A producer of various feed additives for cattle conducts a study of the number of days of feedlot time required to bring beef cattle to market weight. Eighteen steers of essentially identical age and weight are purchased and brought to a feedlot. Each steer is fed a diet with a specific combination of antibiotic concentration (1=500mg/day, 2=1000mg/day) and percentage of feed supplement. The beginning weight (kg) of the steers is also recorded The data are as follows:
STEER ANIBIO SUPPLEM TIME
| Steer | Weight | Antibiotic | Supplement | Time |
| 1 | 300 | 1 | 3 | 88 |
| 2 | 250 | 1 | 5 | 82 |
| 3 | 425 | 1 | 7 | 81 |
| 4 | 458 | 2 | 3 | 82 |
| 5 | 222 | 2 | 5 | 83 |
| 6 | 325 | 2 | 7 | 75 |
| 7 | 115 | 1 | 3 | 80 |
| 8 | 365 | 1 | 5 | 80 |
| 9 | 245 | 1 | 7 | 75 |
| 10 | 500 | 2 | 3 | 77 |
| 11 | 210 | 2 | 5 | 76 |
| 12 | 195 | 2 | 7 | 72 |
| 13 | 231 | 1 | 3 | 79 |
| 14 | 321 | 1 | 5 | 74 |
| 15 | 269 | 1 | 7 | 75 |
| 16 | 200 | 2 | 3 | 74 |
| 17 | 317 | 2 | 5 | 70 |
| 18 | 251 | 2 | 7 | 69 |
(1a) What are your null and alternative hypotheses? (1b) What test did you conduct to address this question? Why? (1c) Did the data meet the assumption of your test? How did you verify this? If not, how did you deal with this? (1d) Is there a significant relationship between the time to being brought to the feedlot and the protein, antibiotic, and feed supplement? (1e) Which variables are significant in predicting time to market? Did each variable have a positive or negative impact on price?
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
PX = $9500 PY =
$10000 I = $15000 A = $170000 W
= 160
This function is:
Qs = 89830 -40PS +20PX +15PY +2I
+.001A +10W
1. Use the above to calculate the arc price elasticity
of demand between PS = $8000 and PS = $7000. The arc elasticity
formula is:
Ep= Q/P8 * P1+P1/Q1+Q2
2. Calculate the quantity demanded at each of the above prices and
revenue that will result if the quantity is sold (fill in table
below).
PS QS Revenue
$8000
$7000
3. Marketing suggests lowering the price PS from $8000 to $7000. The size of the elasticity coefficient in #1 should tell you what is likely to happen to revenue. Explain why this is (or is not) a good marketing suggestion from a revenue viewpoint (note: your answer in #1 and the calculations in #2 should be giving the same message). If the implications in #1 and #2 differ, does the difference make sense (or did you make a mistake in #1 or #2)?
4. Calculate the point price elasticity of
demand for Smooth Sailing boats at PS = $8000 (which should make QS
= 141600). Does this elasticity value indicate that demand for
Smooth Sailing boats is relatively elastic? Explain why or why not.
The formula is:
Qs/Px *Ps/Qs
5. Calculate the point cross-price elasticity of demand between Qs and Px with Px = $9500. Use Qs corresponding to Ps = 8000. Other variables and their values are as given at the top, before question #1. Does this elasticity indicate that the demand for Smooth Sailing’s boats is relatively responsive to changes in Px? Explain why or why not. The formula is:
Esx= QS/Px*Px/Qs
6. Calculate the point cross-price elasticity of demand
between QS and Py, given that Py = 10000 and that PS = $7500 (thus
QS should equal 161,600). Other variables are as given at the top
before #1. Does this elasticity indicate that the demand for Smooth
Sailing boats is relatively responsive to changes in Py? Explain
why or why not. The formula is:
Esy= Qs/Py *Py/Qs
In: Economics
Prpject Finance
Oryx Electricity Generation Project (BOOT)
Capital Expenditure during construction period: 174 OMR/MWH (megawatt-hour). Depreciation on straight line basis over ten years such that book value at the end of ten years is zero.
Construction Period - 2 years: 40% in year 1 and 60% in year 2. Interest rate on construction loan is 12% per year. Commitment Fee charged by the bank is 0.5% per annum. (Assume that first year construction cost is spread equally over the 12 months in the first year, and second year construction cost is spread equally over the 12 months in the second year).
After construction the project will generate and sell electricity for ten years.
Revenue 57 OMR/MWH (annual revenue growth 1.5 % base case, can vary between 1.5% to 2.5%). MWH means megawatt per hour. Assume a year has 365 days and day has 24 hours
Input costs plus operating expenditure: 4 OMR/MWH ( annual inflation 1% base case, can vary between 1 to 3%)
Electricity generation capacity: 300 MWH. Expected Capacity utilization 90%.
Tax rate 20%. After ten years the project will be transferred to the government free of charge.
Calculate CFO, EBIT, EBITDA, NPV and IRR for the base case.
DSCR (Debt Service Coverage Ratio) should be more than 1.5 in every year of operation. Sponsors expect a minimum Equity IRR of 20% and Lenders expect a minimum Debt IRR of 14%
Estimate the optimal capital structure for this project ?
Sensitivity Analysis: Show the behavior of CFO, EBITDA and Debt Service Coverage Ratio under different scenarios. Present using graphs.
Prepare a three page report showing your main findings and conclusions. Attach printed copies of Excel worksheets and graphs.
In: Finance
In: Statistics and Probability
Q1. Shine Bright Housekeeping provides two types of housekeeping
services, Basic and Gold.
It charges customers $30 for a unit of Basic service and $50 for a
unit of Gold service. Its direct costs in providing each unit of
service are:
Basic $9, Gold $15. All other costs of the business are fixed and total $7,350 per month.
In all the sub-parts of this part (i.e., part 3.1, 3.2, etc.), assume that Shine Bright always provides a constant mix of the two services, namely 3 units of Basic service for every 2 units of Gold service....
3.1 What is Shine Bright’s Contribution Margin Ratio (CMR)?
Contd.
2
3.2 How much Sales Revenue should Shine Bright generate monthly to report Net-Income-after-tax (NIAT) of $11,760? The income tax rate is 20%. Use the CMR concept.
3.3. What is Shine Bright’s Degree-of-Operating-Leverage (DOL) at the Sales Revenue computed in part 3.2 above?
3.4. Using the DOL concept to get your answer, what will be Shine Bright’s NIAT if the Sales Revenue falls 10% from the level in part 3.2 ?
4. Using B to stand for units of Basic service, and G to stand for units of Gold service, specify the equation whose solutions are the combinations of the amounts of the two services that would allow Shine Bright to break-even each month.
That is, specify the “break-even function” f (B, G) = where C is a constant.
In: Accounting
Lapps Inc. makes a gift product that sells best during the holiday season. Retailers stock up in the fall, so Lapps's sales are largest in October and November and drop dramatically in December. The firm expects the following revenue pattern for the second half of this year ($000). The third quarter figures are actual results, while the fourth quarter is a projection. Jul Aug Sep Oct Nov Dec Revenue $5,500 $6,000 $7,500 $8,000 $9,500 $4,000 Historically, Lapps collects its receivables according to the following pattern. Months after sale 1 2 3 % collected 60% 30% 9% The firm offers a 2% prompt payment discount, which is taken by about half of the customers that pay in the first month. Lapps receives inventory one month in advance of sales. The cost of material is 40% of revenue. Invoices are paid 45 days after receipt of material. The firm uses temporary labor to meet its seasonal production needs, so payroll can be estimated at 35% of the current month's sales. Other expenses are a constant $1.8 million per month. A $.7 million tax payment is scheduled for November, and an expansion project will require cash of $.5 million in October and $.8 million in December. Lapps has a $6 million short-term loan outstanding at the end of September. Monthly interest is 1% of the previous month-end balance. Prepare Lapps's cash budget for the fourth quarter.
PLEASE SHOW EQUATIONS
In: Accounting
2. A computer hardware firm sells both laptop computers and
printers. It has a large inventory of laptops and printers that it
wants to sell, so it has no variable
production cost. Through the magic of focus groups, their pricing
team determines that they have an equal number of three types of
customers, and that these customers’ reservation prices are shown
in the table:
| Laptop | Printer | Bundle | |
| Customer A | $800 | $100 | $900 |
| Customer B | $1000 | $50 | $1050 |
| Customer C | $600 | $150 | $750 |
a. If the firm were to charge only individual prices (not use
the bundle price), what prices should it set for its laptops and
printers to maximize profit? Assuming for simplicity that the firm
has only one customer of each type, how much does it earn in
total?
b. After conducting a costly study, an outside consultant suggests
that the company could make more money from its customers if it
sold laptops and printers together as a bundle instead of
separately. Is the consultant right? Assuming again that the firm
has one customer of each type, how much does the firm earn in total
from pure bundling?
c. Why does bundling pay or not pay?
In: Economics
what is the difference between crystal form, crystal habit and crystal morphology? define the three terms
In: Chemistry
Name three similarities or differences between a balanced tree, complete tree and full binary tree.
In: Computer Science