A recent trend identified by The Joint Commission (TJC) concerns hospital discharge procedures for heart failure (HF) patients. This information is considered publicly reported data, meaning that the compliance of the facility is available to the public. Seven elements are required for each discharge—diet, fluid restriction, activity level, when to call a physician, time for the follow-up appointment, clear medication directions, and specific signs and symptoms of HF problems (peripheral edema, shortness of breath, activity intolerance). The quality assurance team is charged with achieving 100% compliance with indicators for each aspect of the discharge process.
A. What is the rationale for having publicly
reported data?
B. What is the quality indicator in this scenario?
C. Who might be included in the quality assurance team assembled
to look into this issue?
D. Describe how you could collect data for
compliance.
E. To achieve compliance, which procedures would need to be implemented regarding staff nurses?
In: Nursing
A random sample of 29 lunch customers was taken at a restaurant The average amount of time the customers in the sample stayed in the restaurant was 45 minutes with a standard deviation of 14 minutes.
a) Compute the standard error of the mean?
b) Construct a 68% confidence interval for the true average amount of time customers spent in the restaurant?
c) Construct a 90% confidence interval for the true average amount of time customers spent in the restaurant?
d) Discuss why the answers in parts (a) and (b) are different?
e) With a .95 probability, how large of a sample would have to be taken to provide a margin of error of 3 minutes or less?
In: Statistics and Probability
Suppose x has a distribution with μ = 27 and σ = 23.
(a) If a random sample of size n = 39 is drawn, find μx, σx and P(27 ≤ x ≤ 29).
| μx = |
| σx = |
| P(27 ≤ x ≤ 29) = |
(b) If a random sample of size n = 62 is drawn, find
μx, σx
and P(27 ≤ x ≤ 29).
| μx = |
| σx = |
| P(27 ≤ x ≤ 29) = |
In: Statistics and Probability
If a check correctly written and paid by the bank for $514 is incorrectly recorded in the company's books for $541, how should this error be treated on the bank reconciliation?
Multiple Choice
Subtract $27 from the bank's balance.
Subtract $27 from the book balance.
Add $27 to the bank's balance.
Subtract $27 from the bank's balance and add $45 to the book's balance.
Add $27 to the book balance.
In: Accounting
1. A supervisor suggests that the old computer program for estimating delivery times be abandoned. Instead, schedulers could use an alternative such as MapQuest to estimate driving times. As a pilot study, 500 recent deliveries were randomly selected. The Excel data listed below contains the following variables:
Actual Times: actual time required to make delivery
Old Model Deviations: difference in actual delivery time and predicted delivery time using old computer prediction model
MapQuest: predicted delivery times for the randomly selected routes using MapQuest
Use the data to calculate the deviations for the MapQuest estimates (DMapQuest = actual delivery time – MapQuest predicted delivery time), then construct an appropriate graph for comparing the deviations for the Old Computer model and the MapQuest model. Interpret the results and indicate which prediction model should be used in the future. (Do NOT include the calculated deviations here. Do include the graph and interpretation.)
2. A driver reads your answer to part (1) and makes the following comment: MapQuest gives driving times for cars. Driving times for trucks will probably be longer because we can’t go as fast, especially in city traffic. Is there some way to adjust the MapQuest prediction to make it fit trucks better? Construct a fitted line plot (scatterplot with fitted linear regression line) using the MapQuest times as the predictor variable and the actual times as the response variable. Call the fitted values ‘Adjusted MapQuest’ times. Provide the fitted line plot, regression equation and R2 values associated with the ‘Adjusted MapQuest’ times. Interpret your results and indicate whether the driver’s suggestion is valid or invalid.
3. Use the regression equation given in part (2) to provide ‘Adjusted MapQuest’ times for the sample of 500 deliveries and calculate the Adjusted Deviations = Actual times - Adjusted MapQuest times. (You do NOT need to put those values here.) Construct an appropriate graph for comparing the deviations associated with the Old Computer Model, the MapQuest model and Adjusted MapQuest model and include it here. Interpret the graph and recommend the modeling tool (method of predicting delivery times) you feel is most accurate.
|
Actual Times |
Old Model Deviation | MapQuest |
| 142 | 42 | 113 |
| 82 | -18 | 79 |
| 142 | 42 | 101 |
| 151 | 51 | 112 |
| 154 | 54 | 127 |
| 124 | 24 | 90 |
| 134 | 34 | 89 |
| 135 | 35 | 113 |
| 123 | 23 | 94 |
| 150 | 50 | 111 |
| 121 | 21 | 105 |
| 111 | 11 | 101 |
| 142 | 42 | 109 |
| 118 | 18 | 102 |
| 159 | 59 | 119 |
| 98 | -2 | 89 |
| 150 | 50 | 115 |
| 128 | 28 | 101 |
| 134 | 34 | 110 |
| 158 | 58 | 123 |
| 106 | 6 | 89 |
| 147 | 47 | 123 |
| 117 | 17 | 84 |
| 153 | 53 | 105 |
| 126 | 26 | 96 |
| 129 | 29 | 100 |
| 98 | -2 | 76 |
| 139 | 39 | 111 |
| 119 | 19 | 95 |
| 98 | -2 | 69 |
| 137 | 37 | 105 |
| 140 | 40 | 110 |
| 140 | 40 | 121 |
| 134 | 34 | 99 |
| 131 | 31 | 100 |
| 98 | -2 | 76 |
| 123 | 23 | 116 |
| 108 | 8 | 96 |
| 112 | 12 | 85 |
| 143 | 43 | 116 |
| 133 | 33 | 92 |
| 127 | 27 | 99 |
| 124 | 24 | 95 |
| 102 | 2 | 82 |
| 106 | 6 | 87 |
| 158 | 58 | 110 |
| 122 | 22 | 93 |
| 117 | 17 | 93 |
| 179 | 79 | 142 |
| 124 | 24 | 91 |
| 127 | 27 | 114 |
| 109 | 9 | 90 |
| 121 | 21 | 96 |
| 119 | 19 | 92 |
| 125 | 25 | 107 |
| 121 | 21 | 106 |
| 138 | 38 | 112 |
| 129 | 29 | 111 |
| 137 | 37 | 112 |
| 121 | 21 | 99 |
| 156 | 56 | 110 |
| 142 | 42 | 113 |
| 112 | 12 | 89 |
| 105 | 5 | 85 |
| 142 | 42 | 114 |
| 142 | 42 | 118 |
| 137 | 37 | 107 |
| 94 | -6 | 79 |
| 132 | 32 | 115 |
| 112 | 12 | 98 |
| 97 | -3 | 85 |
| 140 | 40 | 112 |
| 126 | 26 | 106 |
| 131 | 31 | 98 |
| 93 | -7 | 81 |
| 161 | 61 | 115 |
| 113 | 13 | 87 |
| 108 | 8 | 81 |
| 117 | 17 | 102 |
| 147 | 47 | 108 |
| 113 | 13 | 98 |
| 92 | -8 | 83 |
| 136 | 36 | 106 |
| 118 | 18 | 88 |
| 120 | 20 | 84 |
| 82 | -18 | 68 |
| 139 | 39 | 111 |
| 121 | 21 | 101 |
| 157 | 57 | 129 |
| 150 | 50 | 110 |
| 133 | 33 | 95 |
| 118 | 18 | 107 |
| 115 | 15 | 93 |
| 144 | 44 | 110 |
| 124 | 24 | 110 |
| 110 | 10 | 77 |
| 145 | 45 | 112 |
| 172 | 72 | 123 |
| 111 | 11 | 88 |
| 134 | 34 | 106 |
| 131 | 31 | 103 |
| 118 | 18 | 116 |
| 122 | 22 | 100 |
| 118 | 18 | 93 |
| 132 | 32 | 108 |
| 109 | 9 | 100 |
| 100 | 0 | 83 |
| 111 | 11 | 97 |
| 109 | 9 | 82 |
| 141 | 41 | 102 |
| 124 | 24 | 108 |
| 85 | -15 | 67 |
| 126 | 26 | 97 |
| 140 | 40 | 114 |
| 121 | 21 | 102 |
| 148 | 48 | 118 |
| 110 | 10 | 92 |
| 164 | 64 | 127 |
| 136 | 36 | 106 |
| 138 | 38 | 107 |
| 142 | 42 | 100 |
| 112 | 12 | 96 |
| 129 | 29 | 94 |
| 151 | 51 | 112 |
| 122 | 22 | 97 |
| 100 | 0 | 73 |
| 124 | 24 | 98 |
| 141 | 41 | 115 |
| 126 | 26 | 106 |
| 120 | 20 | 92 |
| 105 | 5 | 97 |
| 144 | 44 | 92 |
| 136 | 36 | 107 |
| 99 | -1 | 94 |
| 97 | -3 | 102 |
| 93 | -7 | 86 |
| 132 | 32 | 97 |
| 130 | 30 | 108 |
| 89 | -11 | 76 |
| 107 | 7 | 82 |
| 128 | 28 | 91 |
| 108 | 8 | 98 |
| 134 | 34 | 101 |
| 122 | 22 | 93 |
| 135 | 35 | 105 |
| 118 | 18 | 95 |
| 121 | 21 | 98 |
| 98 | -2 | 78 |
| 104 | 4 | 82 |
| 117 | 17 | 83 |
| 135 | 35 | 112 |
| 175 | 75 | 131 |
| 120 | 20 | 113 |
| 94 | -6 | 81 |
| 106 | 6 | 95 |
| 132 | 32 | 110 |
| 116 | 16 | 98 |
| 137 | 37 | 99 |
| 81 | -19 | 73 |
| 122 | 22 | 93 |
| 101 | 1 | 85 |
| 126 | 26 | 111 |
| 148 | 48 | 116 |
| 136 | 36 | 109 |
| 90 | -10 | 85 |
| 135 | 35 | 102 |
| 138 | 38 | 111 |
| 158 | 58 | 125 |
| 118 | 18 | 94 |
| 120 | 20 | 91 |
| 165 | 65 | 123 |
| 116 | 16 | 104 |
| 117 | 17 | 90 |
| 137 | 37 | 99 |
| 123 | 23 | 110 |
| 144 | 44 | 109 |
| 159 | 59 | 126 |
| 114 | 14 | 104 |
| 101 | 1 | 93 |
| 114 | 14 | 98 |
| 101 | 1 | 81 |
| 122 | 22 | 87 |
| 168 | 68 | 133 |
| 111 | 11 | 104 |
| 147 | 47 | 122 |
| 130 | 30 | 106 |
| 131 | 31 | 105 |
| 117 | 17 | 102 |
| 113 | 13 | 102 |
| 125 | 25 | 98 |
| 123 | 23 | 96 |
| 126 | 26 | 113 |
| 92 | -8 | 78 |
| 136 | 36 | 106 |
| 124 | 24 | 95 |
| 153 | 53 | 131 |
| 91 | -9 | 87 |
| 135 | 35 | 102 |
| 129 | 29 | 94 |
| 123 | 23 | 97 |
| 150 | 50 | 115 |
| 145 | 45 | 105 |
| 103 | 3 | 86 |
| 127 | 27 | 104 |
| 122 | 22 | 92 |
| 119 | 19 | 92 |
| 117 | 17 | 97 |
| 136 | 36 | 107 |
| 85 | -15 | 70 |
| 106 | 6 | 84 |
| 111 | 11 | 89 |
| 166 | 66 | 119 |
| 124 | 24 | 112 |
| 163 | 63 | 122 |
| 154 | 54 | 104 |
| 134 | 34 | 93 |
| 100 | 0 | 83 |
| 109 | 9 | 82 |
| 125 | 25 | 105 |
| 72 | -28 | 79 |
| 93 | -7 | 86 |
| 148 | 48 | 110 |
| 70 | -30 | 70 |
| 125 | 25 | 93 |
| 163 | 63 | 119 |
| 111 | 11 | 94 |
| 111 | 11 | 84 |
| 124 | 24 | 111 |
| 117 | 17 | 98 |
| 148 | 48 | 109 |
| 152 | 52 | 118 |
| 112 | 12 | 94 |
| 115 | 15 | 82 |
| 89 | -11 | 87 |
| 124 | 24 | 88 |
| 126 | 26 | 104 |
| 133 | 33 | 103 |
| 131 | 31 | 107 |
| 178 | 78 | 134 |
| 69 | -31 | 63 |
| 129 | 29 | 100 |
| 119 | 19 | 96 |
| 106 | 6 | 95 |
| 163 | 63 | 132 |
| 160 | 60 | 135 |
| 107 | 7 | 96 |
| 118 | 18 | 87 |
| 130 | 30 | 111 |
| 123 | 23 | 102 |
| 133 | 33 | 112 |
| 139 | 39 | 123 |
| 115 | 15 | 104 |
| 101 | 1 | 89 |
| 152 | 52 | 123 |
| 117 | 17 | 105 |
| 110 | 10 | 86 |
| 130 | 30 | 98 |
| 138 | 38 | 117 |
| 111 | 11 | 85 |
| 123 | 23 | 98 |
| 99 | -1 | 87 |
| 149 | 49 | 107 |
| 130 | 30 | 95 |
| 161 | 61 | 121 |
| 157 | 57 | 123 |
| 86 | -14 | 76 |
| 108 | 8 | 98 |
| 128 | 28 | 92 |
| 112 | 12 | 88 |
| 149 | 49 | 104 |
| 127 | 27 | 96 |
| 93 | -7 | 82 |
| 136 | 36 | 105 |
| 119 | 19 | 93 |
| 118 | 18 | 90 |
| 114 | 14 | 89 |
| 146 | 46 | 105 |
| 106 | 6 | 83 |
| 94 | -6 | 74 |
| 129 | 29 | 112 |
| 133 | 33 | 97 |
| 156 | 56 | 125 |
| 151 | 51 | 122 |
| 108 | 8 | 87 |
| 84 | -16 | 74 |
| 127 | 27 | 91 |
| 150 | 50 | 103 |
| 137 | 37 | 107 |
| 112 | 12 | 97 |
| 124 | 24 | 103 |
| 101 | 1 | 77 |
| 125 | 25 | 98 |
| 122 | 22 | 92 |
| 117 | 17 | 91 |
| 136 | 36 | 110 |
| 110 | 10 | 86 |
| 123 | 23 | 116 |
| 129 | 29 | 102 |
| 128 | 28 | 105 |
| 126 | 26 | 105 |
| 141 | 41 | 104 |
| 113 | 13 | 99 |
| 127 | 27 | 98 |
| 137 | 37 | 96 |
| 112 | 12 | 93 |
| 159 | 59 | 124 |
| 148 | 48 | 108 |
| 111 | 11 | 90 |
| 133 | 33 | 113 |
| 118 | 18 | 104 |
| 157 | 57 | 108 |
| 118 | 18 | 98 |
| 147 | 47 | 125 |
| 118 | 18 | 94 |
| 125 | 25 | 109 |
| 110 | 10 | 85 |
| 105 | 5 | 97 |
| 75 | -25 | 74 |
| 130 | 30 | 100 |
| 127 | 27 | 110 |
| 93 | -7 | 70 |
| 123 | 23 | 99 |
| 114 | 14 | 94 |
| 159 | 59 | 129 |
| 113 | 13 | 108 |
| 89 | -11 | 78 |
| 131 | 31 | 102 |
| 154 | 54 | 138 |
| 90 | -10 | 74 |
| 98 | -2 | 87 |
| 139 | 39 | 114 |
| 136 | 36 | 107 |
| 103 | 3 | 76 |
| 114 | 14 | 96 |
| 126 | 26 | 98 |
| 147 | 47 | 117 |
| 101 | 1 | 74 |
| 133 | 33 | 92 |
| 143 | 43 | 109 |
| 110 | 10 | 95 |
| 98 | -2 | 89 |
| 121 | 21 | 88 |
| 113 | 13 | 91 |
| 149 | 49 | 123 |
| 128 | 28 | 97 |
| 133 | 33 | 103 |
| 116 | 16 | 94 |
| 176 | 76 | 124 |
| 117 | 17 | 99 |
| 118 | 18 | 99 |
| 92 | -8 | 89 |
| 96 | -4 | 77 |
| 126 | 26 | 90 |
| 81 | -19 | 72 |
| 139 | 39 | 108 |
| 107 | 7 | 93 |
| 76 | -24 | 64 |
| 133 | 33 | 107 |
| 109 | 9 | 79 |
| 137 | 37 | 111 |
| 127 | 27 | 101 |
| 136 | 36 | 103 |
| 134 | 34 | 95 |
| 100 | 0 | 83 |
| 103 | 3 | 88 |
| 106 | 6 | 75 |
| 125 | 25 | 101 |
| 120 | 20 | 101 |
| 127 | 27 | 94 |
| 129 | 29 | 99 |
| 148 | 48 | 110 |
| 108 | 8 | 92 |
| 123 | 23 | 106 |
| 136 | 36 | 118 |
| 162 | 62 | 116 |
| 113 | 13 | 81 |
| 136 | 36 | 108 |
| 119 | 19 | 96 |
| 135 | 35 | 113 |
| 144 | 44 | 91 |
| 166 | 66 | 124 |
| 143 | 43 | 114 |
| 90 | -10 | 74 |
| 146 | 46 | 111 |
| 167 | 67 | 124 |
| 128 | 28 | 107 |
| 125 | 25 | 96 |
| 112 | 12 | 93 |
| 151 | 51 | 122 |
| 73 | -27 | 76 |
| 125 | 25 | 104 |
| 116 | 16 | 94 |
| 116 | 16 | 101 |
| 103 | 3 | 100 |
| 104 | 4 | 86 |
| 133 | 33 | 104 |
| 166 | 66 | 119 |
| 125 | 25 | 107 |
| 148 | 48 | 108 |
| 147 | 47 | 117 |
| 85 | -15 | 78 |
| 123 | 23 | 95 |
| 98 | -2 | 91 |
| 145 | 45 | 120 |
| 148 | 48 | 115 |
| 101 | 1 | 80 |
| 131 | 31 | 110 |
| 115 | 15 | 90 |
| 99 | -1 | 84 |
| 146 | 46 | 120 |
| 129 | 29 | 107 |
| 91 | -9 | 77 |
| 116 | 16 | 92 |
| 126 | 26 | 92 |
| 90 | -10 | 69 |
| 125 | 25 | 92 |
| 143 | 43 | 101 |
| 114 | 14 | 94 |
| 144 | 44 | 107 |
| 76 | -24 | 82 |
| 124 | 24 | 97 |
| 151 | 51 | 123 |
| 133 | 33 | 101 |
| 103 | 3 | 91 |
| 103 | 3 | 97 |
| 124 | 24 | 108 |
| 96 | -4 | 77 |
| 132 | 32 | 107 |
| 142 | 42 | 108 |
| 136 | 36 | 110 |
| 124 | 24 | 104 |
| 146 | 46 | 123 |
| 97 | -3 | 83 |
| 99 | -1 | 90 |
| 118 | 18 | 81 |
| 117 | 17 | 101 |
| 135 | 35 | 116 |
| 151 | 51 | 123 |
| 124 | 24 | 88 |
| 115 | 15 | 92 |
| 142 | 42 | 111 |
| 92 | -8 | 90 |
| 117 | 17 | 88 |
| 148 | 48 | 116 |
| 146 | 46 | 114 |
| 167 | 67 | 122 |
| 114 | 14 | 91 |
| 149 | 49 | 109 |
| 123 | 23 | 102 |
| 111 | 11 | 100 |
| 106 | 6 | 92 |
| 126 | 26 | 103 |
| 148 | 48 | 117 |
| 108 | 8 | 83 |
| 108 | 8 | 85 |
| 166 | 66 | 137 |
| 140 | 40 | 103 |
| 119 | 19 | 85 |
| 126 | 26 | 94 |
| 132 | 32 | 92 |
| 141 | 41 | 118 |
| 157 | 57 | 127 |
| 142 | 42 | 112 |
| 145 | 45 | 100 |
| 81 | -19 | 77 |
| 119 | 19 | 112 |
| 153 | 53 | 112 |
| 97 | -3 | 78 |
| 123 | 23 | 91 |
| 121 | 21 | 91 |
| 121 | 21 | 89 |
| 120 | 20 | 106 |
| 104 | 4 | 83 |
| 97 | -3 | 70 |
| 159 | 59 | 122 |
| 106 | 6 | 83 |
| 180 | 80 | 134 |
| 144 | 44 | 108 |
| 152 | 52 | 120 |
| 120 | 20 | 98 |
| 126 | 26 | 102 |
| 101 | 1 | 89 |
| 131 | 31 | 109 |
| 94 | -6 | 86 |
| 106 | 6 | 79 |
| 124 | 24 | 95 |
| 145 | 45 | 118 |
| 168 | 68 | 111 |
| 123 | 23 | 95 |
| 130 | 30 | 95 |
| 113 | 13 | 94 |
| 137 | 37 | 110 |
| 90 | -10 | 90 |
| 93 | -7 | 79 |
| 147 | 47 | 112 |
| 146 | 46 | 108 |
| 125 | 25 | 97 |
| 128 | 28 | 99 |
| 132 | 32 | 97 |
| 119 | 19 | 77 |
In: Statistics and Probability
Test the given claim. Assume that a simple random sample is selected from a normally distributed population. Use either the P-value method or the traditional method of testing hypotheses.
Company A uses a new production method to manufacture aircraft altimeters. A simple random sample of new altimeters resulted in errors listed below. Use a 0.05 level of significance to test the claim that the new production method has errors with a standard deviation greater than 32.2 ft, which was the standard deviation for the old production method. If it appears that the standard deviation is greater, does the new production method appear to be better or worse than the old method? Should the company take any action?
negative 44−44,
7777,
negative 23−23,
negative 74−74,
negative 45−45,
1414,
1919,
5252,
negative 8−8,
negative 55−55,
negative 107−107,
negative 107−107
Find the test statistic.
chi squaredχ2equals=nothing
(Round to two decimal places as needed.)
Determine the critical value(s).
The critical value(s) is/are
nothing.
(Use a comma to separate answers as needed. Round to two decimal places as needed.)
Since the test statistic is
▼
less than
between
equal to
greater than
the critical value(s),
▼
rejectreject
fail to rejectfail to reject
Upper H 0H0.
There is
▼
insufficient
sufficient
evidence to support the claim that the new production method has errors with a standard deviation greater than 32.2 ft.
The variation appears to be
▼
greater
less
about the same
than in the past, so the new method appears to be
▼
better
worse
similar
, because there will be
▼
fewer
more
the same number of
altimeters that have errors. Therefore, the company
▼
should
should not
take immediate action to reduce the variation.
In: Statistics and Probability
Developing Job Descriptions for Red Lobster
Red Lobster operates over 670 casual-dining seafood restaurants in the US and Canada, employing more than 63,000 people. When Red Lobster developed a new business strategy to focus on value and improve its image, it established a new vision, mission, and goals for the company. The restaurant chain simplified its menu with the highest-quality seafood it could offer at mid-range prices, traded its restaurants’ tropical themes for a crisp, clean look with white-shirt-and-black-pants uniforms for its employees, and added Northeastern coastal imagery to its menu and Web-site. Executing the new mission and differentiation strategy required hiring fun, hospitality-minded people who shared its values.
Although Red Lobster had not had any problem with hiring restaurant managers, the company felt that the managers it hired did not always reflect Red Lobster’s strategy, vision, and values. The company feels that their old job descriptions do not convey the passion and creativity that the new strategy requires from its employees. They want their job descriptions to help bolster recruitment of the kind of managers that will help advance the mission and create restaurant environments where employees feel motivated and customers feel welcome upon entering the establishment and positive about their experience when they leave.
The Charge
You have been hired as a consultant to help Red Lobster recruit management level staff. They have asked you to design an overall strategy that will help create job descriptions to improve the fit between its new management hires and its new business strategy. Job descriptions should help convey the importance of the Restaurant Manager position within the company and also in the restaurant itself. The process you design will help them, later on, develop other restaurant job descriptions for the service-level staff.
Question
Draw up a job description for the Red Lobster Restaurant Manager position that includes, at a minimum, the following:
Job title
Overall purpose statement - overall description of the broad function and scope of the position
List of duties or tasks performed critical to success
Decision-making requirements
Description of the relationships and roles within the company, including supervisory positions, subordinating roles and other working relationships
List of minimum qualifications and what experience/competencies an ‘ideal candidate’ would possess.
In: Operations Management
Analyse the Case
Shanghai is China’s financial and business hub. In late July 2004,
with daytime temperatures reaching 37 degrees Celsius, the city’s
electricity consumption surged to a weekly record of 14.35 million
kilowatt hours. The city authorities resorted to asking 2,100
businesses to operate at night, and a further 3,000 others to
adjust operating hours.
The Chinese government has certainly been working tirelessly to
resolve the power crisis. Thermal coal is the principal fuel used
to generate electric power in China. In July, Premier Wen Jiabao
exhorted, “Railway departments should do their utmost for the
transport of coal for electricity generation”. The Ministry of
Railways increased train speed and freight loads, and allocated 90%
of freight capacity to transport key materials. In the first half
of 2004, Chinese railways shipped 480 million tons of coal, up
12.2% over the same period last year.
The Ministry of Communications has also pitched in. It diverted
ships from overseas routes to domestic coal transport and approved
emergency coal transportation on various roads and waterways. China
is the world’s second-biggest coal exporter. In 2003, China
exported 93 million tons of coal, including 80.8 million tons of
thermal coal. To assure supplies to the electric power industry,
the Chinese government has limited coal exports to 80 million tons
in 2004. China Coal Import & Export Vice President Zhou
Dongzhou predicted that exports of thermal coal would fall to 70
million tons.
In the late 1990s, the Chinese government dissolved the Ministry of
Electric Power, and divided its functions between the State
Electricity Regulatory Commission (SERC) and the State Power
Corporation of China. The State Power Corporation owns five of the
six transmission grids (Northwest, North, Northeast, Central, and
East) and about half of the national generating capacity.
Regulation is necessary to ensure that the State Power Corporation
does not abuse its monopoly power.
The SERC regulates all aspects of the electricity industry, except
pricing. With regard to electricity pricing, the SERC’s role is to
advise the National Development Reform Commission (NDRC).
Some estimate that the nationwide power shortage will soon reach 30
million kilowatts, which is more than double Shanghai’s peak
consumption.
With China headed for a power crisis, the government is under
pressure to increase electricity prices. In June 2004, following
persistent rises in the cost of fuel, the NDRC increased
electricity prices by an average of 2.2 fen per kilowatthour in the
East, North, Central, and South grids. But, apparently, this
increase has not been sufficient. The threat of a power crisis
continues.
Analyze the case and answer the following
questions.
(a). Explain how the impact of a price increase on electricity
consumption depends on the price elasticity of demand. (7.5
Marks)
(b). The price elasticity of the Indian demand for electricity has
been estimated to be -0.65 among residential users and -0.45 among
industrial users. If these elasticity’s apply to China as well, how
will the impact of a price increase be spread between residential
as compared with industrial users? (7.5 Marks)
In: Economics
The Pew Internet and American Life Project reported in 2004 that “17% of current music down loaders say they are using paid services”. Consider a random sample of 400 music down loaders. Compute the probability that X equals the mean of X where X is the number of current music down loaders (You can use appropriate program). Find the mean of X. Find the probability?
In: Statistics and Probability
In December 2004, 44% of students in high school were satisfied with the lunches supplied through the school. In May 2010, an organization conducted a poll of 766 students in high school and asked if they were satisfied with the lunches supplied through the school. Of the 766 surveyed, 299 indicated they were satisfied. Does this suggest the proportion of students satisfied with the quality of lunches has decreased? (a) What does it mean to make a Type II error for this test? (b) If the researcher decides to test this hypothesis at the alpha=0.10 level of significance, compute the probability of making a Type II error, beta, if the true population proportion is 0.39. What is the power of the test? (c) Redo part (b) if the true population proportion is 0.43.
In: Statistics and Probability