2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
b. The true population proportion of customers who live in an urban area exceeds 40% c. The average (mean) number of years lived in the current home is less than 13 years d. The average (mean) credit balance for suburban customers is more than $4300 I have been assigned to analyze the speculated data listed above by performing hypothesis test for each of the above situations (using the Seven elements of a Test Hypothesis with a=.05) in order to see if there is evidence to support my manager’s beliefs in each case (a-d), explain my conclusion in simple terms, compute the p-value with the interpretation, follow up with computing 95% confidence intervals for each of the variables described in a. b. c. d. along with interpreting these intervals. This paper will also include an Appendix with all the steps in hypothesis testing, as well as the confidence intervals and Minitab output In order to understand how hypothesis testing is done it is important that you know the elements of the Test of Hypothesis, and what each step means. The Seven elements of a Test of Hypothesis are: 1. Null
Case Study 2 Solution Number of seats per passenger train car 90 Average load factor(percentage of seats filled) 70% Average full passenger fare $160 Average variable cost per passenger $70 Fixed operating cost per month $3,150,000 a. What is the break even point in passengers and revenues per month Contribution margin per passanger = $90 Break even point per passanger = $35,000 35000 Contribution margin ratio= $2 Break even point in dollars = $5,600,000 5600000 b. What is the break even point of passenger train cars per month 63 Compute # of seats per train car(remember load factor?) 555.5555556 Number of train cars rounded 556 c. If Springfield Express raises its average passenger fare to $190, it is estimated that the average load factor will decrease to 60 percent. What will the monthly break even point in the number of passenger cars?
Discuss your first individual variable, using graphical, numerical summary, and interpretation Descriptive Statistics: Credit Balance($) Total Variable Count Mean StDev Variance Minimum Q1 Median Q3 Credit Balance($) 50 4153 932 868430 2047 3292 4273 4931 N for Variable Maximum Range IQR Mode Mode Credit Balance($) 5861 3814 1638 4073 2 The distribution of credit balance of the sample, which consists of 50 credit customers, is approximately skewed to the left, which is in part driven by $2,000 outlier. In addition, peak of the variable occurs at about $4,500 and the spread is from $2,000 to $6,000. The descriptive statistics of credit balance indicate that mean of $4,153 is lower than the median of $4,273, which in turn concurs that graphical interpretation is skewed to the left. Furthermore, mode of $4,073 occurs most often in a set of data. Graphical and descriptive findings indicate that out of the sample of 50 credit customers, purchasers on average have $4,153 credit balance.
New contribution margin = $70 Break-even point in passengers = fixed costs/contribution margin Passengers = 45,000 Train cars = 715 e) Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000? Before Tax Needed Profit = $1,071,428.57 Before Tax Needed Contribution Margin = $4,671,428.57 Contribution Margin per Customer = $120 Number of Customers Needed = 38,928.57 Whole Number of Customers Needed = 38,929
D. Discuss your 3rd individual variable, using graphical, numerical summary and interpretation Descriptive statistics | | | | | CREDIT BALANCE($) | count | 50 | mean | 3,964.06 | sample variance | 871,411.20 | sample standard deviation | 933.49 | minimum | 1864 | maximum | 5678 | range | 3814 | From the histogram of credit balance variable, the most values are between 3864 and 4864. The mean of credit balance variable is 3964.06 and the variance is 871411.2. E. Discuss your 1st pairing of variables, using graphical, numerical summary and interpretation Let urban be 1, rural be 2 and suburban be 3. For the scatter of Location and Income, we can find that the most income in rural are below $50 (in $1000's). F. Discuss your 2nd pairing of variables, using graphical, numerical summary and interpretation The correlation between income and credit balance variables is 0.63.
When planning your arrival at the airport, please ensure you allow enough time to check in. Checking in after this time may cause you to miss your flight and forfeit the fare paid. TRAVEL PLAN WITH VIRGIN AUSTRALIA SYDNEY TO PERTH Flight No: Fare: Class: Check-in: DJ553 Saver* Economy Virgin Australia DEPARTING Sydney Virgin Australia - T2 0800hr (08:00am), Fri 27 Jul 2012 Operated by Virgin Australia ARRIVING Perth Domestic/Terminal 3 1115hr (11:15am), Fri 27 Jul 2012 PERTH TO SYDNEY Flight No: Fare: Class: Check-in: DJ564 Saver* Economy Virgin Australia DEPARTING Perth Domestic/Terminal 3 1630hr (4:30pm), Sun 29 Jul 2012 Operated by Virgin Australia ARRIVING Sydney Virgin Australia - T2 2230hr (10:30pm), Sun 29 Jul 2012 PBMLNA Page 1 of
Which value(s) can be labeled as parameter(s)? A) 60% B) 67% C) 60% and 67% D) 50 Use this to answer # 18. The Consumers Union measured the gas mileage of 38 cars from the 1978–79 model-year on a test track. The pie chart below provides information about the number of cars from each country in this study by the Consumers Union. [pic] 18.
A reasonable approximation of these cash outflows would be $900 million, occurring as follows: End of Year 1967 1968 1969 1970 1971 Time “Index” t=0 t=1 t=2 t=3 t=4 Cash Flow ($mm) -$100 -$200 -$200 -$200 -$200 According to Lockheed testimony, the production phase was to run from the end of 1971 to the end of 1977, with about 210 Tri Stars as the planned output. At that production rate, the average unit production cost2 would be about $14 million per aircraft. The inventory-intensive production costs would be relatively front-loaded, so that the $490 million ($14 million per plane, 35 planes per year) annual production costs can be assumed to occur in six equal increments at the end of years 1971-1976 (t=4 through t=9). Revenues In 1968, the expected price to be received for the L-1011 Tri Star was about $16 million per aircraft. These revenue flows would be characterized by a lag of a year to the production cost outflows; annual revenues of $560 million can be assumed to occur in six equal increments at the end of
There are 80 elements and three variables in the data set. The variables include selling price in dollars, age of buyers, and the vehicle origin domestic or import. Eighty random samples were taken from the data set to compare the age groups with the number of purchases of domestic or import vehicles. The data from the data set was analyzed to formulate the following hypothesis statement: Do buyers over age 42 buy more domestic cars than buyers under age 42? Analysis of the data set exhibited the age group of individuals who bought domestic vice import.