Hydropump, Inc. produces and sells high-quality pumps to business customers. Its marketing research shows a growing market for a similar type of pump aimed at final consumers-for use with jacuzzi-style tubs in home remodeling jobs. Hydropump will have to develop new channels of distribution to reach this target market because most consumers rely on a retailer for advice about the combination of tub, pump, heater, and related plumbing fixtures they need. Hydropump's marketing manager. Robert Black, is trying to decide between intensive and selective distribution. With intensive distribution, he wouid try to sell through all the plumbing supply, bathroom fixture, and hot-tub retailers who will carry the pump. He estimates that about 5,600 suitable retailers would be willing to carry a new pump. With selective distribution, he would focus on about 280 of the best hot-tub dealers (two or three in the hundred largest metropolitan areas).
Intensive distribution would require Hydropump to do more mass selling-primarily advertising in home renovation magazines-to help stimulate consumer familiarity with the brand and convince retailers that Hydropump equipment will sell. The price to the retailer might have to be lower too (to permit a bigger markup) so they will be motivated to sell Hydropump rather than some other brand offering a smaller markup.
With intensive distribution, each Hydropump sales rep could probably handle about 300 retailers effectively. With selective distribution, each sales rep could handle only about 70 retailers because more merchandising help would be necessary. Managing the smaller sales force and fewer retailers—with the selective approach-would require less manager overhead cost.
Going to all suitable and available retailers would make the pump available through about 20 times as many retailers and have the potential of reaching more customers. However, many customers shop at more than one retailer before making a final choice-so selective distribution would reach almost as many potential customers. Further, if Hydropump is using selective distribution, it would get more in-store sales attention for its pump-and a larger share of pump purchases-at each retailer.
Black has decided to use a spreadsheet to analyze the benefits and costs of intensive versus selective distribution.
f. Hydropump's marketing manager thinks that the hot-tub dealers will pay more attention to the company's product if they get a higher than normal level of attention and help from Hydropump sales reps. However, a sales rep would only be able to spend the extra time with each dealer if he is responsible for fewer accounts. If each rep is assigned only 47 dealers, instead of 70, how many more sales reps would be needed, and how much would personal selling costs increase?
number of sales reps needed at 47 dealers per rep _________
personal selling cost for this number of sales reps _________
less, personal selling cost for 4 sales reps $72,000
equals, increase in personal selling cost _________
In: Accounting
Descriptive Statistics:
In certain states, savings banks are permitted to sell life insurance. The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical information and medical exams, and a policy compilation stage, in which the policy pages are generated and sent to the bank for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service to the bank. Let’s define the variable of interest as the total processing time in days. You collect the data by selecting a random sample of 27 approved policies during a period of one month:
73, 19, 16, 64, 28, 28, 31, 90, 60, 56, 31, 56, 22, 18, 45, 48, 17, 17, 17, 91, 92, 63, 50, 51, 69, 16, 17
1. Compute the mean, median and mode
2. Compute the range, interquartile range, variance, standard deviation ** for IQR would it be 61.5-18.5=43 OR 63-18=45??
3. Construct a frequency table and a histogram. Are the data skewed? If so, how?
4. What would you tell a customer who enters the bank to purchase this type of insurance policy and asks how long the approval process takes?
In: Statistics and Probability
In New York State, savings banks are permitted to sell a form of life insurance called savings bank life insurance (SBLI). The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical information and medical exams, and a policy compilation stage in which the policy pages are generated and sent to the bank for delivery. The ability to deliver approved policies to customers in a timely manner is critical to the profitability of this service to the bank. During a period of one month, a random sample of 27 approved policies was selected, and the total processing time, in days, was as shown below and stored in the file INSURANCE:
73 19 16 64 28 28 31 90 60 56 31 56 22 18
45 48 17 17 17 91 92 63 50 51 69 16 17
a. Construct and interpret a 95% confidence interval estimate of the population mean processing time. Use Minitab. (Don't worry about this one.)
b. What assumption must you make about the population distribution in order to construct the confidence interval in (a)?
c. Do you think that the assumption needed in order to construct the confidence interval estimate in (a) is valid? Explain.
In: Math
1. List the four elements that must be present for a market to exist.
2. What is the market process?
3. What is the difference between demand and want?
4. Briefly explain each of the following:
a) The market-size effect
b) The real income effect
c) The substitution effect
5. Why does a fall in price increase real income?
6. Why is the typical demand curve downward sloping?
7. What are normal goods? Give three specific examples of normal goods.
8. What are inferior goods? Give three specific examples of inferior goods.
9. With the help of an appropriate diagram, explain the difference between a change in demand and a change in quantity demanded.
10. How is an increase in demand illustrated on a graph? How is a decrease in demand illustrated on a graph?
11. What is the difference between supply and quantity supplied?
12. What is a supply schedule?
13. State the law of supply.
14. Explain how price serves as a production motivator.
15. What is a supply curve?
16. Give three examples of production substitutes.
17. What are joint products? Give two examples of joint products.
18. Define each of the following terms:
a) Shortage
b) Surplus
19. What is the effect of a shortage on price? What is the effect of a surplus on price?
20. Define equilibrium price and equilibrium quantity.
In: Economics
According to a social media blog, time spent on a certain social networking website has a mean of 21 minutes per visit. Assume that time spent on the social networking site per visit is normally distributed and that the standard deviation is 3 minutes. Complete parts (a) through (d) below.
a. If you select a random sample of 16 sessions, what is the probability that the sample mean is between 20.5 and 21.5 minutes? nothing (Round to three decimal places as needed.)
b. If you select a random sample of 16 sessions, what is the probability that the sample mean is between 20 and 21 minutes? nothing (Round to three decimal places as needed.) c. If you select a random sample of 100 sessions, what is the probability that the sample mean is between 20.5 and 21.5 minutes? nothing (Round to three decimal places as needed.)
this part fill in blanks where the arrows are
d. Explain the difference in the results of (a) and (c). The sample size in (c) is greater than the sample size in (a), so the standard error of the mean (or the standard deviation of the sampling distribution) in (c) is ▼ greater less than in (a). As the standard error ▼ increases, decreases, values become more concentrated around the mean. Therefore, the probability that the sample mean will fall in a region that includes the population mean will always ▼ decrease increase when the sample size increases.
In: Statistics and Probability
USE R AND SHOW CODES!!
1.a. An investigator is interested in comparing the cardiovascular fitness of elite runners on three different training courses. course one is at, course 2 has graded inclines, and
course three includes steep inclines, Ten runners were involved for each course. Heart rates measured on each course are as the following table
Course 1 Course 2 Course 3
132 135 138
143 148 148
135 138 141
128 131 139
141 141 150
150 156 161
131 134 138
150 156 162
142 145 151
139 165 160
Is there a significant difference in the mean heart rates of runners on three courses? alpha= 0:05
1.b. The following data is collected on the enzyme activity of MPI (mannose-6-phosphate isomerase) and MPI genotypes separated for male and female.
a. Is there any significant difference between male and female?
b. Is there any significant difference between genotypes?
c. Is there any interaction between sex and genotypes?
DATA
Genotype Female Male
FF 2.838 1.884
4.216 2.889
4.198 2.283
4.939 3.486
FS 3.55 2.396
4.556 2.956
3.087 3.105
1.943 2.649
SS 3.620 2.801
3.079 3.421
3.586 4.275
2.669 3.110
In: Statistics and Probability
Experiment 4
Dr. Brown wanted to observe the effects of music genre on surgical recovery time. Dr. Brown set up an experiment in which participants were randomly assigned to listen to one of three different genres of music (rap, metal, or country). Participants were patients who had just received liposuction; they listened to their assigned music genre for 2 hours each day until discharged from the hospital. Dr. Brown recorded the number of days the patients remained in the hospital. His results are shown below.
Using the data shown below, conduct the appropriate statistical test in SPSS to determine whether there is a statistically significant difference between any of the pairs of musical genres.
|
Rap |
Metal |
Country |
|
4 |
1 |
2 |
|
4 |
1 |
2 |
|
3 |
2 |
3 |
|
3 |
1 |
2 |
Three-way between-subjects factorial design
Three-way within-subjects factorial design
One-way between-subjects factorial design
One-way within-subjects factorial design
Independent samples
Dependent samples
Matched samples
Based on the results of a one-way ANOVA, music genre does have an effect on number of days to recover from surgery,_________.
In: Math
Santana Rey expects second-quarter 2020 sales of Business
Solutions’s line of computer furniture to be the same as the first
quarter’s sales (reported below) without any changes in strategy.
Monthly sales averaged 42 desk units (sales price of $1,270) and 22
chairs (sales price of $520).
| BUSINESS SOLUTIONS—Computer Furniture Segment | |||
| Segment Income Statement* | |||
| For Quarter Ended March 31, 2020 | |||
| Sales† | $ | 194,340 | |
| Cost of goods sold‡ | 145,440 | ||
| Gross profit | 48,900 | ||
| Expenses | |||
| Sales commissions (10%) | 19,434 | ||
| Advertising expenses | 9,600 | ||
| Other fixed expenses | 18,600 | ||
| Total expenses | 47,634 | ||
| Net income | $ | 1,266 | |
* Reflects revenue and expense activity only related to the
computer furniture segment.
† Revenue: (126 desks × $1,270) + (66 chairs × $520) = $160,020 +
$34,320 = $194,340
‡ Cost of goods sold: (126 desks × $770) + (66 chairs × $270) +
$30,600 = $145,440
Santana Rey believes that sales will increase each month for the
next three months (April, 50 desks, 34 chairs; May, 54 desks, 37
chairs; June, 58 desks, 40 chairs) if selling prices are reduced to
$1,170 for desks and $470 for chairs and advertising expenses are
increased by 10% and remain at that level for all three months. The
products’ variable cost will remain at $770 for desks and $270 for
chairs. The sales staff will continue to earn a 10% commission, the
fixed manufacturing costs per month will remain at $10,200 and
other fixed expenses will remain at $6,200 per month.
Required:
1. Prepare budgeted income statements for the
computer furniture segment for each of the months of April, May,
and June that show the expected results from implementing the
proposed changes. Use a three-column format, with one column for
each month.
2. Recommend whether Santana Rey should implement
the proposed changes.
In: Accounting
Santana Rey expects second-quarter 2020 sales of Business
Solutions’s line of computer furniture to be the same as the first
quarter’s sales (reported below) without any changes in strategy.
Monthly sales averaged 41 desk units (sales price of $1,260) and 21
chairs (sales price of $510).
| BUSINESS SOLUTIONS—Computer Furniture Segment | |||
| Segment Income Statement* | |||
| For Quarter Ended March 31, 2020 | |||
| Sales† | $ | 187,110 | |
| Cost of goods sold‡ | 140,160 | ||
| Gross profit | 46,950 | ||
| Expenses | |||
| Sales commissions (10%) | 18,711 | ||
| Advertising expenses | 9,300 | ||
| Other fixed expenses | 18,300 | ||
| Total expenses | 46,311 | ||
| Net income | $ | 639 | |
* Reflects revenue and expense activity only related to the
computer furniture segment.
† Revenue: (123 desks × $1,260) + (63 chairs × $510) = $154,980 +
$32,130 = $187,110
‡ Cost of goods sold: (123 desks × $760) + (63 chairs × $260) +
$30,300 = $140,160
Santana Rey believes that sales will increase each month for the
next three months (April, 49 desks, 33 chairs; May, 53 desks, 36
chairs; June, 57 desks, 39 chairs) if selling prices are reduced to
$1,160 for desks and $460 for chairs and advertising expenses are
increased by 10% and remain at that level for all three months. The
products’ variable cost will remain at $760 for desks and $260 for
chairs. The sales staff will continue to earn a 10% commission, the
fixed manufacturing costs per month will remain at $10,100 and
other fixed expenses will remain at $6,100 per month.
Required:
1. Prepare budgeted income statements for the
computer furniture segment for each of the months of April, May,
and June that show the expected results from implementing the
proposed changes. Use a three-column format, with one column for
each month.
2. Recommend whether Santana Rey should implement
the proposed changes.
In: Accounting
Santana Rey expects second-quarter 2018 sales of her new line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 42 desk units (sales price of $1,270) and 22 chairs (sales price of $520).
|
Sales |
$194,340 |
|
COGS |
145,440 |
|
Gross profit |
48,900 |
|
Expenses |
|
|
Sales commissions (10%) |
19,434 |
|
Advertising expenses |
9,600 |
|
Other fixed expenses |
18,600 |
|
Total expenses |
47,634 |
|
Net income |
1,266 |
* Reflects revenue and expense activity only related to the
computer furniture segment.
† Revenue: (126 desks × $1,270) + (66 chairs × $520) = $160,020 +
$34,320 = $194,340
‡ Cost of goods sold: (126 desks × $770) + (66 chairs × $270) +
$30,600 = $145,440
Santana Rey believes that sales will increase each month for the next three months (April, 50 desks, 34 chairs; May, 54 desks, 37 chairs; June, 58 desks, 40 chairs) if selling prices are reduced to $1,170 for desks and $470 for chairs, and advertising expenses are increased by 10% and remain at that level for all three months. The products’ variable cost will remain at $770 for desks and $270 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,200 and other fixed expenses will remain at $6,200 per month.
Required:
1. Prepare budgeted income statements for the
computer furniture segment for each of the months of April, May,
and June that show the expected results from implementing the
proposed changes. Use a three-column format, with one column for
each month.
BUDGETED income statements
APRIL MAY JUNE
|
Sales |
|||
|
COGS |
|||
|
Gross profit |
|||
|
Expenses |
|||
|
Sales commissions |
|||
|
Advertising |
|||
|
Other fixed expenses |
|||
|
Total expenses |
|||
|
Net income (loss) |
|||
In: Accounting