1. A study was conducted to examine whether the perception of service quality at hotels differed by gender. Hotel guests were randomly selected to rate hotel service, and each rating was then transferred into a standardized score. By comparing the scores observed from the sample of male guests and the sample of female guests, researchers then wished to determine if there is evidence of a difference in average rating when awarded by males, μ ₁, and the average rating when awarded by females, μ ₂. A summary of the sampled guest scores are provided in the table below :

2. 
   i) Carry out a hypothesis test for a significant difference between the two population means, at significance level α = 0.05.
   The hypotheses being tested are:
   H ₀: μ ₁ - μ ₂ = 0
   H _a: μ ₁ - μ ₂ ≠ 0.
   Complete the test by filling in the blanks in the following:
   • An estimate of the difference in population means is .
   • Assuming the population standard deviations are equal, σ₁=σ₂, the pooled estimate, s_p, is  and the standard error is .
   • The distribution is  (examples: normal / t12 / chisquare4 / F5,6).

The test statistic has value TS=  .
Testing at significance level α = 0.05, the rejection region is:
less than  and greater than  (3 dec places).
There  (is evidence/is no evidence) to reject the null hypothesis, H ₀ of no difference between the two population means, μ ₁ and μ ₂.

ii) Estimate the difference in population means by calculating a 95% confidence interval.
The difference between the population means, the mean of population 1, μ ₁, minus the mean of population 2, μ ₂, is estimated to be between________  and__________ .

Exercise 7.4 Recording sales made for cash and on account, with 8 percent sales tax, and sales returns.

LO 7-1 Record the following transactions of Fashion Park in a general journal. F

ashion Park must charge 8 percent sales tax on all sales.

DATE TRANSACTIONS 2019

April 2 Sold merchandise for cash, $2,500 plus sales tax.

April 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

April 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

April 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax.

The original sale was made on Sales Slip 908 of April 4.

April 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

1

Journal Entry

Sold merchandise for cash, $2,500 plus sales tax.

2

The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

3

Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

4

Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4.

5

Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

Homework 3:

A car dealer pays $17,985 for each car purchased. The annual holding rate is estimated at 25%, and the ordering cost is $7,558. The dealer is selling an average of 516 cars a year.

3. Note the new information:

• The dealership can only park 45 cars in its small parking lot. Therefore, if needed, it will lease a nearby bigger parking lot, and use it to park access inventory.

• The dealer can get a discount of $1000 on the car's price if his order size is 275 cars or more.

3-1: If the dealer rejects the discount offer, what will be his order size?

a. 42 cars

b. 43 cars

c. 45 cars

d. None of the above.

3-2: If the dealer decides to accept the offer to order 275 cars, he uses the leased parking lot as a "Warehouse", and each time a car is sold from the small parking lot, he transfers a car from the leased large lot. Therefore, in his own lot, there are all the time 45 cars on display, but the inventory in the large lot is gradually depleting. What is the average inventory the dealership carry in the leased parking lot?

a. 275 cars    

b. 275/2 cars

c. 38+(275/2)      

d. 237/2

3-3 A car kept in the leased parking lot costs the dealer additional $250 in holding cost (which increases Ch¬). Calculate the annual total cost if the dealer decides to accept the "275" deal. Break down the costs: Annual Ordering cost, Annual Holding cost in the small parking lot, Annual Holding cost in the leased parking lot, Annual Purchasing cost. (not multiple choice, show work)

The typical supermarket has 30,000 different products on sale at any given time. The manager of that supermarket must determine not only what mix of products to have on hand but where to locate those products and what price to set on each one at any specific time. Usually, the price is based on a markup on the cost of the item, and the only reason the price is altered is that costs change. When you reserve a hotel room, you find that there are several different prices offered for that same room, depending on whether you work for the government, are a member of AARP or some other organization, are staying more than one night, and so on. Why doesn’t the hotel just offer a single price? These examples illustrate just a few of the many problems confronting businesses in their relations with customers. Companies do not seem to know much about their customers. For instance, companies often base prices on the anecdotal evidence of a few vocal salespeople or product managers. Even Mercedes-Benz, when it was about to launch one of its A-class models in the German market, initially proposed a price tag of DM29,500, based on little more than the belief that DM30,000 was a psychologically important barrier. Consultants point out that price has a disproportionate effect on the bottom line, far more than greater volume or cuts in fixed and variable costs. Assuming that volumes stay constant, a 1 percent price increase produces between an 8 percent and 11 percent improvement in operating profits.

So does this mean that most businesses should raise their prices? Explain your answer.

Are these businesses leaving money on the table—that is, not generating the greatest revenue they could by knowing the customer better?” Explain your answer.

Total Snowfall and Number of Visitors at Yellowstone National Park

The table above shows the total snowfall (in inches) and the number of visitors to Yellowstone National Park during 18 randomly selected weeks. (Show all calculations)

1. Based on the variables involved in this relationship which variable do you think is the explanatory (x) variable and which is the response (y) variable?

2. Calculate the correlation between the two variables. r=

3. Interpret the full meaning of the correlation coefficient you calculated in #2, including direction, strength, and relationship between variables.

4. Calculate the average and SD for the variable you chose as the explanatory variable.

Average =

SD =

5. Calculate the average and SD for the variable you chose as the response variable.

Average=

SD=

6. Find the equation of the regression line that fits your data. Show all calculation.

7. Interpret the meaning of the slope of your regression model from question #6

8. Interpret the meaning of the y-intercept of your regression model from question #6. If there is no practical meaning, explain why.

9. Demonstrate how someone might use the regression model you found in question #6 to predict the value of a response variable. That is, plug a hypothetical x-value in your model and explain what it predicts.

Evans:

Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Evans family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. To decide how many of each of the four kinds of rooms to plan for, the Evans family will consider the following information.

After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.

Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers ad $3000 to the cost of any smoking room. Evans Enterprises has raised $6.3 million in construction guarantees for this portion of the building.

There will be at least 120 but no more than 180 beachfront rooms.

Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms, and no more than 2.5 times that number.

Industry trends recommend that the number of smoking rooms be no more than 50% of the number of non-smoking rooms.

There should be at least 45 rooms of each kind.

What is the optimal solution?

What is the optimal value of the objective function?

For what values of the objective coefficient will the above solution be valid? Include ranges for all decision variables.

If the budget increases to 7 million what is the change in the objective function? What is the shadow price for budget?

The trend in state income taxation is to move to an apportionment formula that place extra weight on the sales factor. Many states now use sales-factor-only apportionment. Explain why this development is attractive to the taxing states.

Do you think how unions have changed over the years and whether it is simply a matter of time before all states are "right-to-work" states? or whether unions will grow in stature and strength in the years to come?

Required information

The Big Mac and Moscow Machinations

You are about to read a short case about American businesses in Russia and the difficulties they face. You will be asked to answer questions linking your knowledge from the chapter to the situation detailed in the case.

Review the text material on the evolving state of trade in Eastern Europe and the former Soviet states, and strategic implications for marketing in the area. Then read the following short case. When you have finished reading the case, answer the questions that follow.

Many American executives complain about the difficulties of doing business in China. As we report in Chapter 11, their Ease of Doing Business ranking is #99—about in the middle of the 187 nations ranked. Russia comes in worse at #111. And their ranking will be worse in 2014, particularly if you ask McDonald’s about things in Moscow these days.

The New York Times reported, “The scene was strait out of the ‘C.S.I.,’ food safety edition. At a McDonald’s in a provincial town northwest of here, health inspectors in lab coast swooped in for a surprise check.” Based on their investigation, the Russian authorities sued to ban sales of several products including cheeseburgers, fish sandwiches, and some desserts because the calorie counts didn’t with the menus.

The Russian courts closed nine stores immediately, including the very first and still busiest location in Moscow’s Pushkin Square. McDonald’s was seemingly at war with Russia for the better part of 2014. Earlier in that year, political tensions began to rise between America and Russia after the conflict over Ukraine and the annexation of Crimea. While dealing with Western sanctions, Russian officials seem to be using McDonald’s—a highly visible American presence within the country—as an example.

In August, Russia banned all edible imports—including cheese and vegetables—from the United States, Canada, the European Union, and more in response to Western sanctions. Other American companies are suffering similar harassment, such as ExxonMobil, Schumberger, Jack Daniels, Visa, and Condé Nast. In the case of Condé Nast, the magazine company is being forced to sell controlling ownership to a Russian partner because foreign media ownership rules have been changed.

The row between Russia and Ukraine started about a decade ago—the issue was a price dispute over natural gas shipped to the Ukraine and the EU via Ukraine pipelines. Leaders of the two countries reached agreements in 2006, 2011, and again in 2014, the last being mediated by the EU. Crimea, with popular beaches, strategic port facilities, fossil fuel resources, and a 77 percent majority of Russian speakers, was annexed by Russia in 2014. But, it’s hard to imagine Russia being interested in taking more territory from their big CIS (not CSI!) neighbor (note the wide gap in income across the two populous countries). And circa 2015, Russia has substantial economic problems of its own, with oil prices dropping below $80 per barrel for the first time in recent memory.

Source: Khushbu Shah, “Nearly 200 McDonald’s in Russian to Undergo Government Inspections,” Eater.com, October 20, 2014, online; Andrew E. Kramer, “Enduring Russia’s Wrath,” The New York Times, November 7 2014, pp. B1, 8.

1) Although Russia and Ukraine are involved in a bitter dispute over land and natural gas, they are both members of the ______, which establishes free trade in the region.

A) European Union

B) Confederacy of Former Soviet States

C) Commonwealth of Independent States

D) Former Soviet Republic

E) Free Trade Union of Eastern Europe

2) Which of the following characterizes Russia’s current trade relationship with the United States?

A) strict import bans on edibles

B) free trade of all goods

C) minimal tariffs on imports

D) export embargoes on industrial products

E) high quotas on edible imports

3) What seems to be the real reason why Russia closed nine McDonald’s stores?

A) to protect the health of its people

B) to increase the sales of CIS fast food restaurants

C) to cut the CIS off from the Western world in favor of Chinese companies

D) to retaliate for Western sanctions related to the Ukraine annexation

E) to set an example for other members of the CIS who want to do business in Russia

4) Assuming that the dispute with Ukraine and resulting sanctions were not an issue, how might companies like Jack Daniels circumvent Russia’s protectionist policies on edible imports?

A) by selling products through a third party

B) by investing in production facilities in the CIS

C) by paying high tariffs on all exported goods

D) by opening retail stores in Russia

E) by making direct exchanges of American edibles for Russian edibles

this discussion invites you to consider the validity of this interpretation of political globalization, by reflecting on the current COVID-19 health pandemic and considering what the global response to this crisis tells us about the relative power of individual states, and the role of IGOs like the World Health Organization (WHO). To what extent are we currently living in an era of global governance? To what extent do individual states retain sovereignty? Are all states equally independent? Would a 'real' world government be preferable in the face of this kind of global pandemic? Why or why not? Compare and contrast two countries, the best and worst, to find out how are some states responding to the COVID -19 crisis? At an individual level, what are you doing to flatten the curve?