Question 7 Moe hired two separate trios of musicians to play at her tavern on Friday night. Each trio has one piano player, one guitar player, and one sax player. The guitar players have a 86% chance of showing up, the piano players have a 50% chance of showing up, and the saxophone players have a 46% chance of showing up. The two trios have completely different play lists, so individual musicians can't substitute for each other. What is the probability that at least one trio will play on Friday night? (Use four decimal places. Enter answer without a percent sign, e.g. 50% would be entered as .5)

Correct Answer 0.3565

Question 8 Moe hired two separate trios of musicians to play at her tavern on Friday night. Each trio has one piano player, one guitar player, and one sax player. The guitar players have a 93% chance of showing up, the piano players have a 65% chance of showing up, and the saxophone players have a 45% chance of showing up. The two trios know all the same songs so individual musicians can substitute for each other. What is the probability that at least one trio will play on Friday night? (Use four decimal places. Enter answer without a percent sign, e.g. 50% would be entered as .5) Correct Answer 0.6091

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $318,400. During that time, the company produced 13,400 units of the M-008 and 2,600 units of the M-123. The direct costs of production were as follows.

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows.

Required:

a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product?

b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product?

How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 decimal places.)

How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 decimal places.)

In a test of braking​ performance, a tire manufacturer measured the stopping distance for one of its tire models. On a test​ track, 10 different cars made stops from a speed of 100 km per hour. The company recorded the stopping distance for each car on both wet and dry pavement. Results are shown in the table. Complete parts​ a) and​ b).

Car #   Dry   Wet
1   48   64
2   44   66
3   41   58
4   40   52
5   42   60
6   40   51
7   42   63
8   37   52
9   41   57
10   46   61

​a) Write a​ 95% confidence interval for the mean dry pavement stopping distance.

The confidence interval is ( _ , _ ).

(Round to one decimal place as​ needed.)

​b) Write a​ 95% confidence interval for the mean increase in stopping distance due to wet pavement.

The confidence interval is ( _ , _ ).

​(Round to one decimal place as​ needed.)

3. Vacation Island has only one hotel on the entire island. The demand schedule to rent a room for a-night at the hotel is given bellow. Price per night Quantity demanded $150 0 $130 1 $110 2 $90 3 $70 4 $50 5 $30 6 a) Calculate the hotel’s total revenue and its marginal revenue. Fill in the table below. Price Quantity Total Revenue Marginal Revenue $150 0 - $130 1 $110 2 $90 3 $70 4 $50 5 $30 6 b) The marginal costs are listed in the table below. What price will the hotel charge to maximize its profit? Explain. Quantity Marginal Cost 0 - 1 $40 2 $43 3 $50 4 $61 5 $76 6 $95 c) How many rooms will be rented, when the hotel maximizes its profit? Explain.

Chapter 11 Process Analysis and Resource Utilization - Chapter Review

Bourbon County Court

“Why don’t they buy another copying machine for this office? I waste a lot of valuable time fooling with this machine when I could be preparing my legal cases,” noted Mr. H.C. Morris, as he waited in line. The self-service copying machine was located in a small room immediately outside the entrance of the courtroom. Mr. Morris was the county attorney. He often copied his own papers, as did other lawyers, to keep his legal cases and work confidential. This protected the privacy of his clients as well as his professional and personal ideas about the cases.

He also felt awkward at times standing in line with secretaries, clerks of the court, other attorneys, police officers and sheriffs, building permit inspectors, and the dog warden—all trying, he thought, to see what he was copying. The line for the copying machine often extended out into the hallways of the courthouse.

Mr. Morris mentioned his frustration with the copying machine problem to Judge Hamlet and his summer intern, Dot Gifford. Ms. Gifford was home for the summer and working toward a joint MBA/JD degree from a leading university.

“Mr. Morris, there are ways to find out if that one copying machine is adequate to handle the demand. If you can get the Judge to let me analyze the situation, I think I can help out. We had a similar problem at the law school with word processors and at the business school with student lab microcomputers.”

The next week Judge Hamlet gave Dot the go-ahead to work on the copying machine problem. He asked her to write a management report on the problem with recommendations so he could take it to the Bourbon County Board of Supervisors for their approval. The board faced deficit spending last fiscal year, so the tradeoffs between service and cost must be clearly presented to the board.

Dot’s experience with analyzing similar problems at school helped her know what type of information and data was needed. After several weeks of working on this project, she developed the information contained in Exhibits 11.36, 11.37, and 11.38.

Exhibit 11.36

Bourbon County Court—Customer Arrivals Per Hour (These Data Are Available in the Worksheet Bourbon County Court Case Data in MindTap.)

*A sample of customer arrivals at the copying machine was taken for five consecutive nine-hour work days plus five hours on Saturday for a total of fifty observations. The mean arrival rate is 8.92 arrivals per hour.

Exhibit 11.37

Bourbon County Court—Copying Service Times (These Data Are Available in the Worksheet Bourbon County Court Case Data in MindTap.)

*A sample of customers served at the copying machine was taken for five consecutive nine-hour work days plus five hours on Saturday for a total of fifty observations. The average service time is 0.0917 hours per copying job or 5.499 minutes per job. The equivalent service rate is 10.91 jobs per hour (i.e., ).

Exhibit 11.38

Bourbon County Court—Cost and Customer Mix

*The mix of customers standing in line was collected at the same time as the data in the other case exhibits. Direct wages do include employee benefits but not work opportunity costs or ill-will costs, etc.

Dot was not quite as confident in evaluating this situation as others because the customer mix and associated labor costs seemed more uncertain in the county courthouse. In the law school situation, only secretaries used the word processing terminals; in the business school situation, students were the ones complaining about long waiting times to get on a microcomputer terminal. Moreover, the professor guiding these two past school projects had suggested using queueing models for one project and simulation for the other project. Dot was never clear on how the method of analysis was chosen. Now, she wondered which methodology she should use for the Bourbon County Court situation.

To organize her thinking, Dot listed a few of the questions she needed to address as follows:

1. Assuming a Poisson arrival distribution and an exponential service time distribution, apply queueing models to the case situation and evaluate the results.

2. What are the economics of the situation using queueing model analysis?

3. What are your final recommendations using queueing model analysis.

4. Advanced Question: Do the customer arrival and service empirical (actual) distributions in the case match the theoretical distributions assumed in queueing models?

A password is a sequence of five characters. Each character is one of twenty-six uppercase letters (“A” through “Z”), one of ten digits (“0” through “9”), or one of five symbols (“+”, “-”, “!”, “<”, “>”). Count the number of possible passwords that can be created in each of the following scenarios. Consider each part of this questions separately.

(a) There are no restrictions on how the characters are chosen.

(b) A password must begin with a letter and end with a symbol.

(c) A password must contain two letters, two digits, and one symbol (a letter and/or digit can be reused).

(d) Re-solve Part (c), if the two letters must be different and the two digits must be different.

(e) A password must contain exactly two different characters.

2.) A symposium schedule will consist of twelve speakers. Seven speakers are from industry, three speakers are from academia, and two speakers are from the government. For scheduling purposes, speakers of the same type are considered indistinguishable.

(a) In how many ways can the speaker schedule be arranged?

(b) Re-solve Part (a) if the first and last speakers must be of the same type (i.e., both from industry, both from academia, or both from government)?

Jolene must pay liabilities of 1000 due 6 months from now and another 3000 due one year from now. There are two available investment:

Bond I is a 6-month bond with face amount and redemption value of 1000, a 7% semiannual coupons, and a 5% nominal annual yield rate convertible semiannually.

Bond II is a one-year bond with face amount and redemption value of 1000, a 4% semiannual coupon, and a 6% nominal annual yield rate convertible semiannually.

Suppose that Jolene buys x of Bond I and y of Bond II in order to exactly (absolutely) match the liabilities.

What is the annual effective yield rate for the investment in the bonds required to exactly (absolutely) match the liabilities?

(A) 5.91% (B) 5.93% (C) 5.95% (D) 5.97% (E) 5.99%