Statistics for Business & Economics, Revised (MindTap Course List)
12th Edition
ISBN: 9781285846323
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 17.4, Problem 23E
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm’s leading product over the past eight years.
| Year | Cost/Unit ($) | Year | Cost/Unit ($) |
| 1 | 20.00 | 5 | 26.60 |
| 2 | 24.50 | 6 | 30.00 |
| 3 | 28.20 | 7 | 31.00 |
| 4 | 27.50 | 8 | 36.00 |
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Develop the linear trend equation for this time series.
- c. What is the average cost increase that the firm has been realizing per year?
- d. Compute an estimate of the cost/unit for next year.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Find the MSE in part (b) please.
Use this data and and generate a model of the annual maintenance expenses based on the age of the bug.
If my bus is 4.1 years old, what are the projected annual maintenance costs? (Enter a whole number)
Age of Bus (years)
Annual Maintenance Cost ($)
2.4
350
2.3
370
2.4
480
3.1
520
3
590
5.8
550
4.8
750
3.8
800
3.6
790
4.9
950
5.5
915
Nominal income refers to an income value that is not adjusted for inflation. Real income adjusts the nominal value for the rate of inflation. Real income per capita is considered a good measure of the buying power of an individual in a particular area because it adjusts for both the number of people in the area and the relative inflation of the area. According to Forbes magazine, the state with the highest annual real income per capita in 2020 is Connecticut with a real per capita income of $68,533. Suppose that the annual real income of individuals in Connecticut follows a normal distribution with a mean of $68,533 and standard deviation of $23,480.
(a) What is the probability that an individual in Connecticut has an annual real income of $54,000 or more? (Round your answer to four decimal places.)
(b)
What is the probability that an individual in Connecticut has an annual real income of $29,000 or less? (Round your answer to four decimal places.)
(c)
What is the probability…
Chapter 17 Solutions
Statistics for Business & Economics, Revised (MindTap Course List)
Ch. 17.2 - Consider the following time series data. Week 1 2...Ch. 17.2 - Refer to the time series data in exercise 1. Using...Ch. 17.2 - Exercises 1 and 2 used different forecasting...Ch. 17.2 - Consider the following time series data. Month 1 2...Ch. 17.3 - Consider the following time series data. Week 1 2...Ch. 17.3 - Consider the following time series data. Month 1 2...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Refer again to the gasoline sales time series data...Ch. 17.3 - With the gasoline time series data from Table...Ch. 17.3 - With a smoothing constant of = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in ...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - The U.S. Census Bureau tracks the median price for...Ch. 17.4 - Consider the following time series data. a....Ch. 17.4 - Prob. 18ECh. 17.4 - Consider the following time series. a. Construct a...Ch. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - FRED (Federal Reserve Economic Data), a database...Ch. 17.4 - Automobile unit sales at B. J. Scott Motors, Inc.,...Ch. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - Prob. 27ECh. 17.5 - Consider the following time series. a. Construct a...Ch. 17.5 - Consider the following time series data. a....Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Consider the following time series data. a....Ch. 17.6 - Refer to exercise 35. a. Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies. Inc., supplies milk to several...Ch. 17 - Prob. 44SECh. 17 - Prob. 45SECh. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Canton Supplies, Inc., is a service firm that...Ch. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Hudson Marine has been an authorized dealer for CD...Ch. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise 53....Ch. 17 - Refer to the Hudson Marine data in exercise 53. a....Ch. 17 - Forecasting Food and Beverage Sales The Vintage...Ch. 17 - Forecasting Lost Sales The Carlson Department...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Cell Phone Plans Gwendolyn is mulling over the three cell phone plans shown in the table. Gigabytes GB of data included Monthly Cost Each additional megabytes MB Plan A Plan B Plan C 1 1 1 25.00 40.00 60.00 2.00 1.50 1.00 From past experience, Gwendolyn knows that she will always use more than 1GB of cell phone data every month. aMake table of values that shows the cost of each plan for 1 GB to 4 GB, in 500 MB increments. bFind formulas that give Gwendolyns monthly cost for each plan, assuming that she uses x gigabytes of data per month where x1. cWhat is the charge from each plan when Gwendolyn uses 2.2 GB? 3.7 GB? 4.9 GB? d Use your formulas from part b to determine the number of gigabytes of data usage for which: (i) Plan A and Plan B give the same cost. (ii) Plan A and Plan C give the same cost. (iii) Plan B and Plan C give the same cost.arrow_forwardTable 3 gives the annual sales (in millions of dollars) of a product from 1998 to 20006. What was the average rate of change of annual sales (a) between 2001 and 2002, and (b) between 2001 and 2004?arrow_forwardTable 6 shows the year and the number ofpeople unemployed in a particular city for several years. Determine whether the trend appears linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 5 people?arrow_forward
- Nominal income refers to an income value that is not adjusted for inflation. Real income adjusts the nominal value for the rate of inflation. Real income per capita is considered a good measure of the buying power of an individual in a particular area because it adjusts for both the number of people in the area and the relative inflation of the area. According to Forbes magazine, the state with the highest annual real income per capita in 2020 is Connecticut with a real per capita income of $68,533. Suppose that the annual real income of individuals in Connecticut follows a normal distribution with a mean of $68,533 and standard deviation of 23.480 a. What is the probability that an individual in Connecticut has an annual real income of $50,000 or more (to 2 decimals)? c. What is the probability that an individual in Connecticut has an annual real income between$60,000 and $80,000 (to 2 decimals)? d. What is the annual real income of a person in the 99th percentile of annual…arrow_forwardSuppose a population grows at each of the following annual rates. Find the time it would take for the population to double. a. 3% b. 6% c. 8%arrow_forwardData table Month October November December Print ← Maureen Bly is the new manager of the materials storeroom for Parr Manufacturing. Maureen has been ask Maureen has purchase cost and quantity data for the past 9 months as follows: (Click the icon to view the data for the past 9 months.) Estimated monthly purchases for this part based on expected demand of the two products for the rest of the (Click the icon to view the expected demand for the rest of the year.) Purchase Quantity Expected 3,380 parts 3,780 3,070 Done Celeulator - X R Square er in Maureen's office is down, and Maureen has been asked to immediately pr ow method to estimate a cost equation. What equation does she get? $ 1,067 +($ 4 Quantity purchased X Variable 1 Regression Statistics uation from requirement 1, calculate the future expected purchase costs for ea High-Low Method Expected Cost 14,587 16,187 13,347 se Quantity Expected 3,380 parts 3,780 parts 3,070 parts X $ $ t Stat Data table Month January February March…arrow_forward
- The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm's leading product over the past eight years. Year 1 2 = 3 4 Cost/Unit ($) Year 20.00 24.50 28.20 27.50 5 6 7 8 Cost/Unit ($) 26.60 30.00 31.00 36.00 (a) Construct a time series plot. What type of pattern exists in the data? O The time series plot shows a seasonal pattern. O The time series plot shows a horizontal pattern. O The time series plot shows a nonlinear trend. O The time series plot shows a linear trend. (b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. (Round your answers to two decimal places.) bo = b₁ (c) What is the average cost increase (in $) that the firm has been realizing per year? (Round your answer to two decimal places.) $ (d) Compute an estimate of the cost/unit (in $) for the next…arrow_forwardUnited Dairies, Inc., supplies milk to several independent grocers throughout DadeC ounty, Florida. Managers at United Dairies want to develop a forecast of the number ofhalf gallons of milk sold per week. Sales data for the past 12 weeks are: a. Construct a time series plot. What type of pattern exists in the data?b. Use exponential smoothing with a 5 0.4 to develop a forecast of demand for week 13.What is the resulting MSE?arrow_forwardMany factors influence the retail price of gasoline. Suppose the following table shows the average retail price for a gallon of regular grade gasoline for each year from 2011 through 2014. (Round your answers to one decimal place.) Year Average Price ($) 2011 3.531 2012 3.623 2013 3.505 2014 3.368 (a) Use 2011 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period. 2011 price index ?? 2012 price index ?? 2013 price index ?? 2014 price index ?? (b) Use 2012 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period. 2011 price index ?? 2012 price index ?? 2013 price index ?? 2014 price index ??arrow_forward
- on Average prices (in euros) and sales volumes of product group A, B and C are below. There are two consecutive years. 2nd year 1st year O a. -1.6 % O b. +0.8% 0.0 % amount price A 420 B 150 540 C 600 220 180 How many percent and which direction have the prices changed when you estimate them with Laspeyres price index (the is the base period of time). O c. O d. - 5.4 % price 300 570 200 amount 220 180 500arrow_forwardMany factors influence the retail price of gasoline. Suppose the following table shows the average retail price for a gallon of regular grade gasoline for each year from 2011 through 2014. (Round your answers to one decimal place.) Year Average Price ($) 2011 3.531 2012 3.618 2013 3.515 2014 3.348 (a) Use 2011 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period. 2011 price index 100 100.0 2012 price index 2013 price index X X 100.1 2014 price index 100.1 X (b) Use 2012 as the base year and develop a price index for the retail price of a gallon of regular grade gasoline over this four-year period. 2011 price index X 100.0 2012 price index 100 2013 price index 100.0 X 2014 price index 100.1 Xarrow_forwardThe table shows the average tuition and fees for a year of college at a public and a private college in 2011 to 2012 and 2021 to 2022. For the period between 2011 to 2012 and 2021 to 2022, Type of College 2011 to 2012 2021 to 2022 Public (four-year) $8,286 $10,380 Private (four-year) $28,570 $38,255 Required: a. & b. What is the annual rate of change in the cost to attend each type of college?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Mathematics For Machine TechnologyAdvanced MathISBN:9781337798310Author:Peterson, John.Publisher:Cengage Learning,
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Mathematics For Machine Technology
Advanced Math
ISBN:9781337798310
Author:Peterson, John.
Publisher:Cengage Learning,
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Time Series Analysis Theory & Uni-variate Forecasting Techniques; Author: Analytics University;https://www.youtube.com/watch?v=_X5q9FYLGxM;License: Standard YouTube License, CC-BY
Operations management 101: Time-series, forecasting introduction; Author: Brandoz Foltz;https://www.youtube.com/watch?v=EaqZP36ool8;License: Standard YouTube License, CC-BY