An insurance company, based on past experience, estimates the mean damage for a natural disaster in its area is $5,000. After introducing several plans to prevent loss, it randomly samples 200 policyholders and finds the mean amount per claim was $4,800 with a standard deviation of $1,300. Does it appear the prevention plans were effective in reducing the mean amount of a claim? Use the .05 significance level.
> The following information comes from the 2009 financial statements of McDonald’s Corporation. Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing ren
> Spilker Aviation, Inc., failed to make year-end adjustments to record accrued salaries and recognize interest receivable on investments over the last three years as follows: What impact would the correction of these errors have on the net income for th
> Locate the 2009 financial statements for The Walt Disney Company on the Internet and consider the following questions: 1. How well did Disney do financially during the year ended October 3, 2009? 2. Comment on the level of detail in Disney’s balance shee
> An analysis of Goulding, Inc., disclosed changes in account balances for 2013 and the following supplementary data. From these data, calculate the net income or loss for 2013. Goulding sold 4,000 shares of its $5 par stock for $8 per share and received
> The existence of just four large CPA firms that service virtually all of the major industrial and financial companies and thus dominate the accounting profession has led to criticism through the years. 1. What dangers do you see from the dominance of a f
> The following balance sheet information represents actual data for 2013 and forecasted data for 2014: The actual income statement for 2013 is as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
> In the 1970s, a leader in the accounting profession proposed that there really needed to be only one underlying standard to govern the establishment of generally accepted accounting principles. That standard was identified as fairness. Financial statemen
> Contrast the roles of an accountant and an auditor.
> Bohr Company has a credit agreement with a syndicate of banks. In order to impose some limitations on Bohr’s financial riskiness, the credit agreement requires Bohr to maintain a current ratio of at least 1.4 and a debt ratio of 0.55 or less. The followi
> What is the difference between a code law country and a common law country?
> Accounting has been defined as a service activity. Who is served by accounting and how do they benefit?
> Refer to Exercises 2, 4, and 6. Compute the expected value of perfect information. In Exercises 2, 4, and 6 Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is whether to package the cola in returnable or in
> Refer to Exercises 2 and 4. Compute the expected opportunity losses. In Exercises 2 and 4 Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is whether to package the cola in returnable or in nonreturnable bott
> Refer to Exercise 2, involving Wilhelms Cola Company. Develop an opportunity loss table, and determine the opportunity loss for each decision. In Exercise 2 Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is
> You’re about to drive to New York. If your car’s engine is out of tune, your gas cost will increase by $100. Having the engine tested will cost $20. If it’s out of tune, repairs will cost $60. Before testing, the probability is 30% th
> Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is whether to package the cola in returnable or in nonreturnable bottles. Currently, the state legislature is considering eliminating nonreturnable bottles. Tybo W
> Refer to Exercise 2. Reverse the probabilities; that is, let P(S1) = .30 and P(S2) = .70 and use Expected Monetary Value to evaluate the decision. Does this alter your decision? In Exercise 2 Wilhelms Cola Company plans to market a new lime-flavore
> Steele Breakfast Foods Inc. produces a popular brand of raisin bran cereal. The package indicates it contains 25.0 ounces of cereal. To ensure the product quality, the Steele inspection department makes hourly checks on the production process. As a par
> Refer to Exercise 7. In Exercise 7 A new industrial oven has just been installed at Piatt Bakery. To develop experience regarding the oven temperature, an inspector reads the temperature at four different places inside the oven each half hour start
> Samples of size 5 are selected from a manufacturing process. The mean of the sample ranges is .50. What is the estimate of the standard deviation of the population?
> Charter National Bank has a staff of loan officers located in its branch offices throughout the Southwest. Robert Kerns, vice president of consumer lending, would like some information on the typical amount of loans and the range in the amount of the l
> Determine the probability of accepting lots that are 10%, 20%, 30%, and 40% defective using a sample of size 14 and an acceptance number of 3.
> Dave Christi runs a car wash chain with outlets scattered throughout Chicago. He is concerned that some local managers are giving away free washes to their friends. He decides to collect data on the number of “voided” sales receipts. Of cou
> During the process of producing toilet paper, Scott Paper randomly selects a toilet paper roll 5 times throughout the day and subjects each roll to a stress test to see how often the paper tears. Over a 3-day period, the testing of 15 rolls found the f
> Inter-State Moving and Storage Company is setting up a control chart to monitor the proportion of residential moves that result in written complaints due to late delivery, lost items, or damaged items. A sample of 50 moves is selected for each of the l
> It appears that the imports of carbon black have been increasing by about 10% annually. a. Determine the logarithmic trend equation. b. By what percent did imports increase, on the average, during the period? c. Estimate imports for the year
> The sales by Walker’s Milk and Dairy Products in millions of dollars for the period from 2011 to 2017 are reported in the following table. Determine the least squares regression trend equation. Estimate the sales for 2019.
> Listed below are the net sales in $ million for Home Depot Inc. and its subsidiaries from 1993 to 2015. Remember to code the years starting at 1 for year 1993. Determine the least squares equation. On the basis of this information, what are th
> Early Morning Delivery Service guarantees delivery of small packages by 10:30 a.m. Of course, some of the packages are not delivered by 10:30 a.m. For a sample of 200 packages delivered each of the last 15 working days, the following numbers of package
> Reported below are the amounts spent on advertising ($ millions) by a large firm from 2007 to 2017. a. Determine the logarithmic trend equation. b. Estimate the advertising expenses for 2020. c. By what percent per year did advertising expen
> Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2004 to 2016. Compute a five-year weighted moving average using weights of .1, .1, .2, .3, and .3, respectively. Describe the trend in yie
> Refer to Exercise 10, regarding sales at Appliance Center. Use the seasonal indexes you computed to determine the deseasonalized sales. Determine the linear trend equation based on the quarterly data for the 4 years. Forecast the seasonally adjusted sa
> Team Sports Inc. sells sporting goods to high schools and colleges via a nationally distributed catalog. Management at Team Sports estimates it will sell 2,000 Wilson Model A2000 catcher’s mitts next year. The deseasonalized sales are projected t
> Appliance Center sells a variety of electronic equipment and home appliances. For the last 4 years, 2013 through 2016, the following quarterly sales (in$ millions) were reported. Determine a typical seasonal index for each of the four quarters
> Following are the quantities and prices for the years 2000 and 2017 for Kinzua Valley Geriatrics. Use 2000 as the base period. a. Determine the simple price indexes. b. Determine the simple aggregate price index for the two years. c. Determi
> Fruit prices and the amounts consumed for 2000 and 2017 are below. Use 2000 as the base. a. Determine the simple price indexes. b. Determine the simple aggregate price index for the two years. c. Determine Laspeyres price index. d. Determin
> Determine a value index for 2016 using 1990 as the base period. Use the following price information for selected items for 1990 and 2016. Production figures for those two periods are also given.
> Compute a simple aggregate price index. Use 1990 as the base period. Use the following price information for selected items for 1990 and 2016. Production figures for those two periods are also given.
> A sample of employees at a large chemical plant was asked to indicate a preference for one of three pension plans. The results are given in the following table. Does it seem that there is a relationship between the pension plan selected and the job cla
> Far West University offers both day and evening classes in business administration. A survey of students inquires how they perceive the prestige associated with eight careers. A day student was asked to rank the careers from 1 to 8, with 1 having the m
> Determine a value index for 2016 using 2000 as the base period. Use the following price information for selected foods for 2000 and 2016 given in the following table.
> A study regarding the relationship between age and the amount of pressure sales personnel feel in relation to their jobs revealed the following sample information. At the .01 significance level, is there a relationship between job pressure and age?
> Compute Paasche’s index for 2016 using 2000 as the base period. Use the following price information for selected foods for 2000 and 2016 given in the following table.
> Compute a simple aggregate price index. Use 2000 as the base period. Use the following price information for selected foods for 2000 and 2016 given in the following table.
> Determine a value index for 2016 using 2000 as the base period. Use the following information. Betts Electronics purchases three replacement parts for robotic machines used in its manufacturing process. Information on the price of the replacement part
> The following table gives information on the Consumer Price Index (Base = 1982–84) and the monthly take-home pay of Bill Martin, an employee at Ford Motor Corporation. a. What is the purchasing power of the dollar in 2016, based on the p
> Compute Paasche’s index for 2016 using 2000 as the base period. Use the following information. Betts Electronics purchases three replacement parts for robotic machines used in its manufacturing process. Information on the price of the replacemen
> Compute a simple aggregate price index for 2016. Use 2000 as the base period. Use the following information. Betts Electronics purchases three replacement parts for robotic machines used in its manufacturing process. Information on the price of the re
> Determine a value index for 2016 using 2000 as the base period. Use the following information on food items for the years 2000 and 2016.
> A new machine has just been installed to produce printed circuit boards. One of the critical measurements is the thickness of the resistance layer. The quality control inspector randomly selects five boards each half-hour, measures the thickness, and r
> Compute Paasche’s index for 2016 using 2000 as the base period. Use the following information on food items for the years 2000 and 2016.
> Compute Paasche’s index for 2016 using 1990 as the base period. Use the following price information for selected items for 1990 and 2016. Production figures for those two periods are also given.
> Compute a simple aggregate price index. Use 2000 as the base period. Use the following information on food items for the years 2000 and 2016.
> The American Water Works Association reports that the per capita water use in a single-family home is 69 gallons per day. Legacy Ranch is a relatively new housing development. The builders installed more efficient water fixtures, such as low-flush toil
> A study was conducted to determine if there was a difference in the humor content in British and American trade magazine advertisements. In an independent random sample of 270 American trade magazine advertisements, 56 were humorous. An independent ran
> A United Nations report shows the mean family income for Mexican migrants to the United States is $27,000 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 25 Mexican family units reveals a mean to be $30,000 with a sample standard devia
> There are two major cell phone providers in the Colorado Springs, Colorado area, one called HTC and the other, Mountain Communications. We want to investigate the “churn rate” for each provider. Churn is the number of customers or subscribe
> For a recent year, the mean fare to fly from Charlotte, North Carolina, to Chicago, Illinois, on a discount ticket was $267. A random sample of 13 round-trip discount fares on this route last month shows: At the .01 significance level, can we
> Each month the National Association of Purchasing Managers surveys purchasing managers and publishes the NAPM index. One of the questions asked on the survey is: Do you think the economy is contracting? Last month, of the 300 responding managers, 160 a
> Listed below is the annual rate of return (reported in percent) for a sample of 12 taxable mutual funds. Using the .05 significance level, is it reasonable to conclude that the mean rate of return is more than 4.50%?
> The following sample data were obtained from three populations where the variances were not equal, and you wish to compare the populations. a. State the null hypothesis. b. Using the .01 level of risk, state the decision rule. c. Compute the
> Compute a simple index for the revenue of GE using the period 2004–06 as the base. What can you conclude about the change in revenue over the period? Use the following information from General Electric Corporation’s annual reports.
> After a losing season, there is a great uproar to fire the head football coach. In a random sample of 200 college alumni, 80 favor keeping the coach. Test at the .05 level of significance whether the proportion of alumni who support the coach is less t
> Using the period 2000–02 as the base period, compute a simple index of the number of employees for each year from 2004 to 2015. Use the following information taken from Johnson & Johnson annual reports. The principal office of Johnson &
> The postanesthesia care area (recovery room) at St. Luke’s Hospital in Maumee, Ohio, was recently enlarged. The hope was that the change would increase the mean number of patients served per day to more than 25. A random sample of 15 days reveale
> The policy of the Suburban Transit Authority is to add a bus route if more than 55% of the potential commuters indicate they would use the particular route. A sample of 70 commuters revealed that 42 would use a proposed route from Bowman Park to the do
> A recent article in The Wall Street Journal reported that the home equity loan rate is now less than 4%. A sample of eight small banks in the Midwest revealed the following home equity loan rates (in percent): At the .01 significance level, ca
> The Greater Jacksonville, Florida, Real Estate Association claims that the median rental for three-bedroom condominiums is more than $1,200 a month. A random sample of 149 units showed 5 rented for exactly $1,200 a month, and 75 rented for more than $1
> A recent article in Vitality magazine reported that the mean amount of leisure time per week for American men is 40.0 hours. You believe this figure is too large and decide to conduct your own test. In a random sample of 60 men, you find that the mean
> The use of cellular phones in automobiles has increased dramatically in the last few years. Of concern to traffic experts, as well as manufacturers of cellular phones, is the effect on accident rates. Is someone who is using a cellular phone more likel
> A statewide real estate sales agency, Farm Associates, specializes in selling farm property in the state of Nebraska. Its records indicate that the mean selling time of farm property is 90 days. Because of recent drought conditions, the agency believes
> The manufacturer of running shoes conducted a study on its newly developed jogging shoe. Listed below are the type and frequency of the nonconformities and failures found. Develop a Pareto chart to show the major problem areas.
> Four brands of lightbulbs are being considered for use in the final assembly area of the Ford F-150 truck plant in Dearborn, Michigan. The director of purchasing asked for samples of 100 from each manufacturer. The numbers of acceptable and unacceptabl
> Dole Pineapple Inc. is concerned that the 16-ounce can of sliced pineapple is being overfilled. Assume the standard deviation of the process is .03 ounce. The quality-control department took a random sample of 50 cans and found that the arithmetic mean
> Using the period 2000–02 as the base period, compute a simple index of international sales for each year from 2004 to 2015. Use the following information taken from Johnson & Johnson annual reports. The principal office of Johnson & John
> Using the period 2000–02 as the base period, compute a simple index of domestic sales for each year from 2004 to 2015. Use the following information taken from Johnson & Johnson annual reports. The principal office of Johnson & Johnson i
> The National Turkey Association wants to experiment with the effects of three different feed mixtures on weight gain in poults. Because no experience exists regarding the three mixtures, no assumptions regarding the population distribution of weights e
> For many years, TV executives used the guideline that 30% of the audience were watching each of the traditional big three prime-time networks and 10% were watching cable stations on a weekday night. A random sample of 500 viewers in the Tampa–St.
> The chief of security for the Mall of the Dakotas directed a study of theft. He selected a sample of 100 boxes that had been tampered with and ascertained that, for 60 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. Fo
> Refer to Table 10–4 and the example just completed. With n = 100, σ = 400, xÌ…c = 10,078, and μ1 = 10,100, verify that the probability of a Type II error is .2912. Table 10–4
> It has been suggested that daily production of a subassembly would be increased if better lighting were installed and background music and free coffee and doughnuts were provided during the day. Management agreed to try the scheme for a limited time. A
> The safety director of a large steel mill took samples at random from company records of minor work-related accidents and classified them according to the time the accident took place. Using the goodness-of-fit test and the .01 level of signif
> Grills Video Products purchases LCDs from Mira Electronics. According to his sampling plan, Art Grills, owner of Grills Video, will accept a shipment of LCDs if 3 or fewer are defective in a sample of 25. Develop an OC curve for these percents defectiv
> Classic Golf Inc. manages five courses in the Jacksonville, Florida, area. The director of golf wishes to study the number of rounds of golf played per weekday at the five courses. He gathered the following sample information. At the .05 significance l
> The liquid chlorine added to swimming pools to combat algae has a relatively short shelf life before it loses its effectiveness. Records indicate that the mean shelf life of a 5-gallon jug of chlorine is 2,160 hours (90 days). As an experiment, Holdlon
> The null hypothesis and the alternate hypothesis are: H0: The frequencies are equal. H1: The frequencies are not equal. Category ______fo A ………………………. 10 B ………&h
> Given the following hypotheses: H0: μ = 100 H1: μ ≠ 100 A random sample of six resulted in the following values: 118, 105, 112, 119, 105, and 111. Assume a normal population. Using the .05 significance level, can we conclude the mean is d
> In a multiple regression analysis, two independent variables are considered, and the sample size is 25. The regression coefficients and the standard errors are as follows. b1 = 2.676 sb1 = 0.56 b2 = −0.880 sb2 = 0.71 Conduct a test of hypo
> Most air travelers now use e-tickets. Electronic ticketing allows passengers to not worry about a paper ticket, and it costs the airline companies less to handle than paper ticketing. However, in recent times the airlines have received complaints from
> Johnson Wholesale Company manufactures a variety of products. The prices and quantities produced for April 2000 and April 2017 are: Using April 2000 as the base period, find the value index of goods produced for April 2017.
> The management of White Industries is considering a new method of assembling its golf cart. The present method requires a mean time of 42.3 minutes to assemble a cart. The mean assembly time for a random sample of 24 carts, using the new method, was 40
> Central Airlines claims that the median price of a round-trip ticket from Chicago to Jackson Hole, Wyoming, is $503. This claim is being challenged by the Association of Travel Agents, who believe the median price is less than $503. A random sample of
> Given the following hypotheses: H0: μ = 400 H1: μ ≠ 400 A random sample of 12 observations is selected from a normal population. The sample mean was 407 and the sample standard deviation 6. Using the .01 significance level: a. State the de
> The sales, in billions of dollars, of Keller Overhead Door Inc. for 2012 to 2017 are: a. Plot the data. b. Determine the least squares trend equation. c. Use the trend equation to calculate the points for 2014 and 2017. Plot them on the grap
> In January 2003, the price for a whole fresh chicken was $1.004 per pound. In February 2016, the price for the same chicken was $1.475 per pound. Use the January 2003 price as the base period and 100 as the base value to develop a simple index. By what
> The null and alternate hypotheses are: H0: π1 = π2 H1: π1 ≠ π2 A sample of 200 observations from the first population indicated that x1 is 170. A sample of 150 observations from the second population revealed x2 to be 110. Use the .05
> Many new stockbrokers resist giving presentations to bankers and certain other groups. Sensing this lack of self-confidence, management arranged to have a confidence-building seminar for a sample of new stockbrokers and enlisted Career Boosters for a t
> A sample of 60 college students was given a special training program designed to improve their time management skills. One month after completing the course, the students were contacted and asked whether the skills learned in the program were effective
> The following hypothesis-testing situation is given: H0: π = .50 and H1: π ≠ .50. The significance level is .05, and the sample size is 9. a. What is the decision rule? b. There were five successes. What is your decision regarding the null h
> The following hypotheses are given. H0: π = .40 H1: π ≠ .40 A sample of 120 observations revealed that p = .30. At the .05 significance level, can the null hypothesis be rejected? a. State the decision rule. b. Compute the value of the
