Problem 7-19 (Algo) A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 2.5 per minute. In serving themselves, customers take about 16 seconds, exponentially distributed.

a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. How long would you expect it to take to get a cup of coffee? (Round your answer to 2 decimal places.)

c. What percentage of time is the urn being used? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

d. What is the probability that three or more people are in the cafeteria? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

e. If the cafeteria installs an automatic vendor that dispenses a cup of coffee at a constant time of 16 seconds, how many customers would you expect to see at the coffee urn (waiting and/or pouring coffee)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

f. If the cafeteria installs an automatic vendor that dispenses a cup of coffee at a constant time of 16 seconds, how long would you expect it to take (in minutes) to get a cup of coffee, including waiting time? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Problem 7-19 Credit policy decision with changing variables [LO7-4] Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $306,000 in additional credit sales, 11 percent are likely to be uncollectible. The company will also incur $16,900 in additional collection expense. Production and marketing costs represent 71 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of three times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return. a-1. Calculate the incremental income after taxes. a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.) a-3. Should Fast Turnstiles Co. extend credit to these customers? Yes No b-1. Calculate the incremental income after taxes if 14 percent of the new sales prove to be uncollectible. b-2. Calculate the return on incremental investment if 14 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.) b-3. Should credit be extended if 14 percent of the new sales prove uncollectible? Yes No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6, and 11 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.) c-2. Should credit be extended if the receivables turnover drops to 1.6, and 11 percent of the accounts are uncollectible? No Yes

A man purchased a $23,000, 1-year term-life insurance policy for $375. Assuming that the probability that he will live for another year is 0.989, find the company's expected gain.

At the beginning of 2007, the population of a certain state was 55.4% rural and 44.6% urban. Based on past trends, it is expected that 13% of the population currently residing in the rural areas will move into the urban areas, while 21% of the population currently residing in the urban areas will move into the rural areas in the next decade. What was the population distribution in that state at the beginning of 2017? (Round your answers to one decimal place.)

In a study of the domestic market share of the three major automobile manufacturers A, B, and C in a certain country, it was found that their current market shares were 50%, 20%, and 30%, respectively. Furthermore, it was found that of the customers who bought a car manufactured by A, 75% would again buy a car manufactured by A, 15% would buy a car manufactured by B, and 10% would buy a car manufactured by C. Of the customers who bought a car manufactured by B, 90% would again buy a car manufactured by B, whereas 5% each would buy cars manufactured by A and C. Finally, of the customers who bought a car manufactured by C, 85% would again buy a car manufactured by C, 5% would buy a car manufactured by A, and 10% would buy a car manufactured by B. Assuming that these sentiments reflect the buying habits of customers in the future, determine the market share that will be held by each manufacturer after the next two model years. (Round your answers to the nearest percent.)

Forecast Sales Volume and One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.Sales Budget

Guardian Framing Inc. prepared the following sales budget for 2016:

At the end of December 2016, the following unit sales data were reported for the year:

For the year ending December 31, 2017, unit sales are expected to follow the patterns established during the year ending December 31, 2016. The unit selling price for the 8" × 10" frame is expected to increase to $28 and the unit selling price for the 12" × 16" frame is expected to increase to $30, effective January 1, 2017.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over An accounting device used to plan and control resources of operational departments and divisions.budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

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3. Prepare a sales budget for the year ending December 31, 2017.

Conduct the hypothesis test and provide the test statistic and the critical value, and state the conclusion.

A person drilled a hole in a die and filled it with a lead weight, then proceeded to roll it 200 times. Here are the observed frequencies for the outcomes of 1, 2, 3, 4, 5, and 6, respectively: 28, 27, 40, 38, 26, 41. Use a 0.01 significance level to test the claim that the outcomes are not equally likely. Does it appear that the loaded die behaves differently than a fair die?

The test statistic is __________.
(Round to three decimal places as needed.)

The critical value is __________ .
(Round to three decimal places as needed.)

State the conclusion.

(1) __________ Ho . There (2) __________ sufficient evidence to support the claim that the outcomes are not equally likely. The outcomes (3) __________ to be equally likely, so the loaded die (4) __________ to behave differently from a fair die.

(1) Do not reject
   Reject
(2) is
   is not
(3) appear
   do not appear
(4) does not appear
   appears

To test whether the mean time needed to mix a batch of material is the same for machines produced by three manufacturers, the Jacobs Chemical Company obtained the following data on the time (in minutes) needed to mix the material. Manufacturer 1 2 3 25 30 21 31 28 20 29 33 24 27 29 23

a. Use these data to test whether the population mean times for mixing a batch of material differ for the three manufacturers. Use . Compute the values below (to 2 decimals, if necessary). Sum of Squares, Treatment Sum of Squares, Error Mean Squares, Treatment Mean Squares, Error Calculate the value of the test statistic (to 2 decimals). The -value is What is your conclusion?

b. At the level of significance, use Fisher's LSD procedure to test for the equality of the means for manufacturers and . Calculate Fisher's LSD Value (to 2 decimals). What is your conclusion about the mean time for manufacturer and the mean time for manufacturer ?