitor in long-run equilibrium face the same demand and cost curves, then the competitive firm will produce a a.greater output and charge a lower price than the monopolistic competitor. B.greater output but change the same price as the monopolistic competitor. C.greater output and charge a higher price than the monopolistic competitor. D.smaller output and charger a higher price than the monopolistic competitor. E.smaller output and charge a higher price than the monopolistic competitor.

7. Probably the most significant barrier to entry into an oligopolistic market is a.patent rights b.exclusive ownership of essential resources c.legal barriers d.economies of scale e.copyrights

8. A concentration ratio indicates the a.numberof firms in an industry b.number of large firms in an industry compared to the number of large firms in another related industry c.percentage of total sales accounted for by the (for example) four largest firms d.percentage of sellers in an industry relative to the number of buyers e.percentage of sellers in an industry protected by barriers to entry relative to the number of sellers that wish to enter

9. The percentage of sales accounted for by X number of firms in the industry is called the a.concentration ratio b.oligopoly rate c.interdependence rate d.market power index

10. The concentration ratio provides a measure of the extent to which an industry a.produces a useful product b.is dominated by a smaller number of firms c.is earning economic profit d.is earning accounting profits

11. In the real-world which of these industries is most clearly an oligopoly? A.wheat b.electricity generation c.cereal breakfast foods d.restaurants