The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 36 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.) (Use the Excel spreadsheet Queue Models.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 25 seconds? (Round your answer to 3 decimal places.)

Average time in system ________ minutes

c. What would be the customer time in the system if instead of the change in Part b, a second window was opened with each server doing all three tasks? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

d. Would system waiting time which is obtained in part (c) be less than you found in (b)?

• Yes

• No

What is the difference between a management contract, a brand, and a hotel franchise agreement? Are all three necessary to run a successful hotel?

Explain the difference between the terms face value, coupon rate and price of a bond. Which of these three can never change?

List and briefly explain three factors that determine the rate of passive exchange of water and ions between an animal and its environment.

Define reliability & validity, describe and separate the three methods for demonstrating validity. talk about the relationship between validity and reliability

Distinguish between needs and wants, and explain why it may be better to act as if no needs exist.

Explain why lease payments for a new vehicle are lower than loan payments for the same vehicle.

How do you choose between a low interest rate and a rebate?

What three aspects of a vehicle purchase should be negotiated? In what order?

Distinguish between mediation and arbitration.

An article predicts that "spit," spam that is delivered via internet phone lines and cell phones, will be a growing problem as more people turn to web-based phone services. In a poll of 5500 cell phone users, 25% indicated that they had received commercial messages and ads on their cell phones. Is there sufficient evidence that the proportion of cell phone users who have received commercial messages or ads in 2004 was greater than the proportion of 0.13 reported for the previous year? (Use α = 0.05. Round your test statistic to two decimal places and your P-value to four decimal places.)

Q 2 - “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” Ronald Reagan (1911-2004)

a. There are two types of inflation. How are these different types of inflation reflected in the aggregate demand and aggregate supply (AD-AS) model? Use diagrams to illustrate your answer.

b. Governments may adopt fiscal policy to control one of these types of inflation. What type of fiscal policy can be adopted? Explain how this fiscal policy works. How would the ‘ratchet effect’ affect the effectiveness of this fiscal policy?

c. On a separate diagram, clearly illustrate your answer in (b).

A home theater in a box is the easiest and cheapest way to provide surround sound for a home entertainment center. A sample of prices is shown here (Consumer Reports Buying Guide, 2004). The prices are for models with a DVD player and for models with a DVD player.

1. Compute the mean price for models with a DVD player and the mean price for models without a DVD player. What is the additional price paid to have a DVD player included in a home theater unit?
2. Compute the range, variance, and standard deviation for the two samples. What does this information tell you about the prices for models with and without a DVD player?

Complex finance problems using Excel.

1. Compost International issued $1000 bonds on May 12, 2000 in order to finance world-wide expansion. The bonds have a coupon rate of 8.4% with payments on a semi-annual basis (November 12, May 12) and mature on May 12, 2020. You purchased one of Compost’s $1000 bond on June 25, 2004 and plan to hold the bond to maturity. The bond has a list price of $1090 (not including accrued interest).

Compute the semi-annual coupon payment, the accrued interest, the invoice price of the bond, and the Yield to Maturity (YTM) of your bond.