As a stock analyst, your boss, Jerry, has asked you to compile some information on stock of Southern Infrastructure Corporation including a 95% confidence interval for the mean daily return that he needs to include in a report to senior management. He says that he is also not sure exactly what a 95% confidence interval means and would like you to add an explanation.

You have been following the share price of Southern Infrastructure Corporation and have recorded the daily return (as a percentage) for the last 120 days. The data is presented here:

Download the data

Historically, the standard deviation in daily return for this stock is 1.1%.

Complete the report to your boss. Give your numeric answers to 3 decimal places.

Dear Jerry,

Here are the results gathered from the collected data:

Assuming a population standard deviation in daily return of 1.1%, the 95% confidence interval for the mean daily return is:

a) ≤ μ ≤

b)This means that

approximately 95% of sample means will be within the interval given above
using a process that gives correct results in 95% of cases, the population mean daily return is within the interval given above
the population mean daily return is definitely within the interval given above
on approximately 95% of days in a given period the stock makes a return within the interval given above

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month. (Round your answers to 1 decimal place.)

1-b. Compute the manufacturing cycle efficiency (MCE) for each month. (Round your answers to 1 decimal place.)

1-c. Compute the delivery cycle time for each month. (Round your answers to 1 decimal place.)

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE. (Round your answers to 1 decimal place.)

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE. (Round your answers to 1 decimal place.)

Exercise 11-12 Variance Analysis in a Hospital.

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospital and have resulted in many complaints. Also, because of strict regulations on amount reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs.

                Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available:

Two types of tests are performed in the lab—blood tests and smears. During the past month, 1,800 blood tests and 2,400 smears were performed in the lab.

Small glass plates are used in both types of tests. During the past month, the hospital purchased 12,000 plates at a cost of $28,200. 1,500 of these plates were amused at the end of the month; no plates were on hand at the beginning of the month.

During the past month, 1,150 hours of labor time were recorded in the lab at a cost of $13,800.

The lab’s variable overhead cost last month totalled $7,820.

Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs:

Plates: Two plates are required per lab test. These plates cost $2.50 each and are disposed of after the test is completed.

Labour: Each blood test should require 0.3 hours to complete, and each smear should require 0.15 hours to complete. The average cost of this lab time is $14 per hour.

Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6 per hour.

Required:

Compute a materials price variance for the plates purchased last month and materials quantity variance for the plates used last month.

For labor costs in the lab:

Compute a labor rate variance and labor efficiency variance.

In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only-one-forth senior technicians and three -forths assistants. Would you recommend that this policy be continued? Explain.

Compute the variable overhead rate and efficiency variances. In there any relation between the variable overhead efficiency variance and the labor efficiency variance? Explain.

1)

Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, Lasso manufactures Part B89 itself. It has been producing 10,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 10,000 units include the following:

All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume Lasso can purchase 10,000 units of the part from the Nadal Parts Company for $20.20 each, and the facilities currently used to make the part could be used to manufacture 10,000 units of another product that would have a $10 per unit contribution margin. If no additional fixed costs would be incurred, what should Lasso do?

Please answer all with steps shown. You will be rated.

Two plants, A and B, ship appliances to a warehouse.  Plant A produces 60% of the warehouse's inventory and plant B produces the rest of the warehouse's inventory. It is known that 2% of the appliances from plant A are defective and 3% of the appliances from plant B are defective.

a)  (5 points) A warehouse inspector randomly selects an appliance. What is the probability that the appliance is from plant B and not defective?

b)   (5 points) What is the probability that a randomly selected appliance is not defective?

c)  (5 points) Suppose an appliance is not defective. What is the probability that it came from plant A?

The following data is exa score and hours looking at social media in that week of the exa from a sample of 10 students.

a)  (3 points) Using the IQR rule, are there any outliers for the exa scores? If so write down the number(s).  Give the interval that defines the outliers.

b)  (4 points) Determine the correlation coefficient, r, between exa score and hours studied. Interpret what this number means.

c)  (3 points) Determine the least-square regression equation to predict exa scores based on hours studied.  

d)  (3 points) If a student studies for 5 hours what is the predicted exa score?

e) (3 points) Give the residual for student 2.

f)  (4 points) Give the coefficient of determination, , for this least-squares equation. Give the interpretation of this number.

Suppose a local restaurant has only four meals on the menu costing $4, $5, $8, and $10 . The probability distribution (pmf) is below, where X = cost of the meals.  

a)  (2 points)  Suppose a random customer orders a meal at this restaurant. What is the probability that the customer's meal will cost at least $8?

b)  (5 points) Find the expected value of the cost of the meal for a random customer.

c)  (5 points) Find the standard deviation of the cost of the meal for a random customer.

d)  (3 points) If the restaurant decided to add $5 more to each meal, what is the expected cost and standard deviation with the $5 added?

Mr. and Mrs. T. are naturalized Americans. They were born and raised in Japan and moved to the United States 20 years ago. Mrs. T. is 45 and teaches kindergarten. Mr. T. is 54 and runs an import store. Their son, Ritchie, 16 years old, was born in the United States. He is a sophomore in high school, where he plays baseball.

Mr. T. started having some chest pains 2 years ago and was diagnosed at the clinic with mild angina. He takes nitroglycerin (NTG) 0.3 mg SL when he feels any discomfort. His chest pain is usually exertion related. Lately, he has had to take the NTG more often. He has an appointment with the cardiologist next week.

The paramedics put an oxygen cannula on Mr. T. and start an IV in his left arm. They give him a baby aspirin to chew, contact the local hospital, and prepare Mr. T. for transport. Upon arrival in the ED, Mr. T.’s heart rate is 110 beats/min, and he is diaphoretic.

Mr. T. was quickly triaged in the ED with a preliminary diagnosis of acute inferior wall MI. The hospital is in a rural area, and the weather is severe. Ground transport to the nearest hospital able to do PCI is 2 hours. Therefore, a decision is made to administer thrombolytics. Within 1 hour, Mr. T. was started on reteplase.

One day after the thrombolytic therapy, Mr. T.’s cardiac rhythm suddenly dropped to 40 beats/min, and he became very dizzy and breathless.

One month after Mr. T.’s revascularization, he develops chest pain and visits the cardiologist. He is having T-wave changes in the anterior leads. He is referred to as the tertiary care center for additional testing. He undergoes cardiac catheterization and angiography, and a lesion of the left main coronary artery is found. He is scheduled for a CABG.

Mr. T. had the CABG. It was difficult to get Mr. T. weaned from the cardiopulmonary bypass machine. A decision was made to insert an Intra aortic balloon pump (IABP).

Mr. T. required the IABP for 24 hours, at which time it was weaned and removed. The remainder of his postoperative course was uneventful, and he was discharged home 6 days after surgery.

Answer the following questions:

Who has observed resuscitation efforts?

What observations were made?

What perceptions of care were noted?

Related to the case study in the cardiovascular lecture:

What nursing care was done prior to starting reteplase?

What is the nursing care associated with a patient receiving reteplase?

What complications must be assessed during and after the administration of the medication?

A city with 4% unemployment and no inflation is considering building a new stadium for its professional football team. The team currently plays in an old stadium owned by the city. It would cost city $500M (M for million) to demolish the old stadium and build a new one at the same location, which the city owns. The new stadium would be expected to last for 40 years and the city would finance the costs of the project by borrowing at 6% annual interest and paying $35M per year for 40 years for all expenses, including maintenance and debt repayment. About $300M of the demolition and construction cost would be spent on labor and materials supplied by city residents (referred to as locals). The team owner, who is not a local, would pay the city $3M per year rent. The owner’s company would sell tickets to games, parking, and concessions (food, drink, souvenirs, etc.) and keep the profits from those sales. Analysts estimate that if the stadium is built, the locals’ demand curve for tickets to the games will be linear each year, with a choke price of $240, and that locals will buy 100,000 tickets per year from the team owner’s company at an average price of $80 per ticket. Analysts estimate that outsiders who attend games will spend $20M per year on restaurants, hotels and other goods and services provided by city residents. Assume that the average profit rate of local businesses and local labor is 0.2 and that locals’ marginal propensity to consume local value added is 0.3. Except in part h, below, assume that the analysts’ estimates are correct. Except in part i, assume that the football team will leave the city if the new stadium is not built.

a.[10] Estimate the net generated income for the locals from the demolition of the old and construction of the new stadium alone, making reasonable assumptions about any other missing information. Explain all your steps. Translate this net generated income into annualized income for the residents at 6% annual interest.

b.[7] An economic impact analysis of the stadium project estimates that the demolition and construction alone would give the locals generated income of $600M (estimated to be the $300M spent on local value added times a multiplier of 2). List and explain the reasons why this “generated income” estimate is probably much higher than a reasonable estimate of the net generated income from the demolition and construction.

c.[6] Estimate the annual user benefit the locals would get from the project. Explain all your steps.

You are the manager of Compounders Ltd. The company mixes compound for smaller plastic extrusion companies. Compounders Ltd has six (6) mixing machines with a maximum capacity (100%) of 250 ton 250 ton per machine. However, due to power cuts, the machines are currently being operated at 75% of installed capacity. One (1) ton of a compound mixture consists of two (2) raw materials: 0.7 ton of Electrolyte and 0.3 ton of Copper Wire. Assume no wastage. There are no opening and closing inventories. All raw materials purchased are being used in the month of purchase, and all compound mixed are being sold in the month mixed. Each mixing machine requires two (2) operators. The company is operating a nine (9) hour shift and each machine operator earns R75 per hour. No weekend time nor overtime is allowed. The company is a price setter and the pricing policy is based on a mark-up of the total production cost at 50%. The company incurred the following costs for the month:

1. Import (purchase) raw material for one month’s production. Material Electrolyte @ R60 per ton and Copper Wire @ R95 per ton.

2. The import cost amount to R1,000 per 250 ton of Material Electrolyte and R1,500 per 120 ton of Copper wire.

3. Paid the wages based on a twenty (20) working days.

4. The factory foreman earns a salary of R15,000 per month.

5. The cost of security is as follows: Guard at the entrance of the factory R3,500 per month and the guard at the entrance to the admin offices R3,750 per month.

6. The monthly rental amounts to R25,000. Rent is allocated based on floor space occupied. The factory occupies 9,100 ??2 and the office block 3,900 ??2.

7. Office expenses amounts to R64,000 per month.

8. Compound delivery cost amount to R1,200 per 125 ton of compound delivered.

Required: 1.1 Calculate the selling price per ton of the compound mixture. Use the following table in your workings as marks will also be awarded for individual calculations. (Max 20 marks)

1.2 Calculate the variable cost per ton of the compound mixture and the total fixed cost. Use the following table in your workings as marks will also be awarded for individual calculations. (6)

1.3 Calculate the contribution per ton produced. (2)

1.4 Calculate the break-even tons to be mixed (2)

Common-Size and Rate of Change Analyses: McCormick

McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick's consolidated balance sheets for 2012 and 2013 follow.

Required:

Compute the common-size balance sheet for 2013 and the rate of change balance sheet for 2013. Round your answers to one decimal place. Indicate decreasing percentages with a minus sign.