A car company is considering a new engine filter for its new hybrid automobile line. But it does not want to switch to the new brand unless there is evidence that the new filter can improve fuel economy for the vehicle (miles per gallon). The experimental design is set up so that each of the 10 cars drive the same course twice - once with the old filtration system and once with the new version. The data collected is shown below:

Conduct a hypothesis testing to determine whether the new filtration system is superior. Provide the p-value from your analysis.

Paste Corporation has established new plant for the production of new product called “Diazinon”. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following:

                                                                              Process base       Order base

Variable manufacturing cost per unit..................... Rs14.00         Rs.17.60

Fixed manufacturing cost per year ......................Rs. 2,440,000 Rs. 1,320,000

The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for     Diazinon. The yearly fixed selling and admin costs of the Diazinon are Rs.500, 000. The variable selling and regulatory costs are Rs. 2 per unit.

Required:

1. CM ratio and variable expenses ratio. If Paste Corporation uses the:

1. Process base manufacturing method.

2. Order base manufacturing method.

   II.      Break-even point in units and amount by formula method. If Paste Corporation uses the:

                        1. Process base manufacturing method.

                        2. Order base manufacturing method.

3. Margin of safety. Assuming 250,000 units are actual sales for.

1. Process base manufacturing method.

2. Order base manufacturing method.

4. Degree or operating leverage at actual sales level for.

1. Process base manufacturing method.

2. Order base manufacturing method.

The new candy Green Globules is being test-marketed in an area of upstate New York. The market research firm decided to sample 6 cities from the 45 cities in the area and then to sample supermarkets within cities, wanting to know the number of cases of Green Globules sold.

City

1 2 3 4 5 6

Number of Supermarkets

52 19 37 39 8 14

Number of Cases Sold

146,180,251,152,72,181,171,361,73,186

99,101,52,121

199,179,98,63,126,87,62

226,129,57,46,86,43,85,165

12, 23

87,43,59

Obtain summary statistics for each cluster.

Plot the data, and estimate the total number of cases sold, and the average number sold per supermarket, along with the standard errors of your estimates.

Burnaby Ltd. is considering the acquisition of new production equipment. If purchased, the new equipment would cost $1,850,000. Installation and testing costs would be $35,000 and $25,000 respectively. Once operational, the equipment will cause an increase in working capital of $120,000. The new equipment is expected to generate increased annual sales of $720,000. Variable costs to operate the machine are estimated at 42% of sales and annual fixed costs would be lowered by $75,000. The equipmenthasanestimate6yearlifeandasalvagevalueof$90,000. Thecompanyrequiresan11% return on its investments. Ignore income taxes. Required:

a. Compute the net present value.

b. How do you compare NPV to Payback method? Which method is likely to be more reliable?

Case Study: Identifying and creating new markets - a new strategy for a global leader

Introduction

Nearly everyone is aware of Intel. It is the world's fifth most valuable brand valued at around $35 billion. Most of the world's personal computers are driven by Intel microprocessors.

By concentrating on producing great microprocessors Intel was able to leave its competitors behind. The company invested billions of dollars in highly productive manufacturing plants that could produce more processors in a day than some of their rivals could produce in a year.

Today Intel is continuing to raise the bar. In January 2006 the company launched its new strategy based on identifying and creating new markets. Instead of just focusing on personal computers (PCs) Intel will play a key technological role in a range of fields including consumer electronics, wireless communications and healthcare.

Intel has been one of the world's high achieving businesses. Its global appeal is not surprising. In recent years almost every time you opened up a laptop you would see that it was labelled 'Intel@ Inside'. Seeing this, the user knew that they had a high performing and reliable computer.

We all want to be able to use more powerful technology, which is simple to operate, and helps us to do things without having to think about it. However, Intel has moved on. The problem with simply being a producer of processors is that other firms can move into your market. Once they produce similar products the only way you can differentiate is by offering lower prices.

Intel's new strategy is to create lots of different types of chips and software and then combine them together into platforms. A platform is an integrated set of proven technologies designed to work together. They provide people and businesses with improved communications and computing capabilities. These platforms will enable Intel to bring added value for consumers, win a larger share of consumer expenditure and increase revenue.

Platforms will make life easier for people in a range of settings from the home, to business, and medical settings. Intel's vision involves giving people access to easy-to-use technologies through these platforms. It is seeking to continually satisfy customer requirements by producing a range of new and exciting products.

Developing a new strategy

Intel is an 'ingredient brand'. Its products and processors form part of the products that consumers purchase. Building key relationships with leading electronic firms such as Sony and Philips is an important strategy. The aim is to provide the manufacturers of products such as laptops, mobile phones and entertainment personal computers with integrated packages of chips and software - in other words a complete solution.

A key part of Intel's more integrated platform strategy involves the development of several technologies. These improve processor efficiency and allow computer users to take better advantage of:

multi-tasking

security

reliability

manageability

wireless computing capabilities.

Intel's strategy is to be at the heart of new developments in home entertainment, security, medical care, etc. Great results are achieved through developing the right products for the right markets before competitors do so.

Restructuring Intel around its market

Intel built its early success on providing ingredients for personal computers with its prime driver being technology. It was dominated by engineers and worked closely with Microsoft and PC manufacturers such as Dell, Compaq and IBM.

The new strategy continues the emphasis on producing excellent products. However, there is now a strong focus on marketing- finding out what customers want and then meeting their requirements. Customers need to know what these new products can do for them. Clear communication is therefore essential. The emphasis is on marketing and communicating with customers about what the new technologies can do for them.

Conclusion

Intel is one of the success stories of the high-tech world. It provides vital components for personal computing. Now the company is moving forward into a range of new and exciting products and markets with a much stronger focus on marketing

Read the above case study and answer the following questions:

1. Investigate how the micro environment and the macro environment have an effect on its marketing and business.

2. Analyze the STP (Segmentation, Targeting and Positioning) strategies of the organization. Evaluate its marketing mix which leads to achievement of consumer satisfaction and organizational goals.

3. Develop strategies that could result in the organization taking better marketing decisions.

Note the Answers should be computerized and answered in details - Please do not copy and Paste

A new fuel injection system has been engineered for pickup trucks. The new system and the old system both produce about the same average miles per gallon. However, engineers question which system (old or new) will give better consistency in fuel consumption (miles per gallon) under a variety of driving conditions. A random sample of 31 trucks were fitted with the new fuel injection system and driven under different conditions. For these trucks, the sample variance of gasoline consumption was 52.7. Another random sample of 24 trucks were fitted with the old fuel injection system and driven under a variety of different conditions. For these trucks, the sample variance of gasoline consumption was 38.5. Test the claim that there is a difference in population variance of gasoline consumption for the two injection systems. Use a 5% level of significance. How could your test conclusion relate to the question regarding the consistency of fuel consumption for the two fuel injection systems?

(a) What is the level of significance?


State the null and alternate hypotheses.

H_o: σ₁² = σ₂²; H₁: σ₁² > σ₂²H_o: σ₁² > σ₂²; H₁: σ₁² = σ₂²    H_o: σ₂² = σ₁²; H₁: σ₂² > σ₁²H_o: σ₁² = σ₂²; H₁: σ₁² ≠ σ₂²

(b) Find the value of the sample F statistic. (Round your answer to two decimal places.)


What are the degrees of freedom?

What assumptions are you making about the original distribution?

The populations follow dependent normal distributions. We have random samples from each population.The populations follow independent chi-square distributions. We have random samples from each population.    The populations follow independent normal distributions. We have random samples from each population.The populations follow independent normal distributions.

(c) Find or estimate the P-value of the sample test statistic.

P-value > 0.2000.100 < P-value < 0.200    0.050 < P-value < 0.1000.020 < P-value < 0.0500.002 < P-value < 0.020P-value < 0.002

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.    At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Fail to reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.Reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.    Reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.Fail to reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.

Because he is younger than age 24 and single, he will not owe taxes when the bonds are redeemed.

Because he received the bonds as a gift, he must pay taxes on the full amount of the redemption.

Because he is younger than age 24, he will need to pay taxes on the interest earned when the bonds are redeemed.

A new fuel injection system has been engineered for pickup trucks. The new system and the old system both produce about the same average miles per gallon. However, engineers question which system (old or new) will give better consistency in fuel consumption (miles per gallon) under a variety of driving conditions. A random sample of 41 trucks were fitted with the new fuel injection system and driven under different conditions. For these trucks, the sample variance of gasoline consumption was 53. Another random sample of 21 trucks were fitted with the old fuel injection system and driven under a variety of different conditions. For these trucks, the sample variance of gasoline consumption was 33.1. Test the claim that there is a difference in population variance of gasoline consumption for the two injection systems. Use a 5% level of significance. How could your test conclusion relate to the question regarding the consistency of fuel consumption for the two fuel injection systems?

(a) What is the level of significance?


State the null and alternate hypotheses.

H_o: σ₁² = σ₂²; H₁: σ₁² > σ₂²H_o: σ₁² > σ₂²; H₁: σ₁² = σ₂²    H_o: σ₂² = σ₁²; H₁: σ₂² > σ₁²H_o: σ₁² = σ₂²; H₁: σ₁² ≠ σ₂²

(b) Find the value of the sample F statistic. (Round your answer to two decimal places.)


What are the degrees of freedom?

What assumptions are you making about the original distribution?

The populations follow independent normal distributions. We have random samples from each population.The populations follow dependent normal distributions. We have random samples from each population.    The populations follow independent normal distributions.The populations follow independent chi-square distributions. We have random samples from each population.

(c) Find or estimate the P-value of the sample test statistic.

P-value > 0.2000.100 < P-value < 0.200    0.050 < P-value < 0.1000.020 < P-value < 0.0500.002 < P-value < 0.020P-value < 0.002

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.    At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Fail to reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.Reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is greater in the new fuel injection systems.    Reject the null hypothesis, there is sufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.Fail to reject the null hypothesis, there is insufficient evidence that the variance in consumption of gasoline is different in both fuel injection systems.

Palmetto Ag. Inc. recently purchased a new harvester. The new machine cost $180,000 and it is expected to generate net after-tax operating cash flows, including depreciation, of $50,000 per year. The machine has a five year expected life. The expected salvage values after-tax adjustments for the machine are given below, and the company’s WACC is 11%. Based on the information below, should the firm operate the machine until the end of its 5 year physical life? If not, then when is its optimal economic life?

                        Year                Annual Net operating cash flow         Salvage Value

                        0                      -$180,000                                            $180,000

                        1                           50,000                                            140,000

                        2                           50,000                                            112,000

                        3                           50,000                                                87,000

                        4                           50,000                                                42,000

                        5                           50,000                                                        0

1) We are creating a new card game with a new deck. Unlike the normal deck that has 13 ranks (Ace through King) and 4 Suits (hearts, diamonds, spades, and clubs), our deck will be made up of the following.

Each card will have:
i) One rank from 1 to 16.
ii) One of 5 different suits.

Hence, there are 80 cards in the deck with 16 ranks for each of the 5 different suits, and none of the cards will be face cards! So, a card rank 11 would just have an 11 on it. Hence, there is no discussion of "royal" anything since there won't be any cards that are "royalty" like King or Queen, and no face cards!

The game is played by dealing each player 5 cards from the deck. Our goal is to determine which hands would beat other hands using probability. Obviously the hands that are harder to get (i.e. are more rare) should beat hands that are easier to get.

i) How many different ways are there to get a flush (all cards have the same suit, but they don't form a straight)?
Hint: Find all flush hands and then just subtract the number of straight flushes from your calculation above.
The number of ways of getting a flush that is not a straight flush is
DO NOT USE ANY COMMAS

What is the probability of being dealt a flush that is not a straight flush?
Round your answer to 7 decimal places.

j) How many different ways are there to get a straight that is not a straight flush (again, a straight flush has cards that go in consecutive order like 4, 5, 6, 7, 8 and all have the same suit. Also, we are assuming there is no wrapping, so you cannot have the ranks be 14, 15, 16, 1, 2)?
Hint: Find all possible straights and then just subtract the number of straight flushes from your calculation above.
The number of ways of getting a straight that is not a straight flush is  
DO NOT USE ANY COMMAS

What is the probability of being dealt a straight that is not a straight flush?
Round your answer to 7 decimal places.

2) Given the following information, answer questions a - d.
P(A)=0.48P(A)=0.48
P(B)=0.41P(B)=0.41
A and B are independent.
Round all answers to 5 decimal places as needed

a) Find P(A∩B).

b) Find P(A∪B).
c) Find P(A∣B).  

d) Find P(B∣A).  

Given the following information, answer questions e - g.
P(A)=0.48P(A)=0.48
P(B)=0.41P(B)=0.41
A and B are dependent.
P(A|B) = 0.14
Round all answers to 5 decimal places as needed

e) Find P(A∩B).     

f) Find P(A∪B)

g) Find P(B∣A).