A random sample of size n1 = 16 is selected
from a normal population with a mean of 74 and a standard deviation
of 9. A second random sample of size n2 = 7 is
taken from another normal population with mean 68 and standard
deviation 11. Let X1and X2 be the two sample means. Find:
(a) The probability that X1-X2 exceeds 4.
(b) The probability that 4.8 ≤X1-X2≤ 5.6.
Round your answers to two decimal places (e.g. 98.76).
In: Statistics and Probability
Develop a 95% confidence interval estimate that the higher the price of the car, the higher the road test scores using Excel.
| Price ($) |
| 23,970.00 |
| 21,885.00 |
| 23,830.00 |
| 32,360.00 |
| 23,730.00 |
| 22,035.00 |
| 21,800.00 |
| 23,625.00 |
| 24,115.00 |
| 29,050.00 |
| 28,400.00 |
| 30,335.00 |
| 28,090.00 |
| 28,695.00 |
| 30,790.00 |
| 30,055.00 |
| 30,094.00 |
| 28,045.00 |
| 27,825.00 |
| 28,995.00 |
| Road-Test Score |
| 91 |
| 81 |
| 83 |
| 84 |
| 80 |
| 73 |
| 89 |
| 76 |
| 74 |
| 84 |
| 80 |
| 93 |
| 89 |
| 90 |
| 81 |
| 75 |
| 88 |
| 83 |
| 52 |
| 63 |
In: Statistics and Probability
A survey was given to 18 students. One question asked about the one-way distance the student had to travel to attend college. The results, in miles, are shown in the following table. Use the median procedure for finding quartiles to find the first, second, and third quartiles for the data. Distance Traveled to Attend College
46 50 18 26 64 78 4 38 44 44 10 70 74 44 86 32 26 48
Q1 =
Q2 =
Q3 =
In: Statistics and Probability
Given the following grouped frequency distribution
| Data | Frequency |
| 50 - 54 | 12 |
| 55 - 59 | 23 |
| 60 - 64 | 11 |
| 65 - 69 | 8 |
| 70 - 74 | 5 |
| 75 - 79 | 7 |
| 80 - 84 | 3 |
| 85 - 89 | 1 |
| 90 - 94 | 1 |
Find the mean (give you answer to one decimal) =
Find the standard deviation (give your answer to two decimals) =
What is the shape of this distribution? Your answer will be hand graded.
In: Statistics and Probability
Trials in an experiment with a polygraph include 98 results that include 24 cases of wrong results and 74 cases of correct results. Use a 0.05 significance level to test the claim that such polygraph results are correct less than 80% of the time. Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim. Use theP-value method. Use the normal distribution as an approximation of the binomial distribution.
In: Statistics and Probability
Project: Assess the impact of teaching style (F2F, Web, Mixed) on mean introductory sociology grades. Please determine if any of the groups differentiate themselves from the others using the .05 probability level.
F2F Web Mixed
Person 1 94 80 85
Person 2 78 74 83
Person 3 87 75 79
Person 4 90 76 80
Person 5 82 83 80
Please determine if the groups differ significantly and what that means.
In: Statistics and Probability
Consider a wind turbine comprised of two blades, with a radius of 63 ft., which delivers maximum power when the wind speed is above 16 knots (18.4 mph). The wind turbine is designed to produce 135 hp with an efficiency of 74%. The rotor is designed to operate at a constant speed of 45 rpm in winds over 5 knots (5.8 mph) by controlling system load and adjusting blade angles.
Estimate the blade speed and power coefficient for the maximum power condition.
In: Electrical Engineering
In: Finance
MMV Inc., opened a chain of businesses several years ago that provide quick oil changes and other minor services in conjunction with a convenience operation consisting of a soup, sandwich, and snack bar. The strategy was that as customers brought autos in for oil changes, they would likely use the convenience operation to purchase a sandwich, bowl of soup, beverage, or some other snack while they were waiting for the work to be completed on their autos. The oil change operation occupies 75% of the facility and includes three service bays. The soup, sandwich, and snack bar occupies the remaining 25%. A general manager is responsible for the entire operation, but each segment also has a manager responsible for its individual operation.
Recently, the following annual operating information for the soup, sandwich, and snack bar at one of MMV’s locations caught the general manager’s attention. Sales for the year were $120,000, and cost of sales (food, beverages, and snack items) are 40% of sales revenue. Operating expense information for the convenience operation follows:
| Food service items (spoons, napkins, etc.) | $ | 1,800 | |
| Utilities | 3,600 | ||
| Wages for part-time employees | 24,000 | ||
| Convenience operation manager’s salary | 33,000 | ||
| General manager’s salary | 9,000 | ||
| Advertising | 10,800 | ||
| Insurance | 6,000 | ||
| Property taxes | 1,500 | ||
| Food equipment depreciation | 3,000 | ||
| Building depreciation | 7,500 | ||
While investigating these operating expenses, MMV Inc. determines
the following:
Utilities are allocated to each segment based on square footage; however, 50% of the amount allocated to the soup, sandwich, and snack bar results from operating the food equipment.
The general manager’s salary is allocated between the segments based on estimated time spent with each operation. It is determined that 20% of the general manager’s time is spent with the convenience operation.
Advertising is allocated to each segment equally but could be reduced by $2,700 if MMV decided to advertise only the auto services.
Insurance is allocated to each segment based on square footage, but only 25% of the amount allocated to the soup, sandwich, and snack bar results directly from its operation.
Property taxes and building depreciation are allocated to each segment based on square footage.
Required:
a. From the preceding information, calculate the operating income from the soup, sandwich, and snack bar operation that has caught the general manager’s attention.
b. Identify whether each of these operating expenses is relevant to the decision of discontinuing the soup, sandwich, and snack bar operation, if relevant, provide the relevant values.
c. If MMV Inc. discontinues the soup, sandwich, and snack bar operation, how much will operating income increase or decrease for this location?
d. Should MMV continue or discontinue the soup, sandwich, and snack bar operation at this location?
In: Accounting
Case 8-1 Krispy Kreme's bonus plan (LO 8-3)
A brief description of Krispy Kreme’s annual cash bonus plan for top executives follows.
The Compensation Committee chose consolidated EBITDA [earnings before interest, taxes, depreciation, and amortization] and revenue as the performance metrics for fiscal 2012, weighted at 80% and 20%, respectively. Consolidated EBITDA is defined the same way as it is defined in our secured credit facilities. The Compensation Committee assigned three levels of performance for consolidated EBITDA and for Revenue: threshold, target, and maximum.
Source: Krispy Kreme Doughnuts, Inc. 2012 Proxy, edited for brevity. Krispy Kreme was a public company before being acquired by JAB Holding Company in 2016.
The disclosure further indicates that eligible recipients would receive 70%, 100%, or 140% of the portion of the target bonus for performance attributable to each performance metric for performance at the threshold, target, and maximum levels, respectively. The bonus for performance that falls between two of those levels would be prorated.
The following table provides summary balance sheet information for several years.
|
($ in thousands) |
1/29/2012 |
2/3/2013 |
2/2/2014 |
2/1/2015 |
||||||||
|
Total assets |
$ |
334,948 |
|
$ |
341,938 |
|
$ |
338,546 |
|
$ |
352,713 |
|
|
Debt, including current maturities |
$ |
27,593 |
|
$ |
25,743 |
|
$ |
1,993 |
|
$ |
9,687 |
|
|
Other liabilities |
|
58,229 |
|
|
69,763 |
|
|
71,460 |
|
|
75,240 |
|
|
Total equity |
|
249,126 |
|
|
246,432 |
|
|
265,093 |
|
|
267,786 |
|
|
Total liabilities and equity |
$ |
334,948 |
|
$ |
341,938 |
|
$ |
338,546 |
|
$ |
352,713 |
|
|
|
||||||||||||
Required:
1. One way Krispy Kreme executives could achieve the revenue target is to open new stores as quickly as possible. Explain why this might alarm shareholders.
2. Why might it be important for the bonus plan to use the same EBITDA definition used in Krispy Kreme's "secured credit facilities" (loan agreements)?
3. Describe how Krispy Kreme’s executive bonus plan could encourage accounting abuses.
4. Beginning in fiscal 2014 (the year ended February 1, 2015), Krispy Kreme began using pre-tax income instead of EBITDA as a performance metric in its compensation plan. What information in the company’s balance sheets suggests its management may have been responding to changing financial incentives when the performance metric changed?
In: Accounting