A start-up company has 2000 investors, that company loses investors at a rate of 10 per year. Every time the company loses an investor, the company gets a loss of $200,000. For every investor that remains the company makes a profit of $2,000. Let F be the total earnings the company makes in a year, and X be the number of investors the company loses.
1)Write a function that calculates yearly earnings F as a function of X
2)Find P(F < 0), the probability that earnings are negative
3)E[F]
4)What is the probability that the company loses exactly 5 investors in a given year, given that they have not lost any investors in the first half of the year
In: Statistics and Probability
For a regression of test score (T) on the endogenous variable student-teacher ratio (R), Hoxby (2000) suggests using as an instrument the deviation of potential enrollment from its long-term trend (P), where "potential enrollment" means how many children of kindergarten age there are (whether or not they attend public school). Which of the following arguments would NOT support P as an instrument for R?
| a. | Due to high adjustment costs of buildings and teachers and the small/discrete number of classrooms per school, schools cannot perfectly adjust each year to maintain a target student-teacher ratio |
| b. | Parents with young children are more likely to move into good school districts with low student-teacher ratio |
| c. | There are fluctuations in birth rate due to sheer random chance |
| d. | Changes in school district quality are slow and contribute to the long-term enrollment trend, but not deviations from the trend |
PLEASE PROVIDE EXPLANATION IN ANSWER
In: Statistics and Probability
Using the below data, compare the average salary in 1999-2000 by region to 2014-15 by region. Which groups had statistically significant increases? Decreases? Please use excel to solve and show the steps.
Average Salary by Region:
| Northeast | South | Midwest | West | |
| 1999-00 | 45,312 | 39,424 | 38,188 | 38,604 |
| 2014-15 | 65,559 | 54,998 | 52,666 | 54,440 |
In: Statistics and Probability
Suppose that GLC earns a $2000 profit each time a person buys a
car. We want to determine how the expected profit earned from a
customer depends on the quality of GLC's cars. We assume a typical
customer will purchase 10 cars during her lifetime. She will
purchase a car now (year 1) and then purchase a car every five
years—during year 6, year 11, and so on. For simplicity, we assume
that Hundo is GLC's only competitor. We also assume that if the
consumer is satisfied with the car she purchases, she will buy her
next car from the same company, but if she is not satisfied, she
will buy her next car from the other company. Hundo produces cars
that satisfy 80% of its customers. Currently, GLC produces cars
that also satisfy 80% of its customers. Consider a customer whose
first car is a GLC car. If profits are discounted at 10% annually,
use simulation to estimate the value of this customer to GLC. Round
your answers to one decimal digit.
$
Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.
| Satisfaction rating | Customer value to GLC |
| 85% | $ |
| 90% | $ |
| 95% | $ |
In: Statistics and Probability
TOTAL RECALL
In mid-2000, the Firestone Tire Company issued a recall of some of its tires – those mounted on certain sport-utility vehicles (SUVs) of the Ford Motor Company. This was done in response to reports that tire treads on some SUVs separated in use, causing accidents, some of which involved fatal injuries as vehicles rolled over.
At first, Firestone denied there was a problem with its tires, but it issued the recall under pressure from consumer groups and various government agencies. All of the tires in question were produced at the same tire plant, and there were calls to shut down that facility. Firestone suggested that Ford incorrectly matched the wrong tires with its SUVs. There was also the suggestion that the shock absorbers of the SUVs were rubbing against the tires, causing or aggravating the problem.
Both Ford and Firestone denied that this had been an ongoing problem. However, there was a public outcry when it was learned that Firestone had previously issued recalls of these tires in South America, but had not informed officials in other countries. Moreover, both companies had settled at least one lawsuit involving an accident caused by tread separation several years earlier.
This case raises a number of issues, some related to possible causes, as well as ethical issues.
Discuss each of these factors and their actual or potential relevance to what happened.
a. Product design
b. Quality control
c. Ethics
In: Operations Management
the relationship between nominal exchange rate and relative prices .from the annual observations from 2000 to 2014, the following regression result were obtained , where Y =exchange rate of the Nigeria naira to the America dollar (#/$) and X=ratio of the US consumer price index to the Nigerian consumer price index ; that is X represent the relative prices in the two countries Y estimate =6.682- 4.318X. r=0.528, SE =(1.22) (1.333). interprete this regression. How would you interpret r^2. does the negative value of X make economic sense. what is underlying economic theory.
In: Economics
Write a 2000 word report about the reward issues at Ritzy Cinema in south London. Ritzy Cinema is owned by Picturehouse. Use appropriate theoretical models to critically evaluate the reward problems experienced, particularly reward implementation issues. Address the situation from the point of view of the: 1. Picturehouse, the owners of Ritzy Cinema 2. Ritzy Cinema employees 3. Trade union Provide appropriate recommendations for how the situation might be resolved to the mutual benefit of all parties, which could prevent unrest happening in the future. Your recommendations should be logical, viable and scheduled. Also offer some costings.
In: Operations Management
In: Economics
The outstanding capital stock of Teal Corporation consists of
2000 shares of $100 par value, 9% preferred, and 5400 shares of $50
par value common.
Assuming that the company has retained earnings of $89000, all of
which is to be paid out in dividends, and that preferred dividends
were not paid during the 2 years preceding the current year, state
how much each class of stock should receive under each of the
following conditions.
(a) The preferred stock is noncumulative and
nonparticipating. (Round answers to 0 decimal places,
e.g. $38,487.)
|
Preferred |
Common |
|
|---|---|---|
| $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |
(b) The preferred stock is cumulative and
nonparticipating. (Round answers to 0 decimal places,
e.g. $38,487.)
|
Preferred |
Common |
|
|---|---|---|
| $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |
(c) The preferred stock is cumulative and
participating. (Round the rate of participation to 4
decimal places, e.g.1.4278%. Round answers to 0 decimal places,
e.g. $38,487.)
|
Preferred |
Common |
|
|---|---|---|
| $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |
In: Accounting
A 2000 V single-phase synchronous generator is being used as a
backup
generator outside a diagnostic center. When the generator
terminals are short-circuited and a field excitation current of 2.5
A is passed, the
ammeter between the terminals read 100 A of full load current. If
the terminals
of the same generator are opened and the voltage across them is
measured using
a voltmeter, we get the value of 500 V with the same excitation
current. The
armature resistance is 0.8 ohms.
Determine the voltage regulation of this generator if it is
delivering 100 A
during normal operation with unity power factor, 100 A with 0.8
leading PF,
and with 0.71 lagging PF.
(Hint: Synchronous Impedance = (0.C Voltage) / (S.C Current))
In: Electrical Engineering