Which engineer would you guess did the work?
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You manage a systems engineering firm, and you often get projects by bidding on them. An
important aspect of bidding on such projects is estimating the amount to bid: a bid that’s too
high may mean your firm isn’t awarded the project, but a bid that’s too low may mean you are
awarded the project and lose money in the process. You have two cost engineers that estimate
project costs. Engineer 1 estimates about 70% of bids while Engineer 2 estimates the rest. It is
known that the error rate for Engineer 1 is such that 0.02 is the
when she does the cost estimation, whereas the probability of an error in the estimate of
Engineer 2 is 0.04. Suppose a bid arrives and a serious error occurs in estimating cost. Which
engineer would you guess did the work?
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- If you are performing a break-even analysis for a business and their cost and revenue equations are dependent, explain what this means for the company's profit margins.At the Pizza Dude restaurant, a 12-in. pizza costs 5.40 to make, and the manager wants to make at least 4.80 from the sale of each pizza. If the pizza will be sold by the slice and each pizza is cut into 6 pieces, what is the minimum charge per slice?Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. Product FIFO (F) LIFO (L) 1 225 221 2 119 100 3 100 113 4 212 200 5 248 245 What is the null hypothesis? Multiple Choice H0: µd = 0 H0: µd ≠ 0 H0: µd ≤ 0 H0: µd ≥ 0
- Accounting procedures allow a business to evaluate their inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. Product FIFO (F) LIFO (L) 1 225 221 2 119 100 3 100 113 4 212 200 5 248 245 a) What are the degrees of freedom? A) 4B) 5C) 15D) 10 b) If you use the 5% level of significance, what is the critical t-value? A) +2.132 B) ±2.132 C) +2.262 D) ±2.228 c) What is the value of calculated t? A) +0.933 B) ±2.776 C) +0.47 D) −2.028 d) What is the decision at the 5% level of significance? A) Fail to reject the null hypothesis and conclude LIFO is more effective. B) Reject the null hypothesis and conclude…Your college newspaper, The Collegiate Times, has fixed production costs of $7000 per edition, and variable printing and distribution costs of $40 per copy. The Collegiate Times sells for $50 per copy. Write down the associated cost, revenue, and profit functions. What profit (or loss) results from the sale of 500 copies of The Collegiate Times? How many copies should be sold to break even?A company is planning to manufacture snowboards. The fixed costs are $139 per day and the total costs are $6,241 per daily output of 25 boards. What is the average costs per board tend to as production increases?
- Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO − LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product FIFO (F) LIFO (L) 1 225 221 2 121 103 3 100 117 4 215 204 5 253 248 What is the value of the test statistic? Multiple Choice +0.717 ±2.560 +0.25 +1.916Video Productions produces DVDs selling for $20 per unit. Fixed costs are $40,000, the labor costsare$7 per unit, and the material cost is $5 per unit. Determine the least number of units that must be sold forthe company to have a profit.When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand . As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…
- A university currently has a recycling program for paper waste. The fixed cost of running this program is $5,000 per year. The variable cost for picking up and disposing of each ton of recyclable paper is $40. If the work is outsourced to a recycling company, the cost would be $80 per ton. If the forecasted demand is 800 tons, what should the university do? Use the Break-Even Excel template in MindTap to find your answer. Round your answers to the nearest dollar. Total cost of doing the job in-house: $ ____Total cost of outsourcing the job: $ ____ So the best decision for the university is to ________ (do the job in house/ outsource the job) for a savings of $ _____ . Find the break-even point using the Excel Goal Seek tool. Round your answer to the nearest whole number. ____ tonsA businesswoman wants to determine the difference between the costs of owning and leasing an automobile. She can lease a car for $440 a per month (on an annual basis). Under this plan, the cost per mile is $0.07. If she were to purchase the car, the fixed annual expense would be $4800, and other costs would amount to $0.11 per mile. What is the least number of miles she would have to drive per year to make leasing no more expensive than purchasing? The businesswoman would have to drive at least miles per year.Accounting procedures allow a business to evaluate its inventory costs based on two methods: LIFO (last in first out) or FIFO (first in first out). A manufacturer evaluated its finished goods inventory (in $000s) for five products with the LIFO and FIFO methods. To analyze the difference, they computed FIFO-LIFO for each product. We would like to determine if the LIFO method results in a lower cost of inventory than the FIFO method. The company wishes to test this hypothesis at the 0.05 level of significance. Product 1 2 3 4 5 FIFO (F) 225 123 101 212 253 LIFO (L) 216 105 116 202 250 What is the value of the test statistic?
