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- The management of BCD Inc. would like to separate the fixed and variable components of electricity as measured against machine hours in one of its plants. Data collected over the most recent six months follow:Electricity MachineMonth Cost Hours January $1,100 4,500February 1,110 4,700March 1,050 4,100April 1,200 5,000May 1,060 4,000June 1,120 4,600Required: 1. Using the method of least squares, compute the fixed cost and the variable cost rate for electricity expense. (Round estimates to the nearest cent.) 2. Compute coefficients of correlation and determinationWhat proportion of machine time would be lost in operating four machines when the machine operates 70 percent of the time unattended and the operator attention time at irregular intervals averages 30 percent? Is this the best arrangement on the basis of minimizing the proportion of machine time lost?A candy manufacturer selects mints at random from the production line and weighs them. For one week, the day shift weighed n1 = 194 mints and the night shift weighed n2 = 162 mints. The numbers of these mints that weighed at most 21 grams was y1 = 28 for the day shift and y2 = 11 for the night shift. Let p1 and p2 denote the proportions of mints that weigh at most 21 grams for the day and night shifts, respectively. a) Give a point estimate for p1-p2 b) Find and interpret a 95% confidence interval for p1-p2 c) Can you claim a difference between difference between proportions of mints that weight at most 21g for the day and night shifts?
- a) Genenesis Dispensary is contemplating of opening a new branch in Mwanza. If the medical for medical service is favourable, Genesis could realize a net profit of Tsh.100 million. On the other hand, if the market turn out to be unfavourable, it can end up losing Tsh. 40 million. Of course, Genesis may opt not to persue this option of expanding its operations. In the absence of data from which to base its decision, te best guess for Gensis is equally likely that the dispensary will either be successful or unsuccessful Required: i) Use the decison tree approach, what decison should Genesis Dispensary take b) Market research firm named, Easy Market Access approach Genesis with an offer to undertake a study of Mwanza medical service market at a fee of Tsh. 5 million. Easy Market Access claims that their experience enables them to use Bayes’ Theoremn to make the following statements about different state of the market: ▪ Provide that the study is favourable, the probability of favourable…A report in LTO stated that the average age of taxis in the Philippines is 9 years. An operations manager of a large taxi company selects of 40 taxis and finds the average age of the taxis is 8.2 years. The of the population is 2.3 years. At can it be concluded that the average age of the taxis in his company is less than the national average?Workers at a particular mining site receive an average of 35 days paid vacation, which is lower than the national average. The manager of this plant is under pressure from a local union to increase the amount of paid time off. However, he does not want to give more days off to the workers because that would be costly. Instead he decides he should fire 10 employees in such a way as to raise the average number of days off that are reported by his employees. In order to achieve this goal, should he fire employees who have the most number of days off, least number of days off, or those who have about the average number of days off? a. He should fire employees who have the most number of days off. b. No matter who he fires, it will not increase the amount of paid time off. c. He should fire employees who have the average number of days off. d. He should fire employees who have the least number of days off.
- A data with 18 points will be integrated as accurately as possible using a combination of Simpson's rules. It will require ____ applications of Simpson's 3/8th rule and _____ applications of Simpson's 1/3rd ruleWe want to estimate the proportion of individuals in a population who are in favor of a certain bill with a margin of error of at most 0.015. a. What is the minimum sample size needed to satisfy this requirement, with 90% confidence? Consider in your calculations that there is no knowledge about the proportion of individuals in favor of the bill. b. What is the minimum sample size needed to satisfy this requirement, with a confidence of 90%, using the additional information that the proportion must be at most equal to 0.15?During the Covid crisis, there were lockdowns and working-from-home, which made collecting data on unemployment more challenging. Researchers from a US University conducted a survey of 1,000 individuals in the labour force to assess rise in unemployment in September 2020. The object was to find out whether the unemployment rate had risen above a benchmark proportion of 5 per cent of the labour force in Scotland. Of the surveyed persons, 60 reported being unemployed in the week prior to the survey. Conduct a two-tailed test of whether unemployment rate during this period was 5 per cent. Set out your null and alternative hypotheses, significance level, test statistic, assumptions and sampling distribution clearly. Conduct the test and comment on the economic significance of the findings.
- To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income($1,000s) Itemized Deductions($1,000s) 22 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 19.7 120 23.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. A scatter diagram has 7 points plotted on it. The horizontal axis ranges from 0 to 140 and is labeled: Adjusted Gross Income ($1,000s). The vertical axis ranges from 0 to 30 and is labeled: Itemized Deductions ($1,000s). The points are…To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income($1,000s) Itemized Deductions($1,000s) 22 9.6 27 9.6 32 10.1 48 11.1 65 13.5 85 19.7 120 27.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. (b) Use the least squares method to develop the estimated regression equation that can be used to predict itemized deductions (in $1,000s) given the adjusted gross income (in $1,000s). (Round your numerical values to three decimal…After examining these data for all the jurisdictions, someone notes that certain areas have an unusually high “percent of 18-64 yr-olds with no high school diploma.” Based on this finding, this individual concludes that the high percentages are due to the rising population of immigrants in those areas. Further, the individual argues that any estimates of the associated “percent of low-income working families” in those areas should be recalculated after removing this sub-population from the data set, as they are causing the area to “look bad”. In addition to thinking critically, use the key rules about linear regression and extrapolation to write a statistically appropriate and socially responsible response to the individual’s conclusion and argument.
