During the afternoon peak hours the First Bank of Dubuque has an average of 40 customers arriving every hour. There is also an average of 8 customers at First Bank at any time. The probability of the arrival distribution is unknown. How long does the average customer spend in the bank?
> Refer to the stock market quote in Table 8–1. a. What was the closing stock price for Genprex Inc. on February 21, 2020? b. What was the dollar change in Oncolytics Biotech's stock price from February 20, 2020, and February 21, 2020?
> Calculate the ask price of the T-bill maturing on February 20, 2020, as of December 27, 2019. b. Calculate the bid price of the T-bill maturing on April 30, 2020, as of December 27, 2019.
> Refer to the stock market quote in Table 8–1. a. What was the closing stock price for Celldex Therapeutics on February 21, 2020? b. What was the percentage change in Dropbox's stock price from February 20, 2020, and February 21, 2020?
> Consider an investor who, on January 1, 2022, purchases a TIPS bond with an original principal of $100,000, an 8 percent annual (or 4 percent semiannual) coupon rate, and 10 years to maturity. a. If the semiannual inflation rate during the first six
> On July 10, 2022, you purchase a $10,000 T-note that matures on December 31, 2028 (settlement occurs one day after purchase, so you receive actual ownership of the bond on July 11, 2022). The coupon rate on the T-note is 2.125 percent and the current
> On October 5, 2022, you purchase a $10,000 T-note that matures on August 15, 2031 (settlement occurs one day after purchase, so you receive actual ownership of the bond on October 6, 2022). The coupon rate on the T-note is 4.375 percent and the curre
> Verify the May 23, 2016, asked yield of 1.09 percent on the Treasury bond, stripped principal STRIPS maturing August 2019. Use a one-day settlement period from the date of purchase (i.e., ownership occurs on Wednesday, May 24, 2016). The STRIPS matur
> Refer to Table 9–1. a. On February 13, 2020, you purchased a British pound– denominated CD by converting $1 million to pounds at a rate of 0.8226 pound for U.S. dollars. It is now March 13, 2020. Has the U.S. dollar
> Refer to Table 9–1. a. What was the spot exchange rate of Canadian dollars for U.S. dollars (USD/CAD) on March 13, 2020? b. What was the six-month forward exchange rate of Canadian dollars for U.S. dollars (USD/CAD) on March 13, 2020?
> What is cryptocurrency? Explain how cryptocurrency differs from a crypto-asset.
> Which of the capital market instruments is the largest in terms of dollar amount outstanding in 2019?
> Describe the advantages and disadvantages of incumbent banks compared to fintechs.
> Which of the money market instruments is the largest in terms of dollar amount outstanding in 2019?
> What were the demand factors that contributed to the recent emergence of fintechs?
> Classify the following financial instruments as money market securities or capital market securities: a. Banker’s acceptances b. Commercial paper c. Common stock d. Corporate bonds e. Mortgages f. Negotiable certificates of deposit g. Repurchase agreemen
> Classify the following transactions as taking place in the primary or secondary markets: a. IBM issues $200 million of new common stock. b. The New Company issues $50 million of common stock in an IPO. c. IBM sells $5 million of GM preferred stock out
> What is fintech risk?
> What are four categories of fintech innovations according to the Basel Committee of Banking Supervision (BCBS)? Give specific examples for each category of innovations.
> What is banking-as-a-service? How are banks embracing a platform-based business model?
> Describe the advantages and disadvantages of fintechs compared to incumbent banks.
> What are peer-to-peer (P2P) payments? What P2P apps have you used recently?
> Explain the European Union’s General Data Protection Regulation (GDPR) and how it might benefit the fintechs.
> What were the supply factors that contributed to the recent emergence of fintechs?
> Which country has the highest fintech adoption rate?
> Explain the European Union’s Open Banking standards and how they might benefit the fintechs.
> Explain the European Union’s Payment Services Directive 2 (PSD2) and how it might benefit the fintechs.
> What changes did the FDIC make to the deposit insurance assessment scheme for DIs in 2007?
> What is a fintech sandbox?
> Explain one of the reasons high-frequency trading (HFT) has hit a speed bump. Do you think fintechs will experience the same difficulties HFT firms have experienced?
> What is crowdfunding? Have you used any crowdfunding apps recently?
> Describe applications of Internet-of-things (IoT) in the financial services industry.
> Refer to Table 10–4. a. If you think five-year Treasury note prices will fall between March 13, 2020 and June 2020, what type of futures position would you take? b. If you think inflation in Japan will increase by more than that in t
> Neve Commercial Bank is the only bank in the town of York, Pennsylvania. On a typical Friday, an average of 10 customers per hour arrive at the bank to transact business. There is currently one teller at the bank, and the average time required to transac
> Virginia’s Ron McPherson Electronics Corporation retains a service crew to repair machine breakdowns that occur on average (=3 per 8-hour workday (approximately Poisson in nature). The crew can service an average of (= 8 machines per workday, with a repa
> Automobiles arrive at the drive-through window at the downtown Baton Rouge, Louisiana, post office at the rate of 4 every 10 minutes. The average service time is 2 minutes. The Poisson distribution is appropriate for the arrival rate and service times ar
> Calls arrive at Lynn Ann Fish’s hotel switchboard at a rate of 2 per minute. The average time to handle each is 20 seconds. There is only one switchboard operator at the current time. The Poisson and negative exponential distributions appear to be releva
> The pharmacist at Arnold Palmer Hospital, Wende Huehn-Brown, receives 12 requests for prescriptions each hour, Poisson distributed. It takes her a mean time of 4 minutes to fill each, following a negative exponential distribution. Use the waiting-line ta
> Dr. Tarun Gupta, a Michigan vet, is running a rabies vaccination clinic for dogs at the local grade school. Tarun can “shoot” a dog every 3 minutes. It is estimated that the dogs will arrive independently and randomly throughout the day at a rate of one
> Cynthia Knott’s Car Wash is open 6 days a week, but its busiest day is always Saturday. From historical data, Cynthia estimates that dirty cars arrive at the rate of 20 per hour all day Saturday. With a full crew working the hand-wash line, she figures t
> At the start of football season, the ticket office gets very busy the day before the first game. Customers arrive at the rate of four every 10 minutes, and the average time to transact business is 2 minutes. a) What is the average number of people in lin
> Due to a recent increase in business, a paralegal must now process an average of 20 legal briefs per day (assume a Poisson distribution). It takes him approximately 20 minutes to prepare each brief (assume an exponential distribution). Assuming the paral
> Customers arrive at a local 7–11 store at the rate of ( = 40 per hour (and follow a Poisson process). The only employee in the store can check them out at a rate of ( = 60 per hour (following an exponential distribution). Compute the following: a) The pe
> A company is investigating the make-or-buy decision for a new item with the following cost structure: a) At what volumes would each decision be preferred? b) What is the most economical decision for a volume of 15,000 units per year?
> Vacation Inns, a chain of hotels operating in the southeastern region of the U.S., uses a toll-free telephone number to take reservations for all of its hotels. An average of 12 calls are received per hour. The probability distribution that describes the
> Twenty-four customers arrive every hour (Poisson distributed) at Andy Johnson’s food truck when it parks outside the Orlando Courthouse from 11–2 p.m. on weekdays. It takes Andy a mean time of 2 minutes to fill each order (following a negative exponentia
> Fisher’s Furniture Store sells $800,000 worth of furniture to customers on credit each month. The Accounts Receivable balance in the accounting books averages $2 million. On average, how long are customers taking to pay their bills?
> Gamma Bank processes a typical loan application in 2.4 weeks. Customers fill out 30 loan applications per week. On average how many loan applications are being processed somewhere in the system at Gamma Bank?
> Lobster World stores approximately 1,000 pounds of fish on average. In a typical day, the busy restaurant cooks and sells 360 (raw) pounds of fish. How long do the fish stay in storage on average?
> An average of 9 cars can be seen in the system (both the drive-through line and the drive-through window) at Burger Universe. Approximately every 20 seconds, a car attempts to enter the drive through line; however, 40% of cars simply leave the restaurant
> The Chattanooga Furniture store gets an average of 50 customers per shift. Marilyn Helms, the manager, wants to calculate whether she should hire 1, 2, 3, or 4 salespeople. She has determined that average waiting times will be 7 minutes with one salesper
> Refer to Problem D.22. A new registration manager, Dwayne Cole, is hired who initiates a program to entertain the people in line with a juggler whom he pays $15/hour. This reduces the waiting costs to $50 per hour. a) What is the optimal number of server
> The registration area has just opened at a large convention of dentists in Tallahassee, Florida. There are 200 people arriving per hour (Poisson distributed), and the cost of their waiting time in the queue is valued at $100 per person per hour. The Tall
> Using the house of quality sequence, as described in Figure 5.4 on page 201, determine how you might deploy resources to achieve the desired quality for a product or service whose production process you understand.
> The Pontchartrain Bridge is a 16-mile toll bridge that crosses Lake Pontchartrain in New Orleans. Currently, there are 7 toll booths, each staffed by an employee. Since Hurricane Katrina, the Port Authority has been considering replacing the employees wi
> Ted Glickman, the administrator at D.C. General Hospital emergency room, faces the problem of providing treatment for patients who arrive at different rates during the day. There are four doctors available to treat patients when needed. If not needed, th
> There is only one copying machine in the student lounge of the business school. Students arrive at the rate of l 5 40 per hour (according to a Poisson distribution). Copying takes an average of (=40 seconds, or / per hour (according to a negative exponen
> One mechanic services 5 drilling machines for a steel plate manufacturer. Machines break down on an average of once every 6 working days, and breakdowns tend to follow a Poisson distribution. The mechanic can handle an average of one repair job per day.
> A technician monitors a group of 5 computers that run an automated manufacturing facility. It takes an average of 15 minutes (negative exponentially distributed) to adjust a computer that develops a problem. On average, one of the computers requires adju
> Debra Bishop’s cabinet-making shop, in Des Moines, has five tools that automate the drilling of holes for the installation of hinges. Each machine needs an average of 3 “resettings” every 8-hour day, following the Poisson distribution. There is a single
> Renuka Jain’s Car Wash takes a constant time of 4.5 minutes in its automated car wash cycle. Autos arrive following a Poisson distribution at the rate of 10 per hour. Renuka wants to know: a) The average waiting time in line. b) The average length of the
> Altug’s Coffee Shop decides to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in line inside. Mehmet Altug charges $3.50 per cup. However, it takes too long for people to make change. The ser
> Janson’s Department Store in Stark, Ohio, maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalog department are answered automatically by a rec
> Bill Youngdahl has been collecting data at the TU student grill. He has found that, between 5:00 p.m. and 7:00 p.m., students arrive at the grill at a rate of 25 per hour (Poisson distributed) and service time takes an average of 2 minutes (negative expo
> Conduct an interview with a prospective purchaser of a new bicycle and translate the customer’s wants into the specific hows of the firm.
> Customers arrive at Rich Dunn’s Styling Shop at a rate of 3 per hour, distributed in a Poisson fashion. Rich’s service times follow a negative exponential distribution, and Rich can complete an average of 5 haircuts per hour. a) Find the average number o
> Consider the following LP problem developed at Zafar Malik’s Carbondale, Illinois, optical scanning firm: a) What is the optimal solution to this problem? Solve it graphically. b) If a technical breakthrough occurred that raised the pro
> The Lifang Wu Corporation manufactures two models of industrial robots, the Alpha 1 and the Beta 2. The firm employs 5 technicians, working 160 hours each per month, on its assembly line. Management insists that full employment (that is, all 160 hours of
> Green Vehicle Inc. manufactures electric cars and small delivery trucks. It has just opened a new factory where the C1 car and the T1 truck can both be manufactured. To make either vehicle, processing in the assembly shop and in the paint shop are requir
> The Chris Beehner Company manufactures two lines of designer yard gates, called model A and model B. Every gate requires blending a certain amount of steel and zinc; the company has available a total of 25,000 lb of steel and 6,000 lb of zinc. Each model
> The Attaran Corporation manufactures two electrical products: portable air conditioners and portable heaters. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wir
> Porter Investments needs to develop an investment portfolio for Mrs. Singh from the following list of possible investments: Mrs. Singh has a total of $60,000 to invest. The following conditions must be met: (1) If investment F is chosen, then investment
> Rollins Publishing needs to decide what textbooks from the following table to publish. For each book, the maximum demand, fixed cost of publishing, variable cost, and selling price are provided. Rollins has the capacity to publish a total of 20,000 books
> You have just been hired as a planner for the municipal school system, and your first assignment is to redesign the subsidized lunch program. In particular, you are to formulate the least expensive lunch menu that will still meet all state and federal nu
> Consider the following LP problem: a) Solve the problem graphically. b) Is there more than one optimal solution? Explain.
> Prepare a house of quality for a mousetrap.
> The donkey driver Donkey King is using a donkey to carry goods from Harbor City to a village up in the mountains. The people living in the village are willing to buy gold, silk, salt, and sponge. Donkey King is able to earn €500 for each gold bullion, €2
> Leach Distributors packages and distributes industrial supplies. A standard shipment can be packaged in a class A container, a class K container, or a class T container. A single class A container yields a profit of $9; a class K container, a profit of $
> The intensive care unit (ICU) at a certain hospital operates 24 hours a day. Doctors report for duty at 6 a.m., 12 p.m., 6 p.m., or 12 a.m., and the following table below shows the minimum number of doctors that should be available during different perio
> The Rio Credit Union has $250,000 available to invest in a 12-month commitment. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier high yield bonds at an average rate of return of 9%. Credit union regulations require
> A feed processor in Delta Egypt must store various amounts of three different commodities in five different silos. The loading cost per ton in E£, the amount to be stored in tons, and the capacity of each silo in tons are shown in the table
> Fixawy is a new mobile platform operative in Egypt to search for home service craftsmen. In order to expand its network, the company has decided to develop an aggressive social media marketing campaign on two different social media platforms: Instagram a
> This is the slack time of year at JES, Inc. The firm would actually like to shut down the plant, but if it laid off its core employees, they would probably go to work for a competitor. JES could keep its core (full-time, year-round) employees busy by mak
> A tailor sews dresses and suits. For a suit the tailor uses 3 m2 of wool and 1 m2 of cotton. For a dress the tailor uses 2 m2 of wool and 2 m2 of cotton. The tailor has 80 m2 of cotton and 120 m2 of wool in storage. How many dresses and suits will the ta
> Solve the following LP problem graphically:
> Solve the following LP problem graphically:
> Using the house of quality, pick a real product (a good or service) and analyze how an existing organization satisfies customer requirements.
> Consider Paul Jordan’s following LP formulation: a) Graphically illustrate the feasible region to indicate to Jordan which corner point produces the optimal solution. b) What is the cost of this solution?
> The Sweet Smell Fertilizer Company markets bags of manure labeled “not less than 60 lb dry weight.” The packaged manure is a combination of compost and sewage wastes. To provide good-quality fertilizer, each bag should contain at least 30 lb of compost b
> Doug Turner Food Processors wishes to introduce a new brand of dog biscuits composed of chicken- and liverflavored biscuits that meet certain nutritional requirements. The liver-flavored biscuits contain 1 unit of nutrient A and 2 units of nutrient B; th
> Solve the following LP problem graphically:
> Solve the following linear program graphically:
> Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given in the following LP problem: b) Is there unused time available on any of the machines with the optimal solution? c) What would it be worth to the firm to
> Andy’s Bicycle Company (ABC) has the hottest new product on the upscale toy market—boys’ and girls’ bikes in bright fashion colors, with oversize hubs and axles; shell design safety tires; strong padded frames; chrome-plated chains, brackets, and valves;
> Solve the following LP problem graphically. Indicate the corner points on your graph.
> Solve the following LP problem graphically:
> Mamlouk Design is an Egyptian manufacturer of handmade silk rugs. The company manufactures rugs in two different sizes: 1.5 * 2.5 meters and 2 * 3 meters. The manufacturing process depends mainly on the labor required, where each 1.5 * 2.5 meter rug requ
> Construct a house of quality matrix for a wristwatch. Be sure to indicate specific customer wants that you think the general public desires. Then complete the matrix to show how an operations manager might identify specific attributes that can be measure
> Solve the following LP problem graphically:
> The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in furniture. During the next production cyc
> Solve the following linear programming problem graphically:
