In the book Advanced Managerial Accounting, Robert P. Magee discusses monitoring cost variances. A cost variance is the difference between a budgeted cost and an actual cost. Magee describes the following situation:

Michael Bitner has responsibility for control of two manufacturing processes. Every week he receives a cost variance report for each of the two processes, broken down by labor costs, materials costs, and so on. One of the two processes, which we'll call process A , involves a stable, easily controlled production process with a little fluctuation in variances. Process B involves more random events: the equipment is more sensitive and prone to breakdown, the raw material prices fluctuate more, and so on.

     "It seems like I'm spending more of my time with process B than with process A," says Michael Bitner. "Yet I know that the probability of an inefficiency developing and the expected costs of inefficiencies are the same for the two processes. It's just the magnitude of random fluctuations that differs between the two, as you can see in the information below."

     "At present, I investigate variances if they exceed $2,931, regardless of whether it was process A or B. I suspect that such a policy is not the most efficient. I should probably set a higher limit for process B."

The means and standard deviations of the cost variances of processes A and B, when these processes are in control, are as follows: (Round probability answers to 4 decimal places.):

Furthermore, the means and standard deviations of the cost variances of processes A and B, when these processes are out of control, are as follows:

(a) Recall that the current policy is to investigate a cost variance if it exceeds $2,931 for either process. Assume that cost variances are normally distributed and that both Process A and Process B cost variances are in control. Find the probability that a cost variance for Process A will be investigated. Find the probability that a cost variance for Process B will be investigated. Which in-control process will be investigated more often.

(Click to select)Process AProcess B is investigated more often

(b) Assume that cost variances are normally distributed and that both Process A and Process B cost variances are out of control. Find the probability that a cost variance for Process A will be investigated. Find the probability that a cost variance for Process B will be investigated. Which out-of-control process will be investigated more often.

(Click to select)Process BProcess A is investigated more often.

(c) If both Processes A and B are almost always in control, which process will be investigated more often.

(Click to select)Process AProcess B will be investigated more often.

(d) Suppose that we wish to reduce the probability that Process B will be investigated (when it is in control) to .2891. What cost variance investigation policy should be used? That is, how large a cost variance should trigger an investigation? (Round your final answer to the nearest whole number.)

Using this new policy, what is the probability that an out-of-control cost variance for Process B will be investigated? (Round your final answer to four decimal places.)

The inflammation of a tendon or its attachment point due to overuse of the muscle is known as ______. A compound which accumulates in muscle fibers where it stores energy that can be used to synthesize ATP is known as ______. Skeletal muscle fibers develop from cells called ______. The ilopsoas muscle, a combination of the iliacus and psoas major muscles, are important because they function as ______. The enzyme which removes and recycles the neurotransmitter from the receptors of Na+ gated ion channels on the sarcolemma is ______. The gastrocnemius joins with two other muscles, ______ and ______, to from the calcaneal (Achilles) tendon. Chemicals which cause production of action potentials in the post-synaptic membrane are called ______. A condition in which stimuli occur so rapidly as to not allow any relaxation between muscle contractions is called ______. The progressive genetic disease where muscle tissue is replaced with fibrous connective tissue is known as ______. Opposition by the thumb is accomplished by contraction of the ______ muscle. A strong band of fibrous connective tissue which covers the flexor and extensor tendons of the wrist and holds them in place is the ______. An age-associated, progressive degeneration of skeletal muscle is known as ______.

Business Class

21. Tsymbal owns a parcel of real estate unencumbered by any liens (“free and clear”). She can be said to own the real estate:

a. conditionally;

b. subject to a life estate;

c. in fee simple absolute;

d. pursuant to a bailment contract.

22. Washington is a community property state.

T / F

23. In this type of deed, the seller not only conveys ownership in a parcel of real estate, but the owner also guarantees good title to the buyer.

a. a quit claim deed;

b. a sheriff’s deed;

c. a deed in trust;

d. a warranty deed.

24. This power allows the government to condemn private property and commit it to public use, after duly compensating the owner.

a, the power of fee simple absolute;

b. zoning;

c. eminent domain.

d. force majeure.

25. While she is attending a movie, McCulloch visits the restroom. While in the restroom, she removes her wristwatch and leaves it on the sink. Hasso finds the watch. The legal owner of the watch is:

a. McCulloch;

b. Hasso;

c. the owner of the theater;

d. the state of Washington.

It is desired to use a rotary vacuum filter to separate slurry containing 20 kg of water per kilogram of solid material. Tests on the rotary filter at the conditions to be used for the filtration have indicated that the dimensionless ratio α/β' is 0.6 and 19 kg of filtrate (not including wash water) is obtained for each 27.8 kg of slurry. The temperature and pressure of the surroundings are 25 oC and 1 atm, respectively. The pressure drop to be maintained by the vacuum pump is 45 kPa. The fraction of the drum area submerged in the slurry is 0.3 and the fraction of the drum area available for suction is 0.1. On the basis of the following assumptions, estimate the kilowatt rating of the motor necessary to operate the vacuum pump if the filter handles 16000 kg/h of slurry. Assumptions are as follows:

Resistance of the filter medium is negligible.

Effects of air leakage are included in the value given for α/β'.

The value of β' is based on the temperature and pressure of the ambient air.

The filter removes all the solids from the slurry.

The vacuum pump operates isentropically with an overall efficiency of 50 percent for the pump and motor.

The ratio of Cp/Cv remains constant at a value of 1.4.

public class GroceryCart {

private static final int DEFAULT_CAPACITY = 10;

/*

* Default constructor with zero arguments. This constructs a grocery

* cart with a default capacity of ten items.

*/

public GroceryCart() {

}

/*

* Alternate constructor which takes in a maxCapacity. This maxCapacity

* determines how many items can fit inside of this groceryCart.

*/

public GroceryCart(int maxCapacity) {

}

/*

* Adds an item to the grocery cart. Returns true if the item was added

* successfully (i.e. there was still room in the cart to add it.

*/

public boolean addItem(String item, Double cost) {

return false;

}

/*

* Removes the specified item from the cart. Returns true if the item was

* successfully removed (i.e. the item existed in the cart).

*/

public boolean removeItem(String item) {

return false;

}

/*

* Empties the cart of all contents.

*/

public void emptyCart() {

}

/*

* Returns a string representation of the carts contents. The contents

* should be printed out in alphabetical order. It should be of

* the form, "item:price, item:price, item:price". An example:

* "Green Beans:2.99, Milk:41.99, Rolled Oats:1.99, Zucchini:2.67"

*/

public String toString() {

return "";

}

}

Topic 1

TRUE OR FALSE Q's

1.            Computer software is the collection of programs that provide the instructions that a computer carries out.

2.            An abstraction is a mental model that removes or hides complex details.

3.            The abacus was the world's first electronic digital computer.

4.            Ada Augusta, Countess of Lovelace, is credited with being the first programmer.

5.            A vacuum tube was a device used in the third generation of computers.

6.            The fourth generation of computer hardware was characterized by large-scale integration.

7.            The personal computer was introduced in the fourth generation of computer hardware.

8.            The Internet is descended from a U.S. government-sponsored network called the ARPANET.

9.            Assembly-language is first generation software.

10.          Earliest machine programs were hard wired.

11.          Algorithmic thinking is a necessary skill in Computer Science.

12.          Computational Science is one of the Systems areas.

13.          Spreadsheets and word processors are known as software applications.

14.          Applications programmers use the tools built by systems programmers.

15.          An algorithm is a set of steps that defines how a task is performed.

Al finds an expensive watch as he is walking from the parking lot into school. The clasp looks broken, so he takes it to a jeweler to have it appraised. While pretending to look at the clasp, the jeweler’s employee removes one of the gem stones surrounding the watch face and steals it.

(a) If Al sues the jeweler and the jeweler’s employee for theft, will he succeed? If Tim, the true owner, sees Al in the jewelry store and confronts him with proof of his ownership does Al have to relinquish the watch to Tim?

(b) Assume Al knew the watch was Tim’s due to an inscription on the back of the watch. Is Al guilty of a tort, if he does not return the watch? Is he required to try to find Tim and let him know about the watch?

(c) Assume Tim knows he has lost the watch. He goes back to the parking lot to look for it but does not find it. Tim leaves for Florida the next day, and gives up his search for the watch. How does this affect Al’s rights to the watch. Explain how the law applies to the facts.

During a blood-donor program conducted during finals week for college students, a blood-pressure reading is taken first, revealing that out of 350 donors, 41 have hypertension. All answers to three places after the decimal. A 95% confidence interval for the true proportion of college students with hypertension during finals week is (WebAssign will check your answer for the correct number of significant figures. , WebAssign will check your answer for the correct number of significant figures. ). We can be 80% confident that the true proportion of college students with hypertension during finals week is WebAssign will check your answer for the correct number of significant figures. with a margin of error of WebAssign will check your answer for the correct number of significant figures. Unless our sample is among the most unusual 10% of samples, the true proportion of college students with hypertension during finals week is between WebAssign will check your answer for the correct number of significant figures. and WebAssign will check your answer for the correct number of significant figures. The probability, at 60% confidence, that a given college donor will have hypertension during finals week is WebAssign will check your answer for the correct number of significant figures. , with a margin of error of WebAssign will check your answer for the correct number of significant figures. Assuming our sample of donors is among the most typical half of such samples, the true proportion of college students with hypertension during finals week is between WebAssign will check your answer for the correct number of significant figures. and WebAssign will check your answer for the correct number of significant figures. We are 99% confident that the true proportion of college students with hypertension during finals week is WebAssign will check your answer for the correct number of significant figures. , with a margin of error of WebAssign will check your answer for the correct number of significant figures. Assuming our sample of donors is among the most typical 99.9% of such samples, the true proportion of college students with hypertension during finals week is between WebAssign will check your answer for the correct number of significant figures. and WebAssign will check your answer for the correct number of significant figures. Covering the worst-case scenario, how many donors must we examine in order to be 95% confident that we have the margin of error as small as 0.01? Using a prior estimate of 15% of college-age students having hypertension, how many donors must we examine in order to be 99% confident that we have the margin of error as small as 0.01?

Chapter 3: In chapter 3 we learn that the supply and demand for a good or service can shift in response to changes in certain variables, and about how supply and demand interact to determine the market equilibrium price. Please identify a price change you have observed in the last few years. Do not choose gasoline or smart/cell phones, please pick something else. Use the supply and demand model to explain the price change you identified in A) above. You should be talking about what happened with supply and demand curves, so please be sure you talk about both of these. You don't need to search the internet for information about this, because I don't care if you are correct. I just want to see if you can use the model to explain price changes, so if your explanation would create the change you observed, that is all I'm looking for. Summarize your explanation with one sentence that mentions what you think has happened to both supply and demand, and how this interaction has resulted in the price change you observed. If both curves are moving, you will need to comment on the relative size of each shift to justify the price change you observed. Please do not try to explain price changes in gasoline or cell phones. Please pick something else. Helpful tip: be sure you discuss both supply AND demand, as they both play a role in determining the price.

Chapter 4a: In our everyday lives as consumers we purchase many goods and services, and we derive consumers' surplus for most of them. With that in mind, please: Identify 3 goods or services you have purchased in the last year, and estimate the amount of consumer surplus you enjoy from those purchases. For each good, please state specifically: The highest amount you would have been willing to pay. The price you actually paid. The amount of consumers’ surplus you received from each item. You should have 3 short paragraphs, one for each good. Do not use a chart, please use words. Helpful tips: Be sure to state exactly the highest price you would have been willing to pay, the price you actually paid, and what your consumer's surplus is. There are many different phrases you can use to communicate the highest price you were willing to pay, but note that the following are incorrect: The price you were willing to pay. Just because you were willing to pay $20 for a good, doesn’t mean this is the highest you were willing to pay. The price you expected to pay. Again, this is not necessarily the highest price you were willing to pay.

Chapter 4b: We are about one-third of the way through the course. How is it going for you? Are your grades where you want them to be? If not, what can you do to remedy the situation? If you want a different result, it is imperative that you change your strategy.

Excel Questions

Q1. What is the sample mean of income?

Q2. What is the sample standard deviation of income? For questions 3 and 4, construct a 95% confidence interval for the average house price.

Q3. Enter the low end of the interval.

Q4. Enter the high end of the interval

Q5. The the typical household income in Indiana is $52,314. Suppose we want to test whether the people in this town earn a different amount on average. Find the p-value for this hypothesis test.

Q6. What is the highest confidence level at which you would reject the null hypothesis?

Q7. Suppose we want to test whether the two towns have the same unemployment rate. Find the p-value for this hypothesis test.

Q8. What is the highest confidence level at which you would reject the null hypothesis

Q9. Suppose we want to test whether runner 1 is faster than runner 2. Find the p-value for this hypothesis test.

Q10. What is the highest confidence level at which you would reject the null hypothesis

You run a small business with the following data for the last 100 days. Here is a summary for all of the variables:

Sales: Your revenue in dollars for the day.

Ads: The amount that you have spent on advertising.

Weekend: Equals 1 if it is on a weekend and 0 if not.

Holiday: Equals 1 if it is on a holiday and 0 if not

Run a regression with sales as your independent variable and ads, weekend and holiday as your dependent variables.

Q11. What is the p-value for the ads coefficient

Q12. What is the highest confidence level at which you would reject the null hypothesis that ads don't affect sales (use the dropdown list)?

Q13. What is the coefficient for ads?

Q14. Using this model, predict your sales for a day where you have spent $100 on ads, it is not a weekend and it is a holiday.

Run the same regression but with the natural logarithm of ads instead of ads.

Q15. What is the coefficient for ads now?

Q16. Which model performs better overall?

You run a store where you have data on the temperature outside and the amount that you spent on heating over the last 50 days.

Q17. What is the correlation between temperature and heating costs in this sample?

Q18. Find the test statistic for the hypothesis test for whether temperature and heating cost are correlated. (hint: look at CPA 14 part 1 for guidance)

Q19. What is the p-value for this hypothesis test? (hint: The t.dist functions require a positive value for x. Be sure to take the absolute value of the t-score using the abs function)

Q20. What is the highest confidence level at which you would reject the null hypothesis?