The following table shows age distribution and location of a random sample of 166 buffalo in a national park. Age Lamar District Nez Perce District Firehole District Row Total Calf 14 12 15 41 Yearling 13 11 9 33 Adult 35 30 27 92 Column Total 62 53 51 166 Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance. (a) What is the level of significance? State the null and alternate hypotheses. H0: Age distribution and location are not independent. H1: Age distribution and location are not independent. H0: Age distribution and location are independent. H1: Age distribution and location are independent. H0: Age distribution and location are independent. H1: Age distribution and location are not independent. H0: Age distribution and location are not independent. H1: Age distribution and location are independent. (b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.) Are all the expected frequencies greater than 5? Yes No What sampling distribution will you use? Student's t chi-square binomial uniform normal What are the degrees of freedom? (c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.) p-value > 0.100 0.050 < p-value < 0.100 0.025 < p-value < 0.050 0.010 < p-value < 0.025 0.005 < p-value < 0.010 p-value < 0.005 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence? Since the P-value > α, we fail to reject the null hypothesis. Since the P-value > α, we reject the null hypothesis. Since the P-value ≤ α, we reject the null hypothesis. Since the P-value ≤ α, we fail to reject the null hypothesis. (e) Interpret your conclusion in the context of the application. At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent. At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.

You are a clinician in the psychiatric ward of the local hospital. A patient is refusing medication. Before medicating against his will, the likely next step, the actiing psychiatrist has asked that a therapist meet with the individual in a last ditch effort for them to take the medication voluntarily. You are that therapist and you are given the brief note found below before entering the room to speak with the patient. How might you address Mr. Johns?  

_______________________

Mr. Johns is a 34-year-old man diagnosed with paranoid schizophrenia. He was first diagnosed at age 19, and has been hospitalized several times over the past 15 years. In between hospitalizations, he has lived with his parents, who have supported him financially and provided for his basic needs. While he recognizes that he is unable to work and care for himself, he also feels that his parents are overly controlling and he desperately wants to be able to live independently.

Currently, Mr. Johns is enraged at being hospitalized against his will. As he sees it, he decided to move out of his parents’ home because his mother was trying to give him drugs in his food that would make him follow her wishes. In addition, he self-reported that whenever he fell asleep at home, his father would come into his room and read his mind, using his thoughts against him the next day. Naturally, he has been unable to sleep or eat under these conditions, and so decided to move out on his own. However, when his father saw him walking in the street, he began trying to force him into his car and bring him back home. When he refused to return, he called the police and had him admitted to the hospital.

Mr. Johns is adamant in his opinion that he has the right to decide how to live his life. If he wants to live on the streets or sleep on park benches, he says that is his right. He has been refusing to take medication because he knows that it only poisons his mind and keeps him from thinking clearly.

1. An impartial judge of a local garden competition collects scores from two groups of judges on what he suspects to be the number one garden. He finds the first group (n = 5) has a mean score of 76. The second group (n = 3) has a mean score of 91. So that he may declare the final score, what is the weighted mean of these two groups?

2. A social scientist measures the number of minutes (per day) that a small hypothetical population of college students spends online. Student Score Student Score A 94 F 96 B 88 G 25 C 74 H 61 D 88 I 82 E 98 J 98

(a) What is the range of data in this population? min

(b) What is the IQR of data in this population? min

(c) What is the SIQR of data in this population? min

(d) What is the population variance?

(e) What is the population standard deviation? (Round your answer to two decimal places.) min

3. A sociologist records the annual household income (in thousands of dollars) among a sample of families living in a high-crime neighborhood. Locate the lower, median, and upper quartiles for the times listed below. Hint: First arrange the data in numerical order.

a) lower quartile thousand dollars

b) median thousand dollars

c) upper quartile thousand dollars

42 22 46 33 37 32 37 47 51 25

4. A theme park owner records the number of times the same kids from two separate age groups ride the newest attraction. Age 13–16 Time Age 17–21 Time 1 10 1 4 2 9 2 3 3 3 3 7 4 1 4 4 5 10 5 8 6 3 6 1 7 8 7 2 8 9 8 5 9 6 9 4 10 5 10 2 Using the computational formula, for the age group of 13–16? (Round your answers for variance and standard deviation to two decimal places.) what is the

a) SS

b) sample variance

c) standard deviation

You are a systems analyst contracted by Earth Friendly Babies, a mail-order company that sells earth friendly baby products. You and your consulting firm have recently completed development of a new system for managing orders and inventory for Earth Friendly Babies. System architecture already has been decided, and you are ready to embark upon installation, evaluation, and training for the new system. Earth Friendly Babies has grown from an at-home business set up by a stay-at-home mom to a small mail-order company that sends out catalogs to 10 states, employs 5 people in addition to the business owner, and has office and warehouse space in an office park designed to encourage small businesses. The business has relied upon manual data collection methods for taking orders, billing, and managing inventory. The new IS will provide the support necessary for the company to expand to all 50 states with their mail-order campaign. None of the employees has worked with an IS system similar to the one designed. All employees need to be trained in all aspects of the new system, because the company at this point relies on its employees to work where needed, rather than at one job only. You need to provide training for inventory/warehouse and for order support. Each individual will require nine hours total of training, broken down into three three-hour modules, and two people can be released from work at a time for training.

1. Design two training schedules for the new system — one which is based upon two

people released from work at a time, and one which takes advantage of the small number of employees that need to be trained.

2. Develop a training budget assuming that the trainer is paid $140 per hour, that 8 hours are needed to develop training materials, and that the 5 workers earn $18

per hour including overhead. Present the alternatives in memo form to the business owner, and identify any additional information that should be taken into

account when choosing between the two training schedules.

3. Prepare a memo detailing which changeover method you are recommending, and why.

4. Should Earth Friendly Babies perform a post-implementation evaluation? If your answer is no, justify. If yes, who should perform it?

1. A profit-maximizing, monopolistically competitive car wash washes 40 cars per day, and its total cost $200 and currently makes an economic profit of $280. In the long run, everything else equal, the
   a.   car wash will wash less than 40 cars per day.
   b.   car wash will charge more than $12 per wash.
   c.   car wash will need to hire new workers to wash more cars.
   d.   car wash will wash more than 50 cars per day.

2. For a competitive firm, if at least some portion of its short-run average cost curve lies below the price of the product, we can conclude that the firm
   a.  is earning zero economic profits.
   b.  is incurring short-run losses.
   c.  is going to shut down.
   d.  is earning a profit at the profit maximizing output level.

3. If stock exchanges did not exist,
   a.   the economy’s resources could be more efficiently allocated among firms.
   b.   the risk to the investor of buying stocks would be much greater.
   c.   investment banks would no longer play a role in handling stocks.
   d.   there would be no organized way for firms to issue stock.

4. A “specialist” is a
   a.   stockbroker who specializes in the “third market.”
   b.   person who works on the floor of the New York Stock Exchange and specializes in certain stocks.
   c.   stockholder who finds buyers and sellers for specific stocks, but also operates outside of specific stock markets.
   d.   stockbroker who operates only in a particular regional stock market.

5. Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
   a.  a perfectly competitive market.
   b.  a monopoly.
   c.  a monopolistically competitive market.
   d.  an oligopoly.

6. A monopolistically competitive firm
   a.   is always a retail establishment.
   b.   has more monopoly power in the long run than does a perfectly competitive firm.
   c.   tries to differentiate its product from competitors’ products.
   d.   faces a perfectly elastic demand curve for its product.

Eric received an email from Amazon Customer Service that said "Thank you for contacting us." But Eric did not contact them. Instead, an attacker had contacted them and pretended to be Eric. When Amazon Customer Service asked the attacker to identify himself all he had to do was give Eric’s name, email address, and mailing address—which the attacker got from Whois, which contains Eric’s registration information for his website. However, Eric knew to protect his actual mailing address so the registration information on Whois was actually a hotel close to Eric’s house. Because the information matched what was on file, Customer Service told the attacker the mailing address of Eric’s order, which was his real home address. Eric contacted Amazon, found out these details, and told them not to release any of his information to anyone who contacted Customer Service, to which Amazon agreed. Fast forward two months. Eric again received another "Thank you for contacting us" email. After contacting Amazon again, he found that this time the attacker had tried to get the last four digits of Eric’s credit card number on file through more social engineering tricks.

Fortunately, this time Amazon did not surrender that specific piece of information (although they had ignored his previous instruction not to give out any information). Had they provided the credit card number the attacker would have had enough information to pass the "I’m-the-real- Eric" test on almost any of Eric’s online accounts (using his name, email address, mailing address, and last four digits of his credit card) and trick their Customer Service into resetting Eric’s password. This would then allow the attacker to get into Eric’s online accounts and purchase a virtually unlimited number of items charged to Eric’s credit card. What went wrong? Should the first Amazon Customer Service representative have been reprimanded? What policies should Amazon have had in place to prevent this? What technologies should there be in place to prevent this? As a customer, what should you do to protect your online accounts?

Write a one-page paper on your analysis.

Your former director of business development contracted John Smith, an American consultant, to manage the development and marketing of one of the newer projects of the company.This project appeared very promising but is in fact bringing much lower revenues than originally anticipated. Mr. Smith just presented his expenses for his first class airfare tickets, five star hotel rooms and gourmet restaurant bills (with expensive French wines) of the last three months. Such expenses are a serious concern to your director of finances who finds them out of line. Your financial reports for the second half of this year would be improved if you negotiated an eight-month earlier termination of his 20-months consulting contract. That would help you wind down this project quicker. However, there is no good cause to base Mr. Smith’s termination on the lack of his contractual performance. In fact, some within your organization appreciate Mr. Smith’s work and believe he might turn things around, given additional time and manpower. You also have a suspicion about a potential conflict of interest. Indirectly, through an employee of HR, you have been told that Mr.Smith was seen in a night club entertaining Ms. Hodge, a project manager of your main competitor. Mr. Toba, a member of the Board of your company has been suggesting to your President that he might be more sympathetic to the under-performance of this project if you managed to contract his nephew George,a fresh MBA graduate from Northwest University, instead of John Smith. To review the contractual arrangements with Mr. Smith, you asked your contract department earlier today for a copy of his consulting contract. Unfortunately, they have been unable to locate their signed copy at this time.

Considerations for your Blackboard debate of this case:

1) How would you approach your consultant about various issues?

•Directly or indirectly

•Discussing all or just some issue; Why?

2) Would you try to work out issues with the consultant or terminate his contract?

3) Explain how such case would be handled if contracting company was residing in a certain country that you are familiar with.

Suppose 1% of the population of Toronto has been infected with SARS-CoV-2 at some point (call the corresponding proportion, 0.01, the prevalence of the virus). There are now antibody tests available for SARS-CoV-2 to detect whether someone has ever been infected. However, like any test, these tests are not perfect and are subject to error at some rate.

Also suppose that, when someone has been infected, the test correctly comes up positive 98% of the time, comes up negative 1.7% of the time, and comes up inconclusive in the remaining 0.3% of cases. Also suppose that when someone has not been infected, the test correctly comes up negative 99% of the time, positive 0.8% of the time, and inconclusive 0.2% of the time.

Let ?D be the event that a randomly selected person in Toronto has truly been infected (?D for disease). Thus, ??Dc is the event that the person has never been infected. Let ++ be the event that a test comes up positive, and – the event it comes up negative. Use ?O for inconclusive.

Draw a probability tree to depict the relationship between these events (see Lecture 7). Use the tree to compute ?(?|+)P(D|+), the probability that someone has been infected conditional on getting a positive test result. What does this result mean in words and why might it be surprising (1-2 sentences)?

Use the same information about testing for SARS-CoV-2 as above. What happens if prevalence changes to 0.10? Redraw the tree, and compute ?(?|+) again using this new prevalence. What do these results suggest about the importance of prevalence in interpreting test results like this (1 sentence)? Suppose a random person in Toronto gets an inconclusive result on an antibody test for SARS-CoV-2. Is the probability that they are infected lower or higher than it was before we knew their test result? Use your tree to explain.

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Required:

1. the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

     a. Direct materials price variance, direct materials quantity variance, and total variance.

     b. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Required:

1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

     a. Direct materials price variance, direct materials quantity variance, and total variance.

     b. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.