A regional airline transfers passengers from small airports to a larger regional hub airport. The airline data analyst was assigned to estimate the revenue ( in thousands of dollars) generated by each of the 22 small airports based on two variables: the distance from each airport ( in miles) to the hub and the population ( in hundreds) of the cities in which each of the 22 airports is located. The data is given in the following table.

Airport revenue         distance         population

1          233                 233                 56

2          272                 209                 74

3          253                 206                 74

4          296                 232                 78

5          268                 125                 73

6          296                 245                 54

7          276                 213                 100

8          235                 134                 98

9          253                 140                 95       

10        233                 165                 81

11        240                 234                 52

12        267                 205                 96

13        338                 214                 96       

14        243                 183                 73

15        252                 230                 55

16        269                 238                 91

17        242                 144                 64

18        233                 220                 60

19        234                 170                 60

20        450                 170                 240    

21        340                 290                 70

22        200                 340                 75                   

1. Using PROC CORR in SAS, create a matrix of scatter plots for revenue, population, and distance. Include this graph in your LATEX document.
2. From your scatter plots in part (a), is there a data point that you think may be an “issue” for analysis?
   
3. Construct and report a multiple regression model relating :
             revenue (y)
            distance (x1)
            population (x2)
             using SAS.
   
4. Construct the 95% confidence interval for β1 by hand. (Use βˆ1 and the standard error calculated by SAS.)

a) The point at which a company's costs equal its revenues is the break-even point. C represents the cost, in dollars, of x units of a product and R represents the revenue, in dollars, from the sale of x units. Find the number of units that must be produced and sold in order to break even. That is, find the value of x for which C=R.

C=15x+32,000 and R=17x.

How many units must be produced and sold in order to break even?

b) A bicycle travels at a speed of 55 miles per hour for x hours. Find an expression for the distance that the bicycle travels.

c) The price per unit, p, and the demand, x, for a particular material is related by the linear equation p =140 -7/8 X, while the supply is given by the linear equation

p=7/8x. At what value of p does supply equal demand?

d) Suppose that a cyclist began a 476 mi ride across a state at the western edge of the state, at the same time that a car traveling toward it leaves the eastern end of the state. If the bicycle and car met after

8.5 hr and the car traveled 32.2 mph faster than the bicycle, find the average rate of each.

The car's average rate is

The bicycle's average rate is

e) A baseball team has home games on Thursday and Saturday. The two games together earn $4640.00 for the team. Thursday 's game generates$300.00 less than Saturday 's

game. How much money was taken in at each game? How much money did Thursday 's game generate? How much money did Saturday 's game generate?

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck: Camper and equipment: Cost, $15,000; usable for eight seasons; 12 hunting trips per season $ 156 Travel expense (pickup truck): 100 miles at $0.39 per mile (gas, oil, and tires—$0.28 per mile; depreciation and insurance—$0.11 per mile) 39 Shotgun shells (two boxes per hunting trip) 25 Boat: Cost, $2,080, usable for eight seasons; 12 hunting trips per season 22 Hunting license: Cost, $80 for the season; 12 hunting trips per season 7 Money lost playing poker: Loss, $36 (Bill plays poker every weekend whether he goes hunting or stays at home) 36 Bottle of whiskey: Cost, $25 per hunting trip (used to ward off the cold) 25 Total cost $ 310 Cost per duck ($310 ÷ 8 ducks) $ 39 Required: 1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? 2. Suppose Bill gets lucky on his next hunting trip and shoots 12 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last two ducks?

A real estate investor wants to study the relationship between annual return on his commer- cial retail shops (measured in thousands of dollars) as it relates to their location and the number of homes near the shops. Specifically, the investor has collected data on the annual return of the shops, the number of households within 15 miles of the shops (measured in thousands), and the location of the shops (whether the shops are in a suburban area, near a shopping mall, or downtown). The annual return data can be found in the file “RealEstate.csv” in the d2l. As demonstrated in the lecture, please create a subset data of size 18 and perform your statistical analysis for the subset data. Please note that the subset data should be a random sample of the given data.

(a) State the mean of the response.
(b) Is the multiple linear regression model useful for prediction? Show details. Use ? = 0.05. (c) Provide the detailed interpretations of b1, b2, and b3 in the context of the problem.

(d) Use your estimated regression equation to predict the annual return for a shop in mall with 120,000 households near the shop.

Shop. Annual Return($1000s). Number of Households(1000s). Location.
3 245.81   232   Mall
4   137.07   108   Mall
5   207.36   220   Suburban
6   146.12   150   Suburban
8   188.19   198   Suburban
9   152.23   149   Downtown
10   182.23   192   Suburban
11   198.88   179   Mall
13   156.22   130   Mall
15   195.62   199   Downtown
16   210.38   224   Suburban
17   209.16   215   Downtown
18   260.82   250   Mall
20   127.66   129   Suburban
22   219.93   203   Mall
23   166.61   166   Downtown
27   219.67   227   Downtown
29   232.32   217   Mall

Should you video conference or travel to a business meeting?

1. Suppose you own a profitable small business in Washington, D.C. You desire to hold an essential 1-hour meeting with business executives in New York, NY. You have two options:
2. You can fly to New York. You own 25,000 frequent-flyer miles, which you can return to the airline at any time for a free ticket anywhere in the United States. Thus, you need not pay for your flight to New York. Your only expenditures would be for 15-minute cab rides to and from the airport in D.C. (fares = $25 each way) plus 15-minute cab rides to and from the airport in New York (fares = $25 each way). Or,
3. You can use a video conferencing facility. Last January, you paid $3,000 to obtain access to a video conferencing facility located within your office building for one year. You also must pay $125/hour for each hour the facility is used.

You estimate the meeting will be equally effective (the benefit is assumed to be the same) if held in person or via video conferencing. What option should you choose and why? How should you think about this decision? Make sure to calculate both the implicit and explicit costs of both options. You don’t need to make any additional assumptions other than those given in this scenario to make your decisions. Please also pay attention to the sunk cost that may complicate your decision. Therefore, review the concept of sunk cost very carefully before you complete your post.

Bill has just returned from a duck hunting trip. He brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John presented him with the following cost estimate per duck:

Required:

1. Assuming the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?

2. Suppose Bill gets lucky on his next hunting trip and shoots 8 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last two ducks?

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:

The distribution of resource consumption across the activity cost pools is as follows:

Required:

Complete the first stage allocations of costs to activity cost pools.

The Oceanic Pacific fleet has just decided to use a pole-and- line method of fishing instead of gill netting to catch tuna. The latter method involves the use of miles of nets strung out across the ocean and therefore entraps other sea creatures besides tuna (e.g., porpoises, sea turtles). Concerns for endangered species was one reason for this decision, but perhaps more important was the fact that the major tuna canneries in the United States will no longer accept tuna caught by gill netting. Oceanic Pacific decided to conduct a new series of experiments to determine the amount of tuna that could be caught with different crew sizes. The results of these experiments follow.

a. Determine the point at which diminishing returns occur.

b. Indicate the points that delineate the three stages of production.

c. Suppose the market price of tuna is $3.50/pound. How many fishermen should the company use if the daily wage rate is a $100?

d. Suppose a glut in the market for tuna causes the price to fall to $2.75/pound. What effect would this have on the number of fishermen used per boat? Suppose the price rose to $5.00/pound. What effect would this have on its hiring decision?

e. If the firm realizes that to keep up with the demand for tuna, each of its boats must catch at least 1,000 pounds of fish per day. What should it consider doing? Why?

Assignment 5

11. An educational researcher wishes to compare the effectiveness of two different math textbooks. She has the tenth graders at one school use the first book for one year and the tenth  graders at another school use the second textbook for one year. At the end of the year, she gives the same math test to both classes and compares the results. A) The source B) Confounding variables C) The setting D) Selection bias E) Participation bias

12. ʺ38% of adults in the United States regularly visit a doctorʺ. This conclusion was reached by a college student after she had questioned 520 randomly selected members of her college. A) No bias B) Selection bias C) Participation bias D) Participation bias and selection bias

15. Which of the following describes the process by which scientists examine each othersʹ research? A) Considering the conclusion B) Peer review C) Participation review D) Interpretation

16. Which of the following quantities of interest would be the most difficult to define? A) The paint with the best looking finish B) The levels of lead in various brands of paint C) How water resistant a brand of paint is D) The least expensive brand of paint

17) Which of the following describes the bias that can occur when members of a studyʹs sample are volunteers? A) Single-blind bias B) Participation bias C) Sample bias D) Selection bias 3

18) The population of a town A) Quantitative B) Qualitative

19) The colors of  the houses in a city A) Quantitative B) Qualitative

20) The speed of a car in miles per hour A) Qualitative B) Quantitative

Can a low barometer reading be used to predict maximum wind speed of an approaching tropical cyclone? For a random sample of tropical cyclones, let x be the lowest pressure (in millibars) as a cyclone approaches, and let y be the maximum wind speed (in miles per hour) of the cyclone. x 1004 975 992 935 979 926 y 40 100 65 145 82 153 (a) Make a scatter diagram of the data and visualize the line you think best fits the data. Selection Tool Line Ray Segment Circle Vertical Parabola Horizontal Parabola Point No Solution Help 5101520253035404550556065707580859095100105110115120125130135140145150155160165170175180185190195200205210215220225230235240245250255260265270275280285290295300305310315320325330335340345350355360365370375380385390395400405410415420425430435440445450455460465470475480485490495500505510515520525530535540545550555560565570575580585590595600605610615620625630635640645650655660665670675680685690695700705710715720725730735740745750755760765770775780785790795800805810815820825830835840845850855860865870875880885890895900905910915920925930935940945950955960965970975980985990995100010055101520253035404550556065707580859095100105110115120125130135140145150155 Clear Graph Delete Layer Fill WebAssign Graphing Tool Graph LayersToggle Open/Closed After you add an object to the graph you can use Graph Layers to view and edit its properties. (b) Would you say the correlation is low, moderate, or strong? low moderate strong Would you say the correlation is positive or negative? positive negative (c) Use a calculator to verify that x = 5811, x2 = 5,632,847, y = 585, y2 = 66,983 and xy = 559,671. Compute r. (Round your answer to three decimal places.) As x increases, does the value of r imply that y should tend to increase or decrease? Explain your answer. Given our value of r, we can not draw any conclusions for the behavior of y as x increases. Given our value of r, y should tend to remain constant as x increases. Given our value of r, y should tend to increase as x increases. Given our value of r, y should tend to decrease as x increases