Question: All of the following are examples of

> Marvel Studio’s motion picture Guardians of the Galaxy opened over the first two days of the 2014 Labor Day weekend to a then record-breaking $94.3 million in ticket sales revenue in North America. The ticket sales revenue in dollars for a sample of 30 t

> Consider the following hypothesis test. H0: µd ≤ 0 Ha: µd > 0 The following data are from matched samples taken from two populations. a. Compute the difference value for each element. b. Compute d&Igrave

> The success of an airline depends heavily on its ability to provide a pleasant customer experience. One dimension of customer service on which airlines compete is on-time arrival. The file LateFlights contains a sample of data from delayed flights showin

> Periodically, Merrill Lynch customers are asked to evaluate Merrill Lynch financial consultants and services. Higher ratings on the client satisfaction survey indicate better service, with 7 the maximum service rating. Independent samples of service rati

> The College Board provided comparisons of Scholastic Aptitude Test (SAT) scores based on the highest level of education attained by the test taker’s parents. A research hypothesis was that students whose parents had attained a higher le

> Hotel room pricing changes over time (Lodging Magazine), but is there a difference between Europe hotel prices and U.S. hotel prices? The file IntHotels contains changes in the hotel prices for 47 major European cities and 53 major U.S. cities. a. On the

> The Tippie College of Business obtained the following results on the salaries of a recent graduating class: Finance Majors ……………………………………… Business Analytics Majors n1 = 110 …………………………………………………………………………… n2 = 30 x̅1 = $48,537 …………………………………………………………….. x

> The increasing annual cost (including tuition, room, board, books, and fees) to attend college has been widely discussed (http://time.com/money/4543839/college-costs-record-2016/). The following random samples show the annual cost of attending private an

> The U.S. Department of Transportation provides the number of miles that residents of the 75 largest metropolitan areas travel per day in a car. Suppose that for a simple random sample of 50 Buffalo residents the mean is 22.5 miles a day and the standard

> Consider the following data for two independent random samples taken from two normal populations. a. Compute the two sample means. b. Compute the two sample standard deviations. c. What is the point estimate of the difference between the two population

> Consider the following hypothesis test. H0: µ1 - µ2 = 0 Ha: µ1 - µ2 ≠ 0 The following results are from independent samples taken from two populations. Sample 1 ……………………………… Sample 2 n1 = 35 ………………………………….. n2 = 40 x̅1 = 13.6 ……………………………… x̅2 = 10.1 σ1 =

> Health insurers are beginning to offer telemedicine services online that replace the common office visit. Wellpoint provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments (Bloomberg Businessw

> Find the t value(s) for each of the following cases. a. Upper tail area of .025 with 12 degrees of freedom b. Lower tail area of .05 with 50 degrees of freedom c. Upper tail area of .01 with 30 degrees of freedom d. Where 90% of the area falls between th

> In a study conducted by Zogby International for the Democrat and Chronicle, more than 700 New Yorkers were polled to determine whether the New York state government works. Respondents surveyed were asked questions involving pay cuts for state legislators

> Meticulous Drill & Reamer (MD&R) specializes in drilling and boring precise holes in hard metals (e.g., steel alloys, tungsten carbide, and titanium). The company recently contracted to drill holes with 3-centimeter diameters in large carbon-stee

> An Air Force introductory course in electronics uses a personalized system of instruction whereby each student views a videotaped lecture and then is given a programmed instruction text. The students work independently with the text until they have compl

> Par, Inc., is a major manufacturer of golf equipment. Management believes that Par’s market share could be increased with the introduction of a cut-resistant, longer-lasting golf ball. Therefore, the research group at Par has been inves

> During the global recession of 2008 and 2009, there were many accusations of unethical behavior by Wall Street executives, financial managers, and other corporate officers. At that time, an article appeared that suggested that part of the reason for such

> Quality Associates, Inc., a consulting firm, advises its clients about sampling and statistical procedures that can be used to control their manufacturing processes. In one particular application, a client gave Quality Associates a sample of 800 observat

> Metropolitan Research, Inc., a consumer research organization, conducts surveys designed to evaluate a wide variety of products and services available to consumers. In one particular study, Metropolitan looked at consumer satisfaction with the performanc

> Glenn Foreman, president of Oceanview Development Corporation, is considering submitting a bid to purchase property that will be sold by sealed-bid auction at a county tax foreclosure. Glenn’s initial judgment is to submit a bid of $5 m

> John Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. In a lawsuit asking for damages of $1,500,000, filed against Doug Rey

> RainOrShine.Com is an online provider of weather forecasts and information. The organization is putting together a weather-preparedness program to increase its audience’s understanding of severe weather. As part of this program, RainOrS

> The Carlson Department Store suffered heavy damage when a hurricane struck on August 31. The store was closed for four months (September through December), and Carlson is now involved in a dispute with its insurance company about the amount of lost sales

> The Vintage Restaurant, on Captiva Island near Fort Myers, Florida, is owned and operated by Karen Payne. The restaurant just completed its third year of operation. Since opening her restaurant, Karen has sought to establish a reputation for the Vintage

> Wine Spectator magazine contains articles and reviews on every aspect of the wine industry, including ratings of wine from around the world. In a recent issue they reviewed and scored 475 wines from the Piedmont region of Italy using a 100-point scale. T

> The Ladies Professional Golf Association (LPGA) maintains data on performance for members of the LPGA Tour. Scoring average is generally considered the most important statistic in term of a player’s success. To investigate the relationship between scorin

> When trying to decide what car to buy, real value is not necessarily determined by how much you spend on the initial purchase. Instead, cars that are reliable and don’t cost much to own often represent the best values. But no matter how

> Matt Kenseth won the 2012 Daytona 500, the most important race of the NASCAR season. His win was no surprise because for the 2011 season he finished fourth in the point standings with 2330 points, behind Tony Stewart (2403 points), Carl Edwards (2403 poi

> Consumer Research, Inc., is an independent agency that conducts research on consumer attitudes and behaviors for a variety of firms. In one study, a client asked for an investigation of consumer characteristics that can be used to predict the amount char

> Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as “expert in the real estate market,” monitors condominium sales by collecting data on location, list price, sale price, and numb

> Buckeye Creek Amusement Park is open from the beginning of May to the end of October. Buckeye Creek relies heavily on the sale of season passes. The sale of season passes brings in significant revenue prior to the park opening each season, and season pas

> When trying to decide what car to buy, real value is not necessarily determined by how much you spend on the initial purchase. Instead, cars that are reliable and don’t cost much to own often represent the best values. But, no matter ho

> Consumer Reports tested 166 different point-and-shoot digital cameras. Based upon factors such as the number of megapixels, weight (oz.), image quality, and ease of use, they developed an overall score for each camera tested. The overall score ranges fro

> As part of a study on transportation safety, the U.S. Department of Transportation collected data on the number of fatal accidents per 1000 licenses and the percentage of licensed drivers under the age of 21 in a sample of 42 cities. Data collected over

> One measure of the risk or volatility of an individual stock is the standard deviation of the total return (capital appreciation plus dividends) over several periods of time. Although the standard deviation is easy to compute, it does not take into accou

> TourisTopia Travel (Triple T) is an online travel agency that specializes in trips to exotic locations around the world for groups of ten or more travelers. Triple T’s marketing manager has been working on a major revision of the homepage of Triple T’s w

> Suppose that a local chapter of sales professionals in the greater San Francisco area conducted a survey of its membership to study the relationship, if any, between the years of experience and salary for individuals employed in inside and outside sales

> As part of a long-term study of individuals 65 years of age or older, sociologists and physicians at the Wentworth Medical Center in upstate New York investigated the relationship between geographic location and depression. A sample of 60 individuals, al

> Fresno Board Games manufactures and sells several different board games online and through department stores nationwide. Fresno’s most popular game, ¡Cabestrillo Cinco!, is played with 5 six-sided dice. Fresno has purchased dice for this game from Box C

> Six months ago, Fuentes Salty Snacks, Inc., added a new flavor to its line of potato chips. The new flavor, candied bacon, was introduced through a nationwide rollout supported by an extensive promotional campaign. Fuentes’ management is convinced that q

> Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication, the magazine has been fairly successful. Now the publisher is

> For a 60–40 D-E mix of investment capital, the maximum cost for debt capital that would yield a WACC of 10% when the cost of equity capital is 4% is closest to: (a) 8% (b) 12% (c) 14% (d) 16%  

> All of the following are examples of debt capital, except: (a) Mortgage on equipment (b) Long-term bonds (c) Short-term loan from a bank (d) Preferred stock

> If benefits are $10,000 per year forever starting in year 1, and costs are $50,000 at time zero and $50,000 at the end of year 2, the B/C ratio at i = 10% per year is closest to: (a) 0.93 (b) 1.10 (c) 1.24 (d) 1.73

> All of the following cash flows should be classified as disbenefits, except: (a) Cost of fish from hatchery to stock lake at state park (b) Decrease in property values due to closure of a government research lab (c) School overcrowding because of militar

> If two mutually exclusive alternatives have B/C ratios of 1.5 and 1.4 for the lower first-cost and higher first-cost alternatives, respectively: (a) The B/C ratio on the increment between them is greater than 1.4 (b) The B/C ratio on the increment betwee

> From the PW, AW, and FW values shown, the conventional B/C ratio is closest to: (a) 1.27 (b) 1.33 (c) 1.54 (d) 2.76

> If two mutually exclusive alternatives have B/C ratios of 1.4 and 1.5 for the lower and higher cost alternatives, respectively: (a) The B/C ratio on the increment between them is equal to 1.5 (b) The B/C ratio on the increment between them is between 1.4

> In evaluating three mutually exclusive alternatives by the B/C method, the alternatives were ranked A, B, and C, respectively, in terms of increasing cost, and the following results were obtained for overall B/C ratios: 1.1, 0.9, and 1.3. On the basis of

> An alternative has the following cash flows: benefits = $50,000 per year; disbenefits = $27,000per year; costs = $25,000 per year. The B/C ratio is closest to: (a) 0.92 (b) 0.96 (c) 1.04 (d) 2.00

> The division manager would like to know how much the WACC varies for different D-E mixes, especially about 15% to 20% on either side of the 50% debt financing option in plan A. Plot the WACC curve and compare its shape with that of Figure 10–2.

> All of the following cash flows can be identified as benefits, except: (a) Longer tire life because of smooth pavement (b) $200,000 annual income to local businesses because of tourism created by water reservoir (c) Expenditure of $20 million for constru

> All of the following are primarily associated with public sector projects, except: (a) Low interest rates (b) Stocks (c) Benefits (d) Infinite life

> In a conventional B/C ratio: (a) Disbenefits and M&O costs are subtracted from benefits (b) Disbenefits are subtracted from benefits, and M&O costs are subtracted from costs (c) Disbenefits are subtracted from benefits, and M&O costs are added to costs (

> Ten noneconomic attributes are identified as A, B, C, ..., J. If they are rank-ordered in terms of decreasing importance with a value of 10 assigned to A, 9 to B, etc., the weighting of attribute B is closest to: (a) 0.24 (b) 0.17 (c) 0.08 (d) 0.04

> Alternative locations for an advanced wastewater recycling plant are being evaluated using four attributes identified as attributes 1, 2, 3, and 4 with weights of 0.4, 0.3, 0.2, and 0.1, respectively. If the value rating scale is from 1 to 10, and the ra

> Three attributes are first cost, safety, and environmental concerns. Assigned importance scores are 100, 75, and 50, respectively. The weight for environmental concerns is closest to: (a) 0.44 (b) 0.33 (c) 0.22 (d) 0.11

> All of the following are acceptable attribute identification approaches, except: (a) Employing small group discussions (b) Using the same attributes that competing entities use (c) Getting input from experts with relevant experience (d) Surveying the sta

> The importance values (0 to 100) for five attributes are shown below. The weight to assign to attribute 1 is: (a) 0.16 (b) 0.20 (c) 0.22 (d) 0.55 Attribute………………. Importance Score 1……………………………………… 55 2…………………………………….. 45 3…………………………………….. 85 4………………………

> Medzyme Pharmaceuticals has maintained a 50–50 D-E mix for capital investments. Equity capital has cost 11%; however, debt capital that has historically cost 9% is now 20% higher than that. If Medzyme does not want to exceed its historical weighted avera

> If the after-tax rate of return for a cash flow series is 11.2% and the corporate effective tax rate is 39%, the approximated before-tax rate of return is closest to: (a) 6.8% (b) 5.4% (c) 18.4% (d) 28.7%

> The engineer must make a recommendation on the financing plan by the end of the day. He does not know how to consider all the tax angles for the debt financing in plan A. However, he does have a handbook that gives these relations for equity and debt cap

> Gonzales, Inc. financed a new product as follows: $5 million in stock sales at 13.7% per year, $2 million in retained earnings at 8.9% per year, and $3 million through convertible bonds at 7.8% per year. The company’s WACC is closest to: (a) 9% per year

> All of the following are factors that affect the effective MARR of a project, except: (a) Project risk (b) Product selling price (c) Availability of capital (d) Attractiveness of other investment opportunities

> Of the following words, the one not related to ethics is: (a) Virtuous (b) Honest (c) Lucrative (d) Proper

> The statements contained in a code of ethics are variously known as all of the following, except: (a) Canons (b) Norms (c) Standards (d) Laws

> Cost-effectiveness analysis (CEA) differs from benefit/cost analysis (B/C) in that: (a) CEA cannot handle multiple alternatives (b) CEA compares alternatives on the basis of a specific outcome rather than solely on monetary units (c) CEA cannot handle in

> The estimated first cost of a permanent national monument is $2 million with annual benefits and disbenefits estimated at $360,000 and $42,000, respectively. The B/C ratio at 6% per year is closest to: (a) 0.16 (b) 0.88 (c) 1.73 (d) 2.65

> For the two independent projects shown, determine which, if any, should be funded at i = 10% per year using the B/C ratio method: (a) Fund neither (b) Fund X (c) Fund Y (d) Fund both X and Y

> A permanent flood-control dam is expected to have an initial cost of $2.8 million and an annual M&O cost of $20,000. In addition, minor reconstruction will be required every 5 years at a cost of $200,000. As a result of the dam, flood damage will be redu

> The first cost of grading and spreading gravel on a short rural road is expected to be $700,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously c

> A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts was purchased 2 years ago for $195,000. The company wants to purchase a recently available faster model with control up to 8 axes for $240,000. The presen

> What values of MARR should the engineer use to determine the better financing plan?

> In a replacement study, the correct value to use when determining the purchase price of the challenger is: (a) Its first cost when it was purchased (b) Its first cost minus the trade-in value of the defender (c) Its first cost plus the trade-in value of

> The annual worth values for a defender, which can be replaced with a similar used asset, and a challenger are estimated. The defender should be replaced: (a) Now (b) 1 year from now (c) 2 years from now (d) 3 years from now

> The cost characteristics of a CO testing machine that was purchased 5 years ago for $100,000 are shown below. The equation to determine the AW of retaining the tester one more year and then replacing it is: (a) AW = −15,000(A/P,i,1) &ac

> A presently owned machine has the projected market value and M&O costs shown below. At an interest rate of 10% per year, the AW for keeping the machine 2 more years is closest to: (a) $29,650 (b) $32,840 (c) $35,770 (d) $39,720

> Assume the MARR is 10% per year for this analysis. A presently owned machine that was purchased 8 years ago for $450,000 is under consideration for replacement. It has an annual operating cost of $120,000 per year and a salvage value of $40,000 whenever

> From the data shown below, the economic service life of the asset is: (a) 2 years (b) 3 years (c) 4 years (d) 5 years

> The annual worth values for a defender, which can be replaced with a similar used asset, and a challenger are estimated below. The economic service life of the challenger is (a) 2 years (b) 3 years (c) 4 years (d) 5 years

> The equivalent annual worth of an existing machine at American Semiconductor is estimated to be $ −70,000 per year over its remaining useful life of 3 years. It can be replaced now or later with a machine that will have an AW of $ −90,000 per year if it

> To work this problem via spreadsheet, please refer to the data in Problem 10.50. (a) Determine which proposal, A or B, to select using the weighted attribute method and the importance scores for the manager and the supervisor. (b) You have given proposal

> For the nonconventional net cash flow series experienced over the first 3 years of operation by Viking, Inc., an Internet-based sports boat and ski equipment sales company, perform a thorough ROR analysis for the owners, Julie Merkel and Carl Upton, to i

> Use a cost-effectiveness analysis to compare the four alternatives.

> Ten years ago, JD and his colleagues resigned from a major aerospace corporation, after many years of salaried employment, to form JRG Solar, Inc. with the intent to make a significant impact on the international renewable energy market based on years of

> Charles Enterprises got into the drone manufacturing business at the inception of the technology. Net cash flows (in $ million units) for years 0 through 5 had its ups and downs as shown below. However, a few years ago, Charles started selling 3-D printa

> Determine the following for the quarterly cash flow estimates. (a) i* value or values; (b) if an MARR of 5% per quarter is achievable; and (c) the minimum revenue in quarter 8 that will generate an i* that meets the MARR.

> An Australian steel company, ASM International, claims that a savings of 40% of the cost of stainless steel threaded bar can be achieved by replacing machined threads with precision weld depositions. A U.S. manufacturer of rock bolts and grout-in-fitting

> You need to determine i* per year for the cash flows shown below. Since you have a new boss, you decided to perform a thorough analysis. Do the following: (a) Use a spreadsheet to find i*. (b) Develop two charts on the spreadsheet: a column chart that pl

> Cloey has just purchased new bedroom furniture from Haverty’s for a total of $10,000. She paid 20% down and, through a special promotional, she can pay off the $8000 in ten $800, no-interest payments over the next 10 months. The smaller print at the bott

> TrvlSafe, a manufacturer of air-freightable pet crates with imbedded chips to monitor the health of the pet, has identified two projects that have relatively high risk; however, they are expected to move the company into new revenue markets. Utilize a sp

> In Problem 10.38, Mosaic Software could invest $10,000,000 over a 6-year period with a net cash flow estimate of $1,115,000 per year. The equity portion of the investment will cost 9.25% per year; however, the debt portion can vary from 20% to 80% of the

> Financing plans for a project are summarized below for Encore Productions. (a) Plot the WACC and indicate the D-E mix with the lowest WACC. (b) Yesterday, the president of Angkor Bank, the bank that usually makes loans to Encore, informed the CFO that in

> In a one-year-later replacement analysis, if all estimates are still current and the year is nD, the action that should be taken is: (a) Keep the defender 1 more year (b) Replace the defender with the challenger (c) Look for a new challenger and calculat

> Determine if a definitive decision on lighting can be determined by doing the following: Use a benefit/cost analysis to compare the four alternatives to determine if any are economically justified.

> The economic service life of an asset is: (a) The length of time required to recover the first cost of the asset (b) The time when the operating cost is at a minimum (c) The time when the salvage value goes below 25% of the first cost (d) The time when t

> A replacement analysis is most objectively conducted from the viewpoint of: (a) An outsider (b) A consultant (c) A nonowner (d) Any of the above

> Halcrow, Inc. expects to replace a downtime tracking system currently installed on CNC machines. The challenger system has a first cost of $70,000, an estimated AOC of $20,000 the first year increasing by 20% per year thereafter, a maximum useful life of

> An existing process involving polymers that reduce friction loss in engines is described in Problem 11.37. Assume it is possible to do an augmentation and upgrade to the existing process machinery that will provide a 2-year extension to its useful life.