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kirza4 [7]
4 years ago
14

Ms. Finkel has suggested that if given sufficient resources, she could redesign the production process to reduce the percentage

of 16-ounce boxes of Go Bananas! that fail to meet the standard weight of banana-flavored marshmallows when the process is working properly. To what level must Ms. Finkel reduce the percentage of 16-ounce boxes of Go Bananas! that fail to meet the standard weight of banana-flavored marshmallows when the process is working properly in order for her to reduce the probability at least five of the sampled boxes fail to meet the standard to .01 or less
Business
1 answer:
liubo4ka [24]4 years ago
8 0

Explanation:

To find the probability that the sample which fails to meet the required weight or the standard weight of the marshmallows having banana flavor if the process of production is working, such that probability for the weekly sample leads to shutdown of the production if the process of the production is running properly of  1 % of the probability that at least five boxes out of the twenty five sample fails to meet the standard weight which is less than one percent that is  $p(x \geq 5) \leq 0.01$

We know that for p = 0.8,   $p(x \geq 5) = 0.0452$

Now using binomial simulation, we can determine that $p(x \geq 5) \leq 0.01$ for  p = 0.0452

So the production process is to be redesigned for reducing the percentage of boxes of the Go Bananas of 16 ounces which failed to meet the required weight of the marshmallows having banana flavor if the production process is working properly to 5.42 percent.

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Answer:

a) Fixed costs = $22,000

b) $70,000

c) The high low cost method is generally inaccurate because it only considers the extremes, the highest and lowest costs and activity levels. Generally costs are not linear, but they might follow a certain tendency. The advantages of the high low cost method is that it is fairly accurate when costs are stable, plus it is much simpler to calculate.

d) Assuming that costs follow a certain tendency, regression analysis is much more exact since it analyses the relationship between different data and different variables. When you analyze only 2 variables, a linear regression analysis will serve you. but if you need to analyse more than two variables, then you must use a multiple regression analysis.

The R² statistic basically measures how one variable's variance is affected by other variables. E.g. if R² is 0.75, then 75% of the variance of A will be explained by the variance of B.

Explanation:

variable cost using high low cost method = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($82,000 - $46,000) / (50,000 - 20,000) = $36,000 / 30,000 gallons of ice cream = $1.20 per gallon of ice cream

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how regression analysis improves accuracy of high low cost method

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3 years ago
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Answer:

i=4.84%

Explanation:

the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:

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and solving i for the previous formula:

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