If a cell phone company conducted a telemarketing campaign to generate new clients and the probability of successfully gaining a new customer was 0.07, what is the probability that contacting 50 potential customers would result in at least 5 new customers?
> Using the data in the Excel file Consumer Transportation Survey, test the following null hypotheses:a. Individuals spend at least 8 hours per week in their vehicles.b. Individuals drive an average of 600 miles per week.c. The average age of SUV drivers i
> The Martinez Model Car Company produces four different radio-controlled model cars based on exotic production models: Ferrari, BMW, Lotus, and Tesla. Each model requires production in five departments: molding, sanding, polishing, painting, and finishing
> Beverly Ann Cosmetics has created two new perfumes: Summer Passion and Ocean Breeze. It costs $5.25 to purchase the fragrance needed for each bottle of Summer Passion and $4.70 for each bottle of Ocean Breeze. The marketing department has stated that at
> Worley Fluid Supplies produces three types of fluid-handling equipment: control valves, metering pumps, and hydraulic cylinders. All three products require assembly and testing before they can be shipped to customers.A total of 3,150 minutes of assembly
> Klein Industries manufactures three types of portable air compressors: small, medium, and large, which have unit profits of $20.50, $34.00, and $42.00, respectively. The projected monthly sales are as follows:The production process consists of three prim
> Use the Histogram tool to construct a frequency distribution of lunch sales amounts in the Restaurant Sales database
> Marketing managers have various media alternatives, such as radio, TV, magazines, and so on, in which to advertise and must determine which to use, the number of insertions in each, and the timing of insertions to maximize advertising effectiveness withi
> Michelle is a business student who plans to attend medical school. The average state university medical school education expense can cost around $35,000 per year and is escalating rapidly. Michelle created a spreadsheet model to calculate the total expen
> Pavlick Products supplies a key component for automobile interiors to U.S. assembly plants. The components can be manufactured in China or Mexico. Unit cost in China is $333, and the unit cost in Mexico is $350. However, shipping costs per 500 units are
> Jason Wright is a part-time business student who would like to optimize his financial decisions. Currently, he has $16,000 in his savings account. Based on an analysis of his take-home pay, expected bonuses, and anticipated tax refund, he has estimated h
> An international graduate student will receive a $28,000 foundation scholarship and reduced tuition. She must pay $1,500 in tuition for each of the autumn, winter, and spring quarters, and $500 in the summer. Payments are due on the first day of Septembe
> An employer is considering negotiating its pricing structure for health insurance with its provider if there is sufficient evidence that customers will be willing to pay a lower premium for a higher deductible. Specifically, they want at least 30% of the
> Reddy & Rao (R&R) is a small company in India that makes handmade artistic chairs for commercial businesses. The company makes four models. The time required to make each of the models and cost per chair is given below.R&R employs four people
> Raturi Chemicals Inc., produces four industrial chemicals with variable production costs of $9.00, $6.75, $5.25, and $7.50 per pound, respectively. Because of increasing supplier costs, the variable cost of each of the products will increase by 6% at the
> Mirza Manufacturing makes four electronic products, each of which comprises three main materials: magnet, wiring, and casing. The products are shipped to three distribution centers in North America, Europe, and Asia. Marketing has specified that no locat
> Roberto’s Honey Farm in Chile makes five types of honey: cream, filtered, pasteurized, mélange (a mixture of several types), and strained, which are sold in 1-kilogram or 0.5-kilogram glass containers, 1-kilogram and 0.75-k
> Liquid Gold, Inc., transports radioactive waste from nuclear power plants to disposal sites around the country. Each plant has an amount of material that must be moved each period. Each site has a limited capacity per period. The cost of transporting bet
> Use the COUNTIF function to construct a frequency distribution of the types of loans in the Excel file Credit Risk Data and develop a column chart to express the results visually
> Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of shipping one case from a plant to a customer is given in the following table.The plant in Akron has a capacity of 2,800 cases per week, and the Evansville pla
> Janette Douglas is coordinating a bake sale for a nonprofit organization. The organization has acquired $2,200 in donations to hold the sale. The following table shows the amounts and costs of ingredients used per batch of each baked good.One batch of ea
> Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance constraints:a. Each serving of chili should contain a quarter pound of beef.b. Customer demand for a cereal is not expected to
> For the Valencia Products model in Problem 1, graph the constraints and identify the feasible region. Then identify each of the corner points and show how increasing the objective function value identifies the optimal solution.In Problem 1Valencia Produc
> The Excel file Room Inspection provides data for 100 room inspections at each of 25 hotels in a major chain. Management would like the proportion of nonconforming rooms to be less than 2%. Test an appropriate hypothesis to determine if management can mak
> Implement the linear optimization model that you developed for the investment scenario in Problem 4 in Excel and use Solver to find an optimal solution. Save the Answer and Sensitivity reports in your Excel workbook. Interpret the Solver Answer report an
> Implement the linear optimization model that you developed for Burger Office Equipment in Problem 3 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the
> Implement the linear optimization model that you developed for ColPal Products in Problem 2 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the slack va
> Implement the linear optimization model that you developed for Valencia Products in Problem 1 in Excel and use Solver to find an optimal solution. Interpret the Solver Answer report and identify the binding constraints and verify the values of the slack
> Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products from the same raw material. Regular Grind can be produced at a rate of 10,000 pounds per hour and has a demand of 400 tons per week with a p
> The Morton Supply Company produces clothing, footwear, and accessories for dancing and gymnastics. They produce three models of pointe shoes used by ballerinas to balance on the tips of their toes. The shoes are produced from four materials: cardstock, s
> The Excel file Credit Risk Data provides information about bank customers who had applied for loans. The data include the purpose of the loan, checking and savings account balances, number of months as a customer of the bank, months employed, gender, mar
> Bangs Leisure Chairs produces three types of handcrafted outdoor chairs that are popular for beach, pool, and patios: sling chairs, Adirondack chairs, and hammocks. The unit profit for these products is $35, $75, and $100, respectively. Each type of chai
> Figure 13.35 shows the Solver sensitivity report for the investment scenario in Problem 4. Using only the information in the sensitivity report, answer the following questions.Figure 13.35Sensitivity Report for Investment Problema. How much would the ret
> Figure 13.34 shows the Solver sensitivity report for the Burger Office Equipment scenario in Problem 3. Using only the information in the sensitivity report, answer the following questions.Figure 13.34Sensitivity Report for Burger Office Equipmenta. Expl
> The Excel file Sales Data provides data on a sample of customers. An industry trade publication stated that the average profit per customer for this industry was at least $4,500. Using a test of hypothesis, do the data support this claim or not?
> Develop a procedure to sample from the probability distribution of two-card hands in Problem 2. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 20 outcomes from the distribution.In Problem 2Consider the experiment of draw
> Develop a procedure to sample from the probability distribution of two-card hands in Problem 2. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 20 outcomes from the distribution.In Problem 2Consider the experiment of draw
> Develop a procedure to sample from the probability distribution of soft-drink choices in Problem 1. Implement your procedure on a spreadsheet and use the VLOOKUP function to sample 10 outcomes from the distribution.In Problem 1Lauren drinks a variety of
> A supplier contract calls for a key dimension of a part to be between 1.96 and 2.04 centimeters. The supplier has determined that the standard deviation of its process, which is normally distributed, is 0.04 centimeter.a. If the actual mean of the proces
> The distribution of the SAT scores in math for an incoming class of business students has a mean of 590 and standard deviation of 22. Assume that the scores are normally distributed.a. Find the probability that an individual’s SAT score is less than 550.
> In determining automobile-mileage ratings, it was found that the mpg (X) for a certain model is normally distributed, with a mean of 33 mpg and a standard deviation of 1.7 mpg. Find the following:a. P(X < 30)b. P(28 < X < 32)c. P(X > 35)d. P(X > 31)e. Th
> A contractor has estimated that the minimum number of days to remodel a bathroom for a client is 10 days. He also estimates that 80% of similar jobs are completed within 18 days. If the remodeling time is uniformly distributed, what should be the paramet
> The time required to play a game of Battleship™ is uniformly distributed between 15 and 60 minutes.a. Find the expected value and variance of the time to complete the game.b. What is the probability of finishing within 30 minutes?c. What is the probabili
> Verify that the function corresponding to the following figure is a valid probability density function. Then find the following probabilities:a. P(x b. P(x > 7)c. P(6 d. P(8 ,,,
> The number and frequency of Atlantic hurricanes annually from 1940 through 2012 is shown here.Number _________Frequency0 …………………………………………. 51 …………………………………………. 162 …………………………………………. 193 …………………………………………. 144 …………………………………………. 35 …………………………………………. 56 …………
> Suppose that a company offers quantity discounts. If up to 1000 units are purchased, the unit price is $10; if more than 1000 and up to 5000 units are purchased, the unit price is $9; and if more than 5000 units are purchased, the unit price is $7.50. De
> A financial consultant has an average of 7 customers he consults with each day, which are assumed to be Poisson distributed. The consultant’s overhead requires that he consult with at least 5 customers in order that fees cover expenses. Find the probabil
> A telephone call center where people place marketing calls to customers has a probability of success of 0.08. The manager is very harsh on those who do not get a sufficient number of successful calls. Find the number of calls needed to ensure that there
> A popular resort hotel has 300 rooms and is usually fully booked. About 6% of the time a reservation is canceled before the 6:00 p.m. deadline with no penalty. What is the probability that at least 280 rooms will be occupied? Use the binomial distributio
> During 1 year, a particular mutual fund has outperformed the S&P 500 index 33 out of 52 weeks. Find the probability that this performance or better would happen again
> The Excel file Call Center Data shows that in a sample of 70 individuals, 27 had prior call center experience. If we assume that the probability that any potential hire will also have experience with a probability of 27/70, what is the probability that a
> An airline tracks data on its flight arrivals. Over the past 6 months, 50 flights on one route arrived early, 150 arrived on time, 25 were late, and 45 were canceled.a. What is the probability that a flight is early? On time? Late? Canceled?b. Are these
> Students in the new MBA class at a state university has the following specialization profile:Finance—67Marketing—45Operations and Supply Chain Management—51Information Systems—18Find the probability that a student is either a finance or marketing major.
> Roulette is played at a table similar to the one in Figure 5.36. A wheel with the numbers 1 through 36 (evenly distributed with the colors red and black) and two green numbers 0 and 00 rotates in a shallow bowl with a curved wall. A small ball is spun on
> Refer to the coin scenario described in Problem 3.a. Let A be the event “exactly 2 heads.” Find P(A).b. Let B be the event “at most 1 head.” Find P(B).c. Let C be the event “at least 2 heads.” Find P(C).d. Are the events A and B mutually exclusive? Find
> Use INDEX and MATCH functions to fill in a table that extracts the amounts shipped between each pair of cities in the Excel file General Appliance Corporation. Your table should display as follows, and the formula for the amount should reference the name
> The Excel file Science and Engineering Jobs shows the number of jobs in thousands in the year 2000 and projections for 2010 from a government study. Use the Excel file to compute the projected increase from the 2000 baseline and also the percentage incre
> On October 1, Year 1, Nicholes Corporation declared a $50,000 cash dividend to be paid on December 15 to shareholders of record on November 1. Required: a. Record the events occurring on October 1, November 1, and December 15 in a horizontal statements
> Rice Corporation issued 10,000 shares of no-par common stock for $25 per share. Rice also issued 3,000 shares of $40 par, 6 percent noncumulative preferred stock at $42 per share. Required: a. Record these events in a horizontal statements model like th
> Cascade Industries has the following account balances: The company wishes to raise $50,000 in cash and is considering two financing options: Cascade can sell $50,000 of bonds payable, or it can issue additional common stock for $50,000. To help in the
> The following information is available for three companies: Required: a. Determine the annual before-tax interest cost for each company in dollars. b. Determine the annual after tax interest cost for each company in dollars. c. Determine the annual aft
> On January 1, Year 1, Wright and Associates issued bonds with a face value of $800,000, a stated rate of interest of 8 percent, and a 20-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9
> On January 1, Year 1, Reese Incorporated issued bonds with a face value of $120,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 p
> On January 1, Year 1, Omega Company issued bonds with a face value of $200,000, a stated rate of interest of 6 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 5 percent
> On January 1, Year 1, Valley Enterprises issued bonds with a face value of $60,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 pe
> On January 1, Year 1, Seaside Condo Association issued bonds with a face value of $250,000, a stated rate of interest of 8 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest wa
> On January 1, Year 1, Chen Company issued $300,000 of five-year, 6 percent bonds at 101. Interest is payable annually on December 31. The premium is amortized using the straight-line method. Required: Prepare the journal entries to record the bond trans
> Listed here are the stockholders’ equity sections of three public companies for years ending in 2015 and 2016: Required: a. Divide the class in three sections and divide each section into groups of three to five students. Assign each
> Ramsey Company issued bonds of $300,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 101½.
> On January 1, Year 1, Files Co. issued $400,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required: Prepare the journal entries to record the bond transact
> Dixon Construction, Inc. issued $300,000 of 10-year, 6 percent bonds on July 1, Year 1, at 96. Interest is payable in cash semiannually on June 30 and December 31. Dixon uses the straight-line method of amortization. Required: a. Prepare the journal ent
> Frey Company issued bonds of $300,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. Frey uses the stra
> The following information pertains to Ming Corp. at January 1, Year 1: Ming Corp. completed the following transactions during Year 1: 1. Issued 2,000 shares of $10 par common stock for $16 per share. 2. Repurchased 500 shares of its own common stock fo
> Earles Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par value of $10 per share. A month later, Earles resold 2,500 shares of the treasury stock for $35 per share. Required: a. Record the two events in general
> Carroll Corporation was formed when it issued shares of common stock to two of its shareholders. Carroll issued 10,000 shares of $5 par common stock to R. Flowler in exchange for $80,000 cash (the issue price was $8 per share). Carroll also issued 3,500
> Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount: a. Hett, Inc. issued $400,000 of 8-year, 8 percent bonds at 101. b. Holt Co. issued $250,000 of 4-year, 6 perce
> Jupiter Co. issued bonds with a face value of $150,000 on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a five-year term. The bonds were issued at face value. Required: a. What total amount of interest will Jupiter pay in Year
> Tyler Co. issued $250,000 of 6 percent, 10-year, callable bonds on January 1, Year 1, at their face value. The call premium was 2 percent (bonds are callable at 102). Interest was payable annually on December 31. The bonds were called on December 31, Yea
> Interest rates in the United States were at historic lows for much of the period from 2013 through 2016. The economy was slowly recovering from the recession of 2008 and 2009, and the Federal Reserve kept interest rates low to encourage this recovery. Be
> On January 1, Year 1, Hazman Corp. issued $200,000 of 10year, 6 percent bonds at their face value. Interest is payable on December 31 of each year with the first payment due December 31, Year 1. Required: Prepare all the general journal entries related
> Pluto Company issued $300,000 of 20-year, 6 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Pluto immediately invested the proceeds from the bond issue in land. The land wa
> Colson Company has a line of credit with Federal Bank. Colson can borrow up to $800,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed an
> A partial amortization schedule for a five-year note payable that Mercury Co. issued on January 1, Year 1, is shown next: Required: a. What rate of interest is Mercury Co. paying on the note? b. Using a financial statements model like the one shown nex
> Lek Hood started a business by issuing a $70,000 face-value note to State National Bank on January 1, Year 1. The note had a 6 percent annual rate of interest and a 10-year term. Payments of $9,581 are to be made each December 31 for 10 years. Required:
> An accountant for Southern Manufacturing Companies (SMC) computed the following information by making comparisons between SMC’s Year 1 and Year 2 balance sheets. Further information was determined by examining the company’s Year 2 income statement. 1. Th
> On January 1, Year 1, the Christie Companies issued bonds with a face value of $500,000, a stated rate of interest of 10 percent, and a 20-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was
> On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent
> On January 1, Year 1, Young Company issued bonds with a face value of $300,000, a stated rate of interest of 7 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 6 percent
> On January 1, Year 1, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 percen
> Dana Harbert recently started a very successful small business. Indeed, the business had grown so rapidly that she was no longer able to finance its operations by investing her own resources in the business. She needed additional capital but had no more
> On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was
> On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on June 30 and December 31. The premium is amortized using the straight-line method. Required: Prepare the journal entries to rec
> Stuart Company issued bonds with a $150,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a five-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 103. The strai
> On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required: Prepare the journal entries to record the bond transac
> The Square Foot Grill, Inc. issued $200,000 of 10-year, 6 percent bonds on July 1, Year 1, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. Required: a. Prepare the journal e
> Diaz Company issued bonds with a $180,000 face value on January 1, Year 1. The bonds had a 7 percent stated rate of interest and a five-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight
> The following information pertains to JAE Corp. at January 1, Year 1: JAE Corp. completed the following transactions during Year 1: 1. Issued 3,000 shares of $10 par common stock for $25 per share. 2. Repurchased 500 shares of its own common stock for
> A sole proprietorship was started on January 1, Year 1, when it received $60,000 cash from Marlin Jones, the owner. During Year 1, the company earned $35,300 in cash revenues and paid $16,200 in cash expenses. Jones withdrew $1,000 cash from the business
> Tom Yuppy, a wealthy investor, exchanged a plot of land that originally cost him $25,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corp. On the same date, Leuig Corp. issued an additional 2,000 shares of stock to Yuppy for $25 per s
> Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount: a. Pear, Inc. issued $400,000 of 10-year, 8 percent bonds at 103. b. Apple, Inc. issued $200,000 of five-year,
> Mack Company plans to invest $50,000 in land that will produce annual rent revenue equal to 15 percent of the investment, starting on January 1, 2016. The revenue will be collected in cash at the end of each year, starting December 31, 2016. Mack can obt
