Question: Consider a game in a gambling casino

> A random sample of 50 recent patient records at a clinic shows that the average billing per visit was $53.01 and the standard deviation was $16.48. a. Find the 95% confidence interval for the mean and interpret it. b. Find the 99% confidence interval. c.

> Do you agree that drawing a second sample was a good idea?

> So far at your new job, you have landed nine sales contracts with an average price of $3,782 and a standard deviation of $1,290. a. Identify a reasonable idealized population that this sample represents. b. If the distribution of sales prices is heavily

> You are concerned about waste in the newspaper publishing process. Previously, no measurements were made, although it is clear that frequent mistakes often require many pounds of newsprint to be thrown away. To judge the severity of the problem and to he

> Samples of rock taken from various places in a proposed mine have been analyzed. For each sample, a “rate of return” number has been computed that represents the profit obtained (by selling the refined metal at the current market price) as a percentage o

> As a basis for a brochure describing the speed of a new computer system, you have measured how long it takes the machine to complete a particular benchmark database program. Since the state of the disks in the database is constantly changing as records a

> A sample of 93 coils of sheet steel showed that the average length was 101.37 m, with a standard deviation of 2.67 m. a. Interpret the standard deviation in words; in particular, what is it measuring the variability of? b. Find the standard error. Interp

> A survey of your customers shows, to your surprise, that 42 out of 200 randomly selected customers were not satisfied with after-sale support and service. a. Find the summary statistics: the sample size, n; the sample percentage, p; and the standard erro

> An election poll shows your favorite candidate ahead with 52.443% of the vote, based on interviews with 921 randomly selected people. a.* Find the two-sided 95% confidence interval for the percentage of the population in favor of your candidate. b. Since

> Table 9.6.2 shows the 2015 performance of stocks recommended by Gene Marcial, whose list was published in Forbes in December 2014. a. Compute the average and briefly describe its meaning. b. Compute the standard deviation and briefly describe its meaning

> During a 1-week experiment, motion was added to in store sales displays at a random sample of your firm’s stores nationwide. The resulting sales increases for these products (compared to the week before) averaged $441.84, with a standard deviation of $68

> Out of 763 people chosen at random, 152 were unable to identify your product. a. Estimate the percentage of the population (from which this sample was taken) who would be unable to identify your product. b. Find the standard error of the estimate found i

> Should you lease or not?

> The following quotes for cleaning cost have been obtained from a random sample of 12 providers chosen from a much larger population, prior to awarding a contract for these services: $114,$154,$142,$132,$127,$145 $135,$138,$126,$142,$135,$124 a. Approxima

> Click-throughratesweremeasuredforeachof83mobile advertising campaigns, and showed an average rate of 2.38%, with a standard error of 0.134%. Please note that this is not a binomial situation because we are analyzing 83 percentage numbers and we do not kn

> Cost observations provided for 21 production situations have an average of $149.67 and a standard deviation of $38.85. a. Find and interpret the two-sided 95% confidence interval. b. Find the two-sided 99.9% confidence interval. c. Find the one-sided 95%

> View the 20,000 people represented in the donations database (on the companion site) as a sample from a much larger population. Of these 20,000 people, 989 made a donation in response to the current mailing. a. Find the 95% confidence interval for the po

> Randomly selected consumers in four cities have been interviewed as part of a study by a shoe retailer. Each consumer reported the number of pairs of shoes in his or her closet (each line represents one city) (Table 8.6.5): a. Estimate the mean number of

> Theaccountsofafirmhavebeenclassifiedinto56large accounts, 956 medium-sized accounts, and 16,246 small accounts. Each account has a book value (which is provided to you) representing the amount of money that is supposed to be in the account. Each account

> A poll involved interviews with 1,487 people and found that 42.3% of those interviewed were in favor of the candidate in question. The election will be held in 3 weeks. a. Approximately what percentage of the entire population would say they were in favo

> Here is a list of the dollar amounts of recent billings: $994, $307, $533, $443, $646, $148, $307, $524, $71, $973, $710, $342, $494 a. Find the average sale. What does this number represent? b. Find the standard deviation. What does this number represen

> Economists often make forecasts of future conditions. Consider the US unemployment rate for June 2015 as predicted in October 2014 as part of a survey of economists, as shown in Table 8.6.4. a. Find the average and the standard deviation. Briefly interpr

> Consider the percent change in revenues for the five largest soap and cosmetics firms as shown in Table 8.6.3. View this list as a (very small!) population with just N = 5 units. Consider drawing samples of size n = 2. a. Make a list of all possible samp

> How much money would you make if there were no costs of extraction? Would this be enough to retire?

> Consider the profits as a percent of revenue for a group of companies involved in petroleum and/or mining, as shown in Table 8.6.2. a. Construct a sampling frame, viewing this list as a population of large petroleum and/or mining-related firms. b. Draw a

> You have a factory with 40 production machines that are essentially identical, each producing a tame an daily rate of100productswithastandarddeviationof15.Youmay assume that they produce independently of one another. Consider the average daily production

> Yourrestaurantwillserve50dinnergroupstonight.Assume that the mean check size of dinner groups in general is $60, the standard deviation is $40, and the distribution is slightly skewed with a longer tail toward high values. a. Find the mean and standard d

> At a medical clinic, patient office visits are found to last a mean time of 17 min, with a standard deviation of 10 min. Assume that the probability distribution of time is independent from one patient to another. a. What is the approximate probability t

> Your automatic transmission factory has had some problems with quality. You have decided to gather information from tomorrow’s production for careful evaluation. For each of the following sampling methods, say if the procedure is good, acceptable, or unr

> You can invest in just one of four projects on a lot of land you own. For simplicity, you have modeled the payoffs (as net present value in today’s dollars) of the projects as discrete distributions. By selling the land, you can make $60,000 for sure. If

> Your company is hoping to fill a key technical position and has advertised in hopes of obtaining qualified applicants. Because of the demanding qualifications, the pool of qualified people is limited and Table 7.6.3 shows your subjective probabilities fo

> A TV system is expected to last for 50,000 hours before failure. Assume an exponential distribution for the time until failure. a. Is the distribution skewed or symmetric? b. What is the standard deviation of the length of time until failure? c. The syst

> In order to earn enough to pay your firm’s debt this year, you will need to be awarded at least two contracts. This is not usually a problem, since the yearly average is 5.1 contracts. You may assume a Poisson distribution. a. Find the probability that y

> You are planning to interview 350 consumers randomly selected from a large list of likely sales prospects, in order to assess the value of this list and whether you should assign salespeople the task of contacting them all. Assuming that 13% of the large

> Should you recommend that Wallace start looking for another job? If not, what do you suggest?

> A manufacturing process produces semiconductor chips with a known failure rate of 6.3%. Assume that chip failures are independent of one another. You will be producing 2,000 chips tomorrow. a. What is the name of the probability distribution of the numbe

> The length of time a system is “down” (ie, broken) is described(approximately) by the probability distribution in Table 7.6.2. Assume that these downtimes are exact. That is, there are three types of easily recognized

> Your firm has decided to interview a random sample of 10 customers in order to determine whether or not to change a consumer product. Your main competitor has already done a similar but much larger study and has concluded that exactly 86% of consumers ap

> Its been a bad day for the market, with 80% of securities losing value. You are evaluating a portfolio of 15 securities and will assume a binomial distribution for the number of securities that lost value. a.* What assumptions are being made when you use

> Suppose that 8% of the loans you authorize as vice president of the consumer loan division of a neighborhood bank will never be repaid. Assume further that you authorized 284 loans last year and that loans go sour independently of one another. a. How man

> Your quality control manager has identified the four major problems, the extent to which each one occurs (ie, the probability that this problem occurs per item produced), and the cost of reworking to fix each one (see Table 7.6.5). Assume that only one p

> A call option on common stock is being evaluated. If the stock goes down, the option will expire worthless. If the stock goes up, the payoff depends on just how high the stock goes. For simplicity, the payoffs are modeled as a discrete distribution with

> You are responsible for scheduling a construction project to build a convention center. In order to avoid big trouble, you will need the concrete to be placed before July 27 and for the financing to be arranged before August 6. Based on your experience a

> Suppose two events are independent. One event has probability 0.27, while the other has probability 0.64. a. Find the probability that both events happen. b. Find the probability of the union of these events. c. Find the probability that neither event ha

> You are in the process of assessing your firm’s online marketing strategy, and would like to know whether visitors to your Website who arrive from a search engine ad (after searching for your firm’s products) are more or are less likely to make a purchas

> Look carefully at conditional defect rates given various combinations of manager and production client. What do you find?

> As part of an assessment of the role of organized activities for your user base, you have compiled the following facts regarding attendance at the most recent User Conference and subsequent software license renewal. The universe you a restudying consists

> Do studies have an impact on future activities in society? A study of New Jersey adults found that those who studied civics in school were more likely to vote in a recent election.17 Specifically, 55.0% studied civics in school. Of those who studied civi

> Your new firm is introducing two products, a bicycle trailer, and a baby carriage for jogging. Your subjective probabilities of success for these products are 0.85 and 0.70, respectively. If the trailer is successful, you will be able to market the carri

> There is a saying about initial public offerings (IPOs) of stock: “If you want it, you cannot get it; if you can get it, you do not want it.” The reason is that it is often difficult for the general public to obtain shares initially when a “hot” new comp

> There are 5% defective parts manufactured by your production line, and you would like to find these before they are shipped. A quick and inexpensive inspection method has been devised that identifies 8% of parts as defective. Of parts identified as defec

> The Espresso project will do well with probability 0.80. Given that it does well, you believe the herbal tea project is likely to do well with probability 0.70. However, if the Espresso project does not do well, then the herbal tea project has only a 25%

> You have just put in a bid for a large communications network. According to your best information you figure there is a 35% chance that your competitors will outbid you. If they do outbid you, you figure you still have a 10% chance of getting the contrac

> As production manager, you are responsible for the scheduling of workers and machines in the manufacturing process. At the end of the day, you will learn how many seat covers were produced. a. Describe the random experiment identified here. b. What is th

> Your telephone operators receive many different types of calls. Requests for information account for 75% of all calls, while 15% of calls result in an actual order. Also, 10%of calls involve both information requests and order placement. a. What is the c

> Is Wallace correct? That is, what percent of Wallace’s production was the more demanding? How does this compare to the other two managers? (Note: you may wish to compare conditional probabilities, given the manager, combining defective and non-defective

> Does the distribution of Materials Used look truly bimodal? Or could it reasonably be normally distributed with just a single group?

> In a bank reconciliation, an EFT cash payment is a. deducted from the bank balance. b. deducted from the book balance. c. added to the book balance. d. added to the bank balance.

> In a bank reconciliation, an outstanding check is a. added to the bank balance. b. deducted from the book balance. c. deducted from the bank balance. d. added to the book balance.

> All of the following are controls for cash received over the counter except a. a printed receipt must be given to the customer. b. the customer should be able to see the amounts entered into the cash register. c. the sales clerk must have access to th

> Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? a. Competent and reliable personnel b. Monitoring of controls c. Assignment of responsibility d. Separation of duties

> All of the following are internal control procedures except a. Sarbanes-Oxley reforms. b. adequate records. c. assignment of responsibilities. d. internal and external audits.

> All of the following are objectives of internal control except a. to comply with legal requirements. b. to ensure accurate and reliable accounting records. c. to maximize net income. d. to safeguard assets.

> Upon graduation from Texas State Technical College in Waco, Texas, your neighbor John Abel immediately accepted a position as an electrician’s assistant for a large electrical repair company in Austin, Texas. After three years of hard work, John received

> Tidy Car, Inc., provides mobile detailing to its customers. The Income Statement for the month ended January 31, 2016, the Balance Sheet for December 31, 2015, and details of postings to the Cash account in the general ledger for the month of January 201

> The accounts of United Digital Services Company prior to the year-end adjustments follow: Adjusting data at the end of the year include the following: a. Unearned service revenue that has been earned, $1,650 b. Accrued service revenue, $32,200 c. Su

> Satterfield Corporation reported the following current accounts at December 31, 2016 (amounts in thousands): During January 2017, Satterfield completed these selected transactions: â–  Sold services on account, $9,000 â–&nb

> Refer to Exercise 2-39 of Chapter 2. Start from the trial balance and the posted T-accounts that Barbara Miracle, Certified Public Accountant, Professional Corporation (P.C.), prepared for her accounting practice at August 18. A professional corporation

> Barbara Miracle, Certified Public Accountant, operates as a professional corporation (P.C.). The business completed these transactions during the first part of August 2016: Requirements 1. Journalize the transactions for

> Use the data in S6A-1 to do the following for Wexton Technologies. Requirements 1. Post to the Inventory and Cost of Goods Sold accounts. 2. Compute cost of goods sold by the cost-of-goods-sold model. 3. Prepare the income statement of Wexton Techno

> Wexton Technologies began the year with inventory of $560. During the year, Wexton purchased inventory costing $1,160 and sold goods for $2,600, with all transactions on account. Wexton ended the year with inventory of $640. Journalize all the necessary

> Superior Drive-Ins Ltd. borrowed money by issuing $1,000,000 of 7% bonds payable at 96.5 on July 1, 2016. The bonds are 10-year bonds and pay interest each January 1 and July 1. 1. How much cash did Superior receive when it issued the bonds payable? Jou

> McQueen Corp. issued 7.5% seven-year bonds payable with a face amount of $90,000 when the market interest rate was 7.5%. Assume that the accounting year of McQueen ends on December 31 and that bonds pay interest on January 1 and July 1. Journalize the fo

> Determine whether the following bonds payable will be issued at par value, at a premium, or at a discount: a. Typecast Corporation issued 5% bonds when the market interest rate was 5%. b. Eugene Company issued bonds payable that pay stated interest of

> Read each statement below, indicate if it is true or false, and give a brief explanation of your answer. 1. When a bond is sold at a discount, the cash received is less than the present value of the future cash flows from the bond, based on the market r

> Hamm Cycles, Inc., the motorcycle manufacturer, included the following note in its annual report: 1. Why are these contingent (versus real) liabilities? 2. In the United States, how can the contingent liability become a real liability for Hamm Cycles,

> Refer to the data given in S9-3. What amount of warranty expense will Barnstormers USA report during 2016? Which accounting principle addresses this situation? Does the warranty expense for the year equal the year’s cash payments for warranties? Explain

> Barnstormers USA guarantees tires against defects for five years or 60,000 miles, whichever comes first. Suppose Barnstormers USA can expect warranty costs during the five-year period to add up to 7% of sales. Assume that a Barnstormers USA dealer in St. Pa

> Wango Sales, Inc.’s, comparative income statements and balance sheets show the following selected information for 2015 and 2016: Requirements 1. Calculate the company’s accounts payable turnover and daysâ&#128

> LuxAll, Inc., includes the following selected accounts in its general ledger at December 31, 2016: Prepare the liabilities section of LuxAll, Inc.’s, balance sheet at December 31, 2016, to show how the company would report these items

> Complete the following statements with one of the terms listed here. Capital lease Overfunded Underfunded Lessee Pension Operating lease Lessor Liability 1. A(n) is an agreement that does not transfer the risks or rewards of asset o

> Jalbert Plumbing Products Ltd. reported the following data in 2016 (in millions): Compute Jalbert’s leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Use year-en

> Nautical Marina needs to raise $1.0 million to expand the company. Nautical Marina is considering the issuance of either ■ $1,000,000 of 8% bonds payable to borrow the money, or ■ 100,000 shares of common stock at $10 per share. Before any new financin

> Examine the following selected financial information for Best Buy Co., Inc., and Walmart Stores, Inc., as of the end of their fiscal years ending in 2015: 1. Complete the table, calculating all the requested information fo

> Use the amortization table that you prepared for Jackson Corporation’s bonds in S9-13 to answer the following questions: 1. How much cash did Jackson Corporation borrow on January 1, 2016? How much cash will Jackson Corporation pay back at maturity? 2.

> Jackson Corporation issued $600,000 of 6%, 10-year bonds payable on January 1, 2016. The market interest rate at the date of issuance was 4%, and the Jackson Corporation bonds pay interest semiannually. Jackson Corporation’s year-end is June 30. 1. Usin

> Use the amortization table that you prepared for Hartley Corporation’s bonds in S9-11 to answer the following questions: 1. How much cash did Hartley Corporation borrow on March 31, 2016? How much cash will Hartley Corporation pay back at maturity on Ma

> Hartley Corporation issued $520,000 of 5%, 12-year bonds payable on March 31, 2016. The market interest rate at the date of issuance was 8%, and the Hartley Corporation bonds pay interest semiannually. Hartley Corporation’s year-end is March 31. 1. Usin

> Charley Company borrowed money by issuing $2,000,000 of 6% bonds payable at 101.5 on July 1, 2016. The bonds are five-year bonds and pay interest each January 1 and July 1. 1. How much cash did Charley receive when it issued the bonds payable? Journalize

> Drexel Sports Authority purchased inventory costing $23,000 by signing a 10%, six-month, short-term note payable. The purchase occurred on January 1, 2016. Drexel will pay the entire note (principal and interest) on the note’s maturity date of July 1, 20

> Williams Company purchases 1,000 shares of American Express common stock at the market price of $81.34 on March 23, 2016. (The equity method does not apply in this situation.) Williams intends to hold this investment for more than one year. On June 22, 2

> Return to S8-7, the Helio Ward (HW) investment in Amexon bonds. Journalize the following on HW’s books: a. Purchase of the bond investment on June 30, 2016. HW expects to hold the investment to maturity. b. Receipt of semiannual cash interest on Decemb

> Helio Ward (HW) owns vast amounts of corporate bonds. Suppose that on June 30, 2016, HW buys $1,300,000 of Amexon bonds at a price of 103. The Amexon bonds pay cash interest semiannually on June 30 and December 31 at the annual rate of 5% and mature at t

> Using the data from S8-5, make the adjusting entries that Sunshine Pools would need to make on December 31, 2016, related to the investment in BHT bonds. How would the bonds be reported on Sunshine Pools’ balance sheet as of December 31, 2016? What amoun

> Sunshine Pools purchased $100,000 of 12% BHT bonds on January 1, 2016, at a price of 107.5 when the market rate of interest was 10%. Sunshine intends to hold the bonds until their maturity date of January 1, 2021. The bonds pay interest semiannually on e

> Using the data from S8-2, make the adjusting entry that Broadbent Insurance would need to make on December 31, 2016, related to the investment in DGM bonds. How would the bonds be reported on Broadbent Insurance’s balance sheet as of December 31, 2016? W

> Using the data from S8-2, calculate the amount of discount amortization (using the straight-line amortization method) on July 1, 2016, and record the related journal entry. What is the total interest revenue for the first six months of 2016? From S8-2 B

> Chaplin Leasing leased a car to a customer. Chaplin will receive $150 a month for 60 months. 1. What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV function in Excel to compute the present value. 2. What i

> Calculate the present value of the following amounts: 1. $12,000 at the end of five years at 10% 2. $12,000 a year at the end of the next five years at 10%

> Broadbent Insurance purchased $100,000 of 5.5% DGM bonds on January 1, 2016, at a price of 90 when the market rate of interest was 8%. Broadbent intends to hold the bonds until their maturity date of January 1, 2021. The bonds pay interest semiannually o