Batman Motors, Inc. (BMI) sells both new and used cars and also provides car repair and maintenance services. BMI is 100% owned by Robin, an individual. BMI buys its cars using a line of credit from Little Penguin Bank. The LoC requires monthly payments of interest. The interest payment is due on the first of each month for the prior month’s interest. Interest expense through the end of October was $525,000. At the end of November, BMI’s principle on the LoC was $9,585,000 and the interest rate for November (it is a floating rate based on the US prime rate) was 6.5% annually. At the end of December, the balance on the LoC was $10,750,000 and the interest rate had reset to 6.25%. Each June 30^th, the LoC is “refreshed” with a new LoC where the old one is paid off and a new one is implemented.

BMI offers extended warranty products to the buyers of used cars. The warranty lasts for 1 year or 15,000 miles, whichever comes first and covers 100% of any non-routine maintenance and repairs. The cost of each warranty is $2,500 per vehicle. Buyers are not required to purchase the extended warranty, but are highly encouraged by the sales people and the finance people who work for BMI. BMI expects to incur, on average, $925 of costs in the future per used car sold.

Buyers of new cars can also buy “care packages” for their new cars which cover 100% of routine maintenance and any repairs not covered by the manufacturer’s warranty. Generally, this package covers a 1 year period from the date of purchase of the new car and costs $4,250. If the buyer chooses, the amount can be included in the overall purchase of the car and financed as long as the financing is done through Batman Motor Credit (BMC). The expected cost of providing these services on a per car basis is $1,750.

BMI does business in the Elk Grove auto mall in Elk Grove California. California also requires registration and DMV fees to be collected and remitted by BMI directly to the state. For both new and used cars, the state requires 9% of the car purchase cost to be collected and remitted as fees/registration. BMI has 10 days after month end to calculate and remit the total amount collected for the fees/registration.

BMI has three general types of employees and each group is compensated differently. The first group consists of sales people who are paid based on a flat fee of $60 per car they sell plus a commission of 8% of the agreed upon sales price. Commissions are paid on the 15^th of each month based upon the prior calendar month (i.e. December sales commissions will be paid on January 15^th). Sales people do not accrue any vacation, but are considered employees.

The second group consists of the mechanics and other service related personnel. These folks are paid hourly and average hourly pay for this group is $45/hour. Service people accrue 2 weeks of vacation annually and are limited to a maximum accrual at any one time of 10 days of vacation. Vacation is paid only when an employee either leaves the company or takes their time off in a subsequent year. There are 15 service people employees, 12 of whom have maxed their accrual. The other three have used all of their earned vacation. BMI’s service department is open every day except Sunday, but no one is allowed to work more than 40 hours per week to avoid overtime costs.

The third group consists of the remainder of the administrative team, including the finance folks and any other people necessary to running the overall business. There are 10 of these people and each of them is paid a fixed salary. Average monthly salary for this group is $150,000. All of them earn more than the Social Security wage limit. These folks get 15 days of vacation per year, and all of them have maximized their accrual at the end of the year.

As Robin is the sole owner of BMI, but does not do any actual work for the Company, she takes money out of the corporation monthly to help pay her personal expenses. Her monthly distribution is $25,000 and is paid on the 10^th of each month. Her legal team has advised her to make sure to document this transaction every single month in the monthly corporate meeting minutes.

The local utility bills BMI on the 18^th of each month for the prior month’s use of electricity, water, garbage and all other public utility costs. The actual bill received in January of the prior year was $2,200. BMI has not done any expansion during 2018. BMI’s average utility bill for each month was $2,350.

In January, a local law firm served notice to BMI that it had been retained by an individual who had purchased a used car from BMI and that was involved in an accident on December 28, 2018. The plaintiff is suing for physical, emotional and other damages totaling $1 million. BMI has passed the notice on to their outside lawyers but plans on vigorously contesting the suit on any grounds available.

Because it is December, BMI has also sold a significant amount of gift cards. The gift cars are sold in minimum increments of $100 and are redeemable only for services, not against purchase of vehicles. During December, BMI sold 1,300 gift cards and had 365 redeemed for services during December, and another 375 redeemed in January. At the beginning of December, the un-redeemed gift cards totaled 975 cards (all of which were sold during 2018), of which 120 were between 12-15 months old. BMI’s policy is to begin breaking gift cards after the card is outstanding for 18 months.

During December, BMI sold the following number of cars:

Used cars sold:    180

Average used car sales price    $10,975

Extended warranties purchased:     169

New cars sold:           270

Average new car sales price:    $32,450 before tax, license, and other

Care packages sold     200

Because BMI met its target sales for the year, the President of BMI was awarded a bonus of $125,000, payable at the end of January after all of the audit work is done to confirm the total sales during the entire year. The President is part of the administrative team.

Robin understands the value of an audit of the financial numbers, so hires an outside auditing firm to ensure that the financial statements are correctly stated under GAAP. She agrees with the firm to complete the audit by the end of January 2019 and pays in advance for ½ of the agreed upon total fee. The total fee for the audit is $54,000. The remainder will be paid upon delivery of the auditor opinion as part of the financial statements.

November ending balances, if you need them: extended warranty $145,000; care package liability $295,600; Deferred revenue $975,000; accrued vacation $375,000.

REQUIRED:

1.Calculate and present all journal entries necessary based on the above information. To receive credit, you MUST show all of your work (showing me your formulas is not necessary) and a journal entry in proper DR and CR format, including an explanation for the entry.

2.Calculate and present the income statement accounts for the month of December and the balance sheet accounts as of December 31, 2018. You do not have to present a balanced balance sheet, as you do not have sufficient information for that.

Problem 05 Empirical Rule : Several years of final exam scores in statistics courses for a local university are normally distributed with a mean of 81 and a standard deviation of 8. If the lowest 2.5% of the scores on this test qualifies for a failing grade (F), use the empirical rule to calculate the score a student would need on this test to pass the final exam? show your work integer answer

Problem 08 Expected Value and Life Insurance Payouts : There is a 0.9985 probability that a randomly selected 60-year-old female lives through the year U.S. Department of Health and Human Services. A Fidelity life insurance company charges $180 for insuring that the female will live through the year. If the female does not survive the year, the policy pays out $100,000 as a death benefit.

1. From the perspective of the 60-year-old female, what are the monetary values corresponding to the two events of surviving the year and not surviving?

2. If a 60-year-old female purchases the policy, what is her expected value?

3. Can the insurance company expect to make a profit from many such policies? Why?

Problem 11 Continuous Random Variables: Empirical Rule:  Scores on an examination are assumed to be normally distributed with mean 78 and variance 10. Suppose that students scoring in the top 10% of this distribution are to receive an A grade. If you are asked “What is the minimum score a student must achieve to earn an A grade?”, can you use the empirical rule to answer this question? Explain your answer.

The US is Australia’s major export market for beef. Suppose that the mad cow disease hits the US and causes a shortfall in US beef production. Using a three-panel diagram, explain the effect of the mad cow disease on the US’s and the world’s beef market. (Hint: Consider the US as a large country in this case). (10 pts.)

Case Study

In December 2016, Arshad Ali joined Imperial Computers Ltd. (ICL) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an assistant programmer in Gem Computers (Gem). Arshad felt that ICL offered better career prospects, as it was growing much faster than Gem, which was a relatively small company.

Although Arshad had enjoyed working there (at Gem), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at ICL, just as he had done in his old job at Gem.

ICL had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Arshad was quite excited about his new job.

Arshad joined Gunjan’s five-member team at ICL. He had met Gunjan during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.

Wanting to know more about his boss, he casually asked Rehman, one of the team members, about Gunjan. Rehman said, “Gunjan does not interfere with our work. In fact, you could even say that she tries to ignore us as much as she can.” Arshad was surprised by the comment but decided that Gunjan was probably leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.

At Gem, Arshad had worked under Sultan and had looked up to him as a guide and mentor – always guiding, but never interfering. Sultan had let Arshad make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Arshad remembered telling his colleagues at Gem that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Arshad wanted to believe that Gunjan too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.

In his first week at work, Arshad found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Gunjan. He smiled to himself when he thought of how Gunjan would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.

He was daydreaming about all the praise that he was going to get when Gunjan walked into the office. Arshad waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Arshad introduced himself. She said, “Ok, but why did you want to meet me?” Arshad started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Arshad was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.

Arshad came out of Gunjan’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.

Aftab, one of the team members, said, “What is the point in our discussing these things? Gunjan is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”

Arshad felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Arshad realized that Gunjan was the complete opposite of his old boss.

While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.

Time and again, Arshad found himself thinking of Sultan his old boss, and of how he had been such a positive influence. Gunjan, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.

Arshad gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Arshad was now in danger of becoming just another mediocre techie.

Questions:

Q1. What, according to you, were the reasons for Arshad’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs.

Q2. What should Arshad do to resolve his situation?

Q3. What can a team leader do to ensure high levels of motivation among his/her team members?

Please note the dead line in3 hours

In December 2016, Arshad Ali joined Imperial Computers Ltd. (ICL) as a Senior Programmer, with a handsome pay. Prior to this job, he worked successfully as an assistant programmer in Gem Computers (Gem). Arshad felt that ICL offered better career prospects, as it was growing much faster than Gem, which was a relatively small company.

Although Arshad had enjoyed working there (at Gem), he realized that to grow further in his field, he would have to join a bigger company, and preferable one that handled international projects. He was sure he would excel in his position at ICL, just as he had done in his old job at Gem.

ICL had international operations and there was more than a slim chance that he would be sent to USA or the UK on a project. Knowing that this would give him a lot of exposure, besides looking good on his resume, Arshad was quite excited about his new job.

Arshad joined Gunjan’s five-member team at ICL. He had met Gunjan during the orientation sessions, and was looking forward to working under her. His team members seemed warm and friendly, and comfortable with their work. He introduced himself to the team members and got to know more about each of them.

Wanting to know more about his boss, he casually asked Rehman, one of the team members, about Gunjan. Rehman said, “Gunjan does not interfere with our work. In fact, you could even say that she tries to ignore us as much as she can.” Arshad was surprised by the comment but decided that Gunjan was probably leaving them alone to do their work without any guidance, in order to allow them to realize their full potential.

At Gem, Arshad had worked under Sultan and had looked up to him as a guide and mentor – always guiding, but never interfering. Sultan had let Arshad make his own mistakes and learn from them. He had always encouraged individual ideas, and let the team discover the flaws, if any, through discussion and experience. He rarely held an individual member of his team responsible if the team as a whole failed to deliver – for him the responsibility for any failure was collective. Arshad remembered telling his colleagues at Gem that the ideal boss would be someone who did not interfere with his/her subordinate’s work. Arshad wanted to believe that Gunjan too was the non-interfering type. If that was the case, surely her non-interference would only help him to grow.

In his first week at work, Arshad found the atmosphere at the office a bit dull. However, he was quite excited. His team had been assigned a new project and was facing a few glitches with the new software. He had thought about the problem till late in the night and had come up with several possible solutions. He could not wait to discuss them with his team and Gunjan. He smiled to himself when he thought of how Gunjan would react when he will tell her that he had come up with several possible solutions to the problem. He was sure she would be happy with his having put in so much effort into the project, right from day one.

He was daydreaming about all the praise that he was going to get when Gunjan walked into the office. Arshad waited for her to go into her cabin, and after five minutes, called her up, asking to see her. She asked him to come in after tem minutes. When he went in, she looked at him blankly and asked, “Yes?” Not sure whether she had recognized him, Arshad introduced himself. She said, “Ok, but why did you want to meet me?” Arshad started to tell her about the problems they were having with the software. But before he could even finish, she told him that she was busy with other things, and that she would send an email with the solution to all the members of the team by the end of the day, and that they could then implement it immediately. Arshad was somewhat taken aback. However, ever the optimist, he thought that she had perhaps already discussed the matter with the team.

Arshad came out of Gunjan’s cabin and went straight to where his team members sat. He thought it would still be nice to bounce ideas off them and also to see what solutions others might come up with. He told them of all the solutions he had in mind. He waited for the others to come up with their suggestions but not one of them spoke up. He was surprised, and asked them point-blank why they were so disinterested.

Aftab, one of the team members, said, “What is the point in our discussing these things? Gunjan is not going to have time to listen to us on discuss anything. She will just give us the solution she thinks is best, and we will just do what she tells us to do; why waste everyone’s time?”

Arshad felt his heart sink. Was this the way things worked over here? However, he refused to lose heart and thought that maybe, he could change things a little. But as the days went by, Arshad realized that Gunjan was the complete opposite of his old boss.

While she was efficient at what she did and extremely intelligent, she had neither the time nor the inclination to groom her subordinates. Her solutions to problem were always correct, but she was not willing to discuss or debate the merits of any other ideas that her team might have. She did not hold the team down to their deadlines not did she ever interfere. In fact, she rarely said anything at all. If work did not get finished on time, she would just blame her team, and totally disassociate herself from them.

Time and again, Arshad found himself thinking of Sultan his old boss, and of how he had been such a positive influence. Gunjan, on the other hand, even without actively doing anything, had managed to significantly lower his motivation levels.

Arshad gradually began to lose interest in his work – it had become too mechanical for his taste. He didn’t really need to think; his boss had all the answers. He was learning nothing new, and he felt his career was going nowhere. As he became more and more discouraged, his performance suffered. From being someone with immense promise and potential Arshad was now in danger of becoming just another mediocre techie.

Questions:

Q1. What, according to you, were the reasons for Arshad’s disillusionment? Answer the question using Maslow’s Hierarchy of Needs.

Q2. What should Arshad do to resolve his situation?

Q3. What can a team leader do to ensure high levels of motivation among his/her team members?

Reading code that you haven't written is a skill you must develop. Many times you are correcting this code that you didn't write so you have to 1) read the code, 2) find the errors, and 3) correct them.

You are going to correct a program that has several errors in it (specifically, one error per function).

• You should begin by looking at what the expected output of the program should be for various inputs.
• Then, run the code and identify the error that occurs.
• Next, go to the code and correct the mistakes.
• Run the code again to see if you did it correctly. Be sure to test with different inputs.
• Record the error you found in the comment at the top of the function.
• Repeat this until you have found all 4 errors

When the program is correct, it should have output like this:

Enter 3 test scores:
Enter your test score >  100
Enter your test score >  90
Enter your test score >  91

Wow! You scored 90 or above on all your exams!
Keep up the As!

Your test average is 93.66666666666667
You earned an A

# Describe the error found in this function:

#

def get_grade():

grade = input("Enter your test score > ")

return grade

# Describe the error found in this function:

#

def all_As(test1, test2, test3):

if test1 > 89:

if test2 > 89:

if test3 > 89:

print("Wow! ", end="")

print("You scored 90 or above on all your exams!")

print("Keep up the As!")

print()

# Describe the error found in this function:

#

def calc_average(test1, test2, test3):

return test1 + test2 + test3 / 3

# Describe the error found in this function:

#

def letter_grade(grade):

if grade >= 90:

print("You earned an A")

if grade >= 80:

print("You earned an B")

if grade >= 70:

print("You earned an C")

if grade >= 60:

print("You earned an D")

if grade < 60:

print("You earned an F")

from grades import (

all_As,

calc_average,

get_grade,

letter_grade

)

# THERE ARE NO ERRORS IN THE MAIN

# YOU DO NOT NEED TO CHANGE THE MAIN

#-----main-----

print("Enter 3 test scores:")

first_test = get_grade()

second_test = get_grade()

third_test = get_grade()

print()

all_As(first_test, second_test, third_test)

average = calc_average(first_test, second_test, third_test)

print("Your test average is",average)

letter_grade(average)

A class survey in a large class for first-year college students asked, "About how many minutes do you study on a typical weeknight?" The mean response of the 261 students was x¯¯¯x¯ = 130 minutes. Suppose that we know that the studey time follows a Normal distribution with standard deviation σσ = 65 minutes in the population of all first-year students at this university. Regard these students as an SRS from the population of all first-year students at this university. Does the study give good evidence that students claim to study more than 2 hours per night on the average?

(a) State null and alternative hypotheses in terms of the mean study time in minutes for the population.
(b) What is the value of the test statistic z?
(c) Can you conclude that students do claim to study more than two hours per weeknight on the average?

(a) H0:  Ha:  (Type in "mu" as the substitute for μμ and "!=" for ≠≠.)
(b) z:
(c) Conclusion:  (Answer with "Yes/Y" or "No/N".)

A study is conducted to determine if a newly designed text book is more helpful to learning the material than the old edition. The mean score on the final exam for a course using the old edition is 75. Ten randomly selected people who used the new text take the final exam. Their scores are shown in the table below.

Use a 0.010.01 significance level to test the claim that people do better with the new edition. Assume the standard deviation is 10.3. (Note: You may wish to use statistical software.)

(a) What kind of test should be used?

A. Two-Tailed
B. One-Tailed
C. It does not matter.

(b) The test statistic is  (rounded to 2 decimals).

(c) The P-value is

(d) Is there sufficient evidence to support the claim that people do better than 75 on this exam?

A. Yes
B. No

(e) Construct a 9999% confidence interval for the mean score for students using the new text.
<μ<<μ<

Assume an individual has a utility function of this form U(C, L) = 40 + 5(CxL) This utility function implies that the individual’s marginal utility of leisure is 5C and her marginal utility of consumption is 5L. The individual has an endowment of V=$40 in non-labour income and T = 18 hours to either work (h) or use for leisure (L). Assume that the price of each unit of consumption good p=$2 and the wage rate for each hour of work w=$20.

(a) Calculate the rate at which the individual is willing to sacrifice an additional leisure hour when she is already working 6 hours.

(b) What is this individual’s optimal amount of consumption and leisure?

(c) Suppose that the market wage rate for each hour of work goes up from w=$20 to w=$22. Discuss how you would determine whether the substitution effect or income effect dominates in response to this wage increase. (In answering this part you do not need to do the actual calculations but you need to describe each step you would use)

Tutorial 5

Topic

Qualitative Process Analysis

Questions

Question 1

Consider the following process for the admission of graduate students at a university.

In order to apply for admission, students first fill in an online form. Online applications are recorded in an information system to which all staff members involved in the admissions process have access to. After a student has submitted the online form, a PDF document is generated and the student is requested to download it, sign it, and send it by post together with the required documents, which include:

Certified copies of previous degree and academic transcripts.

Results of English language test.

Curriculum vitae.

When these documents are received by the admissions office, an officer checks the completeness of the documents. If any document is missing, an e-mail is sent to the student. The student has to send the missing documents by post. Assuming the application is complete, the admissions office sends the certified copies of the degrees to an academic recognition agency, which checks the degrees and gives an assessment of their validity and equivalence in terms of local education standards. This agency requires that all documents be sent to it by post, and all documents must be certified copies of the originals. The agency sends back its assessment to the university by post as well. Assuming the degree verification is successful, the English language test results are then checked online by an officer at the admissions office. If the validity of the English language test results cannot be verified, the application is rejected (such notifications of rejection are sent by e-mail). Once all documents of a given student have been validated, the admission office forwards these documents by internal mail to the corresponding academic committee responsible for deciding whether to offer admission or not. The committee makes its decision based on the academic transcripts and the CV. The committee meets once every 2 to 3 weeks and examines all applications that are ready for academic assessment at the time of the meeting. At the end of the committee meeting, the chair of the committee notifies the admissions office of the selection outcomes. This notification includes a list of admitted and rejected candidates. A few days later, the admission office notifies the outcome to each candidate via e-mail. Additionally, successful candidates are sent a confirmation letter by post.

What steps can you extract from this process? Classify these steps into VA, BVA and NVA.

Question 2

Consider the university admission process described in Question 1.

One of the issues faced by the university is that students have to wait too long to know the outcome of the application (especially for successful outcomes). It often happens that by the time a student is admitted, the student has decided to go to another university instead (students send multiple applications in parallel to many universities). Analyse the causes of this issue using a cause–effect diagram.

Question 3

Consider the university admission process described in Question 1.

Analyse the issue described in Question 2 (i.e. is that students have to wait too long to know the outcome of their application, especially for successful outcomes), using a why-why diagram.

Question 4

Write an issue register for the university admission process and the issue described in Question 2 (i.e. is that students have to wait too long to know the outcome of their application, especially for successful outcomes).

Question 5

Consider the university admission process described in Question 1.

Complete Table 1 below using the complaints listed. List the most frequent admission problems first. Prepare a Pareto chart using Chart 1 based on the information in Table 1, alternatively use MS Excel to prepare the Pareto chart.

Online application system is slow – 100 complaints

Confirmation letter not received – 20 complaints

Degree verification takes too long – 120 complaints

Admissions office does not follow through as promised – 40 complaints

Table 1:

Chart 1:

                                                            Admissions complaints

Question 6

Consider the university admission process described in Question 1.

Use the list provided in Question 5. Record each issue in Table 2 and classify each issue using the PICK chart four quadrants, described below.

Possible (low payoff, easy to do): issues that can be addressed if there are sufficient resources for doing so.

Implement (high payoff, easy to do): issues that should definitely be implemented as a matter of priority.

Challenge (high payoff, hard to do): issues that should be addressed but require significant amount of effort. In general one would pick one of these challenges and focus on it rather than addressing all or multiple challenges at once.

Kill (low payoff, hard to do): issues that are probably not worth addressing or at least not to their full extent.

Table 2

Question 7

Consider the university admission process described in Question 1.

Use the admission complaints classified in Table 2, to create a PICK chart using Chart 2, alternatively use MS Excel to prepare the PICK chart.

Chart 2