- Because of economic conditions, a firm reports that 30 per cent of its accounts receivable from other
business firms are overdue. The firm's policy is that...(Solved)
Because of economic conditions, a firm reports that 30 per cent of its accounts receivable from other
business firms are overdue. The firm's policy is that if an accountant takes a random sample of five such accounts and finds that exactly 20 per cent of the accounts are overdue 10 per cent of the time, then a warning letter should be written to the particular firm.
Required:
Should the warning letter be written?
Date posted: December 14, 2018. Answers (1)
- Mia Shillings Department Stores has compiled the following data concerning its daily sales. The sales of
each day of the week are normally distributed with the...(Solved)
Mia Shillings Department Stores has compiled the following data concerning its daily sales. The sales of
each day of the week are normally distributed with the following parameters.
Required:
Which day of the week has the lowest probability that the store will sell between Sh.110,000 and
Sh.150,000 worth of goods?
Date posted: December 14, 2018. Answers (1)
- Mia Shillings Department Stores is planning to open a store in Westlands. It has asked the Superior
Marketing Company (SMC) to do a market study of...(Solved)
Mia Shillings Department Stores is planning to open a store in Westlands. It has asked the Superior
Marketing Company (SMC) to do a market study of randomly selected families within a five-kilometer
radius of the store. Among the questions it wishes SMC to ask each home owner are:
i) family income,
ii) family size,
iii) distance from home to the store site, and
iv) whether the family owns a dog or a cat.
Required:
For each of the four questions, develop a random variable of interest to Mia Shillings Department
Stores. Denote which of these are discrete and which are continuous random variables.
Date posted: December 14, 2018. Answers (1)
- What do confidence limits measure?(Solved)
What do confidence limits measure?
Date posted: December 14, 2018. Answers (1)
- Under what conditions can the normal distribution be used as an approximation to the binomial
distribution?(Solved)
Under what conditions can the normal distribution be used as an approximation to the binomial distribution?
Date posted: December 14, 2018. Answers (1)
- Give some examples of the type of data that form a normal distribution(Solved)
Give some examples of the type of data that form a normal distribution.
Date posted: December 14, 2018. Answers (1)
- A manager is convinced that a new type of machine does not affect production at the
company's major shop floor. In order to test this, 12...(Solved)
A manager is convinced that a new type of machine does not affect production at the
company's major shop floor. In order to test this, 12 samples of this week's hourly output is
taken and the average production per hour is measured as 1158 with a standard deviation of 71. The
output per hour averaged 1196 before the machine was introduced.
Required:
Test the manager's conviction
Date posted: December 14, 2018. Answers (1)
- Prior to an advertising campaign, 35 per cent of a sample of 400 housewives used a certain product.
After the campaign, 40 per cent of a...(Solved)
Prior to an advertising campaign, 35 per cent of a sample of 400 housewives used a certain product.
After the campaign, 40 per cent of a second sample of 400 housewives used the same product.
Required:
Did the campaign increase sales?
Date posted: December 14, 2018. Answers (1)
- Two researchers in marketing, Catherine Mbugua and George Otieno, reviewed the theory of product
life cycle with respect to a specific product. They conducted a research...(Solved)
Two researchers in marketing, Catherine Mbugua and George Otieno, reviewed the theory of product
life cycle with respect to a specific product. They conducted a research project to determine the
applicability of the theory to popular music records. As part of the study, they collected extensive
information on a sample of 12 music records judged on the basis of certain well-defined criteria to be successes and a sample of 10 music records to be failures. They collected data on each music record for
a period of 16 weeks from the date the record was released to the market. One item of information they
collected on each music record was radio airplay. Measurement of this variable yielded the following
means and standard deviations for the two samples of music records.
ii) What assumptions are we making in order to use the pooled estimate of the common population
variance?
Date posted: December 14, 2018. Answers (1)
- If a Type II error is costly but a Type I error is not, why should you set the level of significance $\alpha$ at 0.10,...(Solved)
If a Type II error is costly but a Type I error is not, why should you set the level of significance $\alpha$ at 0.10, 0.20 or even higher?
Date posted: December 14, 2018. Answers (1)
- What is wrong with the following hypotheses?(Solved)
What is wrong with the following hypotheses?
Date posted: December 14, 2018. Answers (1)
- What is a one-sided confidence interval? When is it necessary?(Solved)
What is a one-sided confidence interval? When is it necessary?
Date posted: December 14, 2018. Answers (1)
- The General Manager of a large hotel in Bombay wishes to know whether or not the personal services
provided to its customers are uniform throughout the...(Solved)
The General Manager of a large hotel in Bombay wishes to know whether or not the personal services
provided to its customers are uniform throughout the hotel industry. Whether the clients in the less
expensive rooms get the same service as that of clients of more expensive rooms. The data collected from the comment cards is tabulated below:
Were the customers treated differently according to their room charges? Test the hypothesis at 0.05 level of significance.
Date posted: December 14, 2018. Answers (1)
- Two different models are available for the same machine. The production statistics (number of units
produced per hour) of these two models are given below. The...(Solved)
Two different models are available for the same machine. The production statistics (number of units
produced per hour) of these two models are given below. The data was collected on different days.
Will you conclude that Model A and Model B have the same productivity?
Date posted: December 8, 2018. Answers (1)
- The sales Manager of a large sales force is interested in finding whether or not average number of weekly
sales contacts per sales representative (15) has...(Solved)
The sales Manager of a large sales force is interested in finding whether or not average number of weekly
sales contacts per sales representative (15) has changed. The sample information was collected and it was
found that 200 sales representatives had an average of 16.5 contacts per week with a standard deviation of
3.5. At 5 per cent level of significance, what should the sales manager conclude?
Date posted: December 8, 2018. Answers (1)
- Suppose it is known that the mean annual income of workers in a certain community is Rs.5,000 with a
standard deviation of Rs.1,200. A researcher suspects...(Solved)
Suppose it is known that the mean annual income of workers in a certain community is Rs.5,000 with a
standard deviation of Rs.1,200. A researcher suspects the “son of soil” workers have higher than the average income. He draws a random sample of 144 local workers and obtains the sample mean of Rs.5,500. Can he say the local workers have significantly higher income than the total population?
Date posted: December 8, 2018. Answers (1)
- KK accounting firm has noticed that of the companies it audits, 85% show no inventory shortages, 10%
show small inventory shortages and 5% show large inventory...(Solved)
KK accounting firm has noticed that of the companies it audits, 85% show no inventory shortages, 10%
show small inventory shortages and 5% show large inventory shortages. KK firm has devised a new
accounting test for which it believes the following probabilities hold:
P (Company will pass test/no shortage) = 0.90
P (Company will pass test/small shortage) = 0.50
P (Company will pass test/large shortage) = 0.20
Required:
i) Determine the probability if a company being audited fails this test has large or small inventory
shortage.
ii) If a company being audited passes this test, what is the probability of no inventory shortage?
Date posted: December 8, 2018. Answers (1)
- Define probability as used in Quantitative Analysis(Solved)
Define probability as used in Quantitative Analysis.
Date posted: December 8, 2018. Answers (1)
- In each of the following three situations, use binomial, poisson, or normal distribution depending on which is the most appropriate.
In each case, explain why you...(Solved)
In each of the following three situations, use binomial, poisson, or normal distribution depending on which is
the most appropriate.
In each case, explain why you selected the distribution and draw attention to any feature which supports or
casts doubt on the choice of distribution.
a) Situation 1:
The lifetimes of a certain type of electrical components are distributed with a mean of 800 hours and
standard deviation of 160 hours.
Required:
i) Identify situation 1.
ii) If the manufacturer replaces all the components that fail before the guaranteed minimum lifetime of
600 hours, what percentage of the components have to be replaced?
iii) If the manufacturer wishes to replace only 1% of the components that have the shortest life, what
value should be used as the guaranteed lifetime?
iv) What is the probability that the mean lifetime of a sample of 25 of these electrical components exceeds 850 hours?
b) Situation 2:
A green grocer buys peaches in large consignments directly from wholesaler. In view of the perishable
nature of the commodity, the green grocer accepts that 15% of the supplied peaches will usually be
unsaleable. As he cannot check all the peaches individually, he selects a single batch of 10 peaches on
which to base his decision of whether to purchase a large consignment or not. If no more than two of
these peaches are unsatisfactory, the green grocer purchases the consignment.
Required:
i) Identify situation 2.
ii) Determine the probability that under normal supply conditions, the consignment is purchased.
c) Situation 3:
Vehicles pass a certain point on a busy single-lane road at an average rate of two per 10 second interval.
Required:
i) Identify situation 3.
ii) Determine the probability that more than three cars pass this point during a 20 second interval.
Date posted: December 8, 2018. Answers (1)
- What is Bayes Theorem? Explain how Bayes Theorem can be utilized practically.(Solved)
What is Bayes Theorem? Explain how Bayes Theorem can be utilized practically.
Date posted: December 7, 2018. Answers (1)