A classification algorithm was used to predict Yes/No values for a given training data set, and then the results were applied to 100 observations in a testing data set. The actual Yes/No values and the estimated probabilities of Yes for these 100 observations are listed in the file P14_09.xlsx. Calculate the same accuracy measures as in Figure 14.20 and create the corresponding ROC curve. Comment on how you would use it for future classifications.
> Prepare an income statement under throughput costing for the year ended December 31, 2020 for Stenback Company. 2. Reconcile the difference between the contribution margin and the throughput margin for Stenback in 2020. Then reconcile the operating incom
> The Stenback Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4 per unit and other variable manufacturing costs of $1.20 per unit. The standard production rate is 20 units
> Artesa, a leading firm in the semiconductor industry, produces digital integrated circuits (ICs) for the communications and defense markets. For the year ended December 31, 2020, Artesa sold 242,400 ICs at an average selling price of $47 per unit. The fo
> Thunder Bolt, Inc., is a manufacturer of the very popular G36 motor- cycles. The management at Thunder Bolt has recently adopted absorption costing and is debating which denominator-level concept to use. The G36 motorcycles sell for an average price of $
> Match each of the following numbered descriptions with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: a. Theoretical capacity b. Practical capacity c. Normal capacity utilization d. Master-budget
> Smart Safety, a 3-year- old company, has been producing and selling a single type of bicycle helmet. Smart Safety uses standard costing. After reviewing the income statements for the first 3 years, Stuart Weil, president of Smart Safety, commented, &acir
> Regina Company manufacturers a professional-grade vacuum cleaner and began operations in 2020. For 2020, Regina budgeted to produce and sell 20,000 units. The company had no price, spending, or efficiency variances and writes off production-volume varian
> PAMO Medicals Ltd. makes face masks for the prevention of high contagious virus. For December 2020, PAMO Medicals incurred the following production costs: Required 1. Compute PAMO Medicals’ profit using absorption costing if 10,800 uni
> Opportunity cost. Jacobs Enterprise rents a small workshop for £50 per week, but at present does not use it. The firm could sub-let the workshop for £80 per week, but they are considering using it them- selves for a new project. In assessing whether the
> The Zeta Company manufactures trendy, good-looking, moderately priced umbrellas. As Zeta’s senior financial analyst, you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare Zetaâ&#
> EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: The selling price per unit is $3,300. The budgeted level of production used to cal
> Gorimapa Manufacturing Company produces desktop calendars. The following are the budgeted data for 3,000 units of Joystick produced in September 2020: During the period 2,800 were produced and sold to customers. Required 1. Prepare income statement for
> Yokojo Ltd specializes in the servicing of Japanese vehicles. The following is Yokojo’s budget for 2020: The following activities took place during the year: Fixed overhead is absorbed on the basis of labor hours. Required 1. Calculate
> Michael Roberts is a cost accountant and business analyst for Darby Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Roberts feels that manufacturing
> Mercy Enterprise is a knitting company based in Dublin, Ireland. The following is the static budget and actual results of Mercy Ltd. for the month of April 2020. Mercy’s management is pleased with the income which is higher than budgete
> Alpha Capital Company provides financial services to their clients. Recently, Alpha has experienced rapid growth rate due to expansion and is becoming concerned as to their rising costs, particularly their technology overhead costs. Alpha had determined
> Marissa Designs, Inc., makes jewelry in the shape of geometric patterns. Each piece is handmade and takes an average of 1.5 hours to produce because of the intricate design and scrollwork. Marissa uses direct labor-hours to allocate the overhead cost to
> Dru Automobiles Ltd manufactures car accessories. For 2020, budgeted variable overhead is $90,000 for 12,000 direct labor-hours. Budgeted total overhead is $110,000 at 8,000 direct labor-hours. The standard costs allocated to the production of these acce
> Foodies operates a meal home-delivery service. It has agreements with 20 restaurants to pick up and deliver meals to customers who place orders on the Foodies web- site. Foodies allocates variable and fixed overhead costs on the basis of delivery time. F
> Which of the following is not a primary component of business applications of data science? a. Computer science and data skills b. Substantive expertise in natural sciences c. Math and statistics d. Substantive expertise in an applicable business 17. Wh
> The Ramirez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 5 machine-hours of variable manufacturing overhead at
> Healthy-U Ltd is a pharmaceutical and biotechnology company. It has the following data for manufacturing overhead costs during August 2020: Fill in the blanks. Use F for favorable and U for unfavorable:
> The Principles Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amo
> Baking Bad also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2020, fixed manufacturing overhead was budgeted at £4.00 per direct manufacturing labor-hour. Actual fixed manufacturing ove
> Baking Bad bakes tarts for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manuf
> Base Accountancy is an audit and consultancy firm that operates in New Queensland, Australia. The followings relate to its operation in August 2020. Required Calculate the variable overhead cost variance, dividing the same into expenditure variance and
> Ostrich Enterprise is a small production firm that operates in Sweden. The company produces meatballs for canteens. During June 2020, the standard variable overhead has been budgeted as follows: Actual variable overheads incurred during the period, which
> Student Finance (StuFi) is a start-up that aims to use the power of social communities to transform the student loan market. It connects participants through a dedicated lending pool, enabling current students to borrow from a school’s
> Topiary Co. produces molded plastic garden pots and other plastic containers. In June 2020, Topiary produces 1,000 lots (each lot is 12 dozen pots) of its most popular line of pots, the 14-inch “Grecian urns,” at each
> Prepare journal entries and post them to T-accounts for all transactions in Exercise 7-30, including requirement 2. Summarize how these journal entries differ from the normal-costing entries described in Chapter 4, pages 135–138.
> Paul Nellis manufactures nail cutters which has a fixed cost of $200 and 100 items cost $1,000. Which of the following is the cost function, assuming that it is linear? a. 8 b. 4.5 c. 12 d. None of the above
> 16. Which of the following is not a function of a management accountant in an organization? a. Preparation of cost estimates, project planning, and analysis b. Budgetary controls and investigation c. Preparation of financial statements and cash flow stat
> A constructor _____________ parameters. a. can receive b. cannot receive c. must receive d. can receive a maximum of 10 12. A constructor _____________ overloaded. a. must be b. cannot be c. can be d. is always automatically 13. Usually, you want each i
> An object’s data items are also known as _____________. a. fields b. functions c. themes d. instances 2. You send messages or information to an object through its _____________. a. fields b. methods c. classes d. type 3.A program or class that instanti
> 11. The method public static Boolean test Value(int response) returns _____________. a. no value b. an int value c. a boolean value d. You cannot determine what is returned. 12. Which of the following could be the last legally coded line of a method dec
> Advantages to creating methods in addition to the main() method include all of the following except _____. a. the main() method is easier to follow b. all methods are prewritten, saving the programmer work c. it is easier to determine the overall intent
> 11. The remainder operator _____________. a. is represented by a forward slash b. must follow a division operation c. provides the quotient of integer division d. is represented by a percent sign 12. Which of the following operators has the lowest prece
> 1. When data cannot be changed after a class is compiled, the data is _____________. a. variable b. constant c. volatile d. mutable 2. Which of the following is not a primitive data type in Java? a. boolean b. byte c. sector d. int 3. Which of the foll
> 11. You must compile classes written in Java into ____________. a. bytecode b. source code c. Javadoc statements d. object code 12. All Java programming statements must end with a ____________. a. period b. comma c. closing parenthesis d. semicolon 13.
> 1. The most basic circuitry-level computer language is _________________. a. machine language b. Java c. high-level language d. C++ 2. Languages that let you use an easily understood vocabulary of descriptive terms, such as read, write, or add, are kno
> The ZapCon Company is considering investing in three projects. If it fully invests in a project, the realized cash flows (in millions of dollars) will be as listed in the file P04_99.xlsx. For example, project 1 requires a cash outflow of $3 million toda
> Consider the graphical solution to the product mix problem. Now imagine that another constraint—any constraint—is added. Which of the following three things are possible: (1) the feasible region shrinks; (2) the feasible region stays the same; (3) the fe
> Again continuing Problem 2, perform a sensitivity analysis where the selling prices of Basics and XPs simultaneously change by the same percentage, but the selling price of VXPs remains at its original value. Let the percentage change vary from 225% to 5
> Using the graphical solution of the product mix model as a guide, suppose there are only 2800 testing hours available. How do the answers to the previous problem change?
> There are five corner points in the feasible region for the product mix problem. We identified the coordinates of one of them: (560, 1200). Identify the coordinates of the others. a. Only one of these other corner points has positive values for both deci
> If all of the inputs in PC Tech’s product mix problem are nonnegative (as they should be for any realistic version of the problem), are there any input values such that the resulting model has no feasible solutions? (Refer to the graphical solution.)
> If you add a constraint to an optimization model, and the previously optimal solution satisfies the new constraint, will this solution still be optimal with the new constraint added? Why or why not?
> Consider an optimization model with a number of resource constraints. Each indicates that the amount of the resource used cannot exceed the amount available. Why is the shadow price of such a resource constraint always zero when the amount used in the op
> Suppose you use Solver to find the optimal solution to a maximization model. Then you remember that you omitted an important constraint. After adding the constraint and running Solver again, is the optimal value of the objective guaranteed to decrease? W
> In any optimization model such as those in this chapter, we say that the model is unbounded (and Solver will indicate as such) if there is no limit to the value of the objective. For example, if the objective is profit, then for any dollar value, no matt
> Continuing Problem 5, create a two-way data table for expected profit with order quantity along the side and unit expediting cost along the top. Allow the order quantity to vary from 500 to 4500 in increments of 500, and allow the unit expediting cost to
> Using the same data as in the previous problem, use NeuralTools, with the PNN algorithm, to perform the classification. Even though there are only 74 companies, you can still use 20% of them for testing. Then at the end of the run, respond Yes to the sen
> The file P14_07.xlsx contains data on 74 companies that have either gone bankrupt or haven’t. The data set also contains data on five frequently quoted accounting ratios. a. Create a pivot table that shows the average of each ratio, broken down by the Ye
> Continuing the previous problem, the same data have been split into two sets in the file P14_06.xlsx. The first 9500 observations are in the Training Data sheet, and the last 500 observations are in the Prediction Data sheet. In this latter sheet, the va
> A company that sells through a catalog and online through the Web has collected data on 10,000 potential customers. The data are in the file P14_05.xlsx. They include RFM (recency, frequency, and monetary) variables, which are popular in marketing resear
> Using the same admissions data in the file P14_03.xlsx, discretize the GMAT Score and Undergraduate GPA variables according to their quartiles. Then use the naïve Bayes procedure to classify the 100 applicants as Yes or No for admittance. (Remember that
> Admissions directors of graduate business programs constantly review the criteria they use to make admission decisions. Suppose that the director of a particular top-20 MBA program is trying to understand how she and her staff discriminate between those
> The file contains Gender, Age, Education, and Success (Yes/No) data of 1000 people. The purpose is to see how a classification tree method can use the first three variables to classify Success. You start with 564 Yes values and 436 No values. This is qui
> The lasagna data discussed in the chapter is repeated in the file. Instead of trying to classify a dependent variable, Have Tried, this file shows the result of clustering. Specifically, a Microsoft Data Mining Detect Categories algorithm (not discussed
> This problem lets you see how dissimilarity, the key to clustering, might be calculated and then used for prediction. The file contains data for 10 people. The value of Amount Spent for person 10 is unknown, and the ultimate purpose is to use the data fo
> Using the same beer preference data in the file P14_01.xlsx, discretize the Income and Age variables according to their quartiles. Then use the naïve Bayes procedure to classify the 100 customers as having Regular or Light preference. Based on these resu
> A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis. The cost of manufacturing a pound of each drug depends on the location, as indicated in the file. The machine time (in hours) required to produce a pound of each drug at eac
> Using the data in the file, the same data as in Problem 17, use the method in Example 14.5 to find three clusters of wine types. (Of course, don’t use the Type variable when creating clusters.) Write a short report about the clusters you find. Does the c
> Using the data in the file P14_18.xlsx, the same data as in Problem 16, use the method in Example 14.5 to find four clusters of cities. Note that there are two text variables, Crime_Trend and Unemployment_Threat. You can ignore them for this problem. Wri
> The file contains the same wine data. Instead of trying to use a classification algorithm to classify wines into the three known types (A, B, and C), it is interesting to see if a clustering algorithm can discover these known categories. The file contain
> The file P14_16.xlsx contains various data on 325 metropolitan cities in the United States. Cell comments in row 1 explain some of the variables. A Microsoft Data Mining add-in (not discussed here) was used to cluster these cities, with the results shown
> The file P14_15.xlsx contains the following information about the top 25 MBA programs (according to the 1997 Business Week Guide): percentage of applicants accepted, percentage of accepted applicants who enroll, mean GMAT score of enrollees, mean undergr
> Continuing problem 6, there is another method that has been suggested when the dependent variable has only a small percentage of one category, in this case Y(yes). This is oversampling. To do this, you train the neural net on a subset that is more equall
> Neural nets (and NeuralTools) can also be used when the dependent variable is continuous, not categorical. In this case, the method is an alternative to multiple regression. The file P14_13.xlsx contains fairly old Boston housing data that appears freque
> Continuing the previous problem, the file P14_12.xlsx contains the same wine data. Using a Microsoft Data Mining add-in (not discussed here), a decision tree classification was performed (with 0% of the cases held out for testing). You can see the result
> The file P14_11.xlsx contains data on 178 wines. They are categorized into three types, labeled A, B, and C. The rest of the variables are numeric properties of the wines. Use NeuralTools to classify these wines. Use the PNN algorithm, and check the Vari
> The file P14_10.xlsx contains customer data on acceptance of products with various attributes. This is explained more fully in the file. There are three potential Yes/No dependent variables, Accept1, Accept2, and Accept3. To keep the outputs straight, it
> A small appliance manufacturer must meet (on time) the following demands: quarter 1, 3000 units; quarter 2, 2000 units; quarter 3, 4000 units. Each quarter, up to 2700 units can be produced with regular-time labor, at a cost of $40 per unit. During each
> The file P14_01.xlsx contains data on 100 consumers who drink beer. Some of them prefer light beer, and others prefer regular beer. A major beer producer believes that the following variables might be useful in discriminating between these two groups: ge
> We have discussed linear and exponential trend lines. Another popular choice is a power trend line, also called a constant elasticity trend line. This trend line has the form y = axb, and it has the property that when x increases by 1%, y changes by a co
> The management of a technology company is trying to determine the variable that best explains the variation of employee salaries using a sample of 52 full-time employees; see the file P13_08.xlsx. Estimate simple linear regression equations to identify w
> The file P13_07.xlsx contains monthly values of the U.S. national debt (in dollars) from 1993 to early 2010. Fit an exponential growth curve to these data. Write a short report to summarize your findings. If the U.S. national debt continues to rise at th
> Do the sales prices of houses in a given community vary systematically with their sizes (as measured in square feet)? Answer this question by estimating a simple regression equation where the sales price of the house is the dependent variable, and the si
> The file P13_52.xlsx contains data on a motel chain’s revenue and advertising. a. Use these data and multiple regression to make predictions of the motel chain’s revenues during the next four quarters. Assume that advertising during each of the next four
> The Sales2 variable in the file from the previous problem was created from the Sales1 variable by multiplying by monthly seasonal factors. Basically, the summer months are high and the winter months are low. This might represent the sales of a product th
> The file P13_50.xlsx contains five years of monthly data for a company. The first variable is Time (1–60). The second variable, Sales1, has data on sales of a product. Note that Sales1 increases linearly throughout the period, with only a minor amount of
> Management of a home appliance store wants to understand the growth pattern of the monthly sales of a new technology device over the past two years. The managers have recorded the relevant data in the file. Have the sales of this device been growing line
> Pernavik Dairy produces and sells a wide range of dairy products. Because a government regulatory board sets most of the dairy’s costs and prices, most of the competition between the dairy and its competitors takes place through advertising. The controll
> Each year, a shoe manufacturing company faces demands (which must be met on time) for pairs of shoes as shown in the file P03_40.xlsx. Employees work three consecutive quarters and then receive one quarter off. For example, a worker might work during qua
> The Wilhoit Company has observed that there is a linear relationship between indirect labor expense and direct labor hours. Data for direct labor hours and indirect labor expense for 18 months are given in the file P13_48.xlsx. At the start of month 7, a
> The file P13_47.xlsx contains monthly cost accounting data on overhead costs, machine hours, and direct material costs. This problem will help you explore the meaning of R2 and the relationship between R2 and correlations. a. Create a table of correlatio
> Confederate Express is attempting to determine how its monthly shipping costs depend on the number of units shipped during a month. The file P13_46.xlsx contains the number of units shipped and total shipping costs for the past 15 months. a. Use regressi
> In the 1994 congressional election, the Republican candidate outpolled the Democratic candidate by 400 votes (excluding absentee ballots). The Democratic candidate outpolled the Republican candidate by 500 absentee votes. The Republican candidate sued (a
> The auditor of Kaefer Manufacturing uses regression analysis during the analytical review stage of the firm’s annual audit. The regression analysis attempts to uncover relationships that exist between various account balances. Any such relationship is su
> The belief that larger majorities for an incumbent president in a presidential election help the incumbent’s party increase its representation in the House and Senate is called the coattail effect. The file P13_43.xlsx gives the percent by which each pre
> The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions for the next 12 months. Do it in two ways. First, fit an
> The auditor of Kiely Manufacturing is concerned about the number and magnitude of year-end adjustments that are made annually when the financial statements of Kiely Manufacturing are prepared. Specifically, the auditor suspects that the management of Kie
> The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the pr
> The file lists the monthly sales for a company (in millions of dollars) for a 10-year period. a. Fit an exponential trend line to these data. b. By what percentage do you estimate that the company will grow each month? c. Why can’t a high rate of exponen
> Again continuing Problem 2, suppose that you want to force the optimal solution to be integers. Do this in Solver by adding a new constraint. Select the decision variable cells for the left side of the constraint, and in the middle dropdown list, select
> Let Yt be the sales during month t (in thousands of dollars) for a photography studio, and let Pt be the price charged for portraits during month t. The data are in the file P13_39.xlsx. a. Use regression to fit the following model to these data: Yt = a
> The file P13_38.xlsx lists the average salary for each Major League Baseball team from 2004 to 2009, along with the number of team wins in each of these years. a. Rearrange the data so that there are four long columns: Team, Year, Salary, and Wins. There
> Callaway Golf is trying to determine how the price of a set of clubs affects the demand for clubs. The file P13_37.xlsx contains the price of a set of clubs (in dollars) and the monthly sales (number of sets sold). a. Assume the only factor influencing m
> When potential workers apply for a job that requires extensive manual assembly of small intricate parts, they are initially given three different tests to measure their manual dexterity. The ones who are hired are then periodically given a performance ra
> The file P13_35.xlsx contains the amount of money spent advertising a product (in thousands of dollars) and the number of units sold (in millions) for eight months. a. Assume that the only factor influencing monthly sales is advertising. Fit the followin
