Four different designs for a digital computer circuit are being studied to compare the amount of
noise present. The following data have been obtained:

a) Identify the following:
 Factor(s):
 Treatment(s):
 Response:
b) Are the data normally distributed?
c) Which of the following tests would you use if you wanted to determine if there are
differences in noise present for all four designs? (SELECT ONE CORRECT ANSWER)
 T-test, two independent samples
 Chi-sq test
 One-Way ANOVA
 Kruskal-Wallis test
d) If the same amount of noise present for all four designs? Use α=0.05.

Moonstruck sells fat-tire bicycles.

An average customer for Moonstruck buys a bicycles every five years and spends $500 every time they buy one. An average customer also spends $250 in parts and service.

An excellent customer buys 8 bicycles in their lifetime and spends $800 every time they buy one. An excellent customer spends $500 in parts and service very year.

The average profit margin for Moonstruck on its bicycles is 25%.

The average profit margin for Moonstruck on service and parts is 50%.

Moonstruck customers buy their first bicycle when they are 30 and ride bicycles until they are 80 years of age.

1. Moonstruck is interested to maximize the Customer Lifetime Value. What are the variables that management can manipulate to try to maximize CLTV, i.e., make CLTV as large as possible?

2. What are the applications of Market Basket Analysis? Give two examples.

Researchers want to estimate the size of two populations of Galapagos tortoises on two different islands. They do this by making two trips to each island. On the first trip to Island A, 50 tortoises are captured and marked, and on the second trip, 60 tortoises are captured, of which 8 are marked.On the first trip to Island B, 47 tortoises are captured and marked, and on the second trip, 38 are captured, of which 13 are marked. Estimate the population sizes of Galapagos tortoises for these two islands. Round to the nearest whole number (2 pts.).

After 5 years, there are an estimated 386 individuals on Island A, and 139 individuals on Island B. Assuming geometric growth, which island has a higher growth rate? And what will the population size of each island be in another 5 years? Give your answers to 3 decimal places (5 pts.).

a. A mixture of 60 mol % n-proplycyclohexane and 40 mol % n-propylbenzene is distilled through a simple distillation apparatus; assume that no fractionation occurs during the distillation. The boiling temperature is found to be 157 °C (760 torr) as the first small amount of distillate is collected. The standard vapor pressures of n-propylcyclohexane and n-propylbenzene are known to be 769 torr and 725 torr, respectively, at 157.3 °C. Calculate the percentage of each of the two components in the first few drops of distillate.

b. A mixture of 50 mol % benzene and 50 mol % toluene is distilled under exactly the same conditions as in Part a. Using Figure 5.1, determine the distillation temperature and the percentage composition of the first few drops of distillate.

c. The normal boiling points of n-propylcyclohexane and n-propylbenzene are 156 °C and 159 °C, respectively. Compare the distillation results in Parts a and b. Which of the two mixtures would require the more efficient fractional distillation column for separation of the components? Why?

1. Eolop company now has an investment plan which needs $5m. The company has two financing proposals. Plan A is to borrow $2m at 10% and $3m will need to sell stocks at $50 per common share. Plan B would involve higher financial leverage. $1m would be raised by selling bonds with an effective interest rate of 10% and the remaining $4 million would be raised by selling a common stock at the $50 price per share. The fixed operating cost will be $800,000. The corporate tax rate is 40%.

   1. Find the EBIT indifference level associated with the two financing plans.

   2. Prepare an analytical EBIT-EPS analysis chart for this situation.

   3. If a detailed financial analysis project that long-term EBIT will be in the range of $0.8m to $1m annually, which plan will generate higher EPS?

   4. Please calculate DOL, DFL, and DCL at the point of EBIT being $1 million under plan B.

   5. Please describe the meaning of DOL, DFL, and DCL.

Mr. and Mrs. Evans are an African American couple who retired from the school system last year. Both are 65 years of age and reside on 20 acres of land in a large rural community approximately 5 miles from a Superfundsite and 20 miles from two chemical plants. Their household consists of their two daughters, Anna, aged 40 years, and Dorothy, aged 42 years; their grandchildren, aged 25, 20, 19, and 18; and their 2-year-old great-grandson. Anna and Dorothy and their children all attended the university.

Mr. Evans’s mother and three of his nieces and nephews live next door. Mr. Evans’s mother has brothers, sisters, other sons and daughters, grandchildren, and great-grandchildren who live across the road on 10 acres of land. Other immediate and extended family live on the 80 acres adjacent to Mr. Evans’s mother. All members of the Evans family own the land on which they live. Mrs. Evans has siblings and extended family living on 70 acres of land adjacent to Mr. Evans’s family, who live across the road. Mr. and Mrs. Evans also have family living in Chicago, Detroit, New York, San Francisco, and Houston. Once a year, the families come together for a reunion. Every other month, local family members come together for a social hour. The family believes in strict discipline with lots of love. It is common to see adult members of the family discipline the younger children, regardless of who the parents are.

Mr. Evans has hypertension and diabetes. Mrs. Evans has hypertension. Both are on medication. Their daughter Dorothy is bipolar and is on medication. Within the last 5 years, Mr. Evans has had several relatives diagnosed with lung cancer and colon cancer. One of his maternal uncles died last year from lung cancer. Mrs. Evans has indicated on her driver’s license that she is an organ donor.

Sources of income for Mr. and Mrs. Evans are their pensions from the school system and Social Security. Dorothy receives SSI because she is unable to work any longer. Mr. Evans and his brothers must assume responsibility for their mother’s medical bills and medication. Although she has Medicare parts A and B, many of her expenses are not covered. Mr. and Mrs. Evans, all members of their household, and all other extended family in the community attend a large Baptist church in the city. Several family members, including Mr. and Mrs. Evans, sing in the choir, are members of the usher board, teach Bible classes, and do community ministry.

Study Questions

1. Describe the organizational structure of this family and identify strengths and limitations of this family structure.

2. Describe and give examples of what you believe to be the family’s values about education.

3. Discuss this family’s views about child rearing.

4. Discuss the role that spirituality plays in this family.

5. Identify two religious or spiritual practices in which members of the Evans family may engage for treating hypertension, diabetes, and mental illness.

6. Identify and discuss cultural views that Dorothy and her parents may have about mental illness and medication.

7. To what extent are members of the Evans family at risk for illnesses associated with environmental hazards?

8. Susan has decided to become an organ donor. Describe how you think the Evans family will respond to her decision.

9. Discuss views that African Americans have about advanced directives.

10. Name two dietary health risks for African Americans.

11. Identify five characteristics specific to African Americans to consider when assessing the skin of African Americans.

12. Describe two taboo views that African Americans may have about pregnancy.

Wesco Incorporated’s only product is a combination fertilizer/weedkiller called GrowNWeed. GrowNWeed is sold nationwide to retail nurseries and garden stores.

Zwinger Nursery plans to sell a similar fertilizer/weedkiller compound through its regional nursery chain under its own private label. Zwinger does not have manufacturing facilities of its own, so it has asked Wesco (and several other companies) to submit a bid for manufacturing and delivering a 30,000-pound order of the private brand compound to Zwinger. While the chemical composition of the Zwinger compound differs from that of GrowNWeed, the manufacturing processes are very similar.

The Zwinger compound would be produced in 1,000-pound lots. Each lot would require 31 direct labor-hours and the following chemicals:

The first three chemicals (AG-5, KL-2, and CW-7) are all used in the production of GrowNWeed. DF-6 was used in another compound that Wesco discontinued several months ago. The supply of DF-6 that Wesco had on hand when the other compound was discontinued was not discarded. Wesco could sell its supply of DF-6 at the prevailing market price less $0.12 per pound selling and handling expenses.

Wesco also has on hand a chemical called BH-3, which was manufactured for use in another product that is no longer produced. BH-3, which cannot be used in GrowNWeed, can be substituted for AG-5 on a one-for-one basis without affecting the quality of the Zwinger compound. The BH-3 in inventory has a salvage value of $560.

Inventory and cost data for the chemicals that can be used to produce the Zwinger compound are shown below:

The current direct labor wage rate is $14 per hour. The predetermined overhead rate is based on direct labor-hours (DLH). The predetermined overhead rate for the current year, based on a two-shift capacity with no overtime, is as follows:

Wesco’s production manager reports that the present equipment and facilities are adequate to manufacture the Zwinger compound. Therefore, the order would have no effect on total fixed manufacturing overhead costs. However, Wesco is within 130 hours of its two-shift capacity this month. Any additional hours beyond the 130 hours must be done in overtime. If need be, the Zwinger compound could be produced on regular time by shifting a portion of GrowNWeed production to overtime. Wesco’s direct labor wage rate for overtime is $21 per hour. There is no allowance for any overtime premium in the predetermined overhead rate.

2. Refer to the original data. Assume that Zwinger Nursery plans to place regular orders for 30,000-pound lots of the new compound. Wesco expects the demand for GrowNWeed to remain strong. Therefore, the recurring orders from Zwinger would put Wesco over its two-shift capacity. However, production could be scheduled so that 60% of each Zwinger order could be completed during regular hours. As another option, some GrowNWeed production could be shifted temporarily to overtime so that the Zwinger orders could be produced on regular time. Current market prices are the best available estimates of future market prices.

Wesco’s standard markup policy for new products is 40% of the full manufacturing cost, including fixed manufacturing overhead. Calculate the price that Wesco, Inc., would quote Zwinger Nursery for each 30,000 pound lot of the new compound, assuming that it is to be treated as a new product and this pricing policy is followed.

Hayden Inc. has a number of copiers that were bought four years ago for $37,000. Currently maintenance costs $3,700 a year, but the maintenance agreement expires at the end of two years, and thereafter, the annual maintenance charge will rise to $9,700. The machines have a current resale value of $9,700, but at the end of year 2, their value will have fallen to $5,200. By the end of year 6, the machines will be valueless and would be scrapped.

Hayden is considering replacing the copiers with new machines that would do essentially the same job. These machines cost $32,000, and the company can take out an eight-year maintenance contract for $1,800 a year. The machines would have no value by the end of the eight years and would be scrapped.

Both machines are depreciated using seven-year straight-line depreciation, and the tax rate is 35%. Assume for simplicity that the inflation rate is zero. The real cost of capital is 8%.

a. Calculate the equivalent annual cost, if the copiers are:

(i) replaced now _______

(ii) replaced two years from now_______

(iii) replaced six years from now_______

b. When should Hayden replace its copiers?

• Replace now

• Replace after two years

• Replace after six years

Assuming that the population is normally​ distributed, construct a 99% confidence interval for the population mean for each of the samples below. Explain why these two samples produce different confidence intervals even though they have the same mean and range.

SAMPLE A: 1 1 4 4 5 5 8 8

SAMPLE B: 1 2 3 4 5 6 7 8

1.Construct a 99% confidence interval for the population mean for sample A. ( type integers or decimals rounded to two decimal places)

2. Construct a 99% confidence interval for the population mean for sample B.  ( type integers or decimals rounded to two decimal places)

3. Explain why these two samples produce different confidence intervals even though they have the same mean and range.

a. The samples produce different confidence intervals because their standard deviations are different

b.The samples produce different confidence intervals because their sample sizes are different

c.The samples produce different confidence intervals because their critical values are different

d. The samples produce different confidence intervals because their medians are different

5-8

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

5.If sales decline to 900 units, what would be the net operating income?

6 If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

7.  If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?

8. What is the break-even point in unit sales?