If two rival firms’ products are on the indifference line of the cost benefit tradeoff, then explain what does this mean. (50 words) Indicate on your value map where would a successful product that is offering superior value be placed? (Use a clearly marked cross) Give two possible reasons that explain the position on the value map for this successful product. (about 50 words)

A man is hiking at a park. At the beginning, he followed a straight trail. From the starting point, he traveled two miles down the first trail. Then he turned to his left by 30 degree angle to follow a second trail for one point five miles. Next, he turned to his right by 160 degree angle and follow a third trail for one point seven miles. At this point he was getting very tired and would like to get back as quickly as possible, but all of the available trails seem to lead him deeper into the woods. He would like to take a shortcut directly through the woods. How far to his right should you suggest him to turn, and how far do he have to walk, to go directly back to his starting point?

Q1: The man has to turn ____ degree to the right and walk ___ miles to the starting point.

Refer to the gasoline sales time series data in the given table.

1. Compute four-week and five-week moving averages for the time series. Round your answers to two decimal places.
   

   Week	Sales	4-Week Moving Average	5-Week Moving Average
   1	17
   2	21
   3	19
   4	24
   5	19
   6	15
   7	21
   8	19
   9	23
   10	19
   11	15
   12	22

2. Compute the MSE for the four-week and five-week moving average forecasts. Round your intermediate calculations and final answers to two decimal places.
   
   MSE for four-week moving average =  
   
   MSE for five-week moving average =
3. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 14.34.
   
   

Refer to the gasoline sales time series data in the given table.

1. Compute four-week and five-week moving averages for the time series. Round your answers to two decimal places.
   

   Week	Sales	4-Week Moving Average	5-Week Moving Average
   1	18
   2	22
   3	18
   4	24
   5	19
   6	16
   7	21
   8	19
   9	22
   10	19
   11	16
   12	23

2. Compute the MSE for the four-week and five-week moving average forecasts. Round your intermediate calculations and final answers to two decimal places.
   
   MSE for four-week moving average =
   
   MSE for five-week moving average =
   
3. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 10.42.
   
   

Refer to the gasoline sales time series data in the given table.

1. Compute four-week and five-week moving averages for the time series. Round your answers to two decimal places.
   

   Week	Sales	4-Week Moving Average	5-Week Moving Average
   1	18
   2	21
   3	19
   4	22
   5	18
   6	16
   7	20
   8	19
   9	23
   10	19
   11	16
   12	22

2. Compute the MSE for the four-week and five-week moving average forecasts. Round your intermediate calculations and final answers to two decimal places.
   
   MSE for four-week moving average =  
   
   MSE for five-week moving average =
3. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 9.
   
   

Refer to the gasoline sales time series data in the given table.

1. Compute four-week and five-week moving averages for the time series. Round your answers to two decimal places.
   

   Week	Sales	4-Week Moving Average	5-Week Moving Average
   1	17
   2	20
   3	18
   4	22
   5	17
   6	16
   7	22
   8	17
   9	23
   10	21
   11	14
   12	22

2. Compute the MSE for the four-week and five-week moving average forecasts. Round your intermediate calculations and final answers to two decimal places.
   
   MSE for four-week moving average =
   
   MSE for five-week moving average =
   
3. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that MSE for the three-week moving average is 12.87.
   
   

Pharmacologist Dr. Finch was asked by a drug company to compare the bioavailability of two brands of aspirin (brands A and B for simplicity). She randomly chose 10 healthy male subjects and asked each to take 3 pills of each brand on two separate days. The 1-hour urine concentrations (mg%) of aspirin for each subject on both occasions were carefully measured and tabulated as follows.

      Subject ID      Aspirin A 1-hour             Aspirin B 1-hour

1. Let µ_A and µ_B be the mean 1-hour concentration of aspirin A and B, respectively. Write down Dr. Finch’s research objective in terms of H₀ and H_A.
2. Perform an appropriate test at the 5% significance level.
3. If a 95% CI for the difference µ_A − µ_B is desired, would the number zero within or without this CI? Briefly explain why or why not.

4. Consider that an individual wants to allocate $1,000 between two goods, namely, DVDs and shirts. The price of DVDs are $20/DVD, and the price of shirts are $50/shirt.

(a) Suppose that the individual buys eight shirts. Show the combination of DVDs and shirts for this individual on their budget constraint. Illustrate this choice using the appropriate budget constraint.

(b) Explain how this individual makes the choice of buying this specific combination of DVDs and shirts.

(c) What would happen to the budget constraint if the price of shirts falls to $40/shirt? Illustrate the new budget constraint on the graph from part (a). What does the individual’s choices say about the ’Law of Demand?’

The following information pertains to Amigo Corporation:

      Month                        Sales         Purchases

      July                         $30,000             $10,000

      August                      34,000               12,000

      September                 38,000               14,000

      October                     42,000               16,000

      November                 48,000               18,000

      December                  60,000               20,000

?           Cash is collected from customers in the following manner:

            Month of sale (2% cash discount)     30%

            Month following sale                       50%

            Two months following sale              15%

            Amount uncollectible                        5%

?     40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Required:

a.   Prepare a summary of cash collections for the 4th quarter.

b.   Prepare a summary of cash disbursements for the 4th quarter.