17.(5) One part of a PERT project, installing equipment, will most likely be completed in 10 days. However, if there are no worker absences, the equipment can be installed in 8 days. If the work force happens to catch Bubonic Flu, this years' disease, the installation will take 18 days. What is the expected time (te) for the
Your evaluation of a statistical sample indicates that there may be a material misstatement in the population. Upon analyzing the detected misstatements, a common cause was discovered: Most of the misstatements were caused by the failure to record sales returns on a timely basis. That is, sales were returned prior to December 31 but were recorded as January returns because the person who normally records sales returns was on vacation at year end. How should the auditor proceed to determine whether accounts receivable and sales returns and allowances contain a material misstatement?
Your evaluation of a statistical sample indicates that there may be a material misstatement in the population. Upon analyzing the detected misstatements, a common cause was discovered: Most of the misstatements were caused by the failure to record sales returns on a timely basis. That is, sales were returned prior to December 31
A company is studying the inventory stocking policy for a product (#A123). The company uses a fixed-order quantity system to manage inventory. Demand per day is normally distributed with a demand per day of 210 and a standard deviation of 5 per day. Based on historical lead time of 4 days the current reorder point is set at 85
The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below: Current Assets Cash - $60 Accounts receivable (net) - 170 Notes receivable - 50 Inventories - 200 Prepaid expenses - 25 Total current a
Use the graphical sensitivity analysis to determine the range of values of the probability of state of nature s1 over which each of the decision alternatives has its largest expected value. Explain decisions you would make and in which range. State of Nature Decision s1 s2 d1 8 10 d2 4 16 d3 10 0 16 12 8 4 16 12 8 4 p = 0 p = 1 d2 d1 d3 .6 .8333
Use the graphical sensitivity analysis to determine the range of values of the probability of state of nature s1 over which each of the decision alternatives has its largest expected value. Explain decisions you would make and in which range. State of Nature Decision s1 s2 d1 8 10 d2 4 16 d3 10 0 16 12 8 4 16
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7% and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest annually. a) Determine the current value of the bond if present market conditions justify a 14% required rate of return. b) Supposing Twin
1. One challenge you face on a daily basis in business is calculating decision-making information when you know only part of the information. You must know how much you need to determine how changes in sales will affect the bottom line. If you know your fixed costs (FC), your variable costs per unit (VCu), your price per unit (P
Problem: The appliance center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following distribution for demand: Demand / week Probability 0 .2 1 .4 2
Pretend that you have asked your boss (me) to support your request for tuition assistance for the MBA program, and given him a copy of the curriculum. He responds that he is generally supportive, but doesn't see the relationship between some of the courses, statistics being one of them, and being an effective manager. He has requested a written explanation of the relationship between what you learn in this course and being an effective manager. Convince him that this course has value for future managers.
Pretend that you have asked your boss (me) to support your request for tuition assistance for the MBA program, and given him a copy of the curriculum. He responds that he is generally supportive, but doesn't see the relationship between some of the courses, statistics being one of them, and being an effective manager. He has r
A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being considered, one in the center of the city and one on the outskirts. The central city location would involve fixed monthly costs of $7,000 and labor, materials, and transportation costs of $30 per car. The
James Middleton is considering the potential for success in a side business by opening a bicycle store in a local mall complex. The proposed store would cater to a growing trend in cycling with bicycle sales, parts and add-on equipment sales, rentals, and service and repair. Two spaces, one large and one small, with ideal locati
Please see attached file for the table. You have a network with a critical path A-B-C-D. For our purposes, you are allowed to ignore the other paths through the network. The values for optimistic (a), pessimistic (b) and most likely (m) durations for each task are as shown below. These are based on the probability that vir
You are deciding whether or not you want to manage a new project for your company. Since you are very ambitious, you want to decide whether this is in your best interest. You know that to be successful as a PM, your project must come in within the approved budget and be completed within the approved schedule. You do some researc
Discussion of key statistics provided by sources like yahoo finance. Also, recommendation regarding the future of this corporation. Is the stock a good buy, average buy or poor buy. Include justification based on your analysis. http://finance.yahoo.com/q/ks?s=SBUX+Key+Statistics.
1. Consider your example, "For instance, if we want to compare student grades of public universities to private universities, we would look at independent grade samples of public universities and private universities - yes, or we could create dependent grade samples from the public versus the private university. It is not t
Discusses and identify each data (survey question) as to type (rating, ranking, and category).
1. Great Expectations, a wedding and maternity clothing manufacturer, has a cost of equity of 16% and a cost of preferred stock of 14%. Its before-tax cost of debt is 12%, and its marginal tax rate is 40%. Assume that he most recent balance sheet shown here reflects the optimal capital structure. Calculate Great Expectations'
1. a - What determines an appropriate population? b- What determines adequate sample size? c- Please interpret: "....the study not be 'too big', where an effect of little scientific importance is nevertheless statistically detectable." And explain. 2. Consider we have a survey. What if we have non-response to particular
If current trends continue, China may be the world's largest economy by 2020. Discuss the possible implications of such a development for (a) the world trading system, (b) the world monetary system, (c) the business strategy of today's European and U.S. based global corporations, and (d) global commodity
Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June follow: Proportion of Services Used by
Calculate the industry average beta for Dell, and then using the industry average beta compute the cost of equity for Dell. Does it matter if you use the beta for Dell or the beta for the industry in this case? Company Beta Dell
Discuss the Statistics questions below. 1. Very good list of characteristics of good business research. Quite a detailed list for each: A. Good business research presents opportunities, outweighed by potential risks or costs of conducting the research, that enable the organization to grow and develop new strategies to impro
1. How would you apply probability concepts, such as confidence intervals and point estimation principles, to make sound business decisions where there are conditions of uncertainty (risk). Pick a specific example from your own area of business experience. 2. Does good research always result in decisions that ..Mobilize the
1. What characterizes 'good business research'. Emphasis is on good. 2. What is the relationship between deductive and inductive arguments (reasoning)? Are both types of arguments (reasoning) valuable in research? Explain. Provide examples of each type of argument, illustrating the benefits of their usage. 3. How would
1. How do we decide when to do business research (or when not)? 2. Of the three research designs types (exploratory, formalized, and casual), which would you use to assess the effectiveness of an aspect of your job? Explain. 3. What are some examples of operational definitions in research design within your profession?
1. Why use statistics in business research, and what is its role? 2. How can the concept of variance and standard deviation be applied to solving a real world business-related problem? Include a specific example from business. Explain. 3. When would you use descriptive statistics over inferential statistics? G
1- In your work environment, identify a probability (either stated or assumed) that is a premise for making decisions and directing action. Potential candidates are customer or competitor behavior, technology or regulatory change, and "forces of nature" (severe weather, etc.) Describe how the probability has been used in decisio
You have been running a sole-proprietorship business dealing in cosmetic products. You have been accurately recording all your sale and purchase transactions in journals and using the journals in the general ledger accounts. Lately, you have observed that the entire exercise is taking a lot of time. You, therefore, are consideri
The accounting records of Rhonda's Rugs show the following balances at Dec 31 Cash $3,000 Notes payable $ 9,000 Equipment 21,000 Owners investment 15,000 Merchandise 5,000 Revenue from Catering 12,000 Owed to owners 4,000
Woodscross LLC had the following events occur during the month of July. 1. Receivd $40,000 from investors for contributed capital 2. Borrowed $15,500 from the bank 3. Paid $4,100 for rent 4. Made sales on account for $12,500 5. Made cash sales to customers totaling $29,700 6. Repaid part of the bank loan for $6,000