PLEASE ANSWER ASAP
1- In your own words, what is medicalization? How does this contribute to social control?
2- Please either watch Peter Conrad's guest video. LINK FOR THE VIDEO: https://www.youtube.com/watch?v=9l8LJjy5B2g
Answer the following questions:
A- What stood out to you and/or interested you? Discuss.
B- What were Conrad’s main point(s) about medicalization?
3- The reading and Conrad’s lecture/reading discussed multiple examples of medicalization. Please do mini-research on one example of medicalization (either one briefly discussed in the content or an example not discussed yet). You may choose something medicalized in either physical or mental health. After researching your topic, please teach your peers about your topic. Address the following points:
What your topic is?
How is this medicalized?
Has this changed over time? If so, how?
Are there groups/people who disagree with this being medicalized? If yes, please discuss their point of view?
What are the benefits to this being medicalized? What are the consequences/negatives of this being medicalized?
In: Psychology
1- In your own words, what is medicalization? How does this contribute to social control? 2- Please either watch Peter Conrad's guest video. LINK FOR THE VIDEO: https://www.youtube.com/watch?v=9l8LJjy5B2g Answer the following questions: A- What stood out to you and/or interested you? Discuss. B- What were Conrad’s main point(s) about medicalization? 3- The reading and Conrad’s lecture/reading discussed multiple examples of medicalization. Please do mini-research on one example of medicalization (either one briefly discussed in the content or an example not discussed yet). You may choose something medicalized in either physical or mental health. After researching your topic, please teach your peers about your topic. Address the following points: What your topic is? How is this medicalized? Has this changed over time? If so, how? Are there groups/people who disagree with this being medicalized? If yes, please discuss their point of view? What are the benefits to this being medicalized? What are the consequences/negatives of this being medicalized?
In: Psychology
Set up - You were hired in the role of accounting lead a couple of years ago by a privately held company.
You report directly to the CEO. The company sells its products through a dealer distribution network.
Revenue is booked at the time shipment occurs. Under standard practice, revenue will be booked as of
the last day of the month if the shipment will occur within 1 or 2 days of the new month. On occasion,
revenue may be booked if the product is ready for shipment but the dealer/customer does not wish to
take shipment due to a holiday or vacation schedule. (So, if the shipment does not occur only because it
is inconvenient for the dealer/customer to receive it, the customer is charged a nominal “warehousing”
fee and revenue will be recognized in such situations; shipment will occur as soon as it’s convenient for
the dealer/customer to receive the shipment upon their return to the workplace.) Since the company is
privately held, it does not require a financial audit but it does receive an annual financial review by an
independent CPA firm.
The Issue - At quarter end, you receive a call from your boss instructing you to book a $100,000 sale,
sending the invoice to a dealer/customer. On April 4, you send the invoice dated the last day of the
month (3/31) and you give the dealer/customer an additional 30 days to pay since the product had not
yet shipped as of April 4. The dealer/customer replies that as of April 5, he still does not have a
purchase order for the $100,000 sale but hopes to get one soon. In addition, if he cannot get the
purchase order, he hopes to get a purchase order elsewhere for basically the same products for a
hopefully similar price.
In addition, at the end of 2017, there was an order to be secured by a letter of credit. The CEO wants the
almost $100,000 sale in 2017. You let the CEO know you’re hesitant to book this in 2017 since the order
has not shipped and no letter of credit has been sent yet. There are also tax ramifications (i.e., the
company will fare better booking the sale in 2018 due to the more favorable tax treatment of
corporations under the new tax legislation). The CEO replies that before he decides, he wants to see
how the numbers shake out. He decides he wishes the revenue to appear in 2017.
There were some other bookings of revenues with various dealer/customers in quarter 1 totaling
approximately $150,000, for which letter of credit documentation had not yet been received. The
dealer/customers had not yet authorized shipment because the required documentation had not yet
cleared all channels (it was not due to holiday/vacation reason inconvenience), but the CEO said to
consider these transactions “warehoused” and book the revenue.
In addition to the fact that the review of 2017 is still ongoing, the company is looking to sell
approximately 20% of its stock to a publicly traded company. The 2017 financials have been provided to
the potential buyer (marked “unreviewed”) and the potential buyer has been asking for the quarter 1
results of 2018.
Get with your group. What is your view of the entire situation? What do you do? Be sure to pay
attention to rules/regs that lead you to feel there is an ethical problem here.
1. Determine the facts of the situation. This involves determining the "who, what, where, when, and how."
2. Identify the ethical issue and the stakeholders. Stakeholders may include shareholders, creditors, management, employees, and the community.
3. Identify the values related to the situation. For example, in some situations confidentiality may be an important value that may conflict with the right to know.
4. Specify the alternative courses of action.
5. Evaluate the courses of action specific in step 4 in sterms of their consistency with the values identified in step 3. This step may or may not lead to a suggested course of action.
6. Identify the consequences of each possible course of action. If step 5 does not provide a course of action, assess the consequences of each possible course of action for all of the stakeholders involved.
7. Make your decision and take any indicated action.
In: Finance
Terlingua Transportation Co. (TTC) is a regional shipper. It is most cost efficient for the company’s diesel fuel trucks to refuel at retail outlets along the shipping routes. However, retail prices tend to be volatile. Hence, managers at TTC have decided to hedge future retail purchases of fuel by means of New York Harbor ULSD (ultra low sulphur diesel) futures contracts. Each contract has 42,000 gallons as the underlying asset. You are a financial analyst for TTC. Today is April. Your immediate task is to hedge the price risk of diesel future purchases in three months (i.e., in July). You expect that TTC trucks will need to buy a total of 700,000 gallons of diesel fuel in July. You plan to apply dynamic hedging. Based on calculations for a 3-month hedge, you determine that your company needs to take a long position in 20 of the August futures contracts today. Time passes. Today now is May. Forecast for quantity of the July purchase of diesel fuel is unchanged. You plan to continue hedging with August contracts. You have the following statistical data. All spot prices are retail prices for diesel fuel. All futures prices are for the New York Harbor ULSD futures. Standard deviations are in cents per gallon. standard deviation of 1-month changes in spot prices: 14 standard deviation of 2-month changes in spot prices: 24 standard deviation of 3-month changes in spot prices: 34 standard deviation of 1-month changes in futures prices: 15 standard deviation of 2-month changes in futures prices: 27 standard deviation of 3-month changes in futures prices: 36 1-month correlation between spot and futures prices: 1.10 2-month correlation between spot and futures prices: 1.17 3-month correlation between spot and futures prices: 1.23 In your calculations for optimal number of futures contracts, you optimize using the formulas for cross hedging. Calculate the change in optimal number of futures contracts that your company should be long. Report the change as an integer value. If you decrease the number of contracts, report a negative number. (When you calculate the new value for N*, round to the nearest integer.)
In: Finance
( PARTS 5-8 Only )
1.Generate a scatter plot for CREDIT BALANCE vs. SIZE, including the graph of the "best fit" line. Interpret.
2.Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE. Interpret the values for slope and intercept.
3.Determine the coefficient of correlation. Interpret.
4.Determine the coefficient of determination. Interpret.
5. Test the utility of this regression model (use a two tail test with α=.05) by setting up the appropriate test of hypothesis. Interpret your results, including the p-value.
6. Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain.
7.Compute the 98% confidence interval for β1 (the population slope). Interpret this interval.
8. What can we say about the credit balance for a customer that has a household size of 9 ? Explain your answer.
| Location | Income ($1000) |
Size | Years | Credit Balance ($) |
| Urban | 54 | 3 | 12 | 4,016 |
| Rural | 30 | 2 | 12 | 3,159 |
| Suburban | 32 | 4 | 17 | 5,100 |
| Suburban | 50 | 5 | 14 | 4,742 |
| Rural | 31 | 2 | 4 | 1,864 |
| Urban | 55 | 2 | 9 | 4,070 |
| Rural | 37 | 1 | 20 | 2,731 |
| Urban | 40 | 2 | 7 | 3,348 |
| Suburban | 66 | 4 | 10 | 4,764 |
| Urban | 51 | 3 | 16 | 4,110 |
| Urban | 25 | 3 | 11 | 4,208 |
| Urban | 48 | 4 | 16 | 4,219 |
| Rural | 27 | 1 | 19 | 2,477 |
| Rural | 33 | 2 | 12 | 2,514 |
| Urban | 65 | 3 | 12 | 4,214 |
| Suburban | 63 | 4 | 13 | 4,965 |
| Urban | 55 | 6 | 15 | 4,412 |
| Urban | 21 | 2 | 18 | 2,448 |
| Rural | 44 | 1 | 7 | 2,995 |
| Urban | 37 | 5 | 5 | 4,171 |
| Suburban | 62 | 6 | 13 | 5,678 |
| Urban | 21 | 3 | 16 | 3,623 |
| Suburban | 55 | 7 | 15 | 5,301 |
| Rural | 42 | 2 | 19 | 3,020 |
| Urban | 41 | 7 | 18 | 4,828 |
| Suburban | 54 | 6 | 14 | 5,573 |
| Rural | 30 | 1 | 14 | 2,583 |
| Urban | 48 | 2 | 8 | 3,866 |
| Urban | 34 | 5 | 5 | 3,586 |
| Suburban | 67 | 4 | 13 | 5,037 |
| Rural | 50 | 2 | 11 | 3,605 |
| Urban | 67 | 5 | 1 | 5,345 |
| Urban | 55 | 6 | 10 | 5,370 |
| Urban | 52 | 2 | 11 | 3,890 |
| Urban | 62 | 3 | 2 | 4,705 |
| Urban | 64 | 2 | 6 | 4,157 |
| Suburban | 22 | 3 | 18 | 3,899 |
| Urban | 29 | 4 | 4 | 3,890 |
| Suburban | 39 | 2 | 18 | 2,972 |
| Rural | 35 | 1 | 11 | 3,121 |
| Urban | 39 | 4 | 15 | 4,183 |
| Suburban | 54 | 3 | 9 | 3,730 |
| Suburban | 23 | 6 | 18 | 4,127 |
| Rural | 27 | 2 | 1 | 2,921 |
| Urban | 26 | 7 | 17 | 4,603 |
| Suburban | 61 | 2 | 14 | 4,273 |
| Rural | 30 | 2 | 14 | 3,067 |
| Rural | 22 | 4 | 16 | 3,074 |
| Suburban | 46 | 5 | 13 | 4,820 |
| Suburban | 66 | 4 | 20 | 5,149 |
| Rural | 53 | 1 | 7 | 2845 |
| Urban | 44 | 6 | 5 | 3962 |
| Suburban | 74 | 7 | 12 | 5394 |
| Urban | 25 | 3 | 15 | 3442 |
| Suburban | 66 | 7 | 14 | 5036 |
In: Statistics and Probability
We assume that our wages will increase as we gain experience and
become more valuable to our employers. Wages also increase because
of inflation. By examining a sample of employees at a given point
in time, we can look at part of the picture. How does length of
service (LOS) relate to wages? The data here (data438.dat) is the
LOS in months and wages for 60 women who work in Indiana banks.
Wages are yearly total income divided by the number of weeks
worked. We have multiplied wages by a constant for reasons of
confidentiality.
(a) Plot wages versus LOS. Consider the relationship and whether or
not linear regression might be appropriate. (Do this on paper. Your
instructor may ask you to turn in this graph.)
(b) Find the least-squares line. Summarize the significance test
for the slope. What do you conclude?
Wages = + LOS
t =
P =
(c) State carefully what the slope tells you about the relationship between wages and length of service.
This answer has not been graded yet.
(d) Give a 95% confidence interval for the slope.
( , )
worker wages los size 1 48.8329 97 Large 2 78.2535 28 Small 3 48.5138 22 Small 4 41.3975 34 Small 5 46.5544 22 Large 6 50.0827 36 Small 7 49.9522 30 Large 8 41.034 38 Large 9 42.8532 50 Large 10 42.9051 160 Small 11 60.7879 67 Large 12 63.7248 90 Small 13 44.9267 75 Small 14 66.4115 45 Large 15 54.5279 62 Large 16 38.777 33 Large 17 40.5469 74 Large 18 42.0242 33 Small 19 39.4129 151 Large 20 59.0103 145 Large 21 57.4567 17 Large 22 49.0608 38 Small 23 72.6341 141 Large 24 43.5226 36 Small 25 40.3436 56 Large 26 46.0549 88 Small 27 38.4406 133 Small 28 62.0137 44 Large 29 48.8695 116 Large 30 38.204 23 Large 31 44.858 83 Small 32 55.3133 21 Large 33 56.7109 16 Large 34 40.989 34 Small 35 50.3024 90 Large 36 39.6625 26 Large 37 38.9004 88 Large 38 54.0486 83 Small 39 39.6416 134 Large 40 54.4411 69 Small 41 43.3311 101 Small 42 52.6132 124 Small 43 51.0736 114 Large 44 40.7319 119 Small 45 86.2669 46 Large 46 44.7879 38 Small 47 61.0304 27 Large 48 37.5828 90 Large 49 79.3865 32 Small 50 60.6761 155 Large 51 56.5249 42 Large 52 45.8192 60 Large 53 42.2774 143 Large 54 37.538 38 Small 55 79.559 47 Small 56 46.9229 111 Large 57 66.448 55 Small 58 39.1776 96 Large 59 79.3531 119 Small 60 45.389 106 Large
I really don't understand how to do this problem. Can someone explain every step?
In: Math
Introduction
Lori Patrick’s conversation earlier that day with Mike Lowe, the company’s
CEO, kept running through Lori’s head during her 45-minute rush-hour
commute home. “What a great opportunity Mike’s given me,” she thought.
“The CEO of this organization believes in the value of HR and asked me to
tell him how HR can help the company meet its strategic goals. When I was
studying for my master’s in HR, we kept reading and talking about how HR
needs to position itself as a strategic business partner; but I didn’t think I
would get the opportunity so soon in my career.” Lori had been the director
of Human Resources with Reyes Fitness Centers, Inc. (R FC) for only a couple
of months. She had been attracted to the position in part because it offered her
first opportunity to oversee all of HR, and because of her interview with Mike
Lowe. Lowe was fairly new to the company (just less than two years) and was
highly regarded by the founder and chairman, John Reyes, and the rest of the
board of directors as a strategic thinker and someone with proven ability to
inspire and motivate staff. Lori knew from the interview with Lowe that when
he said employees were the key to RFC’s future, he meant it.
RFC background
Reyes Fitness Centers, Inc. was launched in May of 1999 by John Reyes with
$150,000 of his own funding and some investment capital from three college
friends from the University of North Carolina, Chapel Hill, where they were
business majors attending the university in the mid-1990s. The first center
was located in Raleigh, NC, and was an immediate success. The center offered
a full range of workout equipment, exercise classes, personal trainers, an
outdoor pool, on-site daycare, and even a small restaurant. Additional private
investment was secured and R FC expanded rapidly from 1999 to 2007, opening
approximately three new centers a year throughout the Southeast. By the end of
2007, RFC operated 28 fitness centers, grossing $51 million in revenues and $1
million in net income. Figure 1.0 below provides the financial performance of
RFC and its comparison to competitors.
By 2005, John Reyes had general managers overseeing each center and had
gradually removed himself from day-to-day oversight of the company. He
had become interested in other business ventures and, as a result, his board
encouraged hiring a CEO and other senior management team members to
oversee the growing enterprise. He hired 48-year-old Mike Lowe as the
new CEO of RFC in late 2005, and Reyes assumed the role of chairman.
This CEO position was the second in Lowe’s career. He had more than 20
years’ experience in the fitness equipment industry; before coming to RFC
he had been the CEO of a smaller fitness center company in California that
had been acquired. Lowe’s transition as CEO had gone quite well in Reyes’,
the board’s and in Lowe’s view. Lowe had been somewhat concerned about
being micromanaged by Reyes, but he was given complete autonomy over
the operations of the company and was expected to involve the board only in
strategic leadership issues
The Fitness center industry
While the fitness center industry grew dramatically in the mid to late 1990s
(more than 20 percent annually), overall industry growth had slowed
considerably, as most towns now had two to three fitness centers within
close proximity.
As shown in Figure 1.0, RFC is considered a medium-sized fitness center
enterprise. While some competitors (Day Spa and Constant Fitness in
particular) continue to focus on large-scale, either through acquisitions of
smaller fitness clubs or by opening new fitness centers, many others (including
RFC) have reduced the number of new clubs being opened.
There is as much emphasis on health and recreation as ever in the U.S. Industry
reports suggest that the outlook for fitness centers in general is quite positive,
although some consolidation may occur because certain markets have been
saturated with too many clubs to remain profitable. However, the market in the
Southeast (where RFC operates) is still growing and market saturation is not
anticipated for at least five years.
Fitness centers hire a variety of professional and support staff. Some focus on
personal training and employ a large number of certified professional trainers
who work with members during club hours (typically 5-6am until 10pm,
although the more body-building oriented gyms have recently started offering
24-hour service). In addition to housekeeping and front desk staff, fitness
centers employ customer service representatives who can assist existing members
with questions and also act as sales representatives, giving tours of the facility to
prospective members.
RFC strategy
During Lowe’s tenure, RFC opened just one new fitness center (just outside
of Atlanta, GA). This modest club expansion is consistent with the three-
year financial strategy the RFC board has agreed on, where the focus is on
growing the profitability of existing clubs by increasing member enrollment and
retention. The company is privately held by a small group of investors and the
board wants it to stay that way. The board has discussed positioning itself for
acquisition by one of the larger fitness club chains at some point in the future. It
is agreed that improving the bottom-line (i.e., net income) performance of RFC
will only help in this regard.
Within Porter’s classic framework of various business strategies, RFC’s strategy
most closely aligns with Porter’s “focus” strategy, where a company focuses
on serving the needs of a particular market segment to achieve a competitive
advantage. RFC has positioned itself as a place where the whole family can
enjoy fitness and social activities. RFC has deliberately chosen not to compete
with gyms that cater to body builders with large free weight workout areas,
24-hour access, onsite training supplement sales, and “no-frills” amenities.
RFC’s strategy is to attract families by offering a wide variety of fitness offerings
including cardio equipment; free weights and circuit training weight machines;
personal training; and exercise classes (such as Pilates, yoga, stationary cycling,
etc.). Most RFC fitness centers have a snack bar where nutritional smoothies
and other healthy snacks can be purchased. All RFC centers offer extensive
locker room facilities and on-site daycare. Newer RFC fitness centers have small
indoor basketball courts and TV lounges to appeal to the 10- to 16-year-old
age group.
From his first day on the job, Lowe has stressed to the staff that he wants them
to be strategic in how they approach their daily, weekly, and annual activities
and projects. By that he means that they should consider how their jobs
contribute to RFC being able to provide a fitness club experience to couples and
families that is superior to any of the competition. He has worked diligently
with his senior management team and the board to understand how RFC
creates value for its customers, employees and investors. The business model
for how fitness centers make money is fairly straightforward: profitable firms
grow by recurring monthly member revenue (via new member recruitment and
existing member renewal) while maintaining relatively stable fixed costs and
low variable costs. Lowe has worked to identify both financial and nonfinancial
variables that drive RFC performance. By locating RFC fitness centers in upper-
middle-class locations and focusing marketing efforts on couples and families,
RFC has been successful recruiting new members. Research data shows that
members typically do not have issues with the RFC monthly dues. Member
feedback indicates that having a friendly place for the whole family to stay fit is a
driver of member value.
RFC Strategic Challenges
As with most start-ups, the early strategy for RFC focused on growing
revenue. They did this by opening several clubs each year and offering new
club promotions to attract members. RFC experienced rapid revenue growth
(more than 20 percent annually) through 2004. However, several of the RFC
centers are not reaching their profit goals. Mike Lowe tried to address this by
implementing operational efficiencies when he first came on board at RFC,
but he soon realized that the profit challenges were driven in large part by a
customer retention problem. While a certain amount of turnover is expected in
the industry (due to competing clubs, families moving out of the area, etc.), the
best industry data RFC can find relating to member retention shows that their
member retention is approximately 20 percent lower than industry average.
An analysis of member records shows that members often join during a special
promotion (where the initiation fee is waived) but then rarely use the center
and fail to renew. A telephone survey of members (lapsed and current) reveals
that “non-use” was one of the reasons for members not renewing or stating
they were unlikely to renew. An analysis of member-visit frequency shows that
more than 50 percent of members in 2006 hadn’t even visited their RFC fitness
center two times per week. The hypothesis is that members who aren’t going
to their RFC fitness center frequently are far less likely to see sufficient value to
renew. Another concern is member feedback that RFC staff members do not
provide very good or excellent customer service. Lowe, senior management, and
the board have had extensive discussions about the member retention problem.
While part of Lowe’s strategy to increase profits is to enroll more members in
existing fitness centers, those profits will be short-lived if members stay only one
year. Data also shows that membership cost, quality of offerings, amenities, etc.,
are all rated highly.
Lori thinks about these strategic issues and how HR might affect them.
“There’s no question that problems with customer service and member
retention come down to people issues. It is affected by the type of people we
bring on board, how they’re trained and how their performance is managed
and rewarded.”
Questions:
1. Identify and prioritize a set of tasks for Lori. Provide a rationale for your prioritization. Link your responses to the key concepts to one of the examples in the The HR Scorecard.
2. Based on your understanding of RFC and its business strategy, how can HR add strategic value to RFC?
3. What challenges do you anticipate Lori will encounter as she develops the HR scorecard for RFC?
4. Anticipate potential outcomes for the plan that is proposed for RFC?
Thanks for your help!
In: Operations Management
Case 5.0: Incentives in the Firm – Compensating the CEO
Let’s work through an incentive concept and problem. “Moral hazard” problems arise when someone – the “principal” – hires an agent to do something, but the agent has an incentive to do something else. For example, firm owners may want their management team to maximize profits, but maximizing profits is hard, time-consuming work that could interfere with the management team’s preference for playing golf. If top management simply receives a salary, the problem is aggravated because the managers may not be motivated to satisfy the owners, and the owners can’t easily monitor management activity to know if they’re really doing a good job. The problem is resolved in large part if the owners tie most or all of management compensation to firm profits, as income is often a pretty good motivator (although some golf nuts will still pause for a while over this one.) We can set up a scenario to explore this incentive issue further, and this problem will also help fix in our minds the difference between maximizing revenue and maximizing profit.
A small firm faces an inverse demand function of P = 100 - Q. Its total cost function is given by TC = .5Q2. (You should see right away that marginal revenue is thus MR = 100 – 2Q, and it also happens that marginal cost is just MC = Q. Both MR and MC are the first derivatives of total revenue and total cost. And a quick comment on MC: unlike some marginal cost functions we’ve seen, this one is not constant, because marginal cost is getting $1 higher with each additional unit of output.)
The Chief Executive Officer will manage the firm, choosing output and price. Currently, the CEO is negotiating an incentive-based contract with the shareholders of the company. The CEO has proposed that she get 20% of the total revenue brought in by the firm. The shareholders' representative has counter-offered that 10% of total revenue be given to the CEO. (Hint: basing compensation on revenue will motivate revenue maximization rather than profit maximization!)
1. How much income will each plan generate for the CEO and for the shareholders, respectively? (Hint: since both plans create incentives for the CEO to maximize revenue rather than profit, you should not set MR = MC at this point. BIG hint: revenue is maximized when selling an additional unit won’t increase your revenue, or in math terms, when MR = 0.)
CEO’s proposal: she keeps 20% of TR.
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Owners’ proposal: CEO keeps 10% of TR.
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2. Suppose you are asked to mediate in the negotiations. Can you propose an incentive-based compensation scheme for the CEO that both parties are likely to accept, assuming everyone would like to maximize their income?
Your proposal:
Demonstration that everyone is better off than under their own proposal and thus should accept your proposal:
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3. Now thinking even more shrewdly: what’s the maximum price you could charge for your consulting services and still leave everyone better off?
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In: Finance
A multiple regression model is to be constructed to model the time spent using the internet per week among internet users. The explanatory variables are age, hours spent working per week and annual income.
Data has been collected on 30 randomly selected individuals:
| Time using internet (minutes) |
Age | Hours working per week |
Annual income ('000) |
|---|---|---|---|
| 140 | 56 | 39 | 28 |
| 257 | 35 | 31 | 79 |
| 163 | 35 | 35 | 34 |
| 115 | 33 | 52 | 27 |
| 182 | 45 | 36 | 37 |
| 214 | 51 | 57 | 80 |
| 187 | 44 | 37 | 50 |
| 142 | 26 | 55 | 41 |
| 251 | 19 | 47 | 35 |
| 203 | 21 | 42 | 36 |
| 243 | 28 | 25 | 26 |
| 244 | 23 | 26 | 28 |
| 131 | 48 | 56 | 46 |
| 174 | 24 | 54 | 63 |
| 131 | 51 | 52 | 78 |
| 178 | 38 | 39 | 79 |
| 135 | 22 | 50 | 36 |
| 124 | 31 | 57 | 27 |
| 173 | 57 | 44 | 60 |
| 189 | 33 | 35 | 58 |
| 179 | 59 | 30 | 35 |
| 230 | 37 | 27 | 51 |
| 121 | 59 | 46 | 53 |
| 150 | 36 | 40 | 49 |
| 151 | 42 | 47 | 80 |
| 147 | 38 | 56 | 35 |
| 195 | 54 | 32 | 59 |
| 134 | 58 | 52 | 44 |
| 190 | 39 | 28 | 27 |
| 197 | 58 | 40 | 72 |
a.) Find the multiple regression equation using all three explanatory variables. Assume that x1 is age, x2 is hours working per week and x3 is annual income. Give your answers to 3 decimal places.
y^ = _____ + _______age + ________ hours working + ________ annual income
b.) At a level of significance of 0.05, the result of the F test for this model is that the null hypothesis (is) (is not) rejected.
c.) The value of R2 for this model, to 3 decimal places, is equal to __________
d.) The value of s for this model, to 3 decimal places, is equal to _________
e.) The least significant explanatory variable in this model is:
a.) age
b.) hours working per week
c.) annual income
f.) Construct a new multiple regression model by removing the variable annual income. Give your answers to 3 decimal places.
The new regression model equation is:
y^ = ________ + _________ age + ________ hours working
g.) In the new model compared to the previous one, the value of R2 (to 3 decimal places) is:
a.) increased
b.) decreased
c.) unchanged
h.) In the new model compared to the previous one, the value of s (to 3 decimal places) is:
a.) increased
b.) decreased
c.) unchanged
i.) The better model is the:
a.) original model
b.) reduced model
In: Statistics and Probability
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You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home office in Michigan and leases factory buildings in Wisconsin, Minnesota, and North Dakota, all of which produce the same product. Ironwood's management provided you a projection of operations for next year as follows: |
| Total | Wisconsin | Minnesota | North Dakota | |||||||||
| Sales revenue | $ | 896,000 | $ | 449,000 | $ | 288,000 | $ | 159,000 | ||||
| Fixed costs | ||||||||||||
| Factory | 228,000 | 116,000 | 56,000 | 56,000 | ||||||||
| Administration | 70,000 | 41,000 | 23,000 | 6,000 | ||||||||
| Variable costs | 298,000 | 132,000 | 90,000 | 76,000 | ||||||||
| Allocated home office costs | 100,000 | 46,000 | 33,000 | 21,000 | ||||||||
| Total | $ | 696,000 | $ | 335,000 | $ | 202,000 | $ | 159,000 | ||||
| Operating profit | $ | 200,000 | $ | 114,000 | $ | 86,000 | $ | 0 | ||||
| The sales price per unit is $5. |
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Due to the marginal results of operations of the factory in North Dakota, Ironwood has decided to cease its operations and sell that factory's machinery and equipment by the end of this year. Ironwood expects that the proceeds from the sale of these assets would equal all termination costs. Ironwood, however, would like to continue serving most of its customers in that area if it is economically feasible and is considering one of the following three alternatives: |
| • |
Expand the operations of the Minnesota factory by using space presently idle. This move would result in the following changes in that factory's operations: |
| Increase over Minnesota factory's current operations | ||
| Sales revenue | 48 | % |
| Fixed costs | ||
| Factory | 18 | |
| Administration | 11 | |
| Under this proposal, variable costs would be $2 per unit sold. |
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--> Enter into a long-term contract with a competitor who will serve that area's customers. This competitor would pay Ironwood a royalty of $0.9 per unit based on an estimate of 33,000 units being sold. |
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| --> Close the North Dakota factory and not expand the operations of the Minnesota factory. |
| Total home office costs of $100,000 will remain the same under each situation. |
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| b. | Negotiation of long-term contract on a royalty basis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In: Accounting