2. Expected Utility Theory

An individual goes to the store to buy a new iClicker for $40. The clerk at the store tells the individual that the same iClicker is on sale for $20 across campus. The individual goes to the other store. The same individual goes to the store to buy a new computer for $600. The clerk at the store tells the individual the same computer is on sale at the same store across campus for $580. The student does not go. Is this consistent with expected utility theory? Why or why not

7. Mr Slumber Kotoko was a full-time employee of Bank of Botswana earning P200, 000.00 per year when he decided to enrol for a four year course at the University of Botswana. He can only earn P70 000.00 per year as a part time worker. What is the opportunity cost of going to University for Mr Kotoko over the four year period

In a telephone survey completed in the Spring of 2014, a randomly selected number of USadults were asked the question “Is there solid evidence that the earth has been warming?”They were also asked their political party preference. The following is a partial summary of the results.

1. What is the sample proportion for adults who prefer the Republican party who wouldanswer “Yes” to the question?

   What is the approximate standard error for the sampling distribution of sample proportions for this group of Republicans?

   What is the margin of error for a 95% confidence interval?

   What is a 95% confidence interval for the percent of all adults who prefer the Republican party who would answer “Yes” to the question?

2. What is the sample proportion for adults who prefer the Democratic party who wouldanswer “Yes” to the question?

   What is the approximate standard error for the sampling distribution of sample proportions for this group of Democrats?

   What is the margin of error for a 95% confidence interval?

What is a 95% confidence interval for the percent of all adults who prefer the Democratic party who would answer “Yes” to the question?

c. Looking at separate confidence intervals is generally not a good method for making a conclusion. For this part you will compute a 95% confidence interval for the difference in the population proportions for Republicans and Democrats, by completing the following steps:

Calculate the sample difference in proportions, ?̂? − ?̂?.
Calculate the approximate standard error, s, of the sampling distribution for differences in

sample proportions.

Calculate a 99% confidence interval for the difference in the population proportions,?? −??.

In terms a non-statistics person would understand, interpret your 99% confidence interval, explaining what it tells us about the proportions of Republicans and Democratswho would answer “Yes” to the question.

CP8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3]

[The following information applies to the questions displayed below.]

1.)

The time college students spend on the internet follows a Normal distribution. At Johnson University, the mean time is 5.5 hours per day with a standard deviation of 1.1 hours per day.

1. If 100 Johnson University students are randomly selected, what is the probability that the average time spent on the internet will be more than 5.8 hours per day?
   Round to 4 places.  
   
2. If 100 Johnson University students are randomly selected, what is the probability that the average time spent on the internet is between 5.3 hour and 5.8 hours?
   Round to 4 places  
   
3. If 100 Johnson University students are randomly selected, what mean number of hours on the internet per day separated the bottom 33% and top 67% of internet usage for college students?  
   hours per day. Round to 2 places.

2.)

A manufacturer knows that their items have a normally distributed lifespan, with a mean of 10.1 years, and standard deviation of 0.5 years.

If 19 items are picked at random, 3% of the time their mean life will be less than how many years?

Give your answer to one decimal place.

The Fit Stop Ltd. is a brand-new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and to provide customers with personalized advice geared to a customer's specific training or conditioning needs (e.g., training for a particular sport, rehabilitation from injuries, strengthening of back muscles to deal with back pain, general conditioning and fitness), whether the customer is eight or 80 years of age. In order to provide high-quality advice, each store will employ a physiotherapist (to provide advice on problems such as injuries or chronic back pain) and a person with a bachelor's degree in kinesiology (to provide advice on training for various sports of other physical activities). A staff member will even sit down with customers and develop a personalized training or conditioning program that meets their own specific objectives and needs, al no cost to the customer. The remainder of the staff in the store will consist of a manager, with a Bachelor of Commerce degree, and sales staff, who will have at least high school diplomas. Due to the long opening hours, it is expected that between 8 and 12 salespeople will be needed for each store. Because the stores are in shopping malls, they will operate on a Neven-day-4-week basis, open 9:00-9:00 weekdays, 9:00-6:00 Saturdays, and noon to 6:00 on Sundays. Aside from personally helping customers, the roles of the physiotherapist and kinesiologist will be to train other employees in how each type of equipment can be used for various conditioning and rehabilitation purposes. Initially, sales staff will be given general training, but as time goes by, each salesperson will be expected to learn in depth about all the different pieces of equipment, to help customers diagnose their needs accurately, and to be able to explain proper use of the equipment. Because of the high level of training required, all employees will be full-time. The founder of the business is Susan Super fit, who has undergraduate degrees in kinesiology and commerce from the University of Saskatchewan. While at university, she participated in many sports and suffered many injuries due to her all-out style of play). She carne up with the idea for this business while laid up with one of her injuries. While there were businesses that sold fitness and conditioning equipment’s found that the people selling it had very limited knowledge and often gave poor advice on what to buy and how to use it. She has secured funding from private investors and from Growthworks, a large Canadian labour-sponsored investment fund. In order to get volume discounts on the equipment she will be purchasing and to beat competitors into the market, she wants to start off quite large, with stores in major cities in Ontario and the four western provinces, before expanding to Quebec and the Atlantic provinces. She knows that this is a risky strategy and that cost control will be essential to keep the business going long enough to become well known and develop a stable clientele. She does not expect the business to make a profit for at least one year, or maybe even two. Her main competitors will be sporting goods megastores and department and dis- count stores, each of which sells some of the same equipment. Some of these outlets will be able to price their equipment lower than The Fit Stop will be able to, but none have the range of equipment that The Fit Stop will have, and none provide the personalized services that The Fit Stop will. Susan believes that the key to her business success will be highly motivated and knowledgeable employees who have a strong concern for their customers and who are able to work as a team with the other employees to provide the best possible customer service. Since no two customers are exactly alike, employees will have to he innovative in developing solutions that fit their needs. It will also be crucial to keep up with the latest fitness and training trends, as knowledge about fitness is continually increasing, along with new and different types of specialized equipment. A key aspect of company strategy is to be the most up-to-date and advanced supplier of new products and techniques. Although Susan has given a lot of thought to her business, one thing she hasn't really given much thought co is how to compensate her employees. Since she doesn't really know much about compensation, she tends to feel that the safest thing would be to just do what her competitors are doing

que 1-Analyze “The Fit Shop Ltd.” Case and identify the benefit systems (including specific benefits) that would make the most sense for this firm. minimum 500 words

que 2-You have decided that the Fit Stopwould be well suited to Organizational Performance Pay. Select the specific organizational performance pay plan that would seem to work best; then design it, describing specifically how you would deal with various design issues. When you are done, the plan should be ready for implementation. minimum 500 words.

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)