Task 7

1. A discrete random variable has a mean of 400 and a variance of 64. What is the standard deviation? (Points : 1) 20

64

8

400

None of the above

Question 2. 2. Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is greater than $110? (Points : 1) 0

0.841

0.977

0.023

None of the above

Question 3. 3. Below is a payoff table giving profits for various situations. What decision would an optimist make?

1. A discrete random variable has a mean of 400 an

(Points : 1) Alternative 1

Alternative 2

Alternative 3

Do Nothing

State of Nature A

Question 4. 4. Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation: Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by X = 4. April is assumed to have a seasonality index of 1.15. What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)? (Points : 1) 100

115

123

107

None of the above

Question 5. 5. Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If Andre orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)? (Points : 1) $4,350

$3,000

$3,750

$3,075

None of the above

Question 6. 6. Consider the linear programming problem.The maximum possible value for the objective function is:

(Points : 1) 1520.

1560.

360.

480.

None of the above

Question 7. 7. Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 6, and 14 days respectively, compute the PERT expected activity time for this activity. (Points : 1) 7

8

6

9

None of the above

Question 8. 8. A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution while service times follow an exponential distribution. If the average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, how much time will elapse (in hours) from the time a customer enters the line until he/she leaves the restaurant? (Points : 1) 0.25

3.00

0.50

2.25

0.75

Question 9. 9. The inspection of cans of juice involves sampling some cans and weighing them. The overall average for the samples is 39 ounces. Each sample contains 36 cans. The standard deviation is estimated to be 2 ounces. The 99.7% lower control chart limit for the average would be __________. (Points : 1) 38.00

37.67

40.00

39.33

none

Question 10. 10. Refer to the Table below. Bags of chocolate candy are sampled to ensure proper weight. The overall average for the samples is 36 ounces. Each sample contains twelve bags. The average range is 1.3 ounces. The upper control chart limit for the sample averages would be:

(Points : 1) 38.310

37.1258

36.3458

36.6279

35.6542

Question 11. 11. Through ____________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services. (Points : 1) supply chain management

direct marketing

customer relationship marketing

customized marketing

inventory management

Question 12. 12. The major activity in strategic planning is ____________, whereby management evaluates the products and businesses that make up the company. (Points : 1) SWOT analysis

benchmarking

business portfolio analysis

breakeven analysis

prospecting

Question 13. 13. The set of marketing tools a firm uses to implement its marketing strategy is called the ____________. (Points : 1) promotion mix

product mix

marketing mix

market offering

marketing effort

Question 14. 14. Waldo Stores will reward an all-expenses-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here? (Points : 1) Contest

Sample

Premium

Trade promotion

Point-of-purchase promotion

Question 15. 15. Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a __________. (Points : 1) rebate

POP promotion

price pack

premium

sample

Question 16. 16. ___________ segmentation refers to dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. (Points : 1) Gender

Psychographic

Occasion

Geographic

Income

Question 17. 17. The primary key to delivering customer satisfaction is to match product performance with ____________. (Points : 1) the competitor products' performance

competitive prices

aggressive advertising

limited customer services

customer expectations

Question 18. 18. An organization that understands and anticipates customer needs even better than customers did even creates products and services to meet current and future needs is said to practice ____________ marketing. (Points : 1) customer-driven

customer-driving

affinity

societal

ambush

Question 19. 19. Physicians Sales and Service (PSS) is a large US commercial organization in the business of meeting the needs of doctors' offices and small clinics while maximizing profits for itself and its shareholders. Primary products resold by PSS include a broad range of equipment and supplies common to the office/clinic environment. PSS boasts physical branches and outside salespeople throughout the country serving clinicians in both rural and urban environments. The organization's domestic success relies heavily upon the close personal relationship developed and maintained between the PSS salesperson and his/her clients. Recently, PSS has leveraged its reputation and begun to serve the needs of overseas doctors and clinics through its e-commerce (e-business) website. PSS is primarily involved in the marketing function known as: (Points : 1) retailing.

wholesaling.

manufacturing.

distributing.

Question 20. 20. Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal? (Points : 1) Market-skimming pricing

Market-penetration pricing

Market-segmentation pricing

Cost-plus pricing

Captive-product pricing

Question 21. 21. If the sales price per unit is $89, total fixed expenses are $456,000, and the breakeven sales in dollars is $760,000, what is the variable expense per unit? (Points : 1) $17.80

$35.60

$3.42

$44.50

Question 22. 22. A March sales forecast projects that 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory of 1,000 units. How much are total March sales for Product A anticipated to be? (Points : 1) $130,000

$132,000

$110,000

$156,000

Question 23. 23. Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year and is currently producing and selling 20,000 sails per year. If a special sales order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged, what is the change in operating income?

(Points : 1) Operating income increases $225,000.

Operating income decreases $125,000.

Operating income decreases $5,000.

Operating income increases $190,000.

Question 24. 24. Fairfield Company management has budgeted the following amounts for its next fiscal year. What will happen to the breakeven point in units if Fairfield can reduce fixed expenses by $22,500?

(Points : 1) The breakeven point will decrease by 562 units.

The breakeven point will decrease by 900 units.

The breakeven point will increase by 562 units.

The breakeven point will decrease by 1,500 units.

Question 25. 25. There are more __________ than any other form of business organization. (Points : 1) partnerships

sole proprietorships

limited liability partnerships

corporations

Question 26. 26. Which of the following statements is not applicable to target pricing? (Points : 1) It is the amount customers are willing to pay for the product or service.

It is based on traditional cost-based pricing.

It is based on market research.

The total cost of the product is a function of its target price.

Question 27. 27. Global Engineering's actual operating income for the current year is $50,000. The flexible budget operating income for actual volume achieved is $40,000, while the static budget operating income is $53,000. What is the sales volume variance for operating income? (Points : 1) $10,000 unfavorable

$10,000 favorable

$13,000 favorable

$13,000 unfavorable

Question 28. 28. In a special sales order decision, incremental fixed costs incurred because of an additional purchase of equipment are considered to be: (Points : 1) irrelevant to the decision.

relevant to the decision.

sunk costs.

opportunity costs.

Question 29. 29. Fairfield Company management has budgeted the following amounts for its next fiscal year. If Fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. What effect will this decision have on operating income?

(Points : 1) Operating income will decrease $62,500.

Operating income will increase $37,500.

Operating income will increase $70,000

Operating income will increase $7,500.

Question 30. 30. Western Outfitters Mountain Sports projected 2008 sales of 75,000 units at a unit sale price of $12.00. Actual 2008 sales were 72,000 units at $14.00 per unit. Actual variable costs, budgeted at $4.00 per unit, totaled $4.75 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $400,000. What is the sales volume variance for total revenue? (Points : 1) $108,000 favorable

$42,000 unfavorable

$36,000 unfavorable

$144,000 favorable

Question 31. 31. If a monopolist wishes to increase its output and quantity sold: (Points : 1) it must reduce its price, so its marginal revenue is greater than its price.

it must reduce its price, so its marginal revenue is less than its price.

it must raise its price, so its marginal revenue is greater than its price.

it must raise its price, so its marginal revenue is less than its price.

Question 32. 32. In order to maximize utility, a consumer should allocate money income so that: (Points : 1) the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.

the total utility derived from each product consumed is the same.

the marginal utility obtained from the last dollar spent on each product is the same.

the elasticity of demand on all products purchased is the same.

Question 33. 33. A decrease in long-run average costs resulting from increases in output is: (Points : 1) attributed to economies of scale.

attributed to diseconomies to scale.

attributed to constant returns to scale.

attributed to the law of diminishing marginal product.

Question 34. 34. If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country: (Points : 1) can consume more than they could without trade.

can produce more than they could without trade.

will have a lower standard of living.

will be exploited by the second nation.

Question 35. 35. On a hot summer day, a construction worker enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: "No thanks." Why? (Points : 1) For the construction worker, total utility increased at an increasing rate.

Marginal utility increased at an increasing rate.

Marginal utility declined as he consumed additional Big Macs.

The law of diminishing marginal utility does not apply to consumption of Big Macs.

Question 36. 36. Because of crowding out: (Points : 1) expansionary fiscal policy during a recession must involve a tax increase.

expansionary fiscal policy during a recession is reinforced by private investment spending.

the effect of expansionary fiscal policy is partially offset by the decline in investment spending caused

by higher interest rates.

expansionary fiscal policy is completely achieved even with a decline in investment spending.

Question 37. 37. Suppose that the XYZ industry produces a product that results in negative external costs to society. This information suggests that: (Points : 1) resources are under-allocated to the industry.

the equilibrium market price of the product includes the external costs borne by society.

resources are over-allocated to the industry.

at the market price, quantity demanded is less than quantity supplied.

Question 38. 38. Using trade restrictions to protect special interests such as the U.S. auto industry: (Points : 1) results in lower prices for U.S. auto consumers.

raises the prices that U.S. consumers must pay for autos.

is a very cost-efficient way of dealing with trade problems.

is the best long-term solution for threatened U.S. jobs.

Question 39. 39. Microeconomics is the study of: (Points : 1) the behavior of the economy as a whole.

how rising prices affect the level of employment in the economy.

how individuals and firms make decisions.

the effect that money has in the economic system.

Question 40. 40. An example of a transaction that will be a surplus item on the U.S. balance of payments is: (Points : 1) a U.S. resident purchasing French wine.

a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris.

a gift of wheat from the U.S. government to India.

a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.

Question 41. 41. The rate of interest actually paid or earned that includes compounded interest is called the ____________ rate. (Points : 1) effective

internal

external

nominal

Question 42. 42. Earnings before interest and taxes (EBIT) are: (Points : 1) gross profits.

operating profits.

NOPAT.

net profits.

Question 43. 43. Managerial restrictions that limit the level of capital project investments is called: (Points : 1) value investing.

limited liability.

equity constraints.

capital rationing.

Question 44. 44. The after-tax cost of debt for a firm with a 10% before-tax cost of debt and a 30% percent marginal tax rate is: (Points : 1) 3 percent.

7 percent.

10 percent.

13 percent.

Question 45. 45. In the U.S., what form of business organization is subject to double taxation of profits? (Points : 1) Limited partnerships

Partnerships

Corporations

Sole proprietorships

Question 46. 46. At a given sales level, a firm has a degree of operating leverage of 1.2 and a degree of financial leverage of 2.0. What is the firm's degree of total (or combined) leverage? (Points : 1) 0.8

1.6

2.4

3.2

Question 47. 47. If a firm's degree of financial leverage (DFL) is 3, how will a 3% increase in earnings before interest and taxes (EBIT) affect earnings per share (EPS)? (Points : 1) EPS will rise 3%.

EPS will rise 9%.

EPS will rise 27%.

DFL will not affect this relationship.

Question 48. 48. If a firm's degree of operating leverage (DOL) is 2, how will a 6% increase in sales affect its earnings before interest and taxes (EBIT)? (Points : 1) EBIT will rise 4%.

EBIT will rise 8%.

EBIT will rise 12%.

DOL does not affect this relationship.

Question 49. 49. What is it called when there is a conflict between the interests of a firm's owners and its managers? (Points : 1) An agency problem

Trade-off theory

Signalling

Capitalism

Question 50. 50. If the exchange rate between the U.S. dollar and the Japanese yen is 140 yen per dollar, how many yen will be needed to purchase a $10,000 asset? (Points : 1) 0.0140

7,143

10,000

14,000

Question 51. 51. Sam is an employee of Big Time Industries, Inc. He constantly uses high-pressure tactics when selling Big Time's products. Mark, his boss, finds out about these tactics. In order to maintain an ethical workplace, Mark will most likely: (Points : 1) congratulate Sam for achieving profits.

discharge Sam for unethical behavior.

look the other way.

encourage other employees to use these tactics.

Question 52. 52. Which of the following statements is false? (Points : 1) Natural and cultivated plants, shrubs, and trees are considered to be real property.

Certain personal property can become so closely associated with real property that the law views it as real property.

The owner of the surface of the land is necessarily the owner of the subsurface of the land.

Fixtures are included in the sale of the land if the sales contract does not provide otherwise.

Question 53. 53. Amanda goes to a photo shop with a picture she would like to have enlarged. She can't decide that day whether or not she wants to use the shop to do the work. She returns the next day and leaves the picture to be framed for an estimated cost of $20.00. (Points : 1) Amanda has established an implied in fact contract.

Amanda has established an express contract.

Amanda has no contract.

None of the above.

Question 54. 54. The Tenth Amendment to the U.S. Constitution provides that all powers not delegated to the national government are reserved to the: (Points : 1) states.

municipalities.

counties.

none of the above.

Question 55. 55. Mike owns Saddle Up, a leather store. Anna owns Hitchen Post, a clothing store, in the same shopping area. Mike sends his employee to stand in front of the doors at Hitchen Post giving out coupons. This may be: (Points : 1) unethical but lawful.

wrongful interference with a business relationship.

lawful because of free enterprise laws.

none of the above.

Question 56. 56. Article 2 of the Uniform Commercial Code pertains to which of the following? (Points : 1) Corporate stocks

U.S. Treasury bonds

Goods

Insurance policies

Question 57. 57. Joey Swindle serves as the head of the Federal Trade Commission (FTC) and, without cause, is removed by the President. This action is: (Points : 1) unlawful since the FTC is an independent regulatory agency.

lawful under the supremacy clause.

lawful under the Presidential veto powers.

none of the above.

Question 58. 58. Which of these statements is false? (Points : 1) There are no exceptions to the applicability of the Statute of Frauds.

There are special exceptions to the applicability of the Statute of Frauds involving sales contracts.

There are special exceptions to the applicability of the Statute of Frauds involving oral contracts between merchants confirmed in writing.

None of the above.

Question 59. 59. Damages in excess of any actual loss are: (Points : 1) punitive damages.

compensatory damages.

restitution.

nominal damages.

Question 60. 60. An acceptance made in a telegram that never is delivered to the offeror: (Points : 1) has no effect.

is effective as an acceptance at the time that it is given by the offeree to the telegraph office for sending to the offeror.

is effective as an acceptance as of the date it should have been received by the offeror.

is not effective as an acceptance of the offer until the moment that the telegraph office begins to transmit the acceptance to the offeror.

Question 61. 61. What of the following is one of Maslow's five basic needs? (Points : 1) Social

Safety

Physiological

All of the above

Question 62. 62. For what purpose are political skills most useful to a manager? (Points : 1) Delegating tasks to others

Securing scarce resources

Performing job-specific skills

Analyzing business situations

Motivating employees

Question 63. 63. Which type of leadership would most closely align with the laissez-faire style? (Points : 1) Selling

Employee-oriented

Transformational

Directive

Delegating

Question 64. 64. Employment planning involves __________. (Points : 1) addition of staff, reduction of staff, and selection only

addition of staff and reduction of staff only

addition of staff, reduction of staff, motivation of staff, and selection

addition of staff only

Question 65. 65. Functional departmentalization groups jobs by __________. (Points : 1) products or services they manufacture or produce

tasks they perform

territories they serve

type of customer they serve

Question 66. 66. An office manager is appointing one member of his team to the position of acting manager, a position that gives him the limited possibility to make unilateral decisions. What management function is the office manager conducting? (Points : 1) Planning

Organizing

Interpersonal

Controlling

Leading

Question 67. 67. Which of the following identifies the best way to estimate the risk of a new venture? (Points : 1) Structured problems

Certainties

Policies

Past data

Groupthink

Question 68. 68. What is the first step in the control process? (Points : 1) Feedforward correction

Measurement of a standard

Creation of standard variations

Performance observation

Immediate corrective actions

Question 69. 69. The basic belief of the quantitative approach is that: (Points : 1) you should apply statistical models and computer simulations to managerial activities.

you should reward employees on a variable ratio schedule.

you should reward employees on a fixed ratio schedule.

there is "one best way" to make an organization effective and efficient.

Question 70. 70. Which type of work team includes personnel from various departments working toward a single specific goal? (Points : 1) Virtual team

Command team

Self-managed team

Cross-functional team

Problem-solving team

Question 71. 71. What name best describes a semiconducting device that contains all of the components of a CPU? (Points : 1) Microchip

Microprocessor

Integrated circuit

Transistor

Question 72. 72. Bits are grouped into 8-bit chunks called __________. (Points : 1) switches

strings

bytes

nibbles

Question 73. 73. __________ is the activity of altering existing and designing new business processes to take advantage of new information systems. (Points : 1) Business process modeling

Business process reengineering

Business process outsourcing

Enterprise resource planning

Question 74. 74. __________ software helps the computer carry out its basic operating tasks. (Points : 1) Virus protection

Hardware

System

Application

Question 75. 75. A wide-area network (WAN) is more than one __________ connected together. (Points : 1) LAN

WLAN

PAN

workstation

Question 76. 76. Virtualization is the process by which __________. (Points : 1) a single server is used to host the operations of a workstation

many computers are used to control a server

one computer hosts the appearance of many computers

a single operating system is licensed for multiple computers

Question 77. 77. Which of the following statements is true for programming languages? (Points : 1) Interpreted programs run faster than compiled programs.

Compilers translate high-level language programs into machine language programs.

Interpreter programs use assembly language as input.

None of the above.

Question 78. 78. Every computer on the Internet has a(n) __________ address. (Points : 1) ISP

favorite

server

IP

Question 79. 79. A relational DBMS allows you to create database structures containing __________. (Points : 1) fields

tables

table relationships

all of the above

Question 80. 80. Which of the following is an international standard language for processing a database? (Points : 1) Cassandra

DB2

SQL

MS Acces.

Task eight.

rufactured P2.43A (LO 4) The following data were taken from the records of Stellar Manufacturing Company for tatement, the fiscal year ended December 31, 2020: Excel Raw Materials Inventory (1/1/20) $ 47,000 Factory Machinery Depreciation $ 7,700 Raw Materials Inventory (12/31/20) 44,800 Factory Utilities 12,900 Finished Goods Inventory (1/1/20) 85,000 Office Utilities 8,600 Finished Goods Inventory (12/31/20) 77,800 Sales 465,000 Work in Process Inventory (1/1/20) 9,500 Sales Discounts 2,500 Work in Process Inventory (12/31/20) 7,500 Plant Manager's Salary 40,000 Direct Labour 145,100 Factory Property Taxes 6,900 Indirect Labour 18,100 Factory Repairs 800 Accounts Receivable 27,000 Raw Materials Purchases 62,500 Factory Insurance 7,400 Cash 28,000 Instructions a. Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.) b. Prepare an income statement through gross profit. c. Prepare the current assets section of the balance sheet at December 31, 2020.Note: Part a, b and c are not related to each other. a. PortfolioMan wants to create a portfolio as risky as the market and he has $1,000,000 to invest. Given this information, fill in the three missing values of the following table: Asset Investment Beta A $170,000 1.6 B $140,000 1.5 C $130,000 1.1 D $200,000 Risk-free asset ? -9 b. An asset's reward-to-risk ratio is defined as its risk premium divided by its standard deviation. It is a useful statistic to summarize the asset's risk-return trade-off. Consider the following information: Stock A has a reward-to-risk ratio of 0.4 and stock B has a reward-to-risk ratio of 0.33. Stock A's risk premium is 8%, stock B's risk premium is 10% and the market risk premium is 7%. The correlation between stocks A and B is 0.6. Assume the CAPM holds. A portfolio consisting of stocks A and B has 20% more systematic risk than the market. Calculate the total risk of this portfolio. c. Julia invests 20% of her wealth in the risk free asset and the rest in FB shares and BHC shares. The risk premium on FB shares is 10%, the risk premium on BHC is 7% and the market risk premium is 8%. Julia's total portfolio of the three assets is 10% less risky than the market portfolio. Calculate the weight of FB in her portfolio. Assume that the Capital Asset Pricing Model holds.Problem 1 - Monopoly Suppose that a single rm is a monopolist in a market with the demand function P = 200 - 29. The monopolist has total xed cost of TFC = 100 and total variable cost of TVC = mg. The monopolist charges a single price in the market (i.e., no price discrimination). Answer the following questions, and write your answers in the Answer Sheet. 0 What is the monopolist's prot function (17, should be a function of Q)? What is the monopolist's prot-maximizing output (Q)? What is the price (P) associated with that output? What is the monopolist's prot (H), based on its prot-maximizing choice? Note: the prot function should be an equation, but the other answers should be numbers