Questions and Answers of Microsoft Excel Data Analysis 7th

The current price of a company’s stock is $20. The company is a takeover target. If the takeover is successful, the company’s stock price will increase to $30. If the takeover is unsuccessful,
When a roulette wheel is spun, the possible outcomes are 0, 00, 1, 2, ..., 36. If you bet on a number coming up, you win $35 if your number comes up and you lose $1 otherwise. What is the mean and
A stock currently sells for $40. You have bought one share of the stock at this price. In the next month, there is a 60 percent chance the stock price will double and a 40 percent chance the stock
Suppose you bet on an odd number coming up in roulette. If an odd number comes up, you win $1, and if an odd number does not come up, you lose $1. Find the mean and standard deviation of your profit.
Suppose you can set the mean number of ounces of soda that is put into a can. The actual number of ounces has a standard deviation of 0.05 ounces. Answer the following questions:If you set the mean
The annual demand for a drug is normally distributed with a mean of 40,000 units and a standard deviation of 10,000 units. Answer the following questions:What is the probability that annual demand is
The probability of winning a game of craps is 0.493. If I play 10,000 games of craps and bet the same amount on each game, what is the probability that I’m ahead? Begin by determining the mean and
The weekly sales of Volvo’s Cross Country station wagons are normally distributed with a mean of 1,000 and standard deviation of 250. Answer the following questions:What is the probability that
My time for swimming 100 yards follows a normal random variable with a mean that equals 51 seconds and a standard deviation of 1.5 seconds. If I swim the race in under 49 seconds, I will win the
The federal government wants to charge a Medicare surcharge to Americans 65 or older whose income ranks in the top 2 percent of all American family incomes. If the American family incomes follow a
The voltage held by a voltage regulator follows a normal random variable with a mean that equals 200 volts and a standard deviation that equals 5 volts. A regulator meets the specifications if the
Texas wants to give welfare checks to the poorest 5 percent of all Texas families. If the family income in Texas follows a normal random variable with a mean that equals $50,000 and a standard
A rod meets its specifications if its diameter is between 0.98 and 1.02 inches. The mean diameter of a rod is 1 inch. What should the standard deviation of rods equal for 99 percent of rods to meet
The number of bottles of iced tea sold by a supermarket on a Monday follows a normal random variable with a mean that equals 100 and a standard deviation that equals 12. On a given Monday, what is
Assume the mean daily percentage change in the Dow Jones Industrial Average Index is 1 percent, with a standard deviation of 1.5 percent. Assume there are 252 trading days in a year. What is the
I have 500 potential customers who come to my candy store each day. Seventy percent of the customers buy no pieces of candy, 15 percent buy one piece, 10 percent buy two pieces, and 5 percent buy
In Game 7 of the Boston Celtics–Los Angeles Lakers 2010 NBA finals, the Lakers were favored by seven points. Looking at past NBA games, you will find that bookmakers’ forecasts are unbiased.
A leading cell phone company forecasts that next year it will sell 3 million units of its bestselling phone. In the past, actual sales have been unbiased, with forecast errors having a standard
Suppose a stock sells for $30 today. The annual volatility of the stock is 35 percent, and analysts predict the expected price of the stock in a year will be $35.What is the probability that in two
Suppose a stock sells for $30 today. The annual volatility of the stock is 35 percent, and analysts predict the expected price of the stock in a year will be $35.What is the probability that in two
Suppose a stock sells for $30 today. The annual volatility of the stock is 35 percent, and analysts predict the expected price of the stock in a year will be $35.You are 95 percent sure that the
If a city has only one hospital, where should it be located?
I am borrowing $100,000 for a 15-year mortgage. The annual rate of interest is 8 percent. How can I determine my monthly mortgage payment?
How should an auto company allocate its advertising budget between different advertising formats?
How should cities transport students to more distant schools to obtain racial balance?
How should a drug company allocate its sales-force efforts among its products?
The tax rate charged to a drug company depends on the country/region in which a product is produced. How can a drug company determine where each drug should be made?
A drug company has $2 billion allocated to purchasing biotech companies. Which companies should it buy?
At a chip-manufacturing plant, four technicians (A, B, C, and D) produce three products (1, 2, and 3). This month, the chip manufacturer can sell 80 units of Product 1, 50 units of Product 2, and at
A computer-manufacturing plant produces mice, keyboards, and video-game joysticks. The per-unit profit, per-unit labor usage, per-unit machine-time usage, and monthly demand are given in the
Jason makes diamond bracelets, necklaces, and earrings. He wants to work a maximum of 160 hours per month. He has 800 ounces of diamonds. The profit, labor time, and ounces of diamonds required to
Shoeco manufactures three types of shoes. Demand for shoes is unlimited, and 40 hours per week of machine time and labor are available. A pair of shoes yields the profit and uses the number of
Woodco produces tables and chairs. The unit profit, the wood used (in square feet), and the number of skilled carpentry hours used to produce a pair of shoes are given in the table below. An integer
The Houston Credit Union is open weekdays 9 a.m. to 5 p.m. Full-time tellers who work the full day (no lunch break) are paid $200 per day. Part-time tellers working 11 a.m.–1 p.m. may be hired for
The Pine Valley Credit Union is trying to schedule bank tellers. The credit union is open 8 a.m.–6 p.m. and needs the number of tellers each hour as shown in the following table. Fulltime tellers
Figure 68-4 shows the number of people in different demographic groups who watched various TV shows and the cost (in thousands of dollars) of placing a 30-second ad on each show. For example, it cost
The number of telephone reservation operators needed by an airline during each time of day is shown in the following table. Each operator works one of the following six-hour shifts: midnight–6:00
Suppose Bank 24 has 22 employees and that the goal is to schedule employees so that they have the maximum number of weekend days off. How should the workers be scheduled?
Suppose Bank 24 employees are paid $150 per day the first five days they work and can work a day of overtime at a cost of $350. How should the bank schedule its employees?
A hardware store has 50 riding mowers at each of its Houston, Dallas, and San Antonio warehouses. This month, 35 mowers will be sold in Houston, Dallas, San Antonio, and Austin. The costs of shipping
Suppose that each day, Northern, Central, and Southern California each use 100 billion gallons of water. Also assume that Northern California and Central California have available 120 billion gallons
The following table gives the distances between Boston, Chicago, Dallas, Los Angeles, and Miami. Each city requires 40,000 kilowatt hours (kWh) of power. Chicago, Dallas, and Miami are capable of
Your company produces and sells drugs at several different locations. The decision about where to produce goods for each sales location can have a huge impact on profitability. The model here is like
For the capital budgeting example discussed in conjunction with Figures 70-1 through 70-3, use conditional formatting to highlight in yellow fill each row corresponding to a selected project.Figure
Jill is trying to determine her class schedule for the next semester. A semester consists of two seven-week half semesters. Jill must take four courses during each half semester. There are five time
A publishing company is trying to determine which of 36 books it should publish this year.The file Pressdata.xlsx gives the following information about each book:Projected revenue and development
In the equation SEND + MORE = MONEY, each letter represents a different digit from 0–9. Which digit is associated with each letter?
Assume you want to take out a $300,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 6 percent. Twenty years from now, you need to make an ending balloon
Blair’s mother is saving for her daughter’s college education. The following payments must be made at the indicated times:The following investments are available:Today, one year from now, two
I owe $10,000 on one credit card that charges 18 percent annual interest and $5,000 on another credit card that charges 12 percent annual interest. Interest for the month is based on the month’s
You have borrowed $50,000 to be repaid in 24 end-of-month payments. The annual rate of interest is 10 percent. In months 7, 13, and 19, the monthly payment increases by $500. How much should you pay
Suppose you want to locate a single restroom so that company employees have to travel the smallest possible distance per day when going to the bathroom. Employees work in four locations within the
Solve Problem 2 if the company wants to locate two restrooms.Data from in Problem 2Suppose you want to locate a single restroom so that company employees have to travel the smallest possible distance
Cook County General Hospital is attempting to schedule work for its 20 nurses. Each nurse will work four consecutive days and is assigned to one of the following schedules:Each nurse will be assigned
In the fictional state of Politicians Care About the USA, there are eight congressional districts. Each of 15 cities must be assigned to a congressional district, and each district must be assigned
A small job shop needs to schedule six jobs. The due date and days needed to complete each job are given below. In what order should the jobs be scheduled to minimize the total days the jobs are
A 3-by-3 magic square places the integers 1–9 in the square so that the sum down each column, across each row, and along the two diagonals all equal 15. Use the Evolutionary solving method to
A small supermarket is trying to determine how many copies of People magazine it should order each week. The owner believes the demand for People is governed by the following discrete random
On average, what will be the sum of the numbers generated by the formula =RANDARRAY(3,4,2,5)?
A greeting-card company is trying to determine how many Valentine’s Day greeting cards to produce. The cost of printing x cards is $2 million + 0.70x. For example, printing 1 million cards costs
The demand in pounds for kale salad on Sunday is normally distributed with a mean of 500 and a standard deviation of 100. Kale salad costs $3.00 per pound to produce and sells for $8.00 per pound. At
The Monday demand for almond croissants is normally distributed with a mean of 100 and a standard deviation of 25. It costs $1.00 to produce a croissant, which sells for $4.00. Leftover croissants
A supermarket is trying to determine how many meatloaf dinners it should produce on Monday. The Monday demand for meatloaf dinners is normally distributed with a mean of 100 and a standard deviation
An auto dealer believes that demand for 2015 model cars will be normally distributed with a mean of 200 and a standard deviation of 30. His cost of receiving a GMC Envoy is $25,000, and he sells an
How would the optimal bid change if you had 12 competitors?
Suppose you are bidding for an oil well that you believe will yield $40 million (including the cost of developing and mining the oil) in profits. Three competitors are bidding against you, and each
Baseball player Robinson Cano is asking for salary arbitration on his contract. Salary arbitration in Major League Baseball works as follows: The player submits a salary that he thinks he should be
Investor Peter Fischer is bidding to take over a biotech company. The company is equally likely to be worth any amount between $0 and $200 per share. Only the company itself knows its true value.
A commonly used continuous random variable is the uniform random variable. A uniform random variable—written as U(a, b)—is equally likely to assume any value between two given numbers a and b.
Two beverage companies are bidding on the exclusive rights to sell soda at the University of Houston for the next 10 years. Company 1 will earn 50 cents profit per bottle sold (exclusive of the
You are bidding on a project to fix all the potholes on Westheimer Road in Houston. You estimate the cost of fixing the potholes is $4 million. Four competitors are going to bid against you. Each
Suppose you believe that it is two times more likely that investment returns for each of the next five years will be more like the period 1992–2001 than the period 1972–1991. For example, the
Many mutual funds and investors hedge the risk that stocks will go down by purchasing put options. How could an asset-allocation model be used to determine an optimal hedging strategy that uses puts?
Determine the correlations (based on the 1973–2012 data) among annual returns on stocks, T-bills, and bonds. Then determine the correlations (based on the 1,000 scenarios created by bootstrapping)
Suppose you believe that over the next five years, stocks will produce returns that are 5 percent worse per year, on average, than the 1973–2012 data. Find an asset allocation among stocks,
Assume the current price of Intel stock is $20 per share. What is the probability that during the next three years, you will earn at least a 30-percent return (for the three-year period) on a
Assume the current price of Microsoft stock is $28 per share. What is the probability that in two years, the price of Microsoft stock will be at least $35? 3 4
Solve Problem 1 again, but this time assume that during the next two years, Microsoft will on average perform 6 percent better per year than it performed during the 1997–2002 period for which you
Suppose 30 people are in a room. What is the probability that at least two of them have the same birthday?
What is the probability of getting dealt one pair in five-card draw poker?
What is the probability of getting dealt two pairs in five-card draw poker?
In the game of keno, 82 balls (numbered 1–82) are mixed up, and then 20 balls are randomly drawn. Before the 20 balls are drawn, a player chooses 10 different numbers. If at least five of the
What odds should the bookmaker give on Kansas winning the Final Four if the bookmaker wants to earn an average of 10 cents per dollar bet?
What is the probability of getting dealt a flush in five-card draw poker?
If you break a one-inch stick in two places that are randomly chosen, you have three smaller sticks. What are the chances that the three sticks form a triangle?
Suppose each hitter on a baseball team has a 50 percent chance of hitting a home run and a 50 percent chance of striking out. On average, how many runs will this team score in an inning?
Katy and Taylor toss a coin 100 times. Each time heads comes up, Katy pays Taylor $1; each time tails comes up, Taylor pays Katy $2. What is the chance that Taylor is never ahead?
You toss a fair coin 20 times. Estimate the chance you throw at least four consecutive heads.
At the beginning of 2015, you have $100 invested in a stock. Each year there is a 60 percent chance that the stock increases 50 percent, a 20 percent chance the stock goes up 10 percent, and a 20
In the game blackjack, the dealer draws cards until her total is 16 or higher. Then she stops. Assume an ace counts as 1 and a jack, queen, or king counts as 10. If the dealer draws cards with
You are going to roll a fair die 50 times. If the die comes up even, you are paid the number of dots showing on the die. If the die comes up odd, you lose $1. What is the chance you are ever at least
Consider three decks of cards. Deck 1 contains 10 cards: three twos, four fives, and three nines. Deck 2 contains four cards that are numbered 1–4. Deck 3 contains six cards numbered 1–6. Gregory
You are testing a new flu drug. Of the 24 flu victims who were given the drug, 20 felt better and four felt worse. Of the nine flu victims who were given a placebo, six felt better and three felt
A talk on the dangers of high cholesterol was given to eight workers. Each worker’s cholesterol was tested both before the talk and several weeks after the talk, with the results given below. What
The beta of a stock is simply the slope of the best-fitting line used to predict the monthly return on the stock from the monthly return given in the Standard & Poor’s (S&P) 500 index. A
Merck is debating whether to invest in a pioneer biotech project. The company estimates that project is worth –$56 million. Investing in the pioneer project gives Merck the option to own, if it
Develop a worksheet that uses the following inputs to compute an annual profit:Annual fixed costUnit costUnit priceAnnual demand = 10,000 – 100 * (price)Protect the cells used to compute the
You own the rights to a biotech drug. Your best estimate is that the current value of these rights is $50 million. Assuming that the annual volatility of biotech companies is 90 percent and the
The current price of copper is 95 cents per pound. The annual volatility for copper prices is 20 percent, and the risk-free rate is 5 percent. In one year, you have the option (if you want it) to
You have an option to buy a new plane in three years for $25 million. Your current estimate of the value of the plane is $21 million. The annual volatility for the change in the plane’s value is 25

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