BUSN 3430 WORKED PROBLEMS SHOW CALCULATIONS TO GET FULL CREDIT 1. A small, independent amusement park collects data on the number of cars with outofstate license plates. The sample size is fixed at n:25 each day. Data from the previous 10 days indicate the following number of outofstate license plates: [10 Points] Out-of-state (3) Calculate the overall proportion of "tourists\" (cars with out-of-state plates) and the standard deviation of proportions. (b) Using a 95.45% confidence, calculate the LCL and UCL for these data. (c) Draw the control chart? (d) Is the process under control? Explain why. (e) What type of variation is present? 2. A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. [15 Points] Moderate Demand 0.45 0.3 $325,000 $190,000 $170,000 $300,000 $420,000 $400,000 | lectrical action -$400,000 $240,000 $800,000 a. Use the Maximax, Maximin, and Equally Likely criterion to determine the best alternative? b. Calculate the EMV for each decision alternative? b. Which action should be selected? c. What is the expected value with perfect information? d. What is the expected value of perfect information? 3. Small boxes of Caesar salad croutons are labeled \"net weight 3.5 ounces." To construct control charts, random samples of 4 boxes were weighed. Five hours of observation yielded: [10 Points] a. Calculate the upper and lower control limits for the x chart? Draw the control chart. b. Calculate the upper and lower limits for the Range chart? Draw the control chart. c. Is this process in control? Explain-a simple yes or no answer is insufficient. d. What type of variation is present in each control chart