Question: Here are the numbers of new customers

> Explain the circumstances under which a single college graduate would or would not need life insurance. What life-cycle events would change this initial evaluation, and how might they affect the graduate’s life insurance needs?

> Explain the purpose of underwriting. What are some factors that underwriters consider when evaluating a life insurance application?

> Describe the key elements of an insurance policy illustration and explain what a prospective client should focus on in evaluating an illustration.

> A year after declaring bankruptcy and moving with her daughter back into her parents’ home, June Maffeo is about to get a degree in nursing. As she starts out in a new career, she also wants to begin a new life—one built on a solid financial base. June w

> Explain the following clauses often found in life insurance policies: (a) multiple indemnity clause, (b) disability clause, and (c) suicide clause. Give some examples of common exclusions.

> What do non forfeiture options accomplish? Differentiate between paid-up insurance and extended term insurance.

> Explain the basic settlement options available for the payment of life insurance proceeds upon a person’s death.

> What is a beneficiary? A contingent beneficiary? Explain why it’s essential to designate a beneficiary for your policy.

> Define (a) risk avoidance, (b) loss prevention, (c) loss control, (d) risk assumption, and (e) an insurance policy. Explain their interrelationships.

> Briefly describe the insurance company ratings assigned by A. M. Best, Moody’s, Fitch, and Standard & Poor’s. Why is it important to know how a company is rated? What ratings would you look for when selecting a life insurance company? Explain.

> Briefly describe the steps to take when you shop for and buy life insurance.

> Explain how group life insurance differs from standard term life insurance. What do employees stand to gain from group life?

> What is universal life insurance? Explain how it differs from whole life and variable life insurance.

> Describe the different types of whole life policies. What are the advantages and disadvantages of whole life insurance?

> Felipe and Lucia Ramirez are a newly married couple in their mid-20s. Conrad is a senior at a state university and expects to graduate in the summer of 2015. Lucia graduated last spring with a degree in marketing and recently started working as a sales r

> Explain how the “paid-up insurance” component of a whole life insurance policy works.

> Explain how whole life insurance offers financial protection to an individual throughout his or her life.

> What are the advantages and disadvantages of term life insurance?

> Discuss the role that insurance plays in the financial planning process. Why is it important to have enough life insurance?

> List and briefly discuss the different factors to consider when shopping for a loan. How would you determine the total cost of the transaction?

> What two questions should be answered before taking out a consumer loan? Explain.

> Discuss the role in consumer lending of (a) credit unions and (b) savings and loan associations. Point out any similarities or differences in their lending activities. How do they compare with commercial banks?

> Compare the consumer lending activities of (a) consumer finance companies and (b) sales finance companies. Describe a captive finance company.

> Define and differentiate between (a) fixed- and variable-rate loans and (b) a single payment loan and an installment loan.

> Explain some strategies for reducing the cost of student loans.

> Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, she’s seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expec

> As a college student, what aspects of these student loan programs appeal to you the most?

> Identify several different types of federally sponsored student loan programs.

> Define simple interest as it relates to an installment loan. Are you better off with add-on interest? Explain.

> Explain why a borrower is often required to purchase credit life and disability insurance as a condition of receiving an installment loan.

> What is a home equity loan, and what are its major advantages and disadvantages?

> Briefly describe the basic features of an installment loan.

> Describe the two methods used to calculate the finance charges on a single payment loan. As a borrower, which method would you prefer? Explain.

> When might you request a loan rollover?

> What is a lien, and when is it part of a consumer loan?

> List and briefly discuss the five major reasons for borrowing money through a consumer loan.

> Ben and Marie Gerrard, both in their mid-20s, have been married for four years and have two preschool-age children. Ben has an accounting degree and is employed as a cost accountant at an annual salary of $62,000. They’re now renting a duplex but wish to

> During the Christmas break of his final year at the University of Maryland (UMD), Jim Curtis plans to put together his résumé in order to seek full-time employment as a software engineer during the spring semester. To help Jim prepare for the job intervi

> Describe the similarities and differences between the nonparametric test for two unpaired samples and the unpaired t test.

> a. Can the nonparametric test for two unpaired samples be used with quantitative data? Why or why not? b. Can the nonparametric test for two unpaired samples be used with ordinal data? Why or why not? c. Can the non parametric test for two unpaired sampl

> a. What happens if there is an outlier in one of the samples in a test of two unpaired samples? For each case (very large or very small outlier), say what the rank of the outlier would be. b. Which statistical method (nonparametric or parametric) is more

> a. What is the difference (if any) between the Wilcoxon rank-sum test and the Mann-Whitney U test? b. What is the relationship between the Wilcoxon rank-sum test, the Mann-Whitney U test, and the test based on the difference between the average overall r

> An advertisement is being tested to see if it is effective in creating the intended mood of relaxation. A sample of 15 people was tested just before and just after viewing the ad. Their questionnaire included many items, but the one being considered now

> What problems, if any, are visible in the control charts in Fig. 18.5.4? What action (if any) would you suggest? Fig. 18.5.4: 10 10- 5 10 15 10 15 FIG. 18,5.4 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.3? What action (if any) would you suggest? Fig. 18.5.3: 10 10 0- 5 10 15 10 15 FIG. 18.5.3 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.6? What action (if any) would you suggest? Fig. 18.5.6: 10 10 - 10 15 10 15 FIG. 18.5.6 Averages Ranges

> What problems, if any, are visible in the control charts in Fig. 18.5.5? What action (if any) would you suggest? Fig. 18.5.5: 10 10 AAA 5 10 15 5 10 15 FIG. 18.5.5 Averages Ranges

> Are your customers special? In particular, is their interest level in your promotional newsletter higher than for potential customers (who are not currently customers)? Justify your answer by reporting the chi-squared statistic and its degrees of freedom

> Why is it much more difficult to establish independence than it is to establish dependence (lack of independence)?

> Use the data sets from problems 2 and 3, on profit as a percent of sales for building materials firms and for aerospace firms. a. Find the median profit for each industry group and compare them. b. Combine the two data sets into a single column of profit

> a. Describe the data set consisting of two unpaired samples. b. What hypotheses would ordinarily be tested for such data?

> What is the purpose of the chi-squared test for independence?

> a. What assumption must be met for the sign test to be valid? b. What assumption is not required for the sign test but would be required for a t test to be valid?

> a. What is meant by independence of two qualitative variables? b. What is the relationship between conditional probabilities and independence of qualitative variables?

> Can statistical process control be applied to business activities in general, or is it restricted to manufacturing?

> What is the purpose of the chi-squared test for equality of percentages?

> a. What is a parametric statistical method? b. Name some parametric methods you have used.

> For what kind of variables are chi-squared tests useful?

> Describe the similarities and differences between the sign test for the differences and the paired t test.

> a. How should you interpret this statement: One test is more efficient than another? b. If the distribution is normal, which would be more efficient, a parametric test or a nonparametric test? c. If the distribution is far from normal, which would be lik

> a. List the advantages of nonparametric testing over parametric methods, if any. b. List the disadvantages, if any, of nonparametric testing compared with parametric methods. How serious are these shortcomings?

> Your human resources department has referred 26 employees for alcohol counseling. While the work habits of 15 improved, 4 actually got worse, and the remaining 7 were unchanged. Use the sign test for the differences to tell whether significantly more peo

> a. What does the chi-squared statistic measure, in terms of the relationship between the observed data and the null hypothesis? b. Do you reject the null hypothesis for large or for small values of the chi-squared statistic? Why?

> a. What is a nonparametric statistical method? b. For the nonparametric approach based on counts, what is being counted? What probability distribution is used to make the decision? c. For the nonparametric approach based on ranks, what information is dis

> a. Describe a typical control chart for a process that is in control. b. Describe three different ways in which a control chart could tell you that the process is not in control.

> a. What is a control chart? b. Explain how control charts help you perform the five basic activities of statistics. c. What hypotheses are being tested when you use control charts? d. What is the false alarm rate? Is it conventional to set it at 5%?

> a. What information is displayed in a Pareto diagram? b. What makes the Pareto diagram useful as a management tool?

> a. What do we mean when we say that a process is in a state of statistical control? b. What should you do when a process is not in control? c. What should you do when a process appears to be in control?

> a. What is an assignable cause of variation? b. What is a random cause of variation?

> a. What kind of data set is appropriate for the sign test for the differences? b. What hypotheses are being tested? c. What assumption is required?

> Why should you monitor a process? Why not just inspect the results and throw away the defective ones?

> a. What is a process? b. What is the relationship between a process and its sub processes? c. What is statistical process control?

> a. What is the purpose of the percentage chart? b. How large should the sample size be? c. How would you find the center line if you had no standard? d. How would you find the centerline if you did have a standard? e. How would you find the control limit

> Stress levels were recorded during a true answer and a false answer given by each of six people in a study of lie-detecting equipment, based on the idea that the stress involved in telling a lie can be measured. The results are shown in Table 16.4.4. a.

> a. What is the purpose of the R chart? b. What is a typical sample size? c. How would you find the center line if you had no standard? d. How would you find the centerline if you did have a standard? e. How would you find the control limits if you had no

> a. What is the purpose of the

> a. What is statistical quality control? b. Why are statistical methods so helpful for quality control?

> a. For the chi-squared test for independence, what do you conclude if the chi-squared statistic is larger than the value in the chi-squared table? b. What do you conclude if the chi-squared statistic is smaller than the value in the chi-squared table?

> a. For what kind of data set is the chi-squared test for independence appropriate? b. What are the reference values for this test, if any? c. What are the hypotheses? d. How are the expected counts obtained? What do they represent? e. What assumptions ar

> a. For the chi-squared test for equality of percentages, what do you conclude if the chi-squared statistic is larger than the value in the chi-squared table? b. What do you conclude if the chi-squared statistic is smaller than the value in the chi-square

> No matter how closely the production process is monitored, some chips will work faster than others and be worth more in the marketplace. The goal is to make this number as high as possible, and improvements are being implemented continually. Consider the

> a. Can the sign test for the differences be used with quantitative data? Why or why not? b. Can the sign test for the differences be used with ordinal data? Why or why not? c. Can the sign test for the differences be used with nominal data? Why or why no

> Describe the similarities and differences between the sign test and the t test.

> a. For what kind of data set is the chi-squared test for equality of percentages appropriate? b. What are the reference values for this test? c. What are the hypotheses? d. How are the expected counts obtained? What do they represent? e. What assumptions

> a. Can the sign test be used with quantitative data? Why or why not? b. Can the sign test be used with ordinal data? Why or why not? c. Can the sign test be used with nominal data? Why or why not?

> a. For a continuous population, which measure of typical value is the sign test concerned with? b. What probability distribution does this test rely on? c. Suppose the population is discrete and an appreciable fraction of the population is equal to its m

> Consider the profits of the building materials firms in the Fortune 500, given in Table 16.4.1. a. Draw a histogram of these profit percentages. Describe the distribution. b. Find the average and the median. Explain why they are either similar or differe

> For each of the following situations, say whether parametric or nonparametric methods would be preferred. Give a reason for your choice and indicate how serious a problem it would be to use the other method. a. Your data set consists of bond ratings, of

> Use an on parametric test to see whether the median experience of employees differs significantly from 3 years.

> Last year your department handled a median of 63,821 calls per day. (This is the median of the total calls handled each day during the year.) So far this year, more than half of the days have had total calls above this level (there were 15 days above and

> Of the 35 people in your sales force, more than half have productivity above the national median. The exact numbers are 23 above and 12 below. Are you just lucky, or is your sales force significantly more productive than the national median? How do you k

> Consider the profits of the aerospace firms in the Fortune 500, shown in Table 16.4.2. a. Draw a histogram of these profit percentages. Describe the distribution. b. Find the average and the median. Explain why they are either similar or different. c. Us

> Mr. K. R. Wood, president of Broccoli Enterprises, is interested in the data shown in Table 18.5.4, representing the lengths of broccoli trees after cutting. a. Find the average,

> Continue with the data set in Table 18.5.3, representing the thicknesses of a protective coating. a.* Find the center line for the R chart. b.* Find the control limits for the R chart. c. Draw the R chart. d. Comment on what you see in the R chart. In pa

> Consider the data set shown in Table 18.5.3, representing the thicknesses of a protective coating. a. Find the average,

> Find the center line and control limits for each of the following situations. a.*

> Consider the

> A firm specializing in the processing of rebate certificates has tabulated the frequency of occurrence of various types of problems, as shown in Table 18.5.2. a. Arrange the problems in order from most to least frequent, and create a table indicating the

> A candy manufacturer has observed the frequency of various types of problems that occur in the production of small chocolates with a hard candy coating. The basic data set is shown in Table 18.5.1. a. Arrange the problems in order from most to least freq

> Use a nonparametric test to see whether the median age of employees differs significantly from 40 years.