SIU is a university in the UK catering for international students. There are currently 950 students. Fees were £16,000 for the last year and the president is concerned that adverse changes in the economic and educational environment are threatening the university’s future. The income of the market is expected to decline next year by 2%, and it is also expected that the average fee of competitive institutions will fall from £14,000 to £12,000. 10% of revenue is currently spent on promotion. The president does some research and estimates that the relevant demand elasticities are as follows:
PED = -1.6, YED = 2.2, AED = 1.8, CED = 0.8.
In: Economics
There is an old drug for a certain disease. The cure rate of the old drug (the proportion of patients cured) is 0.8.
Pharma Co has developed a new drug for this disease. The company is conducting a small field trial (trial with real patients) of the new drug and the old drug. Assume that patient outcomes are independent. Also, assume the probability that any one patient will be cured when they take the drug is p. For the old drug, p = 0.8. The random variable X is the number of patients who are cured when the drug is given to n patients.
A. The old drug is given to 16 randomly-chosen patients. What is the expected number of patients who will be cured? One decimal.
B. The old drug is given to 16 randomly-chosen patients. What is the probability that all 16 will be cured? Four decimals.
C. Pharma Co thinks the answer to the previous question is too big. They want the probability that all of the patients will be cured to be less than 0.01. (We mean “all of the patients who get the old drug in the field trial”.) What is the smallest number of patients that Pharma Co must give the old drug to? HINT: You can do this either by trial and error (increasing n above 16), or by setting up an inequality with n as an unknown, and taking the natural logarithm of it to solve for n. Integer.
D. Alternatively, suppose Pharma Co uses a sample size of 35. The old drug is given to 35 randomly-chosen patients. What is the probability that all 35 will be cured? Four decimals.
E. Pharma Co thinks the answer to the previous question is too small! They want P(X a) 0.01 , and they want the smallest value of “a” where P(X a) 0.01. In other words, they don’t necessarily want to use a = 35. What about a = 34? Is P(X 34) 0.01? Is P(X 33) 0.01. Find the smallest value of “a” where P(X a) 0.01. NOTE: We are not changing n. We are still giving the old drug to 35 patients. We are just calculating P(X a), when n = 35 and p = 0.8, for different values of “a”, to find the value of “a” that we want. Integer.
F. For the new drug, p = 0.95. Go back to your answer to the third question in this set (“smallest number of patients …”). Suppose Pharma Co gives the new drug to this many patients. What is the probability they all will be cured? Four decimals.
G. Go back to your answer to the question E in this set (“find the smallest value of a where …”). Use the value of “a” that you calculated in that question. What is P(X ≥≥ a) if the new drug (p = 0.95) is given to 35 patients? Four decimals
In: Statistics and Probability
Rural County has a population of 15,000, a small primary care
hospital, and ten
physicians, including seven general and family practitioners, an
obstetrician, a pediatrician,
and a general surgeon. All the physicians are solo practitioners.
The nearest urban area is
about 60 miles away in Big City, which has a population of 300,000,
and three major
hospitals to which patients from Rural County are referred or
transferred for higher levels
of hospital care. However, Big City is too far away for most
residents of Rural County to
use for services available in Rural County.
Insurance Company, which operates throughout the state, is
attempting to offer
“managed care” programs in all areas of the state, and has asked
the local physicians in
Rural County to form an IPA to provide services under the program
to covered persons
living in the county. No other managed care plan has attempted to
enter the county
previously.
Initially, two of the general practitioners and two of the
specialists express interest in
forming a network, but Insurance Company says that it intends to
market its plan to the
larger local employers, who need broader geographic and specialty
coverage for their
employees. Consequently, Insurance Company needs more of the local
general practitioners
and the one remaining specialist in the IPA in order to provide
adequate geographic,
specialty, and backup coverage to subscribers in Rural County.
Eventually, four of the
seven general practitioners and the one remaining specialist join
the IPA and agree to
provide services to Insurance Company’s subscribers under contracts
providing for
capitation. While the physicians’ participation in the IPA is
structured to be nonexclusive,
no other managed care plan has yet entered the local market or
approached any of the
physicians about joining a different provider panel. In discussing
the formation of the IPA
with the Insurance Company, a number of the physicians have made
clear their intention
to continue to practice outside the IPA and have indicated they
would be interested in
contracting individually with other managed care plans when those
plans expand into Rural
County. Insurance Company requests your legal advice about whether
this network
formation is likely to be challenged by the federal government.
Discuss whether the network described in the Problem would likely be challenged by the federal government.
Why? On what legal basis?
What would be your response to a challenge?
Would factors increase or decrease your changes of a federal challenge?
In: Operations Management
Exercise 13-10 (LO13-2)
A study of 8 worldwide financial institutions showed the correlation between their assets and pretax profit to be 0.75.
State the decision rule for 0.010 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)
| reject H0 if t> |
Exercise 13-20 (LO13-3)
The owner of Maumee Ford-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.
| Car | Age (years) | Selling Price ($000) | ||||||||
| 1 | 11 | 12.1 | ||||||||
| 2 | 8 | 10.5 | ||||||||
| 3 | 14 | 5.7 | ||||||||
| 4 | 17 | 4.9 | ||||||||
| 5 | 9 | 5.0 | ||||||||
| 6 | 8 | 13.4 | ||||||||
| 7 | 10 | 10.5 | ||||||||
| 8 | 14 | 9.0 | ||||||||
| 9 | 13 | 9.0 | ||||||||
| 10 | 17 | 4.5 | ||||||||
| 11 | 6 | 12.5 | ||||||||
| 12 | 6 | 11.5 | ||||||||
2. Interpret the regression equation (in dollars). (Round your answer to the nearest dollar amount.)
| For each additional year, the car decreases ______ in value. |
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.
| ANOVA table | |||||
| Source | SS | df | MS | F | |
| Regression | 1,870.5782 | 1 | 1,870.5782 | 41.23 | |
| Residual | 1,270.4934 | 28 | 45.3748 | ||
| Total | 3,141.0716 | 29 | |||
| Regression output | |||
| Variables | Coefficients | Std. Error | t(df=28) |
| Intercept | 13.4867 | 3.1191 | 2.21 |
| Distance–X | 5.2717 | 0.8211 | 6.42 |
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]
| Estimated Damage |
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.)
| reject H0 if t< | or t> |
In: Statistics and Probability
A 10-year study conducted by the American Heart Association provided data on how age, blood pressure, and smoking relate to the risk of strokes. Data from a portion of this study follow. Risk is interpreted as the probability (times 100) that a person will have a stroke over the next 10-year period. For the smoker variable, 1 indicates a smoker and 0 indicates a nonsmoker.
| Risk | Age | Blood Pressure |
Smoker |
|---|---|---|---|
| 12 | 57 | 152 | 0 |
| 24 | 67 | 163 | 0 |
| 13 | 58 | 155 | 0 |
| 56 | 86 | 177 | 1 |
| 28 | 59 | 196 | 0 |
| 51 | 76 | 189 | 1 |
| 18 | 56 | 155 | 1 |
| 31 | 78 | 120 | 0 |
| 37 | 80 | 135 | 1 |
| 15 | 78 | 98 | 0 |
| 22 | 71 | 152 | 0 |
| 36 | 70 | 173 | 1 |
| 15 | 67 | 135 | 1 |
| 48 | 77 | 209 | 1 |
| 15 | 60 | 199 | 0 |
| 36 | 82 | 119 | 1 |
| 8 | 66 | 166 | 0 |
| 34 | 80 | 125 | 1 |
| 3 | 62 | 117 | 0 |
| 37 | 59 | 207 | 1 |
Using age, blood pressure, and whether a person is a smoker, develop an estimated regression equation that can be used to predict risk. Use x1 for age, x2 for blood pressure, and x3 for whether a person is a smoker. (Round your constant term to one decimal place and coefficients to three decimal places.)
ŷ =______________.
The Department of Energy and the U.S. Environmental Protection Agency's 2012 Fuel Economy Guide provides fuel efficiency data for 2012 model year cars and trucks.† The file named CarMileage provides a portion of the data for 309 cars. The column labeled Size identifies the size of the car (Compact, Midsize, and Large) and the column labeled Hwy MPG shows the fuel efficiency rating for highway driving in terms of miles per gallon. Use α = 0.05 and test for any significant difference in the mean fuel efficiency rating for highway driving among the three sizes of cars. (Hint: you will need to re-organize the data to create indicator variables for the qualitative data).
Find the value of the test statistic for the overall model. (Round your answer to two decimal places.)
__________________.
Find the p-value for the overall model. (Round your answer to three decimal places.)
p-value = ________________.
In: Statistics and Probability
In: Economics
You have entered a model rocket contest with your friend, Tiffany. You have been working on a pressurized rocket filled with nitrous oxide. Tiffany has determined the minimum atmospheric pressure at which the rocket fuel is stable. Based not hat value, and the equations given below, your task is to determine the optimum launch angle and initial velocity to maximize flight time. The goal is to re-use your rocket capsule, so you really want to avoid a fuel explosion.
The atmospheric pressure varies with elevation according to the equation: P(h)= 14.7e−h/10. where p is the pressure in psi and h, is an elevation in miles above sea levels. The height (in feet) of a rocket launched at an angle α degrees with the horizontal and an initial velocity, vo in feet/second, t seconds after launch is given by the equation h(t)=-16t^2+vo*t*sin(α).
1) If Tiffany has determined that the minimum safe pressure is 11 pounds per square inch, at what altitude will the rocket explode? Report your result in feet. Round to the nearest foot.
2) If the angle of launch is33o, with an initial velocity of 1,648 what is the minimum atmospheric pressure exerted on the rocket during its flight? Report your answer to one decimal place. Under these conditions, will the rocket explode during its flight?
3) If the angle of launch is32o, with an initial velocity of 1,908 what is the minimum atmospheric pressure exerted on the rocket during its flight? Report your answer to one decimal place. Under these conditions, will the rocket explode during its flight?
4) Tiffany has revisited her calculation and has now concluded that the minimum safe pressure for the fuel is 9 psi. What is the maximum height your rocket can achieve without exploding in flight? Report your answer in feet to the nearest foot.
5) Tiffany has (once again) checked her calculations, and you have verified with her that the safe pressure for your fuel is 9 and the fuel capsule holds enough fuel to produce an initial velocity of 2,169 feet per second. What launch angle will you use so that your rocket achieves the maximum safe altitude? Round your answer to the nearest tenth of a degree.
In: Advanced Math
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?"
Randall has to make a decision.
1. What should Randall do? Why is your choice the best answer? Support your thoughts.
2. What steps should be taken in reaching a decision?
3. Describe a means to avoid a similar problem in the future and how to deal with issues as they arise. (Adding additional ICU beds is not a budgetary or space option)
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 present
Describe your response to the situation
In: Nursing
James, a buyer at EZ Tech, a Alaska-based purveyor of generators for people in remote areas, was doing some number crunching. EZ Tech was reevaluating its suppliers for a key component of the generator, the generator frame. After some extensive evaluation, James had narrowed it down to two suppliers and he would source from the one with the lowest total cost, everything else held equal. Given the following information, use total cost analysis to determine which supplier, is more cost-effective for EZ Tech. Late delivery of the generator frame results in either a lost sale (thus lost profit) or a customer backorder (each time there is a backorder, it costs $195). Assume for the cost comparison that order quantity is 2,800 units and that the annual requirement (forecast) is 74,000 units. For purposes of calculating quality problems, James uses the expected invoice amount as a base. What should James do? Enter as ###,###. Enter negative numbers as -###,###.
| Product Weight | 20 | pounds |
| Cost of working capital | 10% | per year |
| Profit margin | 17% | annual |
| Price of finished generator | $1,400 | per unit |
| Percent of late deliveries that result in backorders | 22% | of late deliveries |
| Percent of late deliveries that result in lost sales | 78% | of late deliveries |
| Supplier 1 | Supplier 2 | |
| Quoted unit price | $57.00 | $55.00 |
| Packing cost | $2.28 | $2.10 |
| Tooling cost | $3,000 | $5,000 |
| Terms | 2/10, net 30 | 2/15, net 30 |
| Delivery distance (in miles) | 102 | 452 |
| Supplier quality rating (% problems) | 2.00% | 1.00% |
| Supplier delivery rating (% problems) | 2.00% | 3.00% |
| Transportation Costs | ||
| Full truckload (TL>40,000 lbs.) | $0.87 | per ton-mile |
| Less-than-truckload (LTL) | $1.12 | per ton-mile |
| Note: per ton-mile = 2,000 pounds per mile |
| Description | Supplier 1 | Supplier 2 |
| Purchase Cost | $4,218,000 | $ |
| Packing Cost | 168,720 | |
| Total Invoice Amount | 4,386,720 | 4,225,400 |
| Effect of Discount Terms | ||
| Cash Discount | -87,734 | |
| Cost of Capital Savings | -12,185 | |
| Tooling Cost | 3,000 | |
| Transportation Cost | 65,668 | |
| Quality Cost | 87,734 | |
| Cost of Late Delivery | ||
| Backorder | 63,492 | |
| Lost Sales | 274,747 | |
| Total Cost | $4,781,442 | $4,968,89 |
In: Accounting
You have entered a model rocket contest with your friend, Tiffany. You have been working on a pressurized rocket filled with nitrous oxide. Tiffany has determined the minimum atmospheric pressure at which the rocket fuel is stable. Based not hat value, and the equations given below, your task is to determine the optimum launch angle and initial velocity to maximize flight time. The goal is to re-use your rocket capsule, so you really want to avoid a fuel explosion.
The atmospheric pressure varies with elevation according to the equation: P(h)= 14.7e−h/10. where p is the pressure in psi and h, is an elevation in miles above sea levels. The height (in feet) of a rocket launched at an angle α degrees with the horizontal and an initial velocity, vo in feet/second, t seconds after launch is given by the equation h(t)=-16t^2+vo*t*sin(α).
1) If Tiffany has determined that the minimum safe pressure is 11 pounds per square inch, at what altitude will the rocket explode? Report your result in feet. Round to the nearest foot.
2) If the angle of launch is33o, with an initial velocity of 1,648 what is the minimum atmospheric pressure exerted on the rocket during its flight? Report your answer to one decimal place. Under these conditions, will the rocket explode during its flight?
3) If the angle of launch is32o, with an initial velocity of 1,908 what is the minimum atmospheric pressure exerted on the rocket during its flight? Report your answer to one decimal place. Under these conditions, will the rocket explode during its flight?
4) Tiffany has revisited her calculation and has now concluded that the minimum safe pressure for the fuel is 9 psi. What is the maximum height your rocket can achieve without exploding in flight? Report your answer in feet to the nearest foot.
5) Tiffany has (once again) checked her calculations, and you have verified with her that the safe pressure for your fuel is 9 and the fuel capsule holds enough fuel to produce an initial velocity of 2,169 feet per second. What launch angle will you use so that your rocket achieves the maximum safe altitude? Round your answer to the nearest tenth of a degree.
In: Physics