Question: Cellulon, a manufacturer of home insulation, wants

> Describe the difference between an attribute control chart and a variable control chart.

> Tim Waltzer owns and operates Waltzer’s Wrecks, a discount car rental agency near Cleveland Hopkins International Airport. He rents a wreck for $20 a day. He has an arrangement with Landrum Leasing to purchase used cars at $6,000 each.

> The proprietor of the newly built White Mountain Ski and Swim Lodge has been considering purchasing or leasing several snowmobiles for the use of guests. The owner found that other financial obligations made it impossible to purchase the machines. Snowmo

> The quality assurance department at Malcomb Products must either inspect each part in a lot or not inspect any of the parts. That is, there are two decision alternatives: inspect all the parts or inspect none of the parts. The proportion of parts defecti

> A financial executive for Fidelity Investments lives in Boston but frequently must travel to New York. She can go to New York by car, train, or plane. The cost for a plane ticket from Boston to New York is $200, and it is estimated that the trip takes 30

> The following regression output was obtained from a study of architectural firms. The dependent variable is the total amount of fees in millions of dollars. x1 is the number of architects employed by the company. x2 is the number of engineers employed

> At the beginning of each football season, Team Sports, the local sporting goods store, purchases 5,000 footballs. A sample of 25 balls is selected, and they are inflated, tested, and then deflated. If more than two balls are found defective, the lot of 5

> Swiss Watches, Ltd. purchases watch stems for their watches in lots of 10,000. Their sampling plan calls for checking 20 stems, and if 3 or fewer stems are defective, the lot is accepted. a. Based on the sampling plan, what is the probability that a lot

> Christina Sanders is a member of the women’s basketball team at Windy City College. Last season, she made 55% of her free throw attempts. In an effort to improve this statistic, she attended a summer camp devoted to shooting techniques.

> Use the variables mean amount per transaction and number of associates to forecast net sales. Are these two independent variables reasonable predictors of net sales? What is the R2 value? Is it large? Look at the p-values for each of the independent vari

> Develop a trend equation for the net sales ($ million) for Home Depot. Consider both a linear trend and a nonlinear trend. Which one would you select and why? Given the trend equation you selected, forecast the net sales for 2016 and 2017. Use the follow

> The enrollment in the College of Business at Midwestern University by quarter from 2013 to spring 2017 is: Using the ratio-to-moving-average method: a. Determine the four quarterly indexes. b. Interpret the quarterly pattern of enrollment. Does the sea

> The following is the number of retirees receiving benefits from the State Teachers Retirement System of Ohio from 1996 until 2015. a. Plot the data. b. Determine the least squares trend equation. Use a linear equation. c. Calculate the points for the y

> (The data for this exercise are available at the text website: www.mhhe.com/Lind17e.) Refer to the Lincolnwood School District bus data. a. Suppose we consider a bus “old” if it has been in service more than 8 years. At the .01 significance level, can we

> Sales of roof material, by quarter, for 2010 through 2016, by Carolina Home Construction Inc. are shown below (in $000). a. Determine the typical seasonal patterns for sales using the ratio-to-moving-average method. b. Deseasonalize the data and determ

> The North Valley Real Estate data reports information on homes on the market. a. Determine the proportion of homes that have an attached garage. At the .05 significance level, can we conclude that more than 60% of the homes have an attached garage? What

> At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $80 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $9.95. Over the first 35 days she

> The quarterly production of pine lumber, in millions of board feet, by Northwest Lumber for 2012 through 2016 is: a. Determine the typical seasonal pattern for the production data using the ratio-to-moving-average method. b. Interpret the pattern. c. D

> The production of Reliable Manufacturing Company for 2012 and part of 2013 follows. a. Using the ratio-to-moving-average method, determine the specific seasonals for July, August, and September 2012. b. Assume that the specific seasonal indexes in the

> Listed below is the selling price for a share of PepsiCo Inc. at the close of each year from 1998 to 2015. a. Plot the data. b. Determine the least squares trend equation. c. Calculate the points for the years 2008 and 2013. d. Estimate the selling pri

> Refer to the Baseball 2016 data, which include information on the 2016 Major League Baseball season. The data also include the mean player salary since 1989. a. Use the year 2000 salary as the base period and 100 as the base value to develop a simple ind

> We are making a historical study of the American economy from 1950 to 1980. Data on prices, the labor force, productivity, and the GNP were collected. Note in the following table that the CPI has a base period of 1967, employment is in millions of person

> The National Cable and Telecommunications Association recently reported that the mean number of HDTVs per household in the United States is 2.30 with a standard deviation of 1.474 sets. A sample of 100 homes in Boise, Idaho, revealed the following sample

> John Isaac Inc., a designer and installer of industrial signs, employs 60 people. The company recorded the type of the most recent visit to a doctor by each employee. A recent national survey found that 53% of all physician visits were to primary care ph

> Refer to the Lincolnville School District bus data. a. Select the variable for the number of miles traveled last month. Conduct a hypothesis test to determine whether the mean miles traveled last month equals 10,000. Use the .01 significance level. Find

> Banner Mattress and Furniture Company wishes to study the number of credit applications received per day for the last 300 days. The sample information is reported below. Number of Credit Applications ______Frequency (Number of Days) 0 ………………………………………………

> The North Valley Real Estate data reports information on the homes sold last year. Adam Marty recently joined North Valley Real Estate and was assigned twenty homes to market and show. When he was hired, North Valley assured him that the twenty homes wou

> A recent article reported that a job awaits only one in three new college graduates. The major reasons given were an overabundance of college graduates and a weak economy. A survey of 200 recent graduates from your school revealed that 80 students had jo

> Consider the data in Exercise 10 from Chapter 14 and the regression equation to predict commissions earned. In Exercise 10 from Chapter 14 Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The

> There are four entrances to the Government Center Building in downtown Philadelphia. The building maintenance supervisor would like to know if the entrances are equally utilized. To investigate, 400 people were observed entering the building. The number

> The publisher of a sports magazine plans to offer new subscribers one of three gifts: a sweatshirt with the logo of their favorite team, a coffee cup with the logo of their favorite team, or a pair of earrings also with the logo of their favorite team. I

> The owners of the Westfield Mall wished to study customer shopping habits. From earlier studies, the owners were under the impression that a typical shopper spends 0.75 hour at the mall, with a standard deviation of 0.10 hour. Recently the mall owners ad

> Compute a simple index for the number of employees for GE using the period 2004–06 as the base. What can you conclude about the change in the number of employees over the period? Use the following information from General Electric Corpo

> The proportion of on-line shoppers who actually make a purchase appears to be relatively constant over time. In 2013, among a sample of 388 on-line shoppers, 160 purchased merchandise. In 2017, for a sample of 307 on-line shoppers, 144 purchased merchand

> Sam Steward is a freelance Web page designer. Listed below are his yearly wages for several years between 2013 and 2016. Also included is an industry index for Web page designers that reports the rate of wage inflation in the industry. This index has a b

> The Trade Union Association of Orlando, Florida, maintains indexes on the hourly wages for a number of the trades. Unfortunately, the indexes do not all have the same base periods. Listed below is information on plumbers and electricians. Shift the base

> You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in t

> Refer to the Baseball 2016 data, which report information on the 2016 Major League Baseball season. a. Rank the teams by the number of wins and their total team salary. Compute the coefficient of rank correlation between the two variables. At the .01 sig

> The waiting time for customers at MacBurger Restaurants follows a normal distribution with a population standard deviation of 1 minute. At the Warren Road MacBurger, the quality-assurance department sampled 50 customers and found that the mean waiting ti

> A series of questions on sports and world events was asked of 14 randomly selected young adult naturalized citizens. The results were translated into sports and world events “knowledge” scores. The scores were: a. De

> Professor Bert Forman believes the students who complete his examinations in the shortest time receive the highest grades and those who take the longest to complete them receive the lowest grades. To verify his suspicion, he assigns a rank to the order o

> The production manager of MPS Audio Systems Inc. is concerned about the idle time of workers. In particular, he would like to know if there is a difference in the idle minutes for workers on the day shift and the evening shift. The information below is t

> During recent seasons, Major League Baseball has been criticized for the length of the games. A report indicated that the average game lasts 3 hours and 30 minutes. A sample of 17 games revealed the following times to completion. (Note that the minutes h

> The objective of a community research project is to determine whether women are more community conscious before marriage or after 5 years of marriage. A test designed to measure community consciousness was administered to a sample of nine women before ma

> Research in the gaming industry showed that 10% of all slot machines in the United States stop working each year. Short’s Game Arcade has 60 slot machines and only 3 failed last year. At the .05 significance level, test whether these data contradict the

> IBM Inc. is going to award a contract for fine-line pens to be used nationally in its offices. Two suppliers, Bic and Pilot, have submitted bids. To determine the preference of office personnel, a preference test was conducted using a randomly selected s

> Refer to the Baseball 2016 data, which report information on the 30 Major League Baseball teams for the 2016 season. Let the number of games won be the dependent variable and the following variables be independent variables: team batting average, team Ea

> According to a study by the American Pet Food Dealers Association, 63% of U.S. households own pets. A report is being prepared for an editorial in the San Francisco Chronicle. As a part of the editorial, a random sample of 300 households showed 210 own p

> Think about the figures from the previous exercise. Add a new variable that describes the potential interaction between the loan amount and the number of payments made. Then do a test of hypothesis to check if the interaction is significant. In Previous

> Suppose Texas A & M University—Commerce has five scholarships available for the women’s basketball team. The head coach provided the two assistant coaches with the names of 10 high school players with potential to

> The director of special events for Sun City believed that the amount of money spent on fireworks displays for the 4th of July was predictive of attendance at the Fall Festival held in October. She gathered the following data to test her suspicion. Dete

> Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 60 manufacturing companies located in the Southwest. The mean expense is $52.0 million and the s

> The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of serv

> Many regions in North and South Carolina and Georgia have experienced rapid population growth over the last 10 years. It is expected that the growth will continue over the next 10 years. This has motivated many of the large grocery store chains to build

> Rutter Nursery Company packages its pine bark mulch in 50-pound bags. From a long history, the production department reports that the distribution of the bag weights follows the normal distribution and the standard deviation of the packaging process is 3

> A market researcher is studying on-line subscription services. She is particularly interested in what variables relate to the number of subscriptions for a particular on-line service. She is able to obtain the following sample information on 25 on-line s

> A recent national survey found that parents read an average (mean) of 10 books per month to their children under five years old. The population standard deviation is 5. The distribution of books read per month follows the normal distribution. A random sa

> In recent times, with mortgage rates at low levels, financial institutions have had to provide more customer convenience. One of the innovations offered by Coastal National Bank and Trust is online mortgage applications. Listed below are the times, in mi

> A regional planner is studying the demographics of nine counties in the eastern region of an Atlantic seaboard state. She has gathered the following data: a. Is there a linear relationship between the median income and median age? b. Which variable is

> A sample of 64 observations is selected from a normal population. The sample mean is 215, and the population standard deviation is 15. Conduct the following test of hypothesis using the .025 significance level. H0: μ ≥ 220 H1: μ < 220 (a) Is this a one-

> Mike Wilde is president of the teachers&acirc;&#128;&#153; union for Otsego School District. In preparing for upcoming negotiations, he is investigating the salary structure of classroom teachers in the district. He believes there are three factors that

> Hugger Polls contends that an agent conducts a mean of 53 in-depth home surveys every week. A streamlined survey form has been introduced, and Hugger wants to evaluate its effectiveness. The number of in-depth surveys conducted during a week by a random

> Nine observations were randomly selected from population A and eight observations were randomly selected from population B. The populations are not normally distributed. Use the .05 significance level, a two-tailed test, and the Wilcoxon rank-sum test to

> Suppose that the sales manager of a large automotive parts distributor wants to estimate the total annual sales for each of the company&acirc;&#128;&#153;s regions. Five factors appear to be related to regional sales: the number of retail outlets in the

> Toyota USA is studying the effect of regular versus high-octane gasoline on the fuel economy of its new high-performance, 3.5-liter, V6 engine. Ten executives are selected and asked to maintain records on the number of miles traveled per gallon of gas. T

> In a multiple regression analysis, k = 5 and n = 20, the MSE value is 5.10, and SS total is 519.68. At the .05 significance level, can we conclude that any of the regression coefficients are not equal to 0?

> Assembly workers at Coastal Computers Inc. assemble just one or two subassemblies and insert them in a frame. The executives at CC think that the employees would have more pride in their work if they assembled all of the subassemblies and tested the comp

> The research department at the home office of New Hampshire Insurance conducts on-going research on the causes of automobile accidents, the characteristics of the drivers, and so on. A random sample of 400 policies written on single persons revealed 120

> GfK Research North America conducted identical surveys 5 years apart. One question asked of women was “Are most men basically kind, gentle, and thoughtful?” The earlier survey revealed that, of the 3,000 women surveyed, 2,010 said that they were. The lat

> A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent l

> Out of 110 diesel engines tested, a rework and repair facility found 9 had leaky water pumps, 15 had faulty cylinders, 4 had ignition problems, 52 had oil leaks, and 30 had cracked blocks. Draw a Pareto chart to identify the key problem in the engines.

> Upon arrival at the international airport in the country of Canteberry, Charles Alt exchanged $200 of U.S. currency into 1,000 florins, the local currency unit. Upon departure from Canteberry&acirc;&#128;&#153;s international airport on completion of his

> On November 1, 20X6, Smith Imports Inc. contracted to purchase teacups from England for &Acirc;&pound;30,000. The teacups were to be delivered on January 30, 20X7, with payment due on March 1, 20X7. On November 1, 20X6, Smith entered into a 120-day forwa

> Jerber Electronics Inc. sold electrical equipment to a Dutch company for 50,000 guilders (G) on May 14, with collection due in 60 days. On the same day, Jerber entered into a 60-day forward contract to sell 50,000 guilders at a forward rate of G1&Acirc;&

> Choose the correct answer for each of the following questions. 1. On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for &acirc;&#130;&not;200,000. The merchandise was shipped and invoi

> Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 200,000 SKr at a forward rate of 1&Acirc;&nbsp;SKr&Acir

> Marko Company sold spray paint equipment to Spain for 5,000,000 pesetas (P) on October 1, with payment due in six months. The exchange rates were Required: Did the dollar strengthen or weaken relative to the peseta during the period from October 1 to

> Select the correct answer for each of the following questions. Dale Inc., a U.S. company, bought machine parts from a German company on March 1, 20X1, for &acirc;&#130;&not;30,000, when the spot rate for euros was $0.4895. Dale&acirc;&#128;&#153;s

> Pumped Up Company purchased equipment from Switzerland for 140,000 francs on December 16, 20X7, with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SFr 1&A

> Select the correct answer for each of the following questions. 1. The following information applies to Denton Inc.&acirc;&#128;&#153;s sale of 10,000 foreign currency units under a forward contract dated November 1, 20X5, for delivery on January

> Suppose the direct foreign exchange rates in U.S. dollars are 1 British pound = $1.60 1 Canadian dollar = $0.74 Required: What are the indirect exchange rates for the British pound and the Canadian dollar? B How many pounds must

> Nick Andros of Streamline Company suggested that the company speculate in foreign currency as a partial hedge against its operations in the cattle market, which fluctuates like a commodity market. On October 1, 20X1, Streamline bought a 180-day forward c

> On December 1, 20X1, Sycamore Company acquired a 90-day speculative forward contract to sell &acirc;&#130;&not;120,000 at a forward rate of &acirc;&#130;&not;1&Acirc;&nbsp;=&Acirc;&nbsp;$0.58. The rates are as follows: Required: a. Prepare a schedul

> Eagle Corporation holds 80 percent of Standard Company&acirc;&#128;&#153;s common shares. The companies report the following balance sheet data for December 31, 20X1: An 8 percent annual dividend is paid on the Eagle preferred stock and a 12 percent di

> Crystal Corporation owns 60 percent of Evans Company&acirc;&#128;&#153;s common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: The bonds of Crystal Corporation and Evans Company pay annual interest of 8 percent and

> Amber Corporation holds 70 percent of Newtop Company&acirc;&#128;&#153;s voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Neither of the preferred issues is convertible

> Winter Corporation owns 80 percent of Ray Guard Corporation&acirc;&#128;&#153;s stock and 90 percent of Block Company&acirc;&#128;&#153;s stock. The companies file a consolidated tax return each year and in 20X5 paid a total tax of $80,000. Each company

> Springdale Corporation holds 75 percent of the voting shares of Holiday Services Company. During 20X7, Springdale sold inventory costing $60,000 to Holiday Services for $90,000, and Holiday Services resold one-third of the inventory in 20X7. The remainin

> Springdale Corporation holds 75 percent of the voting shares of Holiday Services Company. Assume Springdale accounts for this investment using the equity method. During 20X7, Springdale sold inventory costing $60,000 to Holiday Services for $90,000, and

> Power Corporation acquired 100 percent of Light Corporation in a nontaxable transaction. The following selected information is available for Light Corporation at the acquisition date: Light Corporation has never recorded an allowance for doubtful accou

> Highbeam Corporation paid $319,500 to acquire 90 percent ownership of Copper Company on April 1, 20X2. At that date, the fair value of the noncontrolling interest was $35,500. On January 1, 20X2, Copper reported these stockholders&acirc;&#128;&#153; equi

> Yarn Manufacturing Corporation issued stock with a par value of $67,000 and a market value of $503,500 to acquire 95 percent of Spencer Corporation&acirc;&#128;&#153;s common stock on August 30, 20X1. At that date, the fair value of the noncontrolling in

> The following 20X2 consolidated statement of cash flows is presented for Acme Printing Company and its subsidiary, Jones Delivery: Acme Printing acquired 60 percent of the voting shares of Jones in 20X1 at underlying book value. At that date, the fair

> Using the data presented in E10-5, prepare a statement of cash flows for Consolidated Enterprises Inc. using the direct method of computing cash flows from operating activities. Data from E10-5: The accountant for Consolidated Enterprises Inc. has

> The accountant for Consolidated Enterprises Inc. has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for 20X3. The accountant has asked for assistance in preparing a statement of cash

> Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of &ac

> The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exporting activities result in receivables. (LCU represents the local currency unit of the foreign entity.) Required: If the d

> Becon Corporation’s controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 20X4. Becon owns 60 percent of Handy Corporation’s stock, which it ac

> In its consolidated cash flow statement for the year ended December 31, 20X2, Lamb Corporation reported operating cash inflows of $284,000, financing cash outflows of $230,000, $80,000 for investing cash outflows, and an ending cash balance of $57,000. L

> Mardi Gras Corporation operates a group of specialty shops throughout the southeastern United States. The shops have traditionally stocked and sold kitchen and bath products manufactured in the United States. This year, Mardi Gras established a business