The average length of time between arrivals at a turnpike tollbooth is 23 seconds. Assume that the time between arrivals at the tollbooth is exponentially distributed. a) What is the probability that a minute or more will elapse between arrivals? b) If a car has just passed through the tollbooth, what is the probability that no car will show up for at least 3 minutes?
> Famous Desk Company manufactures desks for office use. The variable cost of 100 units in beginning inventory is $80 each. The absorption cost is $146.67 each. Following is information about this period’s manufacturing. Required (a) Es
> Elder Services is a not-for-profit entity that has three departments in three separate locations, in addition to the headquarters. The entity provides services for elderly clients who are still living at home. One department provides meals, one departmen
> With reference to Keener Doors in comprehensive example 2, provide answers to each of the following questions with regard to the use of ABC information for activity-based management. (a) Why did the managers ask for additional analysis of marketing and w
> Shearwater Council owns and operates an animal shelter that performs three services: housing and finding homes for stray and unwanted animals, providing health care and neutering services for the animals, and pet training services. One facility is dedica
> Data Processors performs credit card services for banks. The company uses an ABC system. The following information applies to the past year: Required (a) Are the activities listed likely to be the only possible set of activities for the ABC system? Why
> Water Feature Company manufactures kits for fish ponds. The managers recently set up an ABC system to identify and reduce non-value-added activities. The ABC system includes the following cost pools, cost drivers, and estimated costs for manufacturing ac
> Kim Mills produces three different types of fabric using two departments. In department 1, machines weave the cloth. In department 2, the cloth is dyed a variety of colours. Information for the combined use of resources in both departments for the three
> Vines Ltd produces custom machine parts on a job order basis. The company has two direct product cost categories: direct materials and direct labour. In the past, indirect manufacturing costs were allocated to products using a single indirect cost pool,
> In ABC systems, activities are often separated into a hierarchy of categories. Required (a) In your own words, explain what is meant by a cost hierarchy in ABC. (b) Explain why uncertainty is possible in classifying costs within the cost hierarchy. (c)
> Following is a list of steps that must be performed in setting up an ABC system: * Identify and sum the costs into activity-based cost pools. * Choose a cost driver for each activity. * For each ABC cost pool, allocate overhead costs to the product or se
> Auditors must plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatements, which may be caused by either error or fraud. Errors are unintentional misstatements caused by factors such
> In their 2014 annual report, airlineVirgin Australia commented on the strategic direction of the company. After completing the Game Change Program, the Group has commenced Virgin Vision 2017, a strategy to maximise the Group’s potential by extracting val
> Jennifer has just been promoted to manager of the piston division of Car Parts Co. The division, which manufactures pistons for hydraulic drives, uses a standard cost system and calculates the standard cost of a completed piston as $85, as follows: The
> The Software Development Company produces computer programs on DVDs for home computers. This business is highly automated, causing fixed costs to be very high, but variable costs are minimal. The entity is organised along three product lines: games, busi
> Data Processors Ltd performs credit card services for banks. The entity uses an ABC system. Following is information for the past year: Required (a) Using standard values for costs and activity, calculate an ABC allocation rate for each activity. (b)
> Sunglass Guys produces two types of wraparound sunglasses on one assembly line. The monthly fixed overhead is estimated at $235Â 707, and the variable overhead is estimated at $8.15 per Regular Wrap and $12.32 per Deluxe Wrap. The company set
> Raging Sage Coffee is a franchise that sells cups of coffee from a cart in shopping centres. A computerised standard costing system is provided as a part of the franchise package. A portion of the standard cost data follows. In its first month of opera
> Fasteners Company has several divisions, and just built a new plant with a capacity of 20 000 units of a new product. A standard costing system has been introduced to aid in evaluating managers’ performance and for establish
> Consider the following information for Morgan’s Cheese and Butter Division. Additional information: Required (a) Calculate the market size and market share variances. (b) Comment on the meaning of your calculations (for example, how
> Benerux Industries has been in business for 30 years. The entity’s major product is a control unit for elevators. The entity has a reputation for manufacturing products of exceptionally high quality, resulting in higher prices for its units than competit
> Variance analysis reflects information about actual performance relative to a standard. Variance analysis reports provide managers with information about the performance of employees, from direct labour to supervisors and managers. Grades provide similar
> Cardinal Products hired a new marketing manager early this year. After an informal consumer survey, the marketing manager decided to lower the firm’s selling price by 10 per cent and increase television advertising. The operating result
> An entity uses variable costing for internal reports. It must convert the variable costing results to absorption costing results for external reports. How can this conversion be accomplished?
> Explain the similarities and differences among absorption and variable costing.
> 1. Saving time and money are reasons to take a _______________ rather than a census. 2. If the research process is destructive, taking a _______________ may be the only option in gathering data. 3. A researcher may opt to take a _______________ to el
> 1. The uniform distribution is sometimes referred to as the _____________________ distribution. 2. Suppose a set of data are uniformly distributed from x = 5 to x = 13. The height of the distribution is ____________________. The mean of this distribut
> 33. A binomial distribution problem is to determine the probability that x is greater than 10 when the sample size is 20 and the value of p is .60. Using the normal distribution to work this problem produces a probability of ________. If this problem h
> 11. Suppose a population of values is normally distributed with a mean of 155 and a standard deviation of 12. The z score for x = 170 is ________. 12. Suppose a population of values is normally distributed with a mean of 76 and a standard deviation of
> 21. A population is normally distributed with a mean of 340 and a standard deviation of 55. 10.93% of values in the population are less than ________. 22. In working a binomial distribution problem by using the normal distribution, the interval, _____
> Fill in the Blanks: 21. The long-run average or mean of a Poisson distribution is _______________. 22. The variance of a Poisson distribution is equal to _______________. 23. If Lambda is 2.6 occurrences over an interval of five minutes, the probability
> 11. On any one trial of a binomial experiment, there can be only _______________ possible outcomes. 12. Suppose the probability that a given part is defective is .10. If four such parts are randomly drawn from a large population, the probability that
> 1. Variables that take on values at every point over a given interval are called _______________ _______________ variables. 2. If the set of all possible values of a variable is at most finite or a countably infinite number of possible values, then th
> 11. Whenever the proportions of the strata in the sample are different than the proportions of the strata in the population, _______________ _______________ random sampling occurs. 12. With _______________ random sampling, there is homogeneity within
> 21. The central limit theorem states that if n is large enough, the sample means are ______________ distributed regardless of the shape of the population. 22. According to the central limit theorem, the mean of the sample means for a given size of sam
> An entrepreneur opened a small hardware store in a strip mall. During the first few weeks, business was slow, with the store averaging only one customer every 20 minutes in the morning. Assume that the random arrival of customers is Poisson distributed.
> The average fill volume of a regular can of soft drink is 12 ounces. Suppose the fill volume of these cans ranges from 11.97 to 12.03 ounces and is uniformly distributed. What is the height of this distribution? What is the probability that a randomly se
> A U.S. Bureau of Labor Statistics survey showed that one in five people 16 years of age or older volunteers some of his or her time. If this figure holds for the entire population and if a random sample of 150 people 16 years of age or older is taken, wh
> The U.S. Bureau of Labor Statistics reports that of persons who usually work full-time, the average number of hours worked per week is 43.4. Assume that the number of hours worked per week for those who usually work full-time is normally distributed. Sup
> Find the probabilities for the following exponential distribution problems. a) P(x ≥ 3|λ = 1.3) b) P (x < 2|λ = 2.0) c) P(1 ≤ x ≤ 3|λ = 1.65) d) P(x > 2|λ = .405)
> Work the following binomial distribution problems by using the normal distribution. Check your answers by using Table A.2 to solve for the probabilities. a) P(x = 12|n = 25 and p = .60) b) P(x > 5|n = 15 and p = .50) c) P(x ≤ 3|n = 10 and p = .50) d) P(x
> Assume a normal distribution and find the following probabilities. a) P (x < 21|μ = 25 and σ = 4) b) P(x ≥ 77|μ = 50 and σ = 9) c) P(x > 47|μ = 50 and σ = 6) d) P(13 < x < 29|μ = 23 and σ = 4) e) P(x ≥ 105|μ = 90 and σ = 2.86)
> Data are uniformly distributed between the values of 6 and 14. Determine the value of f(x). What are the mean and standard deviation of this distribution? What is the probability of randomly selecting a value greater than 11? What is the probability of r
> During the dry month of August, one U.S. city has measurable rain on average only two days per month. If the arrival of rainy days is Poisson distributed in this city during the month of August, what is the average number of days that will pass between m
> The Foundation Corporation specializes in constructing the concrete foundations for new houses in the South. The company knows that because of soil types, moisture conditions, variable construction, and other factors, eventually most foundations will nee
> Shown here is a graph of a binomial distribution for n = 6. Study the graph and from the graph, estimate what you think is the mean of this distribution. Approximately what do you think is the value of p and why? 0.45 0.4 0.35 0.3 0.25 0.2 - 0.15 0.1
> The exponential distribution can be used to solve Poisson-type problems in which the intervals are not time. The Air Travel Consumer Report published by the U.S. Department of Transportation reported that in a recent year, Spirit Airlines led the nation
> During the summer at a small private airport in western Nebraska, the unscheduled arrival of airplanes is Poisson distributed with an average arrival rate of 1.12 planes per hour. a) What is the average inter arrival time between planes? b) What is the p
> The retail price of a medium-sized box of a well-known brand of cornflakes ranges from $2.80 to $3.14. Assume these prices are uniformly distributed. What are the average price and standard deviation of prices in this distribution? If a price is randomly
> A busy restaurant determined that between 6:30 P.M. and 9:00 P.M. on Friday nights, the arrivals of customers are Poisson distributed with an average arrival rate of 2.44 per minute. a) What is the probability that at least 10 minutes will elapse between
> Determine the following exponential probabilities. a) P(x ≥ 5|λ = 1.35) b) P (x < 3|λ = 0.68) c) P(x > 4|λ = 1.7) d) P (x < 6|λ = 0.80)
> Determine the mean and standard deviation of the following exponential distributions. a) λ = 3.25 b) λ = 0.7 c) λ = 1.1 d) λ = 6.0
> Use the probability density formula to sketch the graphs of the following exponential distributions. a) λ = 0.1 b) λ = 0.3 c) λ = 0.8 d) λ = 3.0
> A study about strategies for competing in the global marketplace states that 52% of the respondents agreed that companies need to make direct investments in foreign countries. It also states that about 70% of those responding agree that it is attractive
> According to the International Data Corporation, HP is the leading company in the United States in PC sales with about 23% of the market share. Suppose a business analyst randomly selects 130 recent purchasers of PCs in the United States. a) What is the
> Use the probability tables in Table A.2 and sketch the graph of each of the following binomial distributions. Note on the graph where the mean of the distribution falls. Table A.2—and cumulating the values—we have the
> According to the Yankee Group, 53% of all cable households rate cable companies as good or excellent in quality transmission. Sixty percent of all cable households rate cable companies as good or excellent in having professional personnel. Suppose 300 ca
> One study on managers’ satisfaction with management tools reveals that 59% of all managers use self-directed work teams as a management tool. Suppose 70 managers selected randomly in the United States are interviewed. What is the probability that fewer t
> The Zimmerman Agency conducted a study for Residence Inn by Marriott of business travelers who take trips of five nights or more. According to this study, 37% of these travelers enjoy sightseeing more than any other activity that they do not get to do as
> x is uniformly distributed over a range of values from 8 to 21. a) What is the value of f(x) for this distribution? b) Determine the mean and standard deviation of this distribution. c) Probability of (10 ≤ x < 17) =? d) Probability of (x < 22) =? e) Pro
> Where appropriate, work the following binomial distribution problems by using the normal curve. Also, use Table A.2 to find the answers by using the binomial distribution and compare the answers obtained by the two methods. a) P(x = 8|n = 25 and p = .40)
> Use the test μ ± 3σ to determine whether the following binomial distributions can be approximated by using the normal distribution. a) n = 8 and p = .50 b) n = 18 and p = .80 c) n = 12 and p = .30 d) n = 30 and p = .75 e) n = 14 and p = .50
> Convert the following binomial distribution problems to normal distribution problems. Use the correction for continuity. a) P(x ≤ 16|n = 30 and p = .70) b) P(10 < x ≤ 20) |n = 25 and p = .50) c) P(x = 22|n = 40 and p = .60) d) P(x > 14|n = 16 and p = .45
> According to one source, the average cumulated college student loan debt for a graduating senior is $29,400. Assume that such debt is normally distributed and that the standard deviation is $5,684. Thirty percent of these graduating seniors owe more than
> Suppose commute times in a large city are normally distributed and that 62.5% of commuters in this city take more than 21 minutes to commute one way. If the standard deviation of such commutes is 6.2 minutes, what is the mean commute?
> The U.S. national average door-to-doctor wait time for patients to see a doctor is now 21.3 minutes. Suppose such wait times are normally distributed with a standard deviation of 6.7 minutes. Some patients will have to wait much longer than the mean to s
> Solve for the mean and standard deviation of the following binomial distributions. a) n = 20 and p = .70 b) n = 70 and p = .35 c) n = 100 and p = .50
> Based on annual driving of 15,000 miles and fuel efficiency of 20 mpg, a car in the United States uses, on average, 750 gallons of gasoline per year. If annual automobile fuel usage is normally distributed, and if 29.12% of cars in the United States use
> Suppose the annual employer 401(k) cost per participant is normally distributed with a standard deviation of $625, but the mean is unknown. a) If 73.89% of such costs are greater than $1,700, what is the mean annual employer 401(k) cost per participant?
> Suppose you are working with a data set that is normally distributed, with a mean of 200 and a standard deviation of 47. Determine the value of x from the following information. a) 60% of the values are greater than x. b) x is below 17% of the values. c)
> Toolworkers are subject to work-related injuries. One disorder, caused by strains to the hands and wrists, is called carpal tunnel syndrome. It strikes as many as 23,000 workers per year. The U.S. Labor Department estimates that the average cost of this
> Values are uniformly distributed between 200 and 240. a) What is the value of f(x) for this distribution? b) Determine the mean and standard deviation of this distribution. c) Probability of (x > 230) =? d) Probability of (205 ≤ x ≤ 220) =? e) Probabilit
> A restaurant averages 4.51 customers per 10 minutes during the summer in the late afternoon. Shown here are Excel and Minitab output for this restaurant. Discuss the type of distribution used to analyze the data and the meaning of the probabilities. Expo
> Study the Minitab graph. Discuss the distribution including type, shape, and probability outcomes. Probability 0.3 0.2 0.1 0.0 0 Poisson Distribution: Lambda = 1.784 5 x Values 10
> Study the graphical output from Excel. Describe the distribution and explain why the graph takes the shape it does. Probability 0.2 0.18 0.16- 0.14 0.12 0.1 0.08- 0.06- 0.04- 0.02- 0 Binomial Distribution: n = 22 and p = .64 0 1 2 3 4 5 6 7 8 9 10 11
> Study the Excel output. Explain the distribution in terms of shape and mean. Are these probabilities what you would expect? Why or why not? x Values ____________ Poisson Probabilities: 0 …………………………………………… 0.0620 1 ……….…………………………………… 0.1725 2 ………………………………
> Study the Minitab output. Discuss the type of distribution, the mean, the standard deviation, and why the probabilities fall as they do. Probability Density Function Binomial with n = 15 and n = 0.38 x …………………………. P(X = () 0 ………………………. 0.001238 1 …………………
> Solve the following problems by using the binomial tables (Table A.2). Table A.2 — and cumulating the values—we have the following probability of x ≤ 2 for each value of p and the expected value (&I
> The Public Citizen’s Health Research Group studied the serious disciplinary actions that were taken during a recent year on nonfederal medical doctors in the United States. The national average was around 3.00 serious actions per 1000 doctors. A 2016 stu
> In one Midwestern city, the government has 14 repossessed houses, which are evaluated to be worth about the same amount. Ten of the houses are on the north side of town and the rest are on the west side. A local contractor submitted a bid to purchase 4 o
> The following table lists the 15 largest U.S. universities according to enrollment in a recent year. a) If five different universities are selected randomly from the list, what is the probability that exactly three of them have enrollments of more than
> According to the American Medical Association, about 36% of all U.S. physicians under the age of 35 are women. Your company has just hired eight physicians under the age of 35 and none is a woman. If a group of women physicians under the age of 35 wants
> Suppose that in the bookkeeping operation of a large corporation the probability of a recording error on any one billing is .005. Suppose the probability of a recording error from one billing to the next is constant and 1000 billings are randomly sampled
> A survey by Frank N. Magid Associates revealed that 3% of Americans are not connected to the Internet at home. Another researcher randomly selects 70 Americans. a) What is the expected number of these who would not be connected to the Internet at home? b
> One of the earliest applications of the Poisson distribution was in analyzing incoming calls to a telephone switchboard. Analysts generally believe that random phone calls are Poisson distributed. Suppose phone calls to a switchboard arrive at an average
> According to the U.S. Census Bureau, 20% of the workers in Atlanta use public transportation. If 25 Atlanta workers are randomly selected, what is the expected number to use public transportation? Graph the binomial distribution for this sample. What are
> An office in Albuquerque has 24 workers including management. Eight of the workers commute to work from the west side of the Rio Grande. Suppose 6 of the office workers are randomly selected. a) What is the probability that all 6 workers commute from the
> According to the Audit Bureau of Circulations, the top 25 city newspapers in the United States ranked according to circulation are: Rank ____________________ Newspaper 1 …………..………………………… New York Times (NY) 2 …………………………..……… Los Angeles Times (CA) 3 …………
> Solve the following problems by using the binomial formula. a) If n = 4 and p = .10, find P(x = 3). b) If n = 7 and p = .80, find P(x = 4). c) If n = 10 and p = .60, find P(x ≥ 7). d) If n = 12 and p = .45, find P(5 ≤ x ≤ 7).
> A survey conducted by the Consumer Reports National Research Center reported, among other things, that women spend an average of 1.2 hours per week shopping online. Assume that hours per week shopping online are Poisson distributed. If this survey result
> A Department of Transportation survey showed that 60% of U.S. residents over 65 years of age oppose use of cell phones in flight even if there were no issues with the phones interfering with aircraft communications systems. If this information is correct
> A hair stylist has been in business one year. Sixty percent of his customers are walk-in business. If he randomly samples eight of the people from last week’s list of customers, what is the probability that three or fewer were walk-ins? If this outcome a
> According to a recent survey, the probability that a passenger files a complaint with the Department of Transportation about a particular U.S. airline is .000014. Suppose 100,000 passengers who flew with this particular airline are randomly contacted. a)
> According to Padgett Business Services, 20% of all small-business owners say the most important advice for starting a business is to prepare for long hours and hard work. Twenty-five percent say the most important advice is to have good financing ready.
> A survey conducted for the Northwestern National Life Insurance Company revealed that 70% of American workers say job stress caused frequent health problems. One in three said they expected to burn out in the job in the near future. Thirty-four percent s
> The National Center for Health Statistics reports that 25% of all Americans between the ages of 65 and 74 have a chronic heart condition. Suppose you live in a state where the environment is conducive to good health and low stress and you believe the con
> Suppose that, for every lot of 100 computer chips a company produces, an average of 1.4 are defective. Another company buys many lots of these chips at a time, from which one lot is selected randomly and tested for defects. If the tested lot contains mor
> In a particular manufacturing plant, two machines (A and B) produce a particular part. One machine (B) is newer and faster. In one five-minute period, a lot consisting of 32 parts is produced. Twenty-two are produced by machine B and the rest by machine
> A service station has a pump that distributes diesel fuel to automobiles. The station owner estimates that only about 3.2 cars use the diesel pump every 2 hours. Assume the arrivals of diesel pump users are Poisson distributed. a) What is the probabilit
> Suppose 20% of the people in a city prefer Pepsi-Cola as their soft drink of choice. If a random sample of six people is chosen, the number of Pepsi drinkers could range from zero to six. Shown here are the possible numbers of Pepsi drinkers in a sample
> In a study by Peter D. Hart Research Associates for the Nasdaq Stock Market, it was determined that 20% of all stock investors are retired people. In addition, 40% of all U.S. adults invest in mutual funds. Suppose a random sample of 25 stock investors i
