Business Finance Homework Help

Discussion: 8 (75 words)

For most of this class, you have been working with the following situation:

ABC Enterprises is a growing company in which employees must frequently travel for business. Currently, each employee is allotted 30 dollars each day to cover all meals. Employees have complained that this is not enough, especially when traveling to some of the more costly cities and countries. A survey was taken to get recommendations for a new allotment. Although not all responded, the response rate was good.

• What evidence, if any, supports the claim that 30 dollars/day is insufficient to cover all three meals?
• Why can’t we just use the sample data and say it’s the same as the population data? Why did we have to make confidence intervals and do hypothesis tests?
• Why is organization of data essential in statistics?
• What kinds of skills that you needed/learned in this class would you be able to use in a business situation in your field?
• If you were the decision-maker in ABC Enterprises, what would you do with the meal allotment? Why?

Part II week 8 

Week 8 Assignment

1.Given the following set of data:

5, 11, 29, 35, 88, 16, 24, 11, 22, 19, 11, 36, 40, 29, 15, 20, 11, 27

Find the:

a. Mean

b .Median

c. Mode

d. Range

e. Variance of the population

f .Standard deviation of the population

g. The 70th percentile

h. The IQR (interquartile range)

i. Discuss whether or not an outlier exists in the data. Support your answer with evidence.

2.Create a scatter diagram with trendline for the following:

  

Book

Pages   (x variable)

Price   (y variable)

 

A

500

$7.00

 

B

615

$9.25

 

C

555

$7.80

 

D

675

$8.50

 

E

510

$7.25

 

F

600

$8.25

 

G

489

$6.95

 

H

798

$9.95

Then

a. State the equation of the trendline

b. Using Pearson’s Product Moment Correlation Coefficient, discuss the strength of the relationship between pages and price

c .What type of relationship, if any, is there between pages and price?

3.Conduct a full hypothesis test. Make sure all the steps are there.

A sample of 27 account balances of a credit company showed a mean customer balance of $4,150, but the marketing manager claimed that the mean balance for the population was $4,325. The marketing manager did NOT have the population standard deviation, but the sample standard deviation was found to be $400. Use the p-value approach to conduct a full hypothesis test (all steps) that can be used to determine whether the mean of all account balances is significantly different from $4,325. Let ? = .05.

4.Weekly demand at a grocery store for a brand of breakfast cereal is normally distributed with a mean of 700 boxes and standard deviation of 60 boxes. What is the probability that the weekly demand is:

a.760 boxes or less?

b .More than 805 boxes?

c. Between 650 and 750 boxes?

5.In order to determine the average weight of carry-on luggage by passengers in airplanes, a sample of 150 pieces of carry-on luggage was collected and weighed. The average weight was 30 pounds. Assume that we know the standard deviation of the population to be 4.5 pounds. Determine a 95% confidence interval estimate for the mean weight of the carry-on luggage.