A firm has identified 3 segments of customers based on their frequency of purchase. Low frequency customers spend on average $100/year on the brand, medium frequency customers spend $380/year on the brand and high frequency customers spend $500/year on the brand. A new marketing campaign wants to target converting customers to higher levels of frequency. Based on their budget they are considering 4 strategies. Which strategy should they pursue if they want to increase revenue as much as possible?

the amateur triathletes who competed in the 2006 ironman Coeur d'Alene were classified by sex and age with the following results (ford ironman coeur d'alene 2006 results, 2006.)

Do these data provide sufficient evidence at the 0.05 significance level to conclude that sex and age are related among triathletes who complete in Coeur d'Alene?

Suppose overall health care spending rose from $7000 per person in 2006 to $7700 per person in 2007. [1] Calculate both the absolute change and percentage change in health care spending per person from 2006 to 2007. [2] Using 2006 as your starting year (2006 = year 0), determine an exponential equation that calculates the amount of health care spending over time assuming the annual percentage change stays the same. Clearly identify the variable names and symbols in your equation. [3] Using 2006 as your starting year (2006 = year 0), determine a linear equation that calculates the amount of health care spending over time assuming the annual absolute change stays the same. Clearly identify the variable names and symbols in your equation. [4] Create an Excel spreadsheet to compare the two growth models’ predictions for health care spending through the year 2021. Include a chart showing both models. Please clearly indicate the question number on your excel file and attach it to the test. [5] Which model first predicts that U.S. health care spending will reach a level of $10,000 per person? In what year will that occur?

For this assignment, please submit the answers to the following questions, as well as an Excel spreadsheet which documents the work you did.

Do poets die young? According to William Butler Yeats, “She is the Gaelic muse, for she gives inspiration to those she persecutes. The Gaelic poets die young, for she is restless, and will not let them remain long on earth.” One study designed to investigate this issue examined the age at death for writers from different cultures and genders. Three categories of writers examined were novelists, poets, and nonfiction writers. The ages at death for female writers in these categories from North America are given in the dataset on blackboard (data file : Female Writers.xls). Most of the writers are from the United States, but Canadian and Mexican writers are also included.

a)   Use Excel to build a boxplot of the three associated data sets. If the population mean death ages were the same for the three populations, would you expect to see a boxplot like this? Please elaborate.
b)   Write down both the null and alternative hypothesis for the one-way ANOVA.

c)   Run the one-way ANOVA test in Excel; make sure you save this in your spreadsheet somewhere where it can be found.

d)   You will see a value for F-stat. Report this value, and explain how it is related to MSA and MSW.

e)   In general, what is a p-value? In your table, what p-value is reported, and what exactly does it mean?

f)   At the .05 level of significance, is there evidence of a difference in mean age of death among the various types of female writers? Explain your decision.

Sales Returns

Which of the following statements is true relating to the allowance for sales returns?

a. Sales returns is treated as an expense in the income statement and, therefore, reduces profit for the period.

b. An excess of the amount by which the allowance for sales returns is increased compared with the actual returns for the period indicates the company may have inflated profit for the period.

c. The amount by which the allowance for sales returns is reduced during the period is recognized as a reduction of sales for the period, thus reducing profts.

d. Increasing the allowance for sales returns by an amount that is less than the actual returns recognized for the period may indicate either the company is attempting to increase profit for the period or its estimates that less of its products will be returned in the future.

Deferred Revenue
True or false: A reduction of the deferred revenue account can be interpreted as a leading indicator of lower future revenues. Explain

a. Fale. Revenue is recognized when the deferred revenue liability increases. If the deferred revenue account has decreased, more cash came in from customers and more revenue will be recgnized in the future.

b. True. Revenue is recognized when the deferred revenue liability decreases. If the deferred revenue account has decreased, less cash came in from customers and less revenue will be recognized in the future.

c. False. Revenue is recognized when the deferred revenue liability decreases. If the deferred revenue account has decreased, less cash came in from customers and more revenue will be recognized in the future.

d. True. Revenue is recognized when the deferred revenue liability decreases. If the deferred revenue account has decreased, more cash came in from customers and less revenue will be recognized in the future.

Foreign Exchange Effects on Sales  
True or false: A multinational company reports that a large amount of its sales is generated in foreign currencies that have strengthened vis-à-vis the $US. Consolidated revenues are likely lower than would have been reported in the absence of such a shift in exchange rates.

a. False. Strengthening foreign currencies implies a weakening $US. As the $US weakens, foreign currencies purchase less $US, resulting in an decrease in foreign currency-denominated sales, expense and profit. Consolidated revenues will therefore, likely be higher.

b. True. Strengthening foreign currencies implies a weakening $US. As the $US weakens, foreign currencies purchase less $US, resulting in an decrease in foreign currency-denominated sales, expense and profit. Consolidated revenues will therefore, likely be lower.

c. False. Strengthening foreign currencies implies a weakening $US. As the $US weakens, foreign currencies purchase more $US, resulting in an increase in foreign currency-denominated sales, expense and profit. Consolidated revenues will therefore, likely be higher.

d. True. Strengthening foreign currencies implies a weakening $US. As the $US weakens, foreign currencies purchase less $US, resulting in an increase in foreign currency-denominated sales, expense and profit. Consolidated revenues will therefore, likely be lower.

To compare three brands of computer keyboards, four data entry specialists were randomly selected. Each specialist used all three keyboards to enter the same kind of text material for 10 minutes, and the number of words entered per minute was recorded. The data obtained are given in the following table:

Keyboard Brand

Data Entry Specialist A B C

1 77 67 63

2 71 62 59

3 74 63 59

4 67 57 54

a. Test the null hypothesis H0 that no differences exist between the effects of the keyboard brands on the mean number of words entered per minute. Set α = 0.025

b. Test the null hypothesis H0 that no differences exist between the effects of the data entry specialists on the mean number of words entered per minute. Set α= 0.025. c. Use Tukey simultaneous 95 percent confidence intervals to make pairwise comparisons of the keyboard brand effects on the mean number of words entered per minute. Which keyboard brand maximizes the mean number of words entered per minute?

Complete the following cost and revenue schedule

Average

Quantity           Total          Marginal            Total               Marginal           Total

Price       Demanded       Revenue        Revenue             Cost                Cost                  Cost

$20                   0                                                               $8

$18                   1                                                             $14

$16                   2                                                             $22

$14                   3                                                             $32

$12                   4                                                             $44

$10                   5                                                             $58

   $8                  6                                                             $74

   $6                  7                                                             $92

   $4                  8                                                          $112

   $2                  9                                                          $147

a. Graph the demand, MR, and MC curves.

b. At what rate of output are profits maximized within this range?

c. What are the values of MR and MC at the profit-maximizing rate of output?

d. What are total profits at that output rate?

e. If a competitive industry confronted the same demand and costs, how much output is produced in the short run?

f. What would happen to long-run price in perfect competition?

What factors may contribute to the difference between the listed premium and the calculated premiums? (i.e. What are all the factors that cause the"last price" for a call option on Yahoo! Finance to be different from the call premium calculated using the Black Scholes Model formula)

The owner of a restaurant that serves Continental-style entrées has the business objective of learning more about the patterns of patron demand during the Friday-to-Sunday weekend time period. She decided to study the demand for dessert during this time period. In addition to studying whether a dessert was ordered, she will study the gender of the individual and whether a beef entrée was ordered. Data were collected from 630 customers and organized in the following contingency tables:

At the 0.05 level of significance, is there evidence of a difference between males and females in the proportion who order dessert?

At the 0.05 level of significance, is there evidence of a difference in the proportion who order dessert based on whether a beef entrée has been ordered?

An employee of a small software company in Minneapolis bikes to work during the summer months. He can travel to work using one of three routes and wonders whether the average commute times (in minutes) differ between the three routes. He obtains the following data after traveling each route for one week.

Click here for the Excel Data File

a-1. Construct an ANOVA table. (Round intermediate calculations to at least 4 decimal places. Round "SS", "MS", "p-value" to 4 decimal places and "F" to 3 decimal places.)

a-2. At the 1% significance level, do the average commute times differ between the three routes. Assume that commute times are normally distributed.

• Yes   since the p-value is less than significance level.
• No   since the p-value is less than significance level.
• No   since the p-value is not less than significance level.
• Yes   since the p-value is not less than significance level.

b. Use Tukey’s HSD method at the 1% significance level to determine which routes' average times differ. (You may find it useful to reference the q table). (If the exact value for n_T − c is not found in the table, use the average of corresponding upper & lower studentized range values. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)