Dunlop company conducts tests on tires life . For a particular tires, the standard deviation is 6000 kilometers,and the 68% of tires life failed between two values (102000 , 78000) what is the value of the mean life of dunlop tires ?
Q: The Chem-Tex Chemical company is considering two additives for improving the dry-weather stability…
A: Incremental rate of return Analysis is made by calculating the Internal rate of return (IRR) of the…
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: Internal rate of return: It is the tools utilised in capital budgeting to estimate the…
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: Annual worth is calculated over one life cycle of the asset and is usually used to compare the…
Q: whether this is a desirable investment by using the present worth method.
A: Present worth method means the difference between PV of cash inflow & Cash outflow. Decision…
Q: A $4,875 processing machine purchased by FedEx to replace quarantined workers during the pandemic…
A: Net Present Value = Present value of cash inflows - Initial investment where, Present value of cash…
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: IRR method is one of the project selection methods in capital budgeting. IRR is compared with the…
Q: he capital investment requirement is P345,000 and the estimated market value of the system after a…
A: Net Cashflow for each of 6 years = Annual revenues - Annual expenses Net Cashflow for each of 6…
Q: 3. Useful lives are equal to the study period At the Motorola plant in Mesa, Arizona, it is desired…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: A mechanical engineer is considering two types of pressure sensors for the low-pressure steam lines…
A: Present worth analysis is the conversion of a future amount of money to its present value - also…
Q: In 2017, Cole & Sons, a small environmental-testing firm, performed 12,200 radon tests for $300 each…
A: Sales budget is very important budget which shows expected sales revenue to be earned. Estimated…
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: The return of initial investment during the life of the investment is known as capital recovery. An…
Q: The company sets a new to the company revenue of 20,000,000.00 pesos for its soon to launched corned…
A: Given: cannibalization of 45% revenue of new product = 20,000,000.00 pesos Cannibalization Rate =…
Q: below: The initial cost is $500,000. The tire cost is $20,000, and the estimate tire life is 4,000…
A: This is the expense of repairing and maintaining construction equipment that has been subjected to…
Q: Arctic and Antarctic regions are harsh environments in which to take data. A TempXZ 3000 portable…
A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…
Q: A diesel-powered tractor with a cost of $249,520 and an estimated residual value of $7,600 is…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Higgins Machine Tools, Inc. is currently manufacturing one of its products on a hydraulic stamping…
A: a) Computation of revenue for the old machine per year: Cash flows of old machine:
Q: AMT, Inc., is considering the purchase of a digital camera for the maintenance of design…
A: External rate of return is the rate of return on a project where all the extra returns on the…
Q: where computer-aided design files can be superimposed over the digital pictures. Differences between…
A: The payback period method is used to appraise various capital investment projects. It uses the cash…
Q: Tesla is under contract to Montgomery County for evaluating alternatives that use a robotic,…
A: In this we have to calculate present value and than calculate future value and compare with each…
Q: Mileage tests are conducted for a particular model of automobile. If a 98% confidence interval vwith…
A: Confidence interval = 98% Margin of error = 1 mile per gallon Standard deviation (S) = 2.5 miles per…
Q: discounted payback method.
A: The payback period method is used to appraise various capital investment projects. It uses the cash…
Q: For the past 7 years, a quality manager has paid $500 every 6 months for the software maintenance…
A: Effective interest rate or EAR is the rate of return on any investment after taking into…
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: Capital budgeting refers to the evaluation of the profitability of potential investment and projects…
Q: B): As an engineering manager, suppose that the outputs of a company for the production of fire…
A: Efficiency = ( work output/ input ) x 100 = 80000/800000 x 100 = 10% In order to find the net…
Q: A West Virginia coal mining operation has installed an in-shaft monitoring system for oxygen tank…
A: The perpetual annuity is a series of uniform cash flows that occur in an equal interval between the…
Q: A remotely located air sampling station can be powered by solar cells or by running an above ground…
A: Present worth means present value of an asset. Effective Interest Rate is the effective annual…
Q: A mixing process for laboratory-grade sodium phosphate has an estimated first cost of $320,000 with…
A: Given information: Amount to be invested $320,000 Estimated cost is $40,000 Estimated income is…
Q: Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past…
A:
Q: Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale…
A: A choice about the capital budget is both a financial commitment and an investment. Taking on a…
Q: In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic transfer…
A: EUAC stands for Equivalent Uniform Annual Cost. The annual uniform series of payment which can…
Q: Al Fathma LLC manufactures a line of equipinen this year, which also has a one-year quarantee if the…
A:
Q: A remotely located air sampling station can be powered by solar cells or by running an above ground…
A: Solar cells Power line Initial Costs 17400 26000 Annual costs 2100 1000 Time Period 5 5…
Q: BBMLOVESLENI Company operates a fleet of delivery trucks in Luzon. The company has determined that…
A: SOLUTION- WORKING NOTE-1 CALCULATION OF VARIABLE COST AND FIXED COST USING LOW HIGH METHOD-…
Q: A remotely located air sampling station can be powered by solar cells or by running an above ground…
A: To compare the alternatives, equivalent annual cost need to be calculated. Alternative with more…
Q: In 2017, Cole & Sons, a small environmental-testing firm, performed 11,200 radon tests for $290…
A: Preparations of the sales budget help the business entity in determining how many units of goods are…
Q: Two insulation thickness alternatives have been proposed for a process steam line subject to severe…
A: Annual worth is the annual equivalent cost associated with a project.
Q: Over a five-year period, Insurance Company X provides coverage for 80,000 homes, while Insurance…
A: Company x Total Coverage is 80,000 Claim percentage is 1% therefore, clain number is 800 Variance…
Q: An engineer proposes to spend $95,000 on a capital project to upgrade a package delivery system. The…
A: Present worth is calculated by present value of annual savings from the project less of initial cost…
Q: Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof…
A: The internal rate of return is a capital budgeting technique that evaluates a product or project's…
Q: Three types of bits can be used in an automated drilling operation. A bright high-speed steel (HSS)…
A: Future worth is the value of present worth of a cash flow to be received on a future date with a…
Q: A motor company needs vital information, for calculating the cost of nunning a motor truck per…
A: 1 Month = 5 Weeks [mention in the question] Monthly Depreciation = Annual Depreciation / 12…
Q: Thirsty plc makes a revolutionary type of can called Soak. The can has a resealable top which allows…
A: As per IAS 38: Intangible assets. Research: Research expense is the planned investigation undertaken…
Q: Your first job as an engineer is to purchase a new rotary vacuum-drum filter with a capacity of 1100…
A: I have used the two below-mentioned formulas to estimate the cost of the new filter. Calculation…
Q: A company monitored the cost of its product inspection for 8 years. The costs were AED 100 per year…
A: The present value is calculated by adding the cost of each year.
Step by step
Solved in 2 steps
- Jensen Tire Auto is deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). a. Develop a scatter chart with weekly usage hours as the independent variable. What does the scatter chart indicate about the relationship between weekly usage and annual maintenance expense? b. Use the data to develop an estimated regression equation that could be used to predict the annual maintenance expense for a given number of hours of weekly usage. What is the estimated regression model? c. Test whether each of the regression parameters 0 and 1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? d. How much of the variation in the sample values of annual maintenance expense does the model you estimated in part (b) explain? e. If the maintenance contract costs 3,000 per year, would you recommend purchasing it? Why or why not?Duke Energy reported that the cost of electricity for an efficient home in a particular neighborhood of Cincinnati, Ohio, was $104 per month. A researcher believes that the cost of electricity for a comparable neighborhood in Chicago, Illinois, is higher. A sample of homes in this Chicago neighborhood will be taken and the sample mean monthly cost of electricity will be used to test the following null and alternative hypotheses. Assume the sample data lead to rejection of the null hypothesis. What would be your conclusion about the cost of electricity in the Chicago neighborhood? What is the Type I error in this situation? What are the consequences of making this error? What is the Type II error in this situation? What are the consequences of making this error?You have been watching a oil fall from $95.56 to $85.22 over the past few weeks and are expecting to see some retracement. Calculate the 50% resistance levels.
- Suppose that Motorola uses the normal distribution to determine the probability of defects and the number of defects in a particular production process. Assume that the production process manufactures items with a mean weight of 10 ounces. Calculate the probability of a defect and the suspected number of defects for a 1,000-unit production run in the following situations. a. The process standard deviation is 0.15, and the process control is set at plus or minus one standard deviation. Units with weights less than 9.85 or greater than 10.15 ounces will be classified as defects. b. Through process design improvements, the process standard deviation can be reduced to 0.05. Assume that the process control remains the same, with weights less than 9.85 or greater than 10.15 ounces being classified as defects. c. What is the advantage of reducing process variation, thereby causing process control limits to be at a greater number of standard deviations from the mean?Ned Thompson Labs performs tests on superalloys, titanium, aluminum, and most metals. Tests on metal composites that rely upon scanning electron microscope results can be subcontracted or the labs can purchase new equipment. Evaluate the sensitivity of the economic decision to purchase the equipment over a range of ±20% (in 10% increments)of the estimates for P, AOC, R, n, and MARR (range on MARR is 12% to 18%). Use the AW method and plot the results on a sensitivity graph. For which parameter(s) is the AW most sensitive? least sensitive? First cost, P = $-180,000 Salvage, S = $20,000 Life, n = 10 years Annual operating cost, AOC=$-30,000 per year Annual revenue, R = $70,000 per year MARR = 15% per yearThe Port Authority sells a wide variety of cables and adapters for electronic equipment online. Last year the mean value of orders placed with the Port Authority was 47.28, and management wants to assess whether the mean value of orders placed to date this year is the same as last year. The values of a sample of 49,896 orders placed this year are collected and recorded in the tile PortAuthority. a. Formulate hypotheses that can be used to test whether the mean value of orders placed this year differs from the mean value of orders placed last year. b. Use the data in the file PortAuthority to conduct your hypothesis test. What is the p value for your hypothesis test? At = 0.01, what is your conclusion?
- Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the year, 25,000 units were produced. Which of the following statements represents the correct application of the Taguchi loss function? a. The hidden costs of internal failure are 500,000. b. The hidden costs of external failure are 500,000. c. The costs of detection activities are 20 per unit inspected. d. The total external costs are 500,000.After a few hours May’s computer is fixed. May uses the first 9 months of data and regression analysis to estimate the relationship between the quantity purchased and purchase costs of part #696. The regression line May obtains is as follows: y = $2,582.6 + 3.54X Evaluate the regression line using the criteria of economic plausibility, goodness of fit, and significance of the independent variable. Compare the regression equation to the equation based on the high-low method. Which is a better fit? Why?Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associated with the pilot test product line were as follows: first cost of $41,000 and annual costs of $18,000. Annual revenue was $38,000 and used equipment was salvaged for $4,000. What rate of return did the company make on this product? The rate of return the company made on the product is
- Sandersen Meat Processors has asked its lead process engineer to evaluate two different types of conveyors for the beef cutting line. Type A has an initial cost of $70,000 and a life of 3 years. Type B has an initial cost of $95,000 and a life expectancy of 6 years. The annual operating cost (AOC) for type A isexpected to be $9000, while the AOC for type B is expected to be $7000. Ifthe salvage values are $5000 and $10,000 for type A and type B, respectively,tabulate the incremental cash flow using their LCM.Your first job as an engineer is to purchase a new rotary vacuum-drum filter with a capacity of 1100 ft-. Your company purchased a similar filter eight years ago with a capacity of 700 ft- for $26,000. After checking the literature, you determine the cost index was 429 eight years ago and is 548 today. If the power-sizing exponent for this type of equipment is 0.52, estimate the cost of the new filter.A risk analysis has been performed, and the risk has been calculated at 0.05 fatalities/yr. A risk reduction measure has been proposed and if this is implemented, the risk will be reduced to 0.04 fatalities/yr (20% reduction).The cost of this risk reduction measure is 1 million in investment and 0.2 million yr−1 in operating costs. The risk reduction measure will have an effect for 20 years. For cost–benefit purposes, value of a statistical life (VSL) is set to 25 million. Perform a cost–benefit analysis and decide if the risk reduction measure has a positive cost–benefit or not. >> it is a risk management question