Quantitative methods Time value of money Effective annual rate (EAR) Effective annual rate (EAR) = (1+stated annual rate/frequency‚ m) ^ m-1 Annuities Ordinary annuities: cash flow at the end of each period‚ normal one; Annuities due: cash flow at the beginning of each period‚ first payment =t0; Calculator setting: [2nd][BGN]-[2ND][SET]; same procedure for setback to END; Payment at beginning of next three years‚ N=4‚ always +1 using annuities due It is a BGN question‚ if first payment is today
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Student ’s t-distribution (or simply the t-distribution) is a continuous probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small” (Narasimhan ‚ 1996). Similar to the normal distribution‚ the t-distribution is symmetric and bell-shaped‚ but has heavier tails‚ meaning that it is more likely to produce values far from its mean. This makes the t-distribution useful for understanding statistical behaviors of random quantities
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business weeks per year • Weekly demand average = 102 gaskets/week • Annual demand (D) = 102*52 = 5‚304 gaskets • Holding cost = $1.85 per gasket per year (= 0.21*(1-0.32)*$12.99) • Ordering cost = $20 per order Analysis EG151 (continued) • Normal distribution a 95% cycle-service level corresponds to a z = 1.645 • Standard deviation in weekly demand = ? • Standard deviation in
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your prediction. 2. Using the MM207 Student Data Set: a) Select a continuous variable that you suspect would not follow a normal distribution. b) Create a graph for the variable you have selected to show its distribution. c) Explain why these data might not be normally distributed. d) Select a second continuous variable that you believe would approximate a normal distribution e) Create a graph to show its distribution. f) Explain why these data might be normally distributed. . 3
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* Columns correspond to Variables * Rows correspond to individuals * Rows are often called observations or cases * The number of rows is traditionally denoted by n * In the bar chart the height of each bar is proportional to the count (or percent) in each category * In the pie chart the area of each piece is proportional to the percent of individuals in each category * Pareto chart when the categories are sorted by frequency * Pie charts are less useful than bar charts
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1. Which of the following is a method of data collection that is used in surveys? a. telephone b. Mail c. the Internet d. all of the above 2. All of the following are examples of an observation study EXCEPT: a. a mystery shopper pretending to be a customer in a McDonald’s outlet b. a cable laid across the street that records the number of cars that pass a certain intersection c. determining how long employees spend taking breaks to smoke cigarettes d. a consumer responding to a questionnaire about
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PERT is a widely used method for planning and coordinating large-scale projects. To obtain: • A graphical display of project activities. • An estimate of how long the project will take. • An indication of which activities are the most critical to timely project completion. • An indication of how long any activity can be delayed without delaying the project. The Network Diagram Network (precedence) diagram -Diagram of project activities that shows sequential relationships by the use of
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QNT/351 1) The main purpose of descriptive statistics is to A. summarize data in a useful and informative manner B. make inferences about a population C. determine if the data adequately represents the population D. gather or collect data 2) The general process of gathering‚ organizing‚ summarizing‚ analyzing‚ and interpreting data is called A. statistics B. descriptive statistics C. inferential statistics D. levels of measurement 3) The performance of personal and business investments
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and +1. D) has none of the above properties. 5. For a continuous random variable‚ the total area beneath the probability distribution curve will be greater than 0 but less than 1. A) True False 6. The standardized normal distribution always has a mean of zero and a standard deviation of one. True A) False 7. Excel’s RAND() function produces random numbers that are uniformly distributed from 0 to 1. The standard deviation of this distribution
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standard deviation of 0.02 centimeter. All components deviating by more than 0.05 centimeter from the mean must be rejected. What percentage of parts must be rejected? Assume a normal distribution. 3. Assume that the number of cases sold per week in December by a large group of beverage salesmen is quite close to normal distribution with a mean of 684 and a standard deviation of 60. a. Given that the top 16% of the salesmen receive bonuses‚ how many cases must a salesman sell in order to receive
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