The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,500 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 10%.

1. What is each project's expected annual cash flow? Round your answers to two decimal places.

   Project A: $  

   Project B: $  

   Project B's standard deviation (σ_B) is $5,822.37 and its coefficient of variation (CV_B) is 0.78. What are the values of (σ_A) and (CV_A)? Round your answers to two decimal places.

   σ_A = $  

   CV_A =

2. Based on the risk-adjusted NPVs, which project should BPC choose?

   _________Project AProject B

3. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, but Project A's cash flows were positively correlated, how might this affect the decision?

   _________This would make Project B more appealing.This would make Project B less appealing.

   If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment?

   _________This would make Project B more appealing.This would make Project B less appealing.

1. What is each project's expected annual cash flow? Round your answers to two decimal places.

   Project A. $  

   Project B. $  

   Project B's standard deviation (σ_B) is $5,822.37 and its coefficient of variation (CV_B) is 0.78. What are the values of (σ_A) and (CV_A)? Round your answers to two decimal places.

   σ_A = $  

   CV_A =

2. Based on the risk-adjusted NPVs, which project should BPC choose?

3. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, but Project A's cash flows were positively correlated, how might this affect the decision?

   If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment?

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table Source SS df MS F Regression 1,870.5782 1 1,870.5782 41.39 Residual 1,265.4934 28 45.1962 Total 3,136.0716 29 Regression output Variables Coefficients Std. Error t(df=28) Intercept 13.7601 3.106 2.914 Distance–X 3.7708 0.5861 6.43 Click here for the Excel Data File a-1. Write out the regression equation. (Round your answers to 3 decimal places.) a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage? How much damage would you estimate for a fire 4 miles from the nearest fire station? (Round your answer to the nearest dollar amount.) c-1. Determine and interpret the coefficient of determination. (Round your answer to 3 decimal places.) c-2. Fill in the blank below. (Round your answer to one decimal place.) d-1. Determine the correlation coefficient. (Round your answer to 3 decimal places.) d-2. Choose the right option. d-3. How did you determine the sign of the correlation coefficient? e-1. State the decision rule for 0.01 significance level: H0 : ρ = 0; H1 : ρ ≠ 0. (Negative value should be indicated by a minus sign. Round your answers to 3 decimal places.) e-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.) e-3. Is there any significant relationship between the distance from the fire station and the amount of damage? Use the 0.01 significance level.

You and your friends have decided to take a trip after the semester ends to celebrate getting through your statistics class. Pick a departure point from a location that is close to your hometown (Denver, CO). You will find a list of ten different destinations for your trip below. ). So, you should have data for 12 different destination points. You need to collect some data online to find the distance between cities as well as the cost of airfare. You do not need to factor in driving distance or cost to get to your departure point – only include the flight distance and cost of airfare between your departure point and each destination.

1. Create a fitted line plot showing the relationship between distance and cost. Based on your plot, how do you think the cost of the trip is associated with the distance of the trip? Why do you think that a perfect linear relationship does not exist? (i.e. why are the points scattered?)

2. Determine the correlation coefficient, r. Interpret this value in the context of the problem. Based on this value, do you think the linear model is a good fit? Why or why not?

3. Interpret the slope and y-intercept of the regression line in the context of the problem.

4. Find residuals

5. Using your regression equation for the line of best fit, predict the cost of flying to each destination based on the distances from your original data. Then calculate the residuals for each data point. Enter this information in a table like shown below.

   1. Destination	Distance (Miles)	Observed Cost	Estimated Cost	Residuals
      Miami, FL	2,066	$755	$207
      San Diego, CA	1,078	$480	$144
      Las Vegas, NV	749	$157	$93
      New York City, NY	1,779	$417	$232
      Honolulu, HI	3,344	$1,600	$714
      Seattle, WA	1,316	$426	$162
      London, England	4,683	$2,225	$842
      Cancun, Mexico	1,670	$544	$368
      Toronto, Canada	1,344	$1,759	$646
      Sydney, Australia	8,325	$1,618	$1,235
      Rome, Italy	5,567	$,1203	$1,313
      -	-	-	-	-

1.You find a quarter in the vending machine at work. Now you have to check the vending machine every day now. This is an example of ___.

2.

Every time you answer a question correctly in class, I praise you. This is an example of which learning theory?

3.

You have a fish tank that contains hundreds of small fish. You feed them the same time everyday by sprinkling the food on the surface of the water. The fish naturally come to the top to feed. One day, not feeding time, you simply check on the fish. As you are standing near the tank, the fish come to the top as though they are feeding. You could say that the fish ___.

4.

You are late for work and you are driving at least 100 miles per hour on the interstate. You are stopped by a State Trooper, and receive a speeding ticket. This is an example of ___.

5.

You go to the circus and see the tiger show. When the trainer cracks his whip, the tiger jumps through the hoop. This is an example of ___.

6.

Most mornings, Randy listens to his favorite song as he gets ready for work, including putting in his contacts. One afternoon, Randy hears his favorite song playing, and his eyes start watering.... something that usually happens only when he puts his contacts in. This is an example of classical conditioning. What is the unconditioned stimulus?

Confidence Intervals for a proportion and mean Do all steps in the confidence interval:

a) Check when easy the requirements for the interval (t-interval)

b) Create a summary of the information that goes into the interval

c) Write out the formula for the interval

d) Replace the symbols in the formula with the numbers from (b)

e) Produce the interval

f) Interpret the interval

In 1998, as an advertising campaign, the Nabisco Company announced a "1000 Chips Challenge," claiming that every 18-ounce bag of cookies contained at least 1000 chocolate chips. Students tested this by getting bags and counting. Create a 95% interval for the mean number of chocolate chips per bag.

An insurance company checks police records on 582 accidents selected at random and notes that teenagers were at the wheel in 91 of them. Create a 95% confidence interval for the percentage of all auto accidents that involve teenage drivers.

A company with a large fleet of cars hopes to keep gasoline costs down and sets a goal of attaining a fleet average of at least 26 miles per gallon. To see if the goal is being met, they check the gasoline usage for 50 company trips chosen at random, finding a mean of 25.02 mpg and a standard deviation of 4.83 mpg. Produce a 99% confidence interval for the average mpg.

A May 2007 Gallup Poll found that only 11% of a random sample of 1003 adults approved of attemps to clone a human. Produce a 90% confidence interval for the percentage of adults that approve of attempts to clone a human

The mayor of a small city suggested that the state locate a new prison there, arguing that the construction project and resulting jobs will be good for the local economy. A total of 2183 residents show up for a public hearing on the proposal, and a show of hands finds only 31 in favor of the prison project. What can the city council conclude about public support for the mayor's initiative? Produce a 98% confidence interval to answer the question.

Understanding the marketplace is the first step to developing and implementing a company’s effective marketing strategy. Consider today’s marketplace, which is crowded with a variety of products and services in all industries. Companies sell their products and services in-store and online as well as offering a hybrid of options to order online and pick up in store. These options are often designed to move the company and its brands to the top place in the industry.

For this discussion, explore the electric and hybrid car industry. Because more emphasis is being placed on sustainable and green technologies for cleaner air and lower gas emissions, customers are becoming more interested in alternative-fuel cars such as hybrids, solar, and electric choices. In addition, as gasoline prices continue to rise for all-fuel automobiles, customers are often looking for more fuel-efficient options to lower their personal expenditure and more.

1. Identify the product’s competition. What is 1 new trend on the horizon that the company needs to consider when offering these models to customers in the future?  

2. Discuss how your selected model is poised to compete in today's marketplace.

3. What type of customer would be interested in your product? Note the demographics such as the age of the consumer, lifestyle, or psychographics. For example, a customer who is a salesperson and travels 200 miles per day might be very interested in this type of car.

The following information is provided to help with your assignment:

Today's marketplace is complex, crowded, and competitive with hundreds of thousands of products and services.

Marketers need to understand that economic value includes market research and industry analysis, both focused on how a product or service matches the wants and needs of the targeted customer. Marketing research about the environment, competition, and customers is critical to company success and creating brand loyalty and awareness.

In analyzing a product or service industry, marketing tools such as a SWOT analysis, which examines the strengths, weaknesses, opportunities, and threats of an organization; a PEST analysis, which focuses on the political, economic, social, and technological sectors of the market; and, Porter’s Five Forces analysis allow marketers to get a top-line and in-depth view of how the brand is situated in the marketplace against the competition, what opportunities and threats exist, and how customers perceive the product.

Case 7

There has been a car accident and the driver if the car was brought to PRU. She has been stabilized in the emergency department; however, transferring her to another facility 40 miles to ICU away would not be appropriate in her health status for her injuries would not sustain life.

The patient has to be placed in ICU in the next 1-2 hours. The night supervisory gains composure and describes the status of patients occupying the 4 ICU beds.

Patient A- A 59 year old female, comatose, stroke victim who had been in ICU for 33 days; uncertain prognosis; retired, with no family

Patient B- 2- week old premature male, has Down's syndrome and has been in ICU since birth; hospital has brought a legal action to permit surgery to repair a duodenal atresia, a procedure the parents had not permitted; family in adjacent city.

Patient C- 35 year old male who underwent emergency appendectomy, developed severe wound infection and septicemia, source of infection is unknown; because of previous anaphylactic shock in reaction to antibiotics; requires ICU care; bachelor; aged mother in city.

Patient D- 13 year old female undergoing chemotherapy for leukemia with an experimental drug; has been in remission three times in the past; close monitoring of the experimental protocol and potential reaction to drug requires ICU care; family in city.
New Patient- 24 year old patient; college honor student in physics. scholarship winner; pregnant; engaged; no family known.

The supervisor ended the brief description by asking, "What should I do?"

You are the superviser and you have to make a decision. (continued on next page) - each question followed must be answered.

Describe your facility

Describe your staff

Explain any legal or ethical issues of the situation

Explain your management style/theory

Discuss cultural issues that the situation presents

Explain budgetary plans or concerns

Explain credentialing or accreditation issues the situation presents

Describe your response to the situation

Exercise 13-60 (LO13-2, LO13-3, LO13-5)

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below.

A. How much damage would you estimate for a fire 4 miles from the nearest fire station? (Round your answer to the nearest dollar amount.) [THE ANSWER IS NOT 35]

Exercise 13-58 (LO13-2, LO13-3)

A consumer buying cooperative tested the effective heating area of 20 different electric space heaters with different wattages. Here are the results.

1. Which heater looks like the “best buy” based on the size of the residual? (Round residual value to 3 decimal places.)

Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below.

ANOVA table
Source   SS   df   MS   F
Regression   1,875.5782   1   1,875.5782      42.33
Residual   1,240.4934   28   44.3033        
Total   3,116.0716   29           

Regression output
Variables   Coefficients   Std. Error   t(df=28)
Intercept   12.5907   3.1151   3.547
Distance–X   2.6223   0.403   6.51

Click here for the Excel Data File

a-1. Write out the regression equation. (Round your answers to 3 decimal places.)

a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage?

How much damage would you estimate for a fire 6 miles from the nearest fire station? (Round your answer to the nearest dollar amount.)

c-1. Determine and interpret the coefficient of determination. (Round your answer to 3 decimal places.)

c-2. Fill in the blank below. (Round your answer to one decimal place.)

d-1. Determine the correlation coefficient. (Round your answer to 3 decimal places.)

d-2. Choose the right option.

d-3. How did you determine the sign of the correlation coefficient?

e-1. State the decision rule for 0.01 significance level: H0 : ρ = 0; H1 : ρ ≠ 0. (Negative value should be indicated by a minus sign. Round your answers to 3 decimal places.)

e-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

e-3. Is there any significant relationship between the distance from the fire station and the amount of damage? Use the 0.01 significance level.

i need answeres for e