Problem 9-14A Measures of Internal Business Process Performance [LO9-3]

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

PLEASE EXPLAIN WHY YOU CHOOSE EACH ANSWER

1). How many distinct ways can a President, Vice President, Secretary and Treasurer be selected from a group of 10 people if no one can hold more than on position?

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

2). How many shortest lattice paths are there from (0,0) to (10,4)

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

3). At a movie theater with 4 different movies, how many ways can 10 people select a show? They do not have to all go to the same shoe but several poeple can go to the same show.

A). P(10,4)

B). 10 choose 4

C). 10^4

D). 4^10

E). 13 choose 10

F). None of these

Analyze if the statements that are presented below are True or False. You MUST justify your answer to get credit. Answers without justification (even if they are correct) will be given zero marks.

1. (a) In any Pareto-optimal allocation of a two-good economy, each consumer has to consume a positive amount of both goods.

2. (b) A monopolist never produces on the elastic segment of its average revenue curve.

3. (c) If a firm’s production exhibits increasing returns to scale, then the firm’s marginal costs are decreasing and below its average costs.

4. (d) Maroon Theater practices third-degree price discrimination and sells tickets to three groups of customers: students, regular customers and senior citizens. The inverse demand of the three groups is linear. Furthermore, the students’ and senior citizens’ elasticities of demand for tickets are −4 and −3, respectively. Because the price charged to regular customers is greater than the price charged to senior citizens, we know with certainty that the ticket price for students will be lower than the ticket price for regular customers.

A statistical program is recommended. You may need to use the appropriate appendix table or technology to answer this question.

The owner of a theater would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Find an estimated regression equation relating weekly gross revenue (in thousands of dollars) to television and newspaper advertising (in thousands of dollars). (Let x₁ represent television advertising, x₂ represent newspaper advertising, and y represent weekly gross revenue. Round your numerical values to two decimal places.)

ŷ =

Plot the standardized residuals against ŷ.

does the residual plot support the assumptions about ε? Explain

Suppose that the sitting​ back-to-knee length for a group of adults has a normal distribution with a mean of μ=24.0 in. and a standard deviation of σ=1.1 in. These data are often used in the design of different​ seats, including aircraft​ seats, train​ seats, theater​ seats, and classroom seats. Instead of using 0.05 for identifying significant​ values, use the criteria that a value x is significantly high if​ P(x or ​greater) ≤0.01 and a value is significantly low if​ P(x or ​less) ≤0.01. Find the​ back-to-knee lengths separating significant values from those that are not significant. Using these​ criteria, is a​ back-to-knee length of 26.3 in. significantly​ high?

***Find the​ back-to-knee lengths separating significant values from those that are not significant.

​Back-to-knee lengths greater than ____ in. and less than _____ nothing in. are not​ significant, and values outside that range are considered significant.

​(Round to one decimal place as​ needed.)

***A​ back-to-knee length of 25.3 in. ______ [is or is not] significantly high because it is _______ [Inside or outside] the range of values that are not considered significant.

find the inflation data for the last 3 years:

1. What are your thoughts about the current state of the economy in terms of the historical inflation data for the last 3 years? Discuss either the effects or the types of inflation.

2. Is demand-pull inflation or cost-push inflation or both at play? Explain with examples.

3. Will the future (for instance, 3 years from now) lead to higher inflation rates or lower? Why or why not?

4. Will the future (for instance, 3 years from now) be more promising or otherwise for the existing unemployed? Why or why not?

J. Morgan of SparkPlug Inc. has been approached to take over a production facility from B.R. Machine Company. The acquisition will cost $1,960,000, and the after-tax net cash inflow will be $330,000 per year for 12 years.

SparkPlug currently uses 10% for its after-tax cost of capital. Tom Morgan, production manager, is very much in favor of the investment. He argues that the total after-tax net cash inflow is more than the cost of the investment, even if the demand for the product is somewhat uncertain. “The project will pay for itself even if the demand is only half the projected level.” Cindy Morgan (corporate controller) believes that the cost of capital should be 13% because of the declining demand for SparkPlug products.

Required:

1. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 10%? Use the built-in NPV function in Excel. (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.)

2. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 13%? Use the built-in NPV function in Excel.  (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.)

3. Use the built-in function in Excel to estimate the project’s IRR. (Round your answer to 1 decimal places.)

4. Do a sensitivity analysis by using GOAL SEEK to determine, given estimated cash inflows, the original investment outlay that would result in an IRR of 13%. (Round your answer to nearest whole dollar amount.)

8/50

AllUnanswered

QUESTION 1

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1 POINT

A fitness center claims that the mean amount of time that a person spends at the gym per visit is 33 minutes. Identify the null hypothesis, H0, and the alternative hypothesis, Ha, in terms of the parameter μ.

Select the correct answer below:

H0: μ≠33; Ha: μ=33

H0: μ=33; Ha: μ≠33

H0: μ≥33; Ha: μ<33

H0: μ≤33; Ha: μ>33

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QUESTION 2

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1 POINT

The answer choices below represent different hypothesis tests. Which of the choices are right-tailed tests? Select all correct answers.

Select all that apply:

• H0:X≥17.1, Ha:X<17.1

• H0:X=14.4, Ha:X≠14.4

• H0:X≤3.8, Ha:X>3.8

• H0:X≤7.4, Ha:X>7.4

• H0:X=3.3, Ha:X≠3.3

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QUESTION 3

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1 POINT

Find the Type II error given that the null hypothesis, H0, is: a building inspector claims that no more than 15% of structures in the county were built without permits.

Select the correct answer below:

The building inspector thinks that no more than 15% of the structures in the county were built without permits when, in fact, no more than 15% of the structures really were built without permits.

The building inspector thinks that more than 15% of the structures in the county were built without permits when, in fact, more than 15% of the structures really were built without permits.

The building inspector thinks that more than 15% of the structures in the county were built without permits when, in fact, at most 15% of the structures were built without permits.

The building inspector thinks that no more than 15% of the structures in the county were built without permits when, in fact, more than 15% of the structures were built without permits.

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QUESTION 4

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1 POINT

Suppose a chef claims that her meatball weight is less than 4 ounces, on average. Several of her customers do not believe her, so the chef decides to do a hypothesis test, at a 10% significance level, to persuade them. She cooks 14 meatballs. The mean weight of the sample meatballs is 3.7 ounces. The chef knows from experience that the standard deviation for her meatball weight is 0.5 ounces.

• H0: μ≥4; Ha: μ<4
• α=0.1 (significance level)

What is the test statistic (z-score) of this one-mean hypothesis test, rounded to two decimal places?

Provide your answer below:

$$Test statistic =−2.24

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QUESTION 5

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1 POINT

What is the p-value of a right-tailed one-mean hypothesis test, with a test statistic of z0=1.74? (Do not round your answer; compute your answer using a value from the table below.)

z1.51.61.71.81.90.000.9330.9450.9550.9640.9710.010.9340.9460.9560.9650.9720.020.9360.9470.9570.9660.9730.030.9370.9480.9580.9660.9730.040.9380.9490.9590.9670.9740.050.9390.9510.9600.9680.9740.060.9410.9520.9610.9690.9750.070.9420.9530.9620.9690.9760.080.9430.9540.9620.9700.9760.090.9440.9540.9630.9710.977

Provide your answer below:

0.0410

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QUESTION 6

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1 POINT

Kenneth, a competitor in cup stacking, claims that his average stacking time is 8.2 seconds. During a practice session, Kenneth has a sample stacking time mean of 7.8 seconds based on 11 trials. At the 4% significance level, does the data provide sufficient evidence to conclude that Kenneth's mean stacking time is less than 8.2 seconds? Accept or reject the hypothesis given the sample data below.

• H0:μ=8.2 seconds; Ha:μ<8.2 seconds
• α=0.04 (significance level)
• z0=−1.75
• p=0.0401

Select the correct answer below:

Do not reject the null hypothesis because the p-value 0.0401 is greater than the significance level α=0.04.

Reject the null hypothesis because the p-value 0.0401 is greater than the significance level α=0.04.

Reject the null hypothesis because the value of z is negative.

Reject the null hypothesis because |−1.75|>0.04.

Do not reject the null hypothesis because |−1.75|>0.04.

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QUESTION 7

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1 POINT

A recent study suggested that 81% of senior citizens take at least one prescription medication. Amelia is a nurse at a large hospital who would like to know whether the percentage is the same for senior citizen patients who go to her hospital. She randomly selects 59 senior citizens patients who were treated at the hospital and finds that 49 of them take at least one prescription medication. What are the null and alternative hypotheses for this hypothesis test?

Select the correct answer below:

{H0:p=0.81Ha:p>0.81

{H0:p≠0.81Ha:p=0.81

{H0:p=0.81Ha:p<0.81

{H0:p=0.81Ha:p≠0.81

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QUESTION 8

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1 POINT

A researcher claims that the proportion of cars with manual transmission is less than 10%. To test this claim, a survey checked 1000 randomly selected cars. Of those cars, 95 had a manual transmission.

The following is the setup for the hypothesis test:

{H0:p=0.10Ha:p<0.10

Find the test statistic for this hypothesis test for a proportion. Round your answer to 2 decimal places.

Provide your answer below:

$$Test_Statistic=−0.53

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QUESTION 9

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1 POINT

A medical researcher claims that the proportion of people taking a certain medication that develop serious side effects is 12%. To test this claim, a random sample of 900 people taking the medication is taken and it is determined that 93 people have experienced serious side effects. .

The following is the setup for this hypothesis test:

H0:p = 0.12

Ha:p ≠ 0.12

Find the p-value for this hypothesis test for a proportion and round your answer to 3 decimal places.

The following table can be utilized which provides areas under the Standard Normal Curve:

a. Input the data to R and draw a scatter plot, and you can see that the current scale is not the best for display. You can apply a log-transformation on both variables. This can be done by using the log() function, you can put the old data.frame in the parenthesis, and assign the output a name so that you will have a new data.frame of the transformed data, something like below
> new.data <- log(old.data)
Draw a scatter plot of the new data, does it look much better?

c. Fit a linear model on the original data. Draw plot the residual against the predictor using something similar to
> plot(old.data$BodyWeight, lm.fit$res)
What do you think about the assumption that the error term does not depend on x ?

d. Fit a linear model on the log-transformed data. Draw a plot the residual against the predictor. What do you see now?

Can you please show all work?