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iya ogor 07040120218 +23470232521837- ekanem gbara 8023165023 edith. 8033463312 caro
Hindle, Tim. Guide to Management Ideas & Gurus, 2008, p235-236, 2p; Date: 2008-01-01T00:00:00.00 Author: Kevin Gaunt New Zealand Management 54.10 (Nov 2007): p28(2). Date: 2007-11-01T00:00:00.00 J. B. Ritchie; Scott C. Hammond Source: Journal of Management Inquiry, Mar 2005; vol. 14: pp. 6 - 12. Date: 2005-03-01T00:00:00.00 Kim Knutson Source: Journal of Leadership and Organizational Studies, Jan 1999; vol. 6: pp. 122 - 127. Date: 1999-01-01T00:00:00.00 Management/Leadership Styles Author: HAYNES, THOMAS
QRB Quiz
--------------------------------------------------------------------------------
QRB Quiz
-------------------------------------------------------------------------------1.1 If the formula for Return on Equity (ROE) is made of three factors [Net Income (NI) divided by Sales (S), Sales (S) divided by Total Assets (TA), and Total Assets (TA) divided by equity (E)] that are then multiplied by each other, the mathematical formula is: A) ROE=NI/S+S/TA+TA/E B) ROE=NI/S*S/TA*TA/E C) ROE=NI*S/S*TA/TA*E D) ROE=NI-S*S-TA*TA-E
1.2 Given the accompanying demand data, use the formula below to compute price elasticity of demand for the product price of $5 and product price of $4. Product Price Quantity Demanded $5 1 $4 2 $3 3 $2 4 $1 5 Use the below formula to determine the price elasticity of demand. A) B) C) D)
5 4 3 2
1.3 In considering break even for a business, we are looking for the point where fixed cost equals the number of units sold multiplied by the price per unit less the variable cost per unit. What is the independent variable? A) Fixed Cost B) Price C) Number of Units D) Variable Cost
-------------------------------------------------------------------------------2.1 Refer to the variables below, which reports information on homes sold in the Denver, Colorado, area last year. Consider the following variables: selling price, number of bedrooms, township, and distance from the center of the city. Determine the level of measurement for each of the variables. -------------------------------------------------------------------------------X1 = Selling price in $000
A) B) C) D)
Ratio Nominal Ordinal Interval
X2 = Size of home in sq feet A) Ratio B) Nominal C) Ordinal D) Interval
X3 = Pool (1 = yes, 0 = no) A) Ratio B) Nominal C) Ordinal D) Interval
X4 = Rating guide score of local schools A) Ratio B) Nominal C) Ordinal D) Interval
X5 = Distance from the center of the city A) Ratio B) Nominal C) Ordinal D) Interval
X6 = Township A) Ratio B) Nominal C) Ordinal D) Interval
X7 = Township number A) Ratio B) Nominal C) Ordinal D) Interval
2.2 If the formula for calculating net income (profit) using fixed cost(Fc), variable cost(Vc), price(P), and units sold(U) is NI=U(P-Vc)-Fc, then if the profits of a company are $100 when sales are $1000 (100 units at $10 each), and
$80 when sales are $800 (80 units at $10 each), which formulas below are used to determine Fixed Cost and Variable Cost? A) 100=100(10-Vc)-Fc & 80=80(10-Vc)-Fc B) 100=1000(10-Vc)-Fc & 80=800(10-Vc)-Fc C) 1000=100(10-Vc)-Fc & 800=80(10-Vc)-Fc D) 1000=1000(10-Vc)-Fc & 800=800(10-Vc)-Fc
2.3 Sales for the past five years have been: $80.00, $120.00, $180.00, $270.00, $405.00. Based on this rate of growth, next years sales should be: A) $810.00 B) $540.00 C) $607.50 D) $600.00
Return to top
-------------------------------------------------------------------------------3.1 The following table contains data on the relationship between saving and income. These data are rearranged into a meaningful order and graphed on the accompanying grid. What would you predict saving to be at the $12,500 level of income? Income per Year Saving per Year $0 $-500 $5,000 $0 $10,000 $500 $15,000 $1000 $20,000 $1,500 A) B) C) D)
$650 $700 $750 $900
3.2 The slope intercept formula in mathematical form is y=mx+b. The slope in this case is m, and determines how much increase there is in y from an increase in x. In cost volume profit, the formula is profit=margin per unit times the number of units less fixed costs. Here fixed costs are essentially a negative value for b in the basic formula. When profits are $100 and fixed costs are $200 if the company sells 50 units, what is the slope of the line that creates? A) $5 per unit B) $100 C) $200 D) $6 per unit
3.3 Linear regression is a mathematical tool that is used to represent the
relationship between independent and dependent variables algebraically. Businesses should make extensive use of this tool in formulating strategy; True or False? True False
-------------------------------------------------------------------------------4.1 Suppose you just won a lottery for $1 million, payable in annual installments of $200.000 with the first payment made in one year. Alternatively, you could accept $850,000 today. Regardless of whether you take the $200,000 annually or the $850,000 today, you are confident you could earn 8% each year on the payout for the next five years. If your objective is to have the most money at the end of five years, what should you do? A) Take the million dollars in five installments because one million dollars compounded at 8% for five years is greater than $850,000 compounded at 8% over five years. B) Take the $850,000 today because it is greater than the present value of the five $200,000 annual installments discounted at 8%. C) Take the million dollars in five installments because invested the $200,000 you get each year at 8% will give you a greater amount at the end of five years than investing $850,000 today at 8% for five years. D) Take the $850,000 today because the present value of the five $200,000 annual installments discounted at 8% is greater than $850,000.
-------------------------------------------------------------------------------5.1 Molly�s Candle Shop has several retail stores in the coastal areas of North and South Carolina. Many of Molly�s customers ask her to ship their purchases. The following chart shows the number of packages shipped per day for the last 100 days. What is the class interval? What is the class frequency for the 10 up to 15 class? A) B) C) D) E)
28 and 5 15 and 25 7 and 28 5 and 25 5 and 28
5.2 Match the actions listed below with the appropriate math concept: --------------------------------------------------------------------------------
Calculating the average wage cost Mode Median Mean Determining the most frequent number of sales/week by sales personnel Mode Median Mean Identifying the minimum service score received on half of all responses Mode Median Mean 5.3 Last month the following seven homes sold in your town. Each selling price is in thousands of dollars: $180, 250, 195, 140, 375, 3500, 425. What is the median and mean selling price? A) $250 and $724 B) $245 and $719 C) $255 and $729 D) $240 and $714
5.4 Wear Ever Tire Company randomly selected 1000 customers who bought new sets of tires from its dealers across the country and had them record when the first tire needed to be replaced due to wear. From these data they calculated that the mean mileage was 32,000 miles and the standard deviation was 4,000 miles. Recently a customer who bought a set of tires needed to replace a tire due to wear at 18,000 miles. Which of the following statements is true? A) The customer could expect to replace a tire at 18,000 miles. B) This is very unlikely; this should happen in fewer than 3% of the cases. C) There may be something wrong with the tire production with this batch of tires. D) Both B and C should be considered true by the management of Wear Ever Tire Company.
-------------------------------------------------------------------------------6.1 In business, we often reduce risk by creating a portfolio which includes a mix of investments with high, medium, and low risk. Each of these categories has an estimate of what return we expect as well. The creation of these estimates often relies on probability concepts. How should probability estimates be created to reduce risk the most? A) Gathering and evaluating data using statistics. B) The best guess of management. C) Last year�s performance. D) Random Number.
6.2 CRA CDs, Inc. wants the mean lengths of the �cuts� on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the
length of the cuts follows the normal distribution with a standard deviation of 8 seconds. Suppose we select a sample of 16 cuts from various CDs sold by CRA CDs, Inc. What can we say about the shape of the distribution of the sample mean? A) 67% of the sample means will be between 127 seconds and 143 seconds. B) 95% of the sample means will be between 127 seconds and 143 seconds. C) 99% of the sample means will be between 127 seconds and 143 seconds. D) 100% of the sample means will be between 127 seconds and 143 seconds.
6.3 A market basket of goods and services cost $1500 to purchase in the year 2000. The same market basket of goods and services cost the following in the next several years: 2001 2002 2003 2004
$1560.00 $1606.80 $1687.14 $1737.75
From these data it is possible to create a consumer price index with the purchase price of the goods and services in the year 2000 set equal to 100. If so, rounded to the nearest integer, what is the value of the consumer price index for the year 2004? A) 174 B) 116 C) 1737 D) 100
leader and manager informations: Managers and leaders are two very different types of people. Managers' goals arise out of necessities rather than desires; they excel at defusing conflicts between individuals or departments, placating all sides while ensuring that an organization's day-to-day business gets done. Leaders, on the other hand, adopt personal, active attitudes toward goals. They look for the opportunities and rewards that lie around the corner, inspiring subordinates and firing up the creative process with their own energy. Their relationships with employees and coworkers are intense, and their working environment is often chaotic. In this article, first published in 1977, the author argues that businesses need both managers and leaders to survive and succeed. But in the larger U.S. organizations of that time, a "managerial mystique" seemed to perpetuate the development of managerial personalities--people who rely on, and strive to maintain, orderly work patterns. The managerial power ethic favors collective leadership and seeks to avoid risk. That same managerial mystique can stifle leaders' development--How can an entrepreneurial spirit develop when it is submerged in a conservative environment and denied personal attention? Mentor relationships are crucial to the development of leadership personalities, but in large, bureaucratic organizations, such relationships are not encouraged. Businesses must find ways to train good managers and develop leaders at the same time.
or Business Overview
As a student in the University of Phoenix MBA, you will take a Quantitative Reasoning for Business course. We designed this course to help you support your development of analytical skills as a manager and apply the tools necessary to make business decisions. Below are some questions a midlevel manager faces regularly and the underlying skills needed to apply the tools those activities require. � What is our return on investment for this project? � What price should we set to increase revenue? � How much product must we sell to make a profit? � Will offering our product in different models increase sales? � What sales volume does our competition need to be profitable? � What are our predicted sales next year, based on our past performance? � How can we show the effect the price has on the quantity of our product customers will buy on a PowerPoint� slide? � Can we make more money by adding new equipment? � If a contract includes a $2 million payment in 3 years, how much is that worth today? � How can we show the possibilities of various outcomes based on a single decision? � How far can we be from our expected sales volume before someone gets fired? � When is a process out of control? � How can we balance risk and return with our investment choices? � If a sample of our product is bad, is the entire batch bad? � How can we compare our performance against a baseline? After completing the Quantitative Reasoning for Business course, students are able to apply the underlying skills (shown below) needed to answer the questions above. � Write mathematical expressions and equations for word problems. � Apply the rules for order of operations in solving problems. � Identify dependent and independent variables and their relationships. � Differentiate the levels of measurement. � Solve simultaneous equations algebraically. � Use time series data to forecast. � Construct histograms and bivariate plots using Excel. � Determine the value of a slope by using the slope-intercept formula. � Conduct a linear regression analysis. � Compute exponential and reciprocal functions. � Construct a frequency distribution. � Compare and contrast measures of central tendency and measures of dispersion. � Construct a normal distribution. � Explain basic probability concepts � Explain the importance of the central limit theorem in sampling � Convert data to indexes. The QRB course prepares you to master these skills before you apply them in economics, accounting, finance, operations, and research. We designed the QRB course to connect these skills with the managerial competencies they support so that the course prepares you for greater success! To show you how these skills apply to business situations more clearly, here are some sample questions that you may face as a manager. Quantitative Reasoning for Business Quiz
1. If the formula for Return on Equity (ROE) is made of three factors: Net Income (NI) divided by Sales (S), Sales (S) divided by Total Assets (TA), and Total Assets (TA) divided by equity (E)] that are then multiplied by each other, the mathematical formula is: a. b. c. d.
ROE=NI/S+S/TA+TA/E ROE=NI/S*S/TA*TA/E ROE=NI*S/S*TA/TA*E ROE=NI-S*S-TA*TA-E
2. Given the accompanying demand data, use the formula below to compute price elasticity of demand for the product price of $5 and product price of $4. Product Price $5 $4 $3 $2 $1 1 2 3 4 5
Quantity Demanded
Use the below formula to determine the price elasticity of demand.
a. b. c. d.
5 4 3 2
3. In considering break-even for a business, we look for the point where fixed cost equals the number of units sold, multiplied by the price per unit, less the variable cost per unit. What is the independent variable? a. b. c. d.
Fixed Cost Price Number of Units Variable Cost
4. Refer to the variables below, which report information on homes sold in the Denver, CO, area last year. Consider the following variables: selling price, number of bedrooms, township, and distance from the center of the city. Determine the level of measurement for each of the variables. a.
X1 = Selling price in $000
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
b.
X2 = Size of home in sq feet
1) 2)
Ratio Nominal
3) 4)
Ordinal Interval
c.
X3 = Pool (1 = yes, 0 = no)
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
d.
X4 = Rating guide score of local schools
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
e.
X5 = Distance from the center of the city
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
f.
X6 = Township
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
g.
X7 = Township number
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
5. If the formula for calculating net income (profit) using fixed cost (Fc), variable cost (Vc), price (P), and units sold (U) is NI=U(P-Vc)-Fc. If the profits of a company are $100 when sales are $1000 (100 units at $10 each), and $80 when sales are $800 (80 units at $10 each), which formulas below are used to determine Fixed Cost and Variable Cost? a. b. c. d.
100=100(10-Vc)-Fc & 80=80(10-Vc)-Fc 100=1000(10-Vc)-Fc & 80=800(10-Vc)-Fc 1000=100(10-Vc)-Fc & 800=80*(10-Vc)-Fc 1000=1000(10-Vc)-Fc & 800=800(10-Vc)-Fc
6. Sales for the past five years have been: $80.00, $120.00, $180.00, $270.00, $405.00. Based on this rate of growth, next years sales should be: a. b. c. d.
$810.00 $540.00 $607.50 $600.00
7.
The following table contains data on the relationship between saving and
income. These data are rearranged into a meaningful order and graphed on the accompanying grid. What would you predict saving to be at the $12,500 level of income? Income per Year Saving per Year $0 $-500 5,000 0 10,000 500 15,000 1,000 20,000 1,500
a. b. c. d.
650 700 750 900
8. The slope intercept formula in mathematical form is y=mx+b. The slope in this case is m, and determines how much increase there is in y from an increase in x. In cost volume profit, the formula is profit = margin per unit times the number of units less fixed costs. Here fixed costs are essentially a negative value for b in the basic formula. When profits are $100 and fixed costs are $200 if the company sells 50 units, what is the slope of the line that creates? a. b. c. d.
$5 per unit $100 $200 $6 per unit
9. Linear regression is a mathematical tool that is used to represent the relationship between independent and dependent variables algebraically. Businesses should make extensive use of this tool in formulating strategy. True or False? 10. Suppose you just won a lottery for $1 million, payable in annual installments of $200.000 with the first payment made in one year. Alternatively, you could accept $850,000 today. Regardless of whether you take the $200,000 annually or the $850,000 today, you are confident you could earn 8% each year on the payout for the next five years. If your objective is to have the most money at the end of five years, what should you do? a. Take the million dollars in five installments because one million dollars compounded at 8% for five years is greater than $850,000 compounded at 8% over five years. b. Take the $850,000 today because it is greater than the present value of the five $200,000 annual installments discounted at 8%. c. Take the million dollars in five installments because invested the $200,000 you get each year at 8% will give you a greater amount at the end of five years than investing $850,000 today at 8% for five years. d. Take the $850,000 today because the present value of the five $200,000 annual installments discounted at 8% is greater than $850,000. 11. Molly�s Candle Shop has several retail stores in the coastal areas of North and South Carolina. Many of Molly�s customers ask her to ship their purchases. The following chart shows the number of packages shipped per day for the last 100 days.
What is the class interval? What is the class frequency for the 10 to 15 class? a. b. c. d. e.
28 and 5 15 and 25 7 and 28 5 and 25 5 and 28
12.
Match the below math concepts, with the appropriate use:
1) Mode 2) Median 3) Mean a) Calculating the average wage cost. 3 b) Determining the most frequent number of sales/week by sales personnel 1 c) Identifying the minimum service score received on half of all responses 2 13. Last month, the following seven homes sold in your town. Each selling price is in thousands of dollars: 180, 250, 195, 140, 375, 3500, 425. What is the median and mean selling price? a. b. c. d.
$250 $245 $255 $240
and and and and
$724 $719 $729 $714
14. Wear Ever Tire Company randomly selected 1000 customers who bought new sets of tires from its dealers across the country and had them record when the first tire needed to be replaced due to wear. From these data, they calculated that the mean mileage was 32,000 miles and the standard deviation was 4,000 miles. Recently a customer who bought a set of tires needed to replace a tire due to wear at 18,000 miles. Which of the following statements is true? a. The customer b. This is very c. There may be tires. d. Both b and c Company.
could expect to replace a tire at 18,000 miles. unlikely; this should happen in fewer than 3% of the cases. something wrong with the tire production with this batch of should be considered true by the management of Wear Ever Tire
15. In business, we often reduce risk by creating a portfolio which includes a mix of investments with high-, medium-, and low-risk. Each of these categories has an estimate of what return we expect. The creation of these estimates often relies on probability concepts. How should probability estimates be created to reduce risk the most? a. b. c. d.
Gathering and evaluating data using statistics. The best guess of management. Last year�s performance. Random Number.
16. CRA CDs, Inc. wants the mean lengths of the cuts on a CD to be 135 seconds (2 minutes and 15 seconds). This allows the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the length of the cuts follows the normal distribution with a standard deviation of 8
seconds. Suppose we select a sample of 16 cuts from various CDs sold by CRA CDs, Inc. What can we say about the shape of the distribution of the sample mean? a. b. c. d.
67% of the sample means will be between 127 seconds and 143 seconds. 95% of the sample means will be between 127 seconds and 143 seconds. 99% of the sample means will be between 127 seconds and 143 seconds. 100% of the sample means will be between 127 seconds and 143 seconds.
17. A market basket of goods and services cost $1500 to purchase in the year 2000. The same market basket of goods and services cost the following in the next several years: 2001 2003
$1560.00 2002 $1687.14 2004
$1606.80 $1737.75
From these data, it is possible to create a consumer price index with the purchase price of the goods and services in the year 2000 set equal to 100. If so, rounded to the nearest integer, what is the value of the consumer price index for the year 2004? a. b. c. d.
174 116 1737 100
� 2008 University of Phoenix. ALL RIGHTS RESERVED
iya ogor 07040120218 +23470232521837- ekanem gbara 8023165023 edith. 8033463312 caro
Hindle, Tim. Guide to Management Ideas & Gurus, 2008, p235-236, 2p; Date: 2008-01-01T00:00:00.00 Author: Kevin Gaunt New Zealand Management 54.10 (Nov 2007): p28(2). Date: 2007-11-01T00:00:00.00 J. B. Ritchie; Scott C. Hammond Source: Journal of Management Inquiry, Mar 2005; vol. 14: pp. 6 - 12. Date: 2005-03-01T00:00:00.00 Kim Knutson Source: Journal of Leadership and Organizational Studies, Jan 1999; vol. 6: pp. 122 - 127. Date: 1999-01-01T00:00:00.00 Management/Leadership Styles Author: HAYNES, THOMAS
QRB Quiz
--------------------------------------------------------------------------------
QRB Quiz
-------------------------------------------------------------------------------1.1 If the formula for Return on Equity (ROE) is made of three factors [Net Income (NI) divided by Sales (S), Sales (S) divided by Total Assets (TA), and Total Assets (TA) divided by equity (E)] that are then multiplied by each other, the mathematical formula is: A) ROE=NI/S+S/TA+TA/E B) ROE=NI/S*S/TA*TA/E C) ROE=NI*S/S*TA/TA*E D) ROE=NI-S*S-TA*TA-E
1.2 Given the accompanying demand data, use the formula below to compute price elasticity of demand for the product price of $5 and product price of $4. Product Price Quantity Demanded $5 1 $4 2 $3 3 $2 4 $1 5 Use the below formula to determine the price elasticity of demand. A) B) C) D)
5 4 3 2
1.3 In considering break even for a business, we are looking for the point where fixed cost equals the number of units sold multiplied by the price per unit less the variable cost per unit. What is the independent variable? A) Fixed Cost B) Price C) Number of Units D) Variable Cost
-------------------------------------------------------------------------------2.1 Refer to the variables below, which reports information on homes sold in the Denver, Colorado, area last year. Consider the following variables: selling price, number of bedrooms, township, and distance from the center of the city. Determine the level of measurement for each of the variables. -------------------------------------------------------------------------------X1 = Selling price in $000
A) B) C) D)
Ratio Nominal Ordinal Interval
X2 = Size of home in sq feet A) Ratio B) Nominal C) Ordinal D) Interval
X3 = Pool (1 = yes, 0 = no) A) Ratio B) Nominal C) Ordinal D) Interval
X4 = Rating guide score of local schools A) Ratio B) Nominal C) Ordinal D) Interval
X5 = Distance from the center of the city A) Ratio B) Nominal C) Ordinal D) Interval
X6 = Township A) Ratio B) Nominal C) Ordinal D) Interval
X7 = Township number A) Ratio B) Nominal C) Ordinal D) Interval
2.2 If the formula for calculating net income (profit) using fixed cost(Fc), variable cost(Vc), price(P), and units sold(U) is NI=U(P-Vc)-Fc, then if the profits of a company are $100 when sales are $1000 (100 units at $10 each), and
$80 when sales are $800 (80 units at $10 each), which formulas below are used to determine Fixed Cost and Variable Cost? A) 100=100(10-Vc)-Fc & 80=80(10-Vc)-Fc B) 100=1000(10-Vc)-Fc & 80=800(10-Vc)-Fc C) 1000=100(10-Vc)-Fc & 800=80(10-Vc)-Fc D) 1000=1000(10-Vc)-Fc & 800=800(10-Vc)-Fc
2.3 Sales for the past five years have been: $80.00, $120.00, $180.00, $270.00, $405.00. Based on this rate of growth, next years sales should be: A) $810.00 B) $540.00 C) $607.50 D) $600.00
Return to top
-------------------------------------------------------------------------------3.1 The following table contains data on the relationship between saving and income. These data are rearranged into a meaningful order and graphed on the accompanying grid. What would you predict saving to be at the $12,500 level of income? Income per Year Saving per Year $0 $-500 $5,000 $0 $10,000 $500 $15,000 $1000 $20,000 $1,500 A) B) C) D)
$650 $700 $750 $900
3.2 The slope intercept formula in mathematical form is y=mx+b. The slope in this case is m, and determines how much increase there is in y from an increase in x. In cost volume profit, the formula is profit=margin per unit times the number of units less fixed costs. Here fixed costs are essentially a negative value for b in the basic formula. When profits are $100 and fixed costs are $200 if the company sells 50 units, what is the slope of the line that creates? A) $5 per unit B) $100 C) $200 D) $6 per unit
3.3 Linear regression is a mathematical tool that is used to represent the
relationship between independent and dependent variables algebraically. Businesses should make extensive use of this tool in formulating strategy; True or False? True False
-------------------------------------------------------------------------------4.1 Suppose you just won a lottery for $1 million, payable in annual installments of $200.000 with the first payment made in one year. Alternatively, you could accept $850,000 today. Regardless of whether you take the $200,000 annually or the $850,000 today, you are confident you could earn 8% each year on the payout for the next five years. If your objective is to have the most money at the end of five years, what should you do? A) Take the million dollars in five installments because one million dollars compounded at 8% for five years is greater than $850,000 compounded at 8% over five years. B) Take the $850,000 today because it is greater than the present value of the five $200,000 annual installments discounted at 8%. C) Take the million dollars in five installments because invested the $200,000 you get each year at 8% will give you a greater amount at the end of five years than investing $850,000 today at 8% for five years. D) Take the $850,000 today because the present value of the five $200,000 annual installments discounted at 8% is greater than $850,000.
-------------------------------------------------------------------------------5.1 Molly�s Candle Shop has several retail stores in the coastal areas of North and South Carolina. Many of Molly�s customers ask her to ship their purchases. The following chart shows the number of packages shipped per day for the last 100 days. What is the class interval? What is the class frequency for the 10 up to 15 class? A) B) C) D) E)
28 and 5 15 and 25 7 and 28 5 and 25 5 and 28
5.2 Match the actions listed below with the appropriate math concept: --------------------------------------------------------------------------------
Calculating the average wage cost Mode Median Mean Determining the most frequent number of sales/week by sales personnel Mode Median Mean Identifying the minimum service score received on half of all responses Mode Median Mean 5.3 Last month the following seven homes sold in your town. Each selling price is in thousands of dollars: $180, 250, 195, 140, 375, 3500, 425. What is the median and mean selling price? A) $250 and $724 B) $245 and $719 C) $255 and $729 D) $240 and $714
5.4 Wear Ever Tire Company randomly selected 1000 customers who bought new sets of tires from its dealers across the country and had them record when the first tire needed to be replaced due to wear. From these data they calculated that the mean mileage was 32,000 miles and the standard deviation was 4,000 miles. Recently a customer who bought a set of tires needed to replace a tire due to wear at 18,000 miles. Which of the following statements is true? A) The customer could expect to replace a tire at 18,000 miles. B) This is very unlikely; this should happen in fewer than 3% of the cases. C) There may be something wrong with the tire production with this batch of tires. D) Both B and C should be considered true by the management of Wear Ever Tire Company.
-------------------------------------------------------------------------------6.1 In business, we often reduce risk by creating a portfolio which includes a mix of investments with high, medium, and low risk. Each of these categories has an estimate of what return we expect as well. The creation of these estimates often relies on probability concepts. How should probability estimates be created to reduce risk the most? A) Gathering and evaluating data using statistics. B) The best guess of management. C) Last year�s performance. D) Random Number.
6.2 CRA CDs, Inc. wants the mean lengths of the �cuts� on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the
length of the cuts follows the normal distribution with a standard deviation of 8 seconds. Suppose we select a sample of 16 cuts from various CDs sold by CRA CDs, Inc. What can we say about the shape of the distribution of the sample mean? A) 67% of the sample means will be between 127 seconds and 143 seconds. B) 95% of the sample means will be between 127 seconds and 143 seconds. C) 99% of the sample means will be between 127 seconds and 143 seconds. D) 100% of the sample means will be between 127 seconds and 143 seconds.
6.3 A market basket of goods and services cost $1500 to purchase in the year 2000. The same market basket of goods and services cost the following in the next several years: 2001 2002 2003 2004
$1560.00 $1606.80 $1687.14 $1737.75
From these data it is possible to create a consumer price index with the purchase price of the goods and services in the year 2000 set equal to 100. If so, rounded to the nearest integer, what is the value of the consumer price index for the year 2004? A) 174 B) 116 C) 1737 D) 100
leader and manager informations: Managers and leaders are two very different types of people. Managers' goals arise out of necessities rather than desires; they excel at defusing conflicts between individuals or departments, placating all sides while ensuring that an organization's day-to-day business gets done. Leaders, on the other hand, adopt personal, active attitudes toward goals. They look for the opportunities and rewards that lie around the corner, inspiring subordinates and firing up the creative process with their own energy. Their relationships with employees and coworkers are intense, and their working environment is often chaotic. In this article, first published in 1977, the author argues that businesses need both managers and leaders to survive and succeed. But in the larger U.S. organizations of that time, a "managerial mystique" seemed to perpetuate the development of managerial personalities--people who rely on, and strive to maintain, orderly work patterns. The managerial power ethic favors collective leadership and seeks to avoid risk. That same managerial mystique can stifle leaders' development--How can an entrepreneurial spirit develop when it is submerged in a conservative environment and denied personal attention? Mentor relationships are crucial to the development of leadership personalities, but in large, bureaucratic organizations, such relationships are not encouraged. Businesses must find ways to train good managers and develop leaders at the same time.
or Business Overview
As a student in the University of Phoenix MBA, you will take a Quantitative Reasoning for Business course. We designed this course to help you support your development of analytical skills as a manager and apply the tools necessary to make business decisions. Below are some questions a midlevel manager faces regularly and the underlying skills needed to apply the tools those activities require. � What is our return on investment for this project? � What price should we set to increase revenue? � How much product must we sell to make a profit? � Will offering our product in different models increase sales? � What sales volume does our competition need to be profitable? � What are our predicted sales next year, based on our past performance? � How can we show the effect the price has on the quantity of our product customers will buy on a PowerPoint� slide? � Can we make more money by adding new equipment? � If a contract includes a $2 million payment in 3 years, how much is that worth today? � How can we show the possibilities of various outcomes based on a single decision? � How far can we be from our expected sales volume before someone gets fired? � When is a process out of control? � How can we balance risk and return with our investment choices? � If a sample of our product is bad, is the entire batch bad? � How can we compare our performance against a baseline? After completing the Quantitative Reasoning for Business course, students are able to apply the underlying skills (shown below) needed to answer the questions above. � Write mathematical expressions and equations for word problems. � Apply the rules for order of operations in solving problems. � Identify dependent and independent variables and their relationships. � Differentiate the levels of measurement. � Solve simultaneous equations algebraically. � Use time series data to forecast. � Construct histograms and bivariate plots using Excel. � Determine the value of a slope by using the slope-intercept formula. � Conduct a linear regression analysis. � Compute exponential and reciprocal functions. � Construct a frequency distribution. � Compare and contrast measures of central tendency and measures of dispersion. � Construct a normal distribution. � Explain basic probability concepts � Explain the importance of the central limit theorem in sampling � Convert data to indexes. The QRB course prepares you to master these skills before you apply them in economics, accounting, finance, operations, and research. We designed the QRB course to connect these skills with the managerial competencies they support so that the course prepares you for greater success! To show you how these skills apply to business situations more clearly, here are some sample questions that you may face as a manager. Quantitative Reasoning for Business Quiz
1. If the formula for Return on Equity (ROE) is made of three factors: Net Income (NI) divided by Sales (S), Sales (S) divided by Total Assets (TA), and Total Assets (TA) divided by equity (E)] that are then multiplied by each other, the mathematical formula is: a. b. c. d.
ROE=NI/S+S/TA+TA/E ROE=NI/S*S/TA*TA/E ROE=NI*S/S*TA/TA*E ROE=NI-S*S-TA*TA-E
2. Given the accompanying demand data, use the formula below to compute price elasticity of demand for the product price of $5 and product price of $4. Product Price $5 $4 $3 $2 $1 1 2 3 4 5
Quantity Demanded
Use the below formula to determine the price elasticity of demand.
a. b. c. d.
5 4 3 2
3. In considering break-even for a business, we look for the point where fixed cost equals the number of units sold, multiplied by the price per unit, less the variable cost per unit. What is the independent variable? a. b. c. d.
Fixed Cost Price Number of Units Variable Cost
4. Refer to the variables below, which report information on homes sold in the Denver, CO, area last year. Consider the following variables: selling price, number of bedrooms, township, and distance from the center of the city. Determine the level of measurement for each of the variables. a.
X1 = Selling price in $000
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
b.
X2 = Size of home in sq feet
1) 2)
Ratio Nominal
3) 4)
Ordinal Interval
c.
X3 = Pool (1 = yes, 0 = no)
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
d.
X4 = Rating guide score of local schools
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
e.
X5 = Distance from the center of the city
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
f.
X6 = Township
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
g.
X7 = Township number
1) 2) 3) 4)
Ratio Nominal Ordinal Interval
5. If the formula for calculating net income (profit) using fixed cost (Fc), variable cost (Vc), price (P), and units sold (U) is NI=U(P-Vc)-Fc. If the profits of a company are $100 when sales are $1000 (100 units at $10 each), and $80 when sales are $800 (80 units at $10 each), which formulas below are used to determine Fixed Cost and Variable Cost? a. b. c. d.
100=100(10-Vc)-Fc & 80=80(10-Vc)-Fc 100=1000(10-Vc)-Fc & 80=800(10-Vc)-Fc 1000=100(10-Vc)-Fc & 800=80*(10-Vc)-Fc 1000=1000(10-Vc)-Fc & 800=800(10-Vc)-Fc
6. Sales for the past five years have been: $80.00, $120.00, $180.00, $270.00, $405.00. Based on this rate of growth, next years sales should be: a. b. c. d.
$810.00 $540.00 $607.50 $600.00
7.
The following table contains data on the relationship between saving and
income. These data are rearranged into a meaningful order and graphed on the accompanying grid. What would you predict saving to be at the $12,500 level of income? Income per Year Saving per Year $0 $-500 5,000 0 10,000 500 15,000 1,000 20,000 1,500
a. b. c. d.
650 700 750 900
8. The slope intercept formula in mathematical form is y=mx+b. The slope in this case is m, and determines how much increase there is in y from an increase in x. In cost volume profit, the formula is profit = margin per unit times the number of units less fixed costs. Here fixed costs are essentially a negative value for b in the basic formula. When profits are $100 and fixed costs are $200 if the company sells 50 units, what is the slope of the line that creates? a. b. c. d.
$5 per unit $100 $200 $6 per unit
9. Linear regression is a mathematical tool that is used to represent the relationship between independent and dependent variables algebraically. Businesses should make extensive use of this tool in formulating strategy. True or False? 10. Suppose you just won a lottery for $1 million, payable in annual installments of $200.000 with the first payment made in one year. Alternatively, you could accept $850,000 today. Regardless of whether you take the $200,000 annually or the $850,000 today, you are confident you could earn 8% each year on the payout for the next five years. If your objective is to have the most money at the end of five years, what should you do? a. Take the million dollars in five installments because one million dollars compounded at 8% for five years is greater than $850,000 compounded at 8% over five years. b. Take the $850,000 today because it is greater than the present value of the five $200,000 annual installments discounted at 8%. c. Take the million dollars in five installments because invested the $200,000 you get each year at 8% will give you a greater amount at the end of five years than investing $850,000 today at 8% for five years. d. Take the $850,000 today because the present value of the five $200,000 annual installments discounted at 8% is greater than $850,000. 11. Molly�s Candle Shop has several retail stores in the coastal areas of North and South Carolina. Many of Molly�s customers ask her to ship their purchases. The following chart shows the number of packages shipped per day for the last 100 days.
What is the class interval? What is the class frequency for the 10 to 15 class? a. b. c. d. e.
28 and 5 15 and 25 7 and 28 5 and 25 5 and 28
12.
Match the below math concepts, with the appropriate use:
1) Mode 2) Median 3) Mean a) Calculating the average wage cost. 3 b) Determining the most frequent number of sales/week by sales personnel 1 c) Identifying the minimum service score received on half of all responses 2 13. Last month, the following seven homes sold in your town. Each selling price is in thousands of dollars: 180, 250, 195, 140, 375, 3500, 425. What is the median and mean selling price? a. b. c. d.
$250 $245 $255 $240
and and and and
$724 $719 $729 $714
14. Wear Ever Tire Company randomly selected 1000 customers who bought new sets of tires from its dealers across the country and had them record when the first tire needed to be replaced due to wear. From these data, they calculated that the mean mileage was 32,000 miles and the standard deviation was 4,000 miles. Recently a customer who bought a set of tires needed to replace a tire due to wear at 18,000 miles. Which of the following statements is true? a. The customer b. This is very c. There may be tires. d. Both b and c Company.
could expect to replace a tire at 18,000 miles. unlikely; this should happen in fewer than 3% of the cases. something wrong with the tire production with this batch of should be considered true by the management of Wear Ever Tire
15. In business, we often reduce risk by creating a portfolio which includes a mix of investments with high-, medium-, and low-risk. Each of these categories has an estimate of what return we expect. The creation of these estimates often relies on probability concepts. How should probability estimates be created to reduce risk the most? a. b. c. d.
Gathering and evaluating data using statistics. The best guess of management. Last year�s performance. Random Number.
16. CRA CDs, Inc. wants the mean lengths of the cuts on a CD to be 135 seconds (2 minutes and 15 seconds). This allows the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the length of the cuts follows the normal distribution with a standard deviation of 8
seconds. Suppose we select a sample of 16 cuts from various CDs sold by CRA CDs, Inc. What can we say about the shape of the distribution of the sample mean? a. b. c. d.
67% of the sample means will be between 127 seconds and 143 seconds. 95% of the sample means will be between 127 seconds and 143 seconds. 99% of the sample means will be between 127 seconds and 143 seconds. 100% of the sample means will be between 127 seconds and 143 seconds.
17. A market basket of goods and services cost $1500 to purchase in the year 2000. The same market basket of goods and services cost the following in the next several years: 2001 2003
$1560.00 2002 $1687.14 2004
$1606.80 $1737.75
From these data, it is possible to create a consumer price index with the purchase price of the goods and services in the year 2000 set equal to 100. If so, rounded to the nearest integer, what is the value of the consumer price index for the year 2004? a. b. c. d.
174 116 1737 100
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