Confidence Intervals for a proportion and mean Do all steps in the confidence interval:

a) Check when easy the requirements for the interval (t-interval)

b) Create a summary of the information that goes into the interval

c) Write out the formula for the interval

d) Replace the symbols in the formula with the numbers from (b)

e) Produce the interval

f) Interpret the interval

In 1998, as an advertising campaign, the Nabisco Company announced a "1000 Chips Challenge," claiming that every 18-ounce bag of cookies contained at least 1000 chocolate chips. Students tested this by getting bags and counting. Create a 95% interval for the mean number of chocolate chips per bag.

An insurance company checks police records on 582 accidents selected at random and notes that teenagers were at the wheel in 91 of them. Create a 95% confidence interval for the percentage of all auto accidents that involve teenage drivers.

A company with a large fleet of cars hopes to keep gasoline costs down and sets a goal of attaining a fleet average of at least 26 miles per gallon. To see if the goal is being met, they check the gasoline usage for 50 company trips chosen at random, finding a mean of 25.02 mpg and a standard deviation of 4.83 mpg. Produce a 99% confidence interval for the average mpg.

A May 2007 Gallup Poll found that only 11% of a random sample of 1003 adults approved of attemps to clone a human. Produce a 90% confidence interval for the percentage of adults that approve of attempts to clone a human

The mayor of a small city suggested that the state locate a new prison there, arguing that the construction project and resulting jobs will be good for the local economy. A total of 2183 residents show up for a public hearing on the proposal, and a show of hands finds only 31 in favor of the prison project. What can the city council conclude about public support for the mayor's initiative? Produce a 98% confidence interval to answer the question.

Understanding the marketplace is the first step to developing and implementing a company’s effective marketing strategy. Consider today’s marketplace, which is crowded with a variety of products and services in all industries. Companies sell their products and services in-store and online as well as offering a hybrid of options to order online and pick up in store. These options are often designed to move the company and its brands to the top place in the industry.

For this discussion, explore the electric and hybrid car industry. Because more emphasis is being placed on sustainable and green technologies for cleaner air and lower gas emissions, customers are becoming more interested in alternative-fuel cars such as hybrids, solar, and electric choices. In addition, as gasoline prices continue to rise for all-fuel automobiles, customers are often looking for more fuel-efficient options to lower their personal expenditure and more.

1. Identify the product’s competition. What is 1 new trend on the horizon that the company needs to consider when offering these models to customers in the future?  

2. Discuss how your selected model is poised to compete in today's marketplace.

3. What type of customer would be interested in your product? Note the demographics such as the age of the consumer, lifestyle, or psychographics. For example, a customer who is a salesperson and travels 200 miles per day might be very interested in this type of car.

The following information is provided to help with your assignment:

Today's marketplace is complex, crowded, and competitive with hundreds of thousands of products and services.

Marketers need to understand that economic value includes market research and industry analysis, both focused on how a product or service matches the wants and needs of the targeted customer. Marketing research about the environment, competition, and customers is critical to company success and creating brand loyalty and awareness.

In analyzing a product or service industry, marketing tools such as a SWOT analysis, which examines the strengths, weaknesses, opportunities, and threats of an organization; a PEST analysis, which focuses on the political, economic, social, and technological sectors of the market; and, Porter’s Five Forces analysis allow marketers to get a top-line and in-depth view of how the brand is situated in the marketplace against the competition, what opportunities and threats exist, and how customers perceive the product.

Case 7

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?"

You are the superviser and you have to make a decision. (continued on next page) - each question followed must be answered.

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 presents

Describe your response to the situation

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.

A. 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]

Exercise 13-58 (LO13-2, LO13-3)

A consumer buying cooperative tested the effective heating area of 20 different electric space heaters with different wattages. Here are the results.

1. Which heater looks like the “best buy” based on the size of the residual? (Round residual value to 3 decimal places.)

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   1,875.5782   1   1,875.5782      42.33
Residual   1,240.4934   28   44.3033        
Total   3,116.0716   29           

Regression output
Variables   Coefficients   Std. Error   t(df=28)
Intercept   12.5907   3.1151   3.547
Distance–X   2.6223   0.403   6.51

Click here for the Excel Data File

a-1. Write out the regression equation. (Round your answers to 3 decimal places.)

a-2. Is there a direct or indirect relationship between the distance from the fire station and the amount of fire damage?

How much damage would you estimate for a fire 6 miles from the nearest fire station? (Round your answer to the nearest dollar amount.)

c-1. Determine and interpret the coefficient of determination. (Round your answer to 3 decimal places.)

c-2. Fill in the blank below. (Round your answer to one decimal place.)

d-1. Determine the correlation coefficient. (Round your answer to 3 decimal places.)

d-2. Choose the right option.

d-3. How did you determine the sign of the correlation coefficient?

e-1. 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.)

e-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

e-3. Is there any significant relationship between the distance from the fire station and the amount of damage? Use the 0.01 significance level.

i need answeres for e

A county provides a county-wide van service for senior citizens. The county receives a $100,000 grant each year from the state government in support of the van service. The county expects to spend $2,500 each year for operating the service. Insurance will cost the county $1,750 per year for each of the two vans.

The county employs a supervisor to run the van service. The supervisor’s salary is $56,000 per year. They also need one part-time coordinator for every 500 rides they served to organize the routing of the vans and provide service to the senior community. Each coordinator works an average of 10 hours per week for 50 weeks in the year and is paid $7.50 per hour. Supervisors receive benefits worth an additional 20% of their annual salaries. Coordinators do not receive benefits.

Salary and Wage Schedule

Supervisor $56,000 per year

Coordinator $7.50 per hour

All drivers are volunteers. The costs associated with carrying each passenger are $0.25 per mile. The average ride for each passenger is 10 miles. Seniors are asked to pay $3.50 for each ride but only 90% of the riders are able to afford and will pay the fares.

a) Prepare an accrual-based operating budget for the upcoming year, assuming the county provides 5,000 rides during the year. Since there have been fluctuations in ridership in recent years, the county would also like to see what would happen if there is a 10% increase or decrease in the number of rides they provide. Your budget must be properly formatted. The following template will be helpful but feel free to make changes if necessary.

1. What are the fixed costs and what are the variable costs in this case?

2. What is the contribution margin per ride from each additional rider assuming the county provides 5,000 rides during the year?

Scenario # 7

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. (continued on next page)

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)

You have recently been hired by Swan Motors, Inc. (SMI), in its relatively new treasury management department. SMI was founded 8 years ago by Joe Swan. Joe found a method to manufacture a cheaper battery with much greater energy density than was previously possible, giving a car powered by the battery a range of 700 miles before requiring a charge. The cars manufactured by SMI are midsized and carry a price that allows the company to compete with other mainstream auto manufacturers. The company is privately owned by Joe and his family, and it had sales of $97 million last year. SMI primarily sells to customers who buy the cars online, although it does have a limited number of company-owned dealerships. Most sales are online. The customer selects any customization and makes a deposit of 20 percent of the purchase price. After the order is taken, the car is made to order, typically within 45 days. SMI’s growth to date has come from its profits. When the company had sufficient capital, it would expand production. Relatively little formal analysis has been used in its capital budgeting process. Joe has just read about capital budgeting techniques and has come to you for help. For starters, the company has never attempted to determine its cost of capital, and Joe would like you to perform the analysis. Because the company is privately owned, it is difficult to determine the cost of equity for the company. Joe wants you to use the pure play approach to estimate the cost of capital for SMI, and he has chosen Tesla Motors as a representative company. The following questions will lead you through the steps to calculate this estimate.

3. you can use other websites such as marketwatch.com, Bloomberg.com, etc. to find the main competitors of Tesla. Find the beta for each of these competitors, and then calculate the industry average beta. Using the industry average beta, what is the cost of equity? Does it matter if you use the beta for Tesla or the beta for the industry in this case?

Mission verse Margin Reflection Exercise - Family

The Smith family lives in California, riverside. Mr. Smith work in a factory producing widgets that are used and bought by automobile manufacturing. His factory job pays and annual salary of $31,000 per year, with overtime when available, he makes up to an additional $8,000. The mother is a stay at home mother raising five children, ages of 6 months, 2 years, 3 years, 4 years, and 6 years of age.

Mr. Smith was recently laid off. Because of the severance that was paid totaling $20,000 and the salary already received throughout the year, the Smith’s currently do not qualify for Medical Assistance. The children have been able to receive the CHIP program.

The ABC cancer foundation has been engaging in a mass breast cancer awareness campaign indicating the need for women to get checks, risks, and benefits. As part of the project, the ABC cancer foundation has been offering free breast cancer (mammograms) for women with limited or no insurance. Mrs. Smith decides to participate in the program. As a result of the exam, a tumor is found. Labs were taken and the tumor came back malignant.

Mission verse Margin Reflection Exercise – Hospital

XYZ Hospital is a non-profit hospital in the region. It is only hospital in the region. The closest hospital to XYZ is 50 miles away. Over the past five years, XYZ hospital has been experiencing significant declines in cash flow, layoffs, and operating deficiencies. Days cash on hand is at 5 days. The industry average is 85 days cash on hand. The hospital is in jeopardy of going bankrupt.

The Smith family presented in the emergency room with the lab results indicating a malignant tumor. XYZ hospital staff knows that if a surgical procedure was scheduled, additional staff, medical supplies, and resources would be needed.

What does the hospital administration do? In your reflection, place yourself in both the family role and also as the CFO. (Reference the Ignatian and Jesuit articles in the resource section as well as you own values and perspective on hospital survival). What implications to the community, the family, the hospital, etc.?

A realtor studies the relationship between the size of a house (in square feet) and the property taxes (in $) owed by the owner. The table below shows a portion of the data for 20 homes in a suburb 60 miles outside of New York City. [You may find it useful to reference the t table.]

a-1. Calculate the sample correlation coefficient rxy. (Round intermediate calculations to at least 4 decimal places and final answers to 4 decimal places.)

a-2. Interpret rxy.

The correlation coefficient indicates a positive linear relationship.
The correlation coefficient indicates a negative linear relationship.
The correlation coefficient indicates no linear relationship.

b. Specify the competing hypotheses in order to determine whether the population correlation coefficient between the size of a house and property taxes differs from zero.

H0: ρxy = 0; HA: ρxy ≠ 0
H0: ρxy ≥ 0; HA: ρxy < 0
H0: ρxy ≤ 0; HA: ρxy > 0

c-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

c-2. Find the p-value.

p-value < 0.01
p-value 0.10
0.05 p-value < 0.10
0.02 p-value < 0.05
0.01 p-value < 0.02

d. At the 5% significance level, what is the conclusion to the test?

Reject H0; we can state size and property taxes are correlated.
Reject H0; we cannot state size and property taxes are correlated.
Do not reject H0; we can state size and property taxes are correlated.
Do not reject H0; we cannot state size and property taxes are correlated.