6. A marketing manager has developed a regression model to predict quarterly sales of his companyâ€™s mid-weight microfiber jackets based on price and amount spent on advertising. An intern suggests that he include indicator (dummy) variables for each quarter. a) How would you code the variables? (How many dummy variables do you need? What values would they have?) b) Why does the internâ€™s suggestion make sense? .... Read More

27. Although studies continue to show smoking leads to significant health problems, 20% of adults in the United States smoke. Consider a group of 250 adults. a. What is the expected number of adults who smoke? b. What is the probability that fewer than 40 smoke? c. What is the probability that from 55 to 60 smoke? d. .... Read More

Forecasts based on averages. Given the following data: Period Numbers of Complaints 1 60 2 65 3 55 4 58 Prepare a forecast for period 6 using each of these approaches: a. The appropriate naive approach. b. A three-period moving average. c. A weighted average using weights of .50 (most recent), .30, and .20. d. Exponential smoothing with a smoothing constant of .40. .... Read More

Elon Corporation manufactures parts for an aircraft company. It uses a computerized numerical controlled (CNC) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of Â±0.024 inch. The CNC process that manufactures these parts has a mean of 1.281 inches and a standard deviation of 0.008 inch. Compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design .... Read More

1. On May 1, Lincoln lends Donaldson $250,000 and receives from Donaldson his agreement to pay this amount in two years. Lincoln takes a security interest in the machinery and equipment in Donaldsonâ€™s factory. A proper finance statement is filed with respect to the security agreement. On August 1, at Lincolnâ€™s request, Donaldson executes an addendum to the security agreement giving Lincoln an interest in after-acquired machinery and equipment in Donaldsonâ€™s factory. A .... Read More

11. The Kamp family has twins, Rob and Rachel. Both Rob and Rachel graduated from college 2 years ago, and each is now earning $50,000 per year. Rachel works in the retail industry, where the mean salary for executives with less than 5 yearsâ€™ experi- ence is $35,000 with a standard deviation of $8,000. Rob is an engineer. The mean salary for engineers with less than 5 yearsâ€™ experience is $60,000 with a standard devi- ation of $5,000. Compute the z values for both .... Read More

20. Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 4,000 pounds, the second weighs 8,000 pounds, and the third weighs 14,000 pounds. The transportation carrier quotes a freight rate of $20.00 per hundredweight (or cwt.) for direct shipment to the customer for shipments weighing 1,000 to 4,999 pounds, $18.00 per cwt. for orders weighing 5,000 to .... Read More

31. The board of directors of a small company consists of five people. Three of those are â€œstrong leaders.â€ If they buy an idea, the entire board will agree. The other â€œweakâ€ mem- bers have no influence. Three salespeople are scheduled, one after the other, to make sales presentations to a board member of the salespersonâ€™s choice. The salespeople are convincing but do not know who the â€œstrong leadersâ€ are. However, they will know who the .... Read More

28. Doctorâ€™s Care is a walk-in clinic, with locations in Georgetown, Monks Corners, and Aynor, at which patients may receive treatment for minor injuries, colds, and flu, as well as physical examinations. The following charts report the number of patients treated in each of the three locations last month. Describe the number of patients served at the three locations each day. What are the maximum and minimum numbers of patients served at each of the .... Read More

29. In economic theory, a â€œhurdle rateâ€ is the minimum return that a person requires before they will make an investment. A research report says that annual returns from a specific class of common equities are distributed according to a normal distribution with a mean of 12 percent and a standard deviation of 18 percent. A stock screener would like to identify a hurdle rate such that only 1 in 20 equities is above that value. Where should the hurdle rate be set? .... Read More