(07.01 MC)

The process of producing cholesterol medicine yields capsules with varying amounts of the active ingredient. It is claimed that the average amount of active ingredient per tablet is at least 20 milligrams. The Consumer Watchdog Bureau tests a random sample of 80 tablets. The mean content of the active ingredient for this sample is 18.7 milligrams and the standard deviation is 5 milligrams. What is the approximate p-value for the appropriate test? (4 points)

6.

(07.04 MC)

Students at a local elementary school were randomly selected to participate in a reading fluency program. The program is designed to increase their reading fluency. A total of 17 students each took a pretest before the program and posttest after the program. The mean differences in the posttest and pretest is 11. The administration decided that all students in the school would participate in the program next school year. Let µA denote the mean score of the posttest and µB denote the mean score of the pretest for all students in the school. The 90 percent confidence interval estimate of the difference between the means for all students is (7, 15). What is an appropriate interpretation of the confidence interval? (4 points)

8.

(07.02 LC)

A student working on a report about mathematicians decides to find the 98% confidence interval for the difference in mean age at the time of math discovery for Greek mathematicians versus Egyptian mathematicians. The student finds the ages at the time of math discovery for members of both groups, which include all Greek and Egyptian mathematicians, and uses a calculator to determine the 98% confidence interval based on the t distribution. Why is this procedure not appropriate in this context? (4 points)

9.

(07.02 LC)

The manager of a computer repair shop wants to compare the mean number of motherboard repairs in a week for two repair techniques. Twenty-four technicians from the shop are selected randomly, and each technician is assigned randomly to one of the two techniques. After teaching 12 technicians one technique and 12 technicians the other technique, the manager records the number of motherboard repairs each technician performs in one week. Which of the following is the MOST appropriate inferential statistical test in this situation? (5 points)

10.

(07.02 LC)

Randall is conducting a test on bacteria on slices of cheese. He uses 10 slices of cheese to compare two strains of bacteria. He applies one strain to the left side of the cheese and one strain to the right side. He flips a coin to decide which strain goes on the right side of the cheese. The bacteria holes that appear on each side are counted and he records them in a table.

If Randall is to perform an appropriate t-test to determine if there is a difference in the mean number of holes per slice of cheese produced by the two strains, how many degrees of freedom should he use? (4 points)

11.

(07.05 MC)

In a study of the performance of a tires, the width of tires (in inches) and the life span (in months) for 14 tires were recorded. A regression line was a satisfactory description of the relationship between width of tire and tire life span. The results of the regression analysis are shown in the table.

Which of the following should be used to compute a 98% confidence interval for the slope of the regression line? (5 points)

12.

(07.05 LC)

The weight (in pounds) and the number of offspring of 23 randomly selected rabbits are compared. Which significance test should be used to determine whether a linear relationship exists between weight and number of offspring, provided the assumptions of the test are met? (4 points)

Dunbar Company had 1,000,000 shares of $1 par value common stock outstanding at January 1, 2015. On July 1, 2015, the company issued 100,000 additional shares of common stock. In addition, at December 31, 2015, 90,000 shares were issuable upon exercise of executive stock options which require a $40 cash payment upon exercise. The average market price during 2015 was $50.   

Dunbar Company also has two convertible securities. There are 10,000 convertible bonds with a face amount of $1,000, interest rate of 6% and convertible into 20 shares of common stock and 100,000 shares of 5%, $50 par value convertible preferred stock, convertible into 2 shares each.

During 2015, Dunbar Company’s net income was $24,000,000 and all preferred stock dividends were declared and paid. The company’s tax rate is 40%.

Instructions

Compute the diluted earnings per share for 2015.

Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 13.10%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

%

Calculate the descriptive statistics BY HAND (showing your work) (variance , standard deviation, range, average, dispersion, median, mode)that we've covered in class for the two following variables:

Q4   (a)   A manufacturer has the following jobs waiting on a single work centre. The firm has not decided which dispatching rule to apply in order to prioritize the jobs and fix them into the schedule. Processing time and due date for each job are in the Table 4 below. Recommend the best job sequence to the manufacturer using THREE (3) dispatching rules scenario analysis.

Table 4: Jobs Information

2. Nuqman established TT Flash Sdn Bhd, to manufacture Automatic Hand-Cleaner Dispenser Station to help curb the spread of Covid-19 in the country. The company received 5 orders with different design specification (Design F, G, H, I & J) that must be completed not more than 29 days. With the TT Flash Sdn Bhd manufacturing capability, the company estimated 40 days to deliver all the stations. To overcome this issue, Nuqman have call others company to build the Automatic Hand-Cleaner Dispenser Station and ask each company their estimation time to manufacture each design. The estimated time information of each design shown in Table 5.

1. Suggest to the company with justification the best alternative available for this order.

Table 5: Hand-Cleaner Dispenser Station Manufacturing Time Information

2. Ranjit, the industrial engineer in the company have recommend to Nuqman for implementing concurrent process for this orders with establishing two workstation to manufacture the Automatic Hand-Cleaner Dispenser Station, namely fabrication and assembly as shown in Table 6.

Evaluate the above proposal by Ranjit whether the company able to meet the order demand not more than 29 days.

Table 6: Station Processing Time Information for each workstation

After being rejected for employment, Kim Kelly learns that the Bellevue Credit Company has hired only two women among the last 22 new employees. She also learns that the pool of applicants is very large, with an approximately equal number of qualified men as qualified women. Help her address the charge of gender discrimination by finding the probability of getting two or fewer women when 22 people are hired, assuming that there is no discrimination based on gender. (Report answer accurate to 8 decimal places). P(at most two) = .00021 Incorrect Because this is a serious claim, we will use a stricter cutoff value for unusual events. We will use 0.5% as the cutoff value (1 in 200 chance of happening by chance). With this in mind, does the resulting probability really support such a charge?

Movie Survey

Ask five classmates from a different class how many movies they saw last month. Be sure to include rented movies or movies viewed on tv.

1. Record the data.
2. In class, randomly pick one person. On the class list, mark that person’s name. Move down four names on the class list. Mark that person’s name. Continue doing this until you have marked 12 names. You may need to go back to the start of the list. For each marked name record the five data values. You now have a total of 60 data values.
3. For each name marked, record the data.

Table 1.17

Order the Data

Complete the two relative frequency tables below using your class data.

Table 1.18 Frequency of Number of Movies Viewed

Table 1.19 Frequency of Number of Movies Viewed

1. Using the tables, find the percent of data that is at most two. Which table did you use and why?
2. Using the tables, find the percent of data that is at most three. Which table did you use and why?
3. Using the tables, find the percent of data that is more than two. Which table did you use and why?
4. Using the tables, find the percent of data that is more than three. Which table did you use and why?

Discussion Questions

1. Is one of the tables “more correct” than the other? Why or why not?
2. In general, how could you group the data differently? Are there any advantages to either way of grouping the data?
3. Why did you switch between tables, if you did, when answering the question above?

At your favorite bond store, you see the following prices: (a) One-year $100 zero selling for $95.2381 (b) Two-year 8% coupon $1000 par bond selling for $1000

(1) Assume that the pure expectations theory for the term structure of interest rates holds, no liquidity premium exists, and the bonds are equally risky. What is the imply one-year rate one years from now? (20 points; use exact formula for all questions)

(2) If there is a liquidity premium of 0.5% for the two-year long rate (i2t), what is the imply one-year rate one years from now? (10 points)

(3) If your company plans to issue two-year coupon bonds but the current one-year rate suddenly increase to 10% and the two-year long rate becomes 9%, what coupon rate that you need to set to sell the bonds at par? (30 points)

Two balls of clay collide in a perfectly inelastic, head-on collision. Suppose m1 = 0.5 kg, m2 = 0.25 kg, v1o = +4 m/s, and v2o = -3 m/s. (a) Find the velocity of the combined clay ball after the collision. (b) Find the kinetic energy lost during the collision.

Calculate the sample variance and sample standard deviation for the following frequency distribution of heights in centimeters for a sample of 8-year-old boys. If necessary, round to one more decimal place than the largest number of decimal places given in the data.

Heights in Centimeters

Class Frequency

120.6 - 123.6 26

123.7 - 126.7 22

126.8--129.8 34

129.9-132.9 26

133-136 44