Answers to Week Two Homework Assignment ( Assignment 1) Chapter 7 Exercise 13 You should choose a sample size of 1000 people. Although the law of averages tells you that the average of 1000 people is very likely to be close to 60 inches -- and thus under 65 inches tall -- here you are winning a prize for each person over 65 inches tall, not when the average of all the people is over 65 inches tall. Having a larger sample will give you more chances at getting the prize. The law of averages pertains to the variability of a sample average -- not variability in individual data values themselves. Here, we are concerned with individual data values.
,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.
Standard costing also helps managers set target level performance and standards as well as sales prices of products. 2. Based on the purchase of 220,000 square yards of material and a difference of 25 cents from the actual price of $8.25 and standard price $8 leads to an unfavorable price variance of $55,000. As for the difference between the actual 110,000 material used and the 120,000 budgeted, once the budgeted $8 price is factored in we find a favorable quantity variance of $80,000.Finally the difference between an unfavorable $55,000 and favorable $80,000 we have a $25,000 favorable flexible budget variance. 3.
ANSWER: a -recall that all the t-values are larger than the z-values so it makes it more difficult to reject the null. 2. Read the t statistic from the table of t distributions and circle the correct answer. A two-tailed test, a sample of 20 at a .20 level of significance; t = a. 1.328 b.
Chapter 6 Sampling Distributions True/False 1. If we have a sample size of 100 and the estimate of the population proportion is .10, we can estimate the sampling distribution of [pic]with a normal distribution. Answer: True Difficulty: Easy 2. A sample size of 500 is sufficiently large enough to conclude that the sampling distribution of [pic] is a normal distribution, when the estimate of the population proportion is .995. Answer: False Difficulty: Medium 3.
Another immense strength for VSUW is the high percentage of revenue that is invested in programs to help the community. According to VSUW (2013) “less than 10 percent [of revenue] is spent on administrative costs with 90 percent invested in local programs and initiatives” to help those in need in the community. Weaknesses In preparing financial statements often times management has to make estimates on the numbers (Valley of the Sun United Way, 2013). This is a weakness because the “actual results could differ from the estimates” (Valley of the Sun United Way, 2013). Another weakness is that this non-profit “invests excess cash in investment grade marketable solutions” (Valley of the Sun United Way, 2013).
Portland Trail Blazers Case Brief Attribute Importance: Based on the conjoint analysis for importance of attributes as shown in Exhibit 1, Ticket Location has the highest importance with a 39.49% of the overall decision weight. Ticket Price comes next with 37.58% of the overall decision weight followed by Promotion Strategy. Number of Games is the least important of all the attributes. Analysis: A list of all package combinations yields a total of 240 different combinations of packages. But we know that Blazers management disallows certain packages namely 200-level seats for less than $60 and 300-level, midcourt seats for less than $25.
There is a very low probability (5% at most) that the annual income for the data from AJ DAVIS is less than $50,000. The way that we concluded this was to test the probability that the annual income of our customers is $50,000 versus the probability that the average annual income was less than $50,000. What we found was that there is a 95% chance that the average annual income of our customers is between $69,997.9 and $70,001.8. This was also backed with a p-value (which determines the strength of the evidence) that showed weak evidence against the average income equaling $50,000. Since we cannot deny that the annual income average is $50,000, we have no choice but to keep it as a consideration moving forward.
Given the information above, sketch Mike’s budget line on the graph below. [pic] QUESTION 3 (1000 points) a) State four (4) properties of indifference curves that can be derived based on the three (3) main assumptions of preferences (EXCLUDE the property that indifference curves cannot cross). (400 points) i) Indifference Curves are Negatively Sloped – The IC slopes downward because as the consumption of Good X increases then a certain amount Good Y must be given up to maintain the same level of satisfaction. ii) A Higher Indifference Curve Represents A Higher Level Of Satisfaction – A combination of Goods lying on a higher indifference curve will be preferred by a consumer to a combination of goods that lie on a lower indifference curve. iii) Indifference Curves Are Convex To The Origin – As the amount of Good X increases by equal amounts, Good Y will reduce by smaller amounts.