Cost of Trade Credit

Grunewald Industries sells on terms of 3/10, net 60. Gross sales last year were $4,385,500 and accounts receivable averaged $466,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.

Do consumers spend more on a trip to Target compared to Walmart? Suppose researchers interested in this question collected a random sample from 80 Target customers and 85 Walmart customers by asking customers for their purchase amount as they left the stores. The 80 Target customers have the mean purchase amount $53 and the standard deviation $19. The 85 Walmart customers have the mean purchase amount $45 and the standard deviation $21.

1. [2 points] Is the data collected from independent samples or dependent samples?

2. [2 points] Is the relevant test statistic z-stat or t-stat?

3. [4 points] Write down the hypotheses of the test.

4. [4 points] The p-value is calculated to be 0.0056. Write down the conclusion of the test. Assume an α=0.05 level of significance.

A banking executive studying the role of trust in creating customer advocates has determined that 41 % of banking customers have complete​ trust, 45 % of banking customers have moderate​ trust, and 14 % have minimal or no trust in their primary financial institution. Of the banking customers that have complete​ trust, 69 % are very likely to recommend their primary financial​ institution; of the banking customers that have moderate​ trust, 18 % are very likely to recommend their primary financial​ institution; and of the banking customers that have minimal or no​ trust, 3 % are very likely to recommend their primary financial institution. Complete parts​ (a) and​ (b) below. a. Compute the probability that if a customer indicates he or she is very likely to recommend his or her primary financial​ institution, the banking customer also has complete trust.

Write and run SQL statements to complete the following tasks

1. Show the details of the employees who are located in area code 901 and their manager employee number is 108.
2. Show the details of the employees who are also mangers.
3. Show the details of the customers whose balance is greater than 220 but less than 500.
4. Show the details of the customers whose balance is highest.
5. Show customer 10014’s name and the product’s descriptions which he/she purchased and the number of units of each.
6. List the names of customers and the number of invoices each customer has generated.
7. Show the codes and names of the customers who have not generated any invoice.
8. Add a new attribute (column) engaged varchar(3) to the customer table and update the engaged attribute for the customers who have not generated any invoice to ‘No’.

A banking executive studying the role of trust in creating customer advocates has determined that

44 %44%

of banking customers have complete​ trust,

45 %45%

of banking customers have moderate​ trust, and

11 %11%

have minimal or no trust in their primary financial institution. Of the banking customers that have complete​ trust,

68 %68%

are very likely to recommend their primary financial​ institution; of the banking customers that have moderate​ trust,

22 %22%

are very likely to recommend their primary financial​ institution; and of the banking customers that have minimal or no​ trust,

4 %4%

are very likely to recommend their primary financial institution. Complete parts​ (a) and​ (b) below.

a. Compute the probability that if a customer indicates he or she is very likely to recommend his or her primary financial​ institution, the banking customer also has complete trust.

Steele Electronics Inc. sells expensive brands of stereo equipment in several shopping malls. The marketing research department of Steele reports that 35% of the customers entering the store that indicate they are browsing will, in the end, make a purchase. Let the last 20 customers who enter the store be a sample.

a. How many of these customers would you expect to make a purchase? (Round the final answer to the nearest whole number.)

Number of Customers            

b. What is the probability that exactly six of these customers make a purchase? (Round the final answer to 4 decimal places.)

Probability            

c. What is the probability 11 or more make a purchase? (Round the final answer to 4 decimal places.)

Probability            

d. Does it seem likely at least one will make a purchase ("likely" refers if the probability is more than 70%)?

(Click to select)  Yes  No

Leila runs a lawn mowing/maintenance service for busy homeowners. She has six potential customers and each is has a different maximum price they are willing to pay per week. The customers and the maximum price each is willing to pay each week is as follows:

Customer      Price
Lorraine      $40
Gilda            15
Jane            30
John            25
Bill            20
Dan            35

Leila's costs depend on the number of customers she has. Her costs (she has no sunk costs) appear in the following table:

# of customers per week            Total Cost
      1                  $22
      2                  $44
      3                  $66
      4                  $88
      5                  $110
      6                  $132

In Situation 7.3, Leila's optimal number of customers is

Select one:

a. 1

b. 4

c. 3

d. 5

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
  

June 12, 2018 Provide services to customers on account for $36,200.

September 17, 2018 Receive $21,000 from customers on account.

December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received.

March 4, 2019 Provide services to customers on account for $51,200.

May 20, 2019 Receive $10,000 from customers for services provided in 2018.

July 2, 2019 Write off the remaining amounts owed from services provided in 2018.

October 19, 2019 Receive $41,000 from customers for services provided in 2019.

December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received.

Suppose a natural gas distribution company has capital investments of $8 million and a capital cost r of 10%. The firm’s operating, billing, and maintenance costs are $200,000. The firm buys natural gas at the city gate price of $5/MCF to sell to its customers. The firm distributes gas to those customers through its existing pipeline network at close to zero marginal cost.

The firm faces the following (inverse) demand by customer type (recall that these are average demand per customer, so at any given price you have to multiply quantity by the number of customers to get total quantity demanded in that customer group):

Residential (10,000 customers): P = 50 − 5*q

Commercial (1,000 customers): P = 50 − q

Industrial (100 customers): P = 20 − 1/100 * q

Calculate the two-part tariff if the firm charges each customer the same two-part tariff and charges P = MC as the variable charge. What is the deadweight loss in this case?