Part 2 – Construction Cost

A sub-contractor needs to decide which companies they should hire for each type of building they want to construct.

Below is the estimated time it should take (in hours) for each of the different types of buildings they work on.

Below are the hourly rates for some different construction companies in the area.

1. Input the information in the previous two tables in Excel. Make sure that you label all the information in your spreadsheet.

2. Use matrix multiplication to determine which companies can complete each project at the lowest cost. Label your new matrix with the appropriate labels.

3. Highlight the cells that give the lowest cost for each building project.

4. Make a table that clearly identifies which company should be hired for each project.

Nike has developed a prototype for a Nike-branded baseball that the firm plans to market to Major League baseball, college baseball, and high school baseball. They hope that the baseball is accepted as the new standard for most leagues, but the ball’s rate of market adoption is uncertain. In order to have the ball ready in 1 year, Nike would have to invest $50 million to set up contractual relationships with third-party contract manufacturers in China. The ball’s average total cost would be $0.50 and the selling price would be $1.50. Based on market surveys, Nike believes that there is a 25% chance of a high rate of adoption, in which 100 million balls will be sold annually forever, and a 75% chance of a low rate of adoption, in which 10 million balls will be sold annually forever. The adoption rate will be determined in one year when the first orders for the balls come in. The annual fixed costs associated with the project would be $30 million per year. Ignore tax effects and assume that Nike’s cost of capital is at 10% and the risk-free rate is 5%.

a) What is the NPV of the project based on the project’s expected future cash flows? Based on this measure, should Nike accept the project?
b) What is the embedded option in this project? Is the project worthwhile when considering the option?

Could you please write the business Industry Profile and Outlook for our new company which coaches canadian football.

Business Overview - Products/Services Offered

CanWest Scouting Combines will use an on-field testing regime similar to that of the NFL Combine in order to showcase athletes in various cities across Canada. High-school athletes who are looking to continue playing football will be provided with a unique event in Canada. Coaches and Scouts from Junior Football Programs and from USports Programs will be able to attend the combine in order to view these players in a way that was unavailable before. The Coaching staff working the camp will be volunteers from local higher level clubs. In exchange for their contribution to the camp, their fee for admission will be waived. The event will span two full days, splitting the athletes into an offence and a defence day. Athletes will be placed into groups based on the position they registered in and will begin their testing at different points of the day to ensure Coaches get to see the field drills of each position group. Athletes will receive high level coaching and Coaches will be able to work with the athletes they want on their teams in the future.

Industry Profile and Outlook Is

Write a brief description (one paragraph)

What business are you in?

How does the industry work?

How is the industry evolving? What are the predictions for the future? Are they valid and how does this affect the business ?

The reading speed of second grade students in a large city is approximately​ normal, with a mean of 90 words per minute​ (wpm) and a standard deviation of 10 wpm. Complete parts​ (a) through​ (f).

​(a) What is the probability a randomly selected student in the city will read more than 95 words per​ minute?

​(b) What is the probability that a random sample of 13 second grade students from the city results in a mean reading rate of more than 95 words per​ minute? then interpret this probability.

(c) What is the probability that a random sample of 26 second grade students from the city results in a mean reading rate of more than 95 words per​ minute? then interpret.

(d) What effect does increasing the sample size have on the​ probability? Provide an explanation for this result.

(e) A teacher instituted a new reading program at school. After 10 weeks in the​ program, it was found that the mean reading speed of a random sample of 20 second grade students was 92.3 wpm. What might you conclude based on this​ result? Select the correct choice below and fill in the answer boxes within your choice.

(f) There is a​ 5% chance that the mean reading speed of a random sample of 24 second grade students will exceed what​ value?

Careforall, The mayor of sickcity, claimed that his residents are very elastic and highly sensitive when the price of preventative care changes but not so sensitive when the price of inpatient care changes. To prove her point she referred back to the RAND studies. She claimed that the results of a replicated study in her town are shown below

Plan Average # of preventative care visits Average # of inpatient visits

Free 3.2 0.126

25% 2.54 0.122

50% 2.10 0.118

Careforall claimed that the best solution for her city is to provide free health care for all. The insurance companies replied that they will not be able to provide such a service. As a health adviser, you need to draft a proposal where you can design a health coverage that will be optimum for the citizen and provide insurance companies with a profitable market. Assume that the average cost of a preventative visit is $75 and the average cost of an inpatient care is $2700 and that the current plan ask patients to contribute 25% of the cost as a copay.

There are two towns. In one of them, about 1/6 of them are infected by a virus, while the other is free of disease. You have no idea which town is infected and which is not.

But you do have a test to detect this virus in patients. It is a time consuming test, so you can only do the test twice.

If a person has the virus, then the test shows positive for the virus (with probability 1).

If not, the test still shows a positive with probability 1/5.

You can do the test twice.

Should you administer the test on the same person twice or administer it on two different people? At this point of your knowledge, you will think there a lot of leeway in how you can model this problem. So specify exactly what criteria you use to decide between the two choices (administer on the same person twice or administer on two different people).

Compute all the relevant probabilities and justify your decision based on your criteria.

The owner of a local golf course wants to determine the average age of the golfers that play on the course in relation to the average age in the area. According to the most recent census, the town has an average age of 63.248. In a random sample of 28 golfers that visited his course, the sample mean was 48.356 and the standard deviation was 6.8424. Using this information, the owner calculated the confidence interval of (45.703, 51.009) with a confidence level of 95%. Which of the following statements is the best conclusion?

Question 10 options:

1) The percentage of golfers with an age greater than 63.248 is 95%.

2) The average age of all golfers does not significantly differ from 63.248.

3) We are 95% confident that the average age of all golfers that play on the golf course is less than 63.248

4) We are 95% confident that the average age of all golfers that play on the golf course is greater than 63.248

5) We cannot determine the proper interpretation based on the information given.

Test the appropriate hypotheses. Use the p-value method here. Annual per capita consumption of milk is 21.6 gallons. A sample of 16 individuals from the midwestern town of Webster City showed a sample mean annual consumption of 24.1 gallons with a standard deviation of s=4.8. Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City equals to the national mean.

Hint: Notice that n=16<30 hence you need to use the t-table. Hence, locate the probability for one (right) tail. You won't get one single value, but a range of possible values. Then multiply it by two (to take into account the left tail) and compare to 0.05.

a) What is a point estimate of the difference between mean annual consumption in Webster City and the national mean?

b) At α =.05, test for a significant difference. What is your conclusion?