Question: Historically it has taken a local council

> Recent legislation requires adherence to detailed and complex food-labelling requirements on products sold to consumers. A recent survey examined whether the food labelling on supermarket own-brand products met these requirements. The results were catego

> An international company routinely rotates its senior managers every five to six years around its activities worldwide. Staff are financially compensated for such moves but with many staff buying a house in their new location, there are concerns about re

> A company employs largely part-time staff, and in the past has found staff turnover to be 23 per cent each year (that is 23 per cent of staff in any one year leave the company). This is felt to be too high, with implications for morale, motivation and co

> The Inland Revenue has introduced a self-assessment system for tax payments whereby citizens themselves calculate the amount of tax to be paid on income each year. Naturally, the Inland Revenue checks such self-assessments, although it does not have the

> Return to Exercise 6 in Chapter 4. Calculate the mean and standard deviation if you have not already done so. Given that this data is a sample, calculate the 90 per cent, 95 per cent and 99 per cent confidence intervals around the mean. Provide a managem

> An airline company is considering providing a new daily service between Edinburgh and Copenhagen. The aircraft has a maximum capacity of 200 passengers and each flight incurs a fixed cost of £25 000 (regardless of the number of passengers). In addition,

> A public transport organization has had a reputation for many years of caring little for its customers – the passengers it carries. In particular, the enquiry office has had a particularly poor reputation. New management have decided to try to improve th

> A hospital laboratory has the task of screening blood samples of patients and producing a summary report for clinicians. Because of the limitations of equipment, staff training and time, the laboratory manager knows that there is an error rate involved i

> A large manufacturing firm is concerned about lost production: that is, production capability that was not utilized for a variety of reasons. One of the causes of such lost production has been identified as employees taking time off work because of illne

> A large retail organization is currently investigating a number of areas of its operations with a view to improving performance in terms of efficiency, sales and profits. The organization has been monitoring the monthly sales of one of its more profitabl

> The following exercises all relate to the development of a suitable time-series decomposition model for the data shown. In each case you should adopt the following procedure: (a) Plot the original data as a time-series graph. (b) Determine whether an add

> Consider the two sets of sales data in Table 9.14. Apply the exponential-smoothing model to this data with a variety of values. What do you observe about the accuracy of the model over time in the two series? Table 9.14 Weekly sales Week Sales uni

> Return to the unit sales data used in this chapter. Apply the exponential-smoothing model to this data using values for a of 0.15, 0.2, 0.25 and 0.3. Assess the accuracy of each choice of a and decide which you would use to forecast future values.

> A senior police manager is reviewing manpower allocation of police officers to a number of geographical districts which fall under her responsibility. Data has been collected on a number of variables, as shown in Table 10.22. Crimes The number of reporte

> A training agency is currently reviewing part of its operations. It runs one particular scheme whereby young people who are unemployed are put through a training course which provides them with a variety of IT skills including word-processing, spreadshee

> A large retail organisation has a number of home-furnishing outlets in a particular region, selling products such as carpets, curtains, domestic furniture and fittings. The organisation has been affected badly by the downturn in domestic property sales i

> Next week you have to travel around parts of the country on business and have decided to hire a car from a car-hire company. You have contacted two companies which offer different services. The first company will rent you a car for £45 per day. The secon

> As manager of a local leisure centre you are investigating the frequency of use of the centre by its members. You hope that by understanding some of the key factors that influence how often members use the centre’s facilities you will b

> The corporate planning department in a large brewing company has been trying to develop a medium-term forecasting model relating to the demand for one of their products: a low-alcohol lager. The method used has been based around multiple regression. The

> A small engineering company has been monitoring its total costs over the last few years on a quarterly basis together with the number of employees and production level. In order to assist the company to evaluate alternative strategic and operational opti

> In the worked example we analyzed the relationship between per capita income and consumers’ expenditure on Food & Drink. Table 10.17 shows consumers’ expenditure on a number of other categories. For each category,

> Return to the variables used in Chapter 9, Exercise 3. In that exercise you were required to obtain a trend for each variable using moving averages. For each trend that you obtained, forecast the trend one year into the future using regression. Evaluate

> For the following data calculate the correlation coefficient and plot the data on a scatter diagram. Do you think it measures the strength of the relationship accurately?

> A small electrical repair shop finds it has two main types of work. Customers bring items in for repair: TVs, videos, etc. require major repair; other repairs are classed as minor. At present the shop has more business than it can handle and is trying to

> A small engineering company makes two products for export, A and B. Both products go through a four-stage process: turning, grinding, polishing, finishing. The two products are produced in batches of 100 items and the time taken, in hours, for each batch

> For the problem in Exercise 1 assume the firm now wishes to maximise revenue rather than profit (a) Formulate this problem in terms of determining the revenue-maximising combination of the two products on a weekly basis. (b) Solve the problem graphicall

> A manufacturer is trying to determine the combination of two products, A and B, that should be produced. Each product passes through a three-stage production process: Stages I, II and III. For product A Stage I takes three hours of labour, Stage II four

> A firm finds that the demand for its product can be represented mathematically as: Qd = 1000 - 5P where Qd is the number of units of the product demanded by customers and P is the selling price. (a) Construct a graph for a price between 0 and 200. (b) Co

> A large construction company has recently won the contract for routine inspection and maintenance of the Channel Tunnel linking the UK to France. Obviously, routine maintenance and repair work, unless carefully planned, will have adverse consequences on

> A domestic appliance manufacturer is evaluating its delivery system from the production plant to showrooms around the country. One item used in the transportation of large appliances is a prefabricated polystyrene-foam packing case. These are supplied by

> Following internal reorganisation in a large brewing company, a comprehensive review of stock-control procedures is currently being undertaken. You have been asked to investigate stock control in the context of one of the firm’s products: lowalcohol lage

> A local authority operates over a large geographical area. The Education Department is responsible for ensuring that stocks of a certain item are kept for distribution to schools through the area on request. In order to try to ensure supplies reach the s

> A company requires a particular item from an outside supplier for its production process. Annual demand for the item is 3000 units. Order costs are estimated at £15 and holding costs at 20 per cent of the purchase price of the item, which is £5.50 per un

> Describe the quantitative techniques that are available to assist a manager with stock-control responsibilities in an organisation.

> What are the basic decisions that a manager with stock-control responsibility faces and what are the likely objectives of such a manager in this context?

> For a particular project the information in Table 13.17 has been obtained. (a) Construct a network diagram for this project showing EFTs, LFTs and the critical path. (b) The company concerned has indicated that it would like the project completed in no m

> A firm is making minor alterations to its automated stock-handling system in one of its warehouses. The relevant information relating to this project is shown in Table 13.16. The table shows the activities that must be completed, their expect

> A project comprises the activities shown in Table 13.15, which also shows the duration of each activity. (a) Construct a network diagram for this project and determine the expected completion time together with the critical path. (b) Determine the prob

> A company is thinking of investing £15 000 in a savings fund. The fund runs for a 10-year period and is expected to generate a return each year of 8 per cent of the amount invested. All annual returns remain in the fund until the end of the period. (a) C

> In the project detailed in Table 13.13, activity labels indicate the major activities to be completed in a project. The duration of each activity and cost of each activity have been identified, on both a normal basis and a crash basis. (a) Construct a ne

> A large banking organisation is installing a network of automated teller machines (ATMs) for use by its customers in a large town. These machines are installed in an exterior wall of the bank and allow customers to withdraw cash from their accounts. A nu

> A business organisation is trying to improve staff morale and motivation and has decided to replace the existing staff canteen with a modern cafeteria. The works department has drawn up a detailed list of the various activities that will need to be compl

> A utility company is currently reviewing its manpower requirements in the domestic-appliance servicing department. One feature of the servicing work relates to domestic central-heating systems. For an annual fee, a trained engineer will undertake a safet

> You are currently employed by a high street bank and have been asked to investigate the bank’s policy in one particular area of its operations, that relating to small loans to individual customers. The loans in question are usually shor

> An investigation is being carried out into a local authority’s housing policy. The local authority has a limited supply of housing which it owns and rents out. It receives requests for housing from a number of individuals and families t

> An organisation has recently purchased a company car for one of its senior managers at a cost of £25 000 and is trying to determine the most suitable time for replacement. It is estimated that the car will depreciate by £5000 in the first year, £2000 in

> A local authority is under severe financial pressure and is considering selling some of the land it owns to a building company. The building company is offering to pay £150 000 for the land now or a payment of £40 000 a year for the next five years. (a)

> A hospital has decided to replace an important piece of medical equipment at a cost of £30 000. The expected life of the equipment is five years and it will have a resale value of £4000 at this time. The hospital is trying to decide how to finance the pu

> Return to Exercise 8 in Chapter 4. Test to see whether there is a significant difference between mean customer spend in the two stores. Draft a short report explaining your conclusion in non-technical terms for the store managers. Data from Exercise 8 i

> A production company is considering purchasing a new piece of equipment for the production process for one of its products. The product itself is due to be withdrawn from the market in five years’ time. The equipment will cost £600 000 and have a scrap v

> In the chapter we formulated a break-even problem with: R = 9.99Q C = 45 000 + 6.99Q Find the new break-even level if: (a) overheads increase by 15 per cent. (b) costs increase by 1.50 per item. (c) the selling price increases to 11.99.

> Go to the St. Louis Federal Reserve FRED database, and find data on corporate net worth of nonfinancial businesses (TNWMVBSNNCB), private domestic investment (GPDIC1), and a measure of financial frictions, the St. Louis Fed financial stress index (STLFSI

>   Go to the St. Louis Federal Reserve FRED database, and find data on house prices (SPCS20RSA), stock prices (SP500), a measure of the net wealth of households (TNWBSHNO), and personal consumption expenditures (PCEC). For all four measures, be

> Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1) and a measure of the price level, the personal consumption expenditure price index (PCECTPI). Convert the price index to inflation rate by setting the units to “Percent

> Go to the St. Louis Federal Reserve FRED database, and find data on a measure of the price level (PCECTPI), real compensation per hour (COMPRNFB), a measure of worker productivity (OPHNFB), the price of a barrel of oil (OILPRICE), and the University of M

> Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1), real private domestic investment (GPDI), corporate profits (CP), a measure of the price level (PCECTPI), a measure of economic uncertainty (USEPUINDXM), and a measure o

> Go to the St. Louis Federal Reserve FRED database, and find data on real personal disposable income (DPIC96), a measure of household net worth (TNWBSHNO), a measure of the price level, the personal consumption expenditure price index (PCECTPI), the Unive

> Go to the St. Louis Federal Reserve FRED database, and find data on real government spending (GCEC1), real GDP (GDPC1), taxes (W006RC1Q027SBEA), and a measure of the price level, the personal consumption expenditure price index (PCECTPI). Download all th

> According to the FDIC, thirty banks failed or were assisted during 2008: six were based in California, two in Florida, and five in Nevada. The New York Times reported in 2007 that Nevada 1-36.1%2, Florida 1-30.8%2, and California 1-21.3%2 were among the

> As the effects of the 2007–2009 financial crisis became more pervasive, legislators and policy makers debated about the role played by the Federal Reserve as a regulatory agency. While the Federal Reserve argued for more regulatory oversight of the finan

> The following figure, from the Federal Reserve Monetary Policy Report to the Congress (July 21, 2009), shows the gross issuance of mortgage backed securities (MBS) in the United States from 2007 to the second quarter of 2009. Comment on the drastic chang

> Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1) and the GDP deflator price index (GDPDEF). Using the units setting, choose “Percent Change from Year Ago” to convert each measure into real GDP growth and the inflation

> Suppose you are about to buy a car and ask to see a vehicle history report to check on previous accidents or problems reported for that car. When you are told that this information is not available, you decide not to buy the car. a) Do you think this exa

> Most legal systems assume that it is better not to incarcerate a guilty individual than to incarcerate an innocent person (i.e., if you are making a mistake, at least choose the lesser of the two). As central banks can potentially make a mistake when bur

> One of the possible solutions to asset-price bubbles is the enforcement of macro prudential regulation. Financial intermediaries have an incentive to constantly look for profitable opportunities, which often implies the design of new financial instrumen

> Evaluate the accuracy of the following statement: “The recent depreciation of the U.S. dollar had a positive effect on the U.S. aggregate demand curve.”

> Suppose that Congress passes legislation that establishes a tax credit for small businesses and tax incentives for all businesses that invest in new plant and equipment. a) What is the anticipated effect of these proposals on aggregate demand, if any? b)

> Go to the St. Louis Federal Reserve FRED database, and find data on the civilian unemployment rate (UNRATE) and a measure of the natural rate of unemployment (NROU). a) Calculate the cyclical unemployment rate for the most recent month available, and for

> Go to the St. Louis Federal Reserve FRED database, and find data on labor force participation and the unemployment rate for the groups listed below. For each pair of demographic groups, calculate the difference in labor force participation and the differ

> Go to the St. Louis Federal Reserve FRED database, and find data on civilian employment (CE16OV), unemployed (UNEMPLOY), and not in the labor force (LNS15000000). a) Using the most recent data available, calculate the labor force, the working age populat

> Go to the St. Louis Federal Reserve FRED database, and find data on civilian employment (CE16OV) and a measure of real wages in the non-farm business sector (COMPRNFB). Convert the employment measure to “Quarterly” using the frequency setting, and downlo

> Go to the St. Louis Federal Reserve FRED database, and find data on the 30-year mortgage rate (MORTG), private residential fixed investment (PRFI), and the net percentage of bankers tightening credit standards on mortgages (DRTSPM). For the mortgage rate

> Go to the St. Louis Federal Reserve FRED database, and find data on recession dating (USREC), consumer sentiment (UMCSENT), industrial production (INDPRO), and real retail and food service sales (RRSFS). a) Using the recession dating series (USREC), when

> Go to the St. Louis Federal Reserve FRED database, and find data on net domestic investment (A557RC1Q027SBEA) and gross domestic investment (W170RC1Q027SBEA). a) For each series, report the values for the most recent quarter of data available. Why are th

> Go to the St. Louis Federal Reserve FRED database, and find data on real private domestic investment (GPDIC96), real residential investment (PRFIC96), and real non-residential (business) fixed investment (PNFIC96). a) Using these data, calculate inventor

> Go to the St. Louis Federal Reserve FRED database, and find data on the budget deficit (FYFSD), the amount of federal debt held by the public (FYGFDPUN), and the amount of federal debt held by the Federal Reserve (FDHBFRBN). Convert the two “debt held” s

> Go to the St. Louis Federal Reserve FRED database, and find data on the total public debt by the federal government (GFDEBTN) and the amount of debt held by foreign and international investors (FDHBFIN). Download the data into a spreadsheet, and make sur

> Go to the St. Louis Federal Reserve FRED database, and find data on the total government debt as a percentage of GDP (GFDEGDQ188S) and gross domestic product (GDP). a) Report the most current available debt to-GDP ratio, and the ratio one year prior and

> (Advanced) Go to the St. Louis Federal Reserve FRED database, and find data on potential output (GDPPOT), real GDP (GDPC1), a measure of the price level, the personal consumption expenditure price index (PCECTPI), and the University of Michigan inflation

> Go to the St. Louis Federal Reserve FRED database, and find data on potential output (GDPPOT), real GDP (GDPC1), and a measure of the price level, the personal consumption expenditure price index (PCECTPI). For the price index series, choose the units as

> Go to the St. Louis Federal Reserve FRED database, and find data on the unemployment rate (UNRATE) and a measure of the price level, the personal consumption expenditure price index (PCECTPI). For both series, choose the frequency as “quarterly,” and for

> Go to the St. Louis Federal Reserve FRED database, and find data on the Bank Prime Loan Rate (MPRIME), the Effective Fed Funds Rate (FEDFUNDS), and the 3-Month Treasury Bill: Secondary Market Rate (TB3MS). Use data from the most recent month available an

> A measure of real interest rates can be approximated by the Treasury Inflation Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED database, and find data on the five year TIIS (FII5) and a measure of the price index, the personal consump

> Go to the St. Louis Federal Reserve FRED database, and find data on recession dating (USREC), the unemployment rate (UNRATE), nonfarm payroll employment (PAYEMS), and the mean duration of unemployment (UEMPMEAN). a) Using the recession dating series (USR

> A measure of real interest rates can be approximated by the Treasury Inflation Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED database, and find data on the five year TIIS (FII5) and a measure of the price index, the personal consump

> Go to the St. Louis Federal Reserve FRED database, and find data on Real Private Domestic Investment (GPDIC1); a measure of the real interest rate, the 10-year Treasury Inflation-Indexed Security, TIIS (FII10); and a measure of financial frictions, the S

> Go to the St. Louis Federal Reserve FRED database, and find data on the most recent values for Personal Income (PINCOME), Disposable Personal Income (DPI), and Personal Consumption Expenditures (PCEC). a) For the most recent quarter available, compute th

> Go to the St. Louis Federal Reserve FRED database, and find data on Personal Consumption Expenditures (PCEC), Personal Consumption Expenditures: Durable Goods (PCDG), Personal Consumption Expenditures: Nondurable Goods (PCND), and Personal Consumption Ex

> Suppose that the President gets legislation passed that encourages investment in research and development of new technologies. Assuming this policy results in positive technological change for the U.S. economy, what does aggregate demand and supply analy

> The consequences of climate change on the economy is a popular topic in the media. Suppose that a series of wildfires destroys crops in the western states at the same time a hurricane destroys refineries on the Gulf Coast. a) Using aggregate demand and s

> An article in the Wall Street Journal reported that inflation-adjusted wages have slumped in recent years. Is this statement consistent with the aggregate demand and supply analysis of the recent U.S. economic crisis? Explain.

> According to aggregate demand and supply analysis, what would be the effect of appointing a Federal Reserve System chairman known to have no interest in fighting inflation?

> Suppose that in an effort to reduce the current federal government budget deficit, the White House decides to sharply decrease government spending. Assuming the economy is at its long run equilibrium, carefully explain the short- and long-run consequence

> Oil prices declined in the summer of 2008, following months of increases since the winter of 2007. Considering only this fall in oil prices, explain the effect on short-run aggregate supply and long-run aggregate supply, if any.

> Go to the St. Louis Federal Reserve FRED database, and find data on recession dating (USRECQ) and real GDP (GDPC1), real consumption (PCECC96), and real private domestic investment (GPDIC1). a) Using the recession dating series (USRECQ), when did the mos

> Suppose that the White House decides to sharply reduce military spending without increasing government spending in other areas. a) Comment on the effect of this measure on aggregate demand. b) Show your answer graphically

> Describe the effects on the economy if the Federal Reserve uses monetary policy to burst a wrongfully identified asset-price bubble.

> Suppose a central bank identifies an increase in lending to the floral industry. In particular, many small businesses are borrowing aggre - sively to import tulips. As market participants observe a sharp increase in the price of tulips, the central bank

> Critics of the Federal Reserve in 2013 warned that the Federal Reserve’s commitment to keeping the federal funds rate near zero for an extended period of time might increase expected inflation. Explain why low levels of interest rates might fuel inflatio

> According to the Federal Reserve Act of 1913 (Section 13.3), “In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, […] may authorize any Federal Reserve bank, during such periods as the said board may determine, […]