You are considering purchasing a carpet cleaning business that will cost $40,000 for startup. Being a detail-oriented entrepreneur, you have looked into the performance of other franchises for this company and have found the following. 35% of the franchises close after one year with a net loss of $48,000. 30% of the franchises continue to operate but have a net profit of only $24,000. 35% of the franchises are doing quite well with a net profit of $100,000 in their first year.

You are considering purchasing a carpet cleaning business that will cost $40,000 for startup. Being a detail-oriented entrepreneur, you have looked into the performance of other franchises for this company and have found the following. 35% of the franchises close after one year with a net loss of $48,000. 30% of the franchises continue to operate but have a net profit of only $24,000. 35% of the franchises are doing quite well with a net profit of $100,000 in their first year.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.7: Probability

Problem 60SE: Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the...

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Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the United States, and about 40 million were elderly (aged 65 and over).[34] 60. It is predicted that by 2030, one in five U.S. citizens will be elderly. How much greater will the chances of meeting an elderly person be at that time? What policy changes do you foresee if these statistics hold true?
The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, but his homes had been taking many months to sell and had been selling for substantially less than the asking price. In order to determine what types of homes would attract residents of the community, the builder contacted a statistician at a local college. The statistician went to a local real estate agency and obtained the data contained in file OxHome. This data includes the sales price (measured in thousand dollars), square footage, number of rooms, number of bedrooms, and age for each of 60 single-family residences recently sold in the community. Using this data, a regression model was built to predict the sales price of houses in this community. The regression equation from the model is: sales price (thousand dollars) = 19.5 + 0.1079…
The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, but his homes had been taking many months to sell and had been selling for substantially less than the asking price. In order to determine what types of homes would attract residents of the community, the builder contacted a statistician at a local college. The statistician went to a local real estate agency and obtained the data contained in file OxHome. This data includes the sales price (measured in thousand dollars), square footage, number of rooms, number of bedrooms, and age for each of 60 single-family residences recently sold in the community. Using this data, a regression model was built to predict the sales price of houses in this community. The regression equation from the model is: sales price (thousand dollars) = 19.5 + 0.1079…
The trend in home building in recent years has been to emphasize open spaces and great rooms, rather than smaller living rooms and family rooms. A builder of speculative homes in the college community of Oxford, Ohio, had been building such homes, but his homes had been taking many months to sell and had been selling for substantially less than the asking price. In order to determine what types of homes would attract residents of the community, the builder contacted a statistician at a local college. The statistician went to a local real estate agency and obtained the data contained in file OxHome. This data includes the sales price (measured in thousand dollars), square footage, number of rooms, number of bedrooms, and age for each of 60 single-family residences recently sold in the community. Using this data, a regression model was built to predict the sales price of houses in this community. The regression equation from the model is: sales price (thousand dollars) = 19.5 + 0.1079…
In general, ___________% of the values in a data set lie at or below the 28 th percentile. _______________ % of the values in a data set lie at or above the 90 th percentile.. If a sample consists of 700 test scores, _________of them would be at or below the 52 th percentile. If a sample consists of 700 test scores, ________ of them would be at or above the 64 th percentile.
We know that physical exercise improves the body, but can it also improve the mind? Scientists at The Salk Institute at La Jolla, California, took a random sample of adult mice and divided them into two groups. Both groups were trained to find a platform in a maze filled with cloudy water. (Mice hate swimming, so they seek the platform as the refuge.) The first group of mice exercised on a running wheel, about 5 kilometers per day. The second group remained inactive. After one month, the mice were placed in the maze and timed until each reached the platform. The sample statistics are given below.Active group: n = 15, x ̄ = 17.6, s = 3.0 111Inactive group: n = 12, x ̄ = 27.1, s = 6.3 222(a) At 1% significance level conduct a hypothesis test to determine if exercise im- proves memory in adult mice; in other words, test if the active group is, on average, faster than the inactive group.(i.) State the hypotheses.(ii.) Test for equality of unknown population variances.(iii.) Calculate test…
Consider the following scenarios.I. A group of musicians count how many times they cansnap their fingers in 10 seconds with their dominanthands and with their nondominant hands. They willtest to see if musicians can snap faster with dominanthands than nondominant hands.II. A group of musicians is trying to measure theeffectiveness of practice time. Half of them practicea difficult piece of music for one hour each day whilethe other half practice two hours each day. After aweek, each musician plays the piece as a judge countsthe number of errors. They will test to see if morepractice results in fewer errors.Which are the proper choices for the hypothesis tests?A) Both scenarios require a 2-sample t-test.B) Both scenarios require a matched pairs t-test.C) Scenario I calls for a 2-sample t-test, and Scenario IIcalls for a matched pairs t-test.D) Scenario I calls for a matched pairs t-test, andScenario II calls for a 2-sample t-test.E) The proper tests cannot be determined until we seethe…
How profitable are different sectors of the stock market? One way to answer such a question is to examine profit as a percentage of stockholder equity. A random sample of 32 retail stocks such as Toys 'R' Us, Best Buy, and Gap was studied for x1, profit as a percentage of stockholder equity. The result was x1 = 14.0. A random sample of 36 utility (gas and electric) stocks such as Boston Edison, Wisconsin Energy, and Texas Utilities was studied for x2, profit as a percentage of stockholder equity. The result was x2 = 10.3. Assume that ?1 = 4.5 and ?2 = 3.0. (a) Categorize the problem below according to parameter being estimated, proportion p, mean ?, difference of means ?1 – ?2, or difference of proportions p1 – p2. Then solve the problem. p1 – p2?1 – ?2 ?p (b) Let ?1 represent the population mean profit as a percentage of stockholder equity for retail stocks, and let ?2 represent the population mean profit as a percentage of stockholder equity for utility stocks. Find a 99%…
An auctioneer of antique Iranian rugs kept records of his weekly auctions in order to determine the relationships among price, age of carpet or rug, number of people attending the auction, and the number of times the winning bidder had previously attended his auctions. He felt that, with this information, he could plan his auctions better, serve his steady customers better, and make a higher overall profit for himself.
An educational software company wants to compare the effectiveness of its computer animation for teaching biology with that of a textbook presentation. The company gives a biology pretest to each of a group of high school juniors, and then divides them into two groups. One group uses the animation, and the other studies the test. The company retests all students and compares the increase in biology test scores in the two groups b. If the group using the computer animation has a much higher average increase in test scores than the group using the textbook, what conclusions, if any, could the company draw
Ajax has established a new sandwich shop format for airports and train stations.Here, the sandwitches are only made from a specially made,long,individual loaf of bread.But the innovations is that the sandwiches are not made ahead in large batches.Intead,a few of each variety of sandwich are made at a time,in the shop,with the result being a better ability to exactly match supply to demand. If prior to this change the shop has roughly 5 percent leftovers of one-half of the sandwich varieties each day,but could have sold 10 percent more of the two best sellers that day,what are the potential benefits of the new format if the store sells 12 different sandwiches each with an average demand of 20 per day?
A stock market analyst examined the prospects of the shares of a large number of corporations. When the performance of these stocks was investigated one year later, it turned out that 25% performed much better than the market average, 25%, much worse, and the remaining 50%, about the same as the average. Forty percent of the stocks that turned out to do much better than the market were rated good buys by the analyst, as were 20% of those that did about as well as the market and 10% of those that did much worse. What is the probability that a stock rated a good buy by the analyst performed much better than the average?