KID ing Wallace Garden Supply is more accurate. :5-17 Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a 3-year mov- ing average to forecast sales. Then estimate demand again with a weighted moving average in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1. Which method do you think is better? YEAR 1 2 3 4 5 6 7 DEMAND FOR FERTILIZER (1,000s OF BAGS) 4 6 4 5 10 8 7 (Continued on next page)/nYEAR 8 9 10 11 DEMAND FOR FERTILIZER (1,000s OF BAGS) 9 12 14 15 OIX

Case Study North-South Airline In January 2012, Northern Airlines merged with Southeast Air- lines to create the fourth largest U.S. carrier. The new North- South Airline inherited both an aging fleet of Boeing 727-300 aircraft and Stephen Ruth. Stephen was a tough former Secre- tary of the Navy who stepped in as new president and chairman of the board. Stephen's first concern in creating a financially solid com- pany was maintenance costs. It was commonly surmised in the airline industry that maintenance costs rise with the age of the aircraft. He quickly noticed that historically there had been a significant difference in the reported B727-300 maintenance costs (from ATA Form 41s) in both the airframe and the engine areas between Northern Airlines and Southeast Airlines, with Southeast having the newer fleet. On February 12, 2012, Peg Jones, vice president for op- erations and maintenance, was called into Stephen's office and asked to study the issue. Specifically, Stephen wanted to know whether the average fleet age was correlated to direct airframe maintenance costs and whether there was a relationship be- tween average fleet age and direct engine maintenance costs. Peg was to report back by February 26 with the answer, along with quantitative and graphical descriptions of the relationship. Peg's first step was to have her staff construct the average age of the Northern and Southeast B727-300 fleets, by quarter, North-South Airline Data for Boeing 727-300 Jets YEAR 2001 2002 2003 2004 2005 2006 2007 AIRFRAME COST PER AIRCRAFT ($) 51.80 54.92 69.70 68.90 NORTHERN AIRLINES DATA 63.72 84.73 78.74 ENGINE COST PER AIRCRAFT ($) 43.49 38.58 51.48 58.72 45.47 50.26 79.60 AVERAGE AGE (HOURS) 6,512 8,404 11,077 11,717 13,275 15,215 18,390 Bibliography Berran, Mark L., David M. Levine, and Timothy C. Krehhiel Basic Business Statistics, 12 d. Upper Saddle River, NJ: Pearson, 2012 Black, Ken Burners Statistics: For Contemporary Decision Making, 8th ed John Wiley & Sons, Inc, 2014. Draper, Norman R., and Harry Smith. Applied Regrenzion Analysis, 3rd ed. Now York: John Wiley & Sons, Inc., 1998. since the introduction of that aircraft to service by each airline in late 1993 and early 1994. The average age of each fleet was calculated by first multiplying the total number of calendar days each aircraft had been in service at the pertinent point in time by the average daily utilization of the respective fleet to determine the total fleet hours flown. The total fleet hours flown was then divided by the number of aircraft in service at that time, giving the age of the "average" aircraft in the fleet. The average utilization was found by taking the actual total fleet hours flown on September 30, 2011, from Northern and Southeast data, and dividing by the total days in service for all aircraft at that time. The average utilization for Southeast was 8.3 hours per day, and the average utilization for Northern was 8.7 hours per day. Because the available cost data were calcu- lated for each yearly period ending at the end of the first quarter, average fleet age was calculated at the same points in time. The fleet data are shown in the following table. Airframe cost data and engine cost data are both shown paired with fleet average age in that table Discussion Questions 1. Prepare Peg Jones's response to Stephen Ruth. Note: Dates and names of airlines and individuals have been changed in this case to maintain confidarialty. The data and is described here are real AIRFRAME COST PER AIRCRAFT ($) 13.29 25.15 32.18 31.78 SOUTHEAST AIRLINES DATA 25.34 32.78 35.56 ENGINE COST PER AIRCRAFT ($) 18.86 31.55 40.43 22.10 19.69 32.58 38.017 AVERAGE AGE (HOURS) 5,107 8,145 7,360 5,773 7,150 9,364 8,259 APPENDIX 4.1: FORMULAS FOR REGRESSION CALCULATIONS 145 Kuiper, S., and J. Skla. Practicing Statistier: Guided Investigations for the Second Coarse Upper Saddle River, NJ: Pearson, 2013. Kutner, Michael, John Neter, and Chris J. Nachsheim. Appled Linear Regres xion Models, 4th ed. Boston, New York: McGraw-Hillwin, 2004. Mendenhall, William, and Terry L. Sincich. A Second Course in Statistica: Region Analysis, 7th ed. Upper Saddle River, NJ. Pearson, 2012.

The Excel file HATCO consists of data related to predicting the level of business (Usage Level) obtained from a survey of purchasing managers of customers of an industrial supplier, HATCO. The following are the independent variables. • Delivery Speed-amount of time it takes to deliver the product once an order is confirmed.. Price Level-perceived level of price charged by product suppliers. • Price Flexibility-perceived willingness of HATCO representatives to negotiate price on all types of purchases. •Manufacturing Image-overall image of the manufacturer or supplier. . • Overall Service-overall level of service necessary for maintaining a satisfactory relationship between supplier and purchaser. • Sales Force Image -overall image of the manufacturer's sales force. • Product Quality-perceived level of quality of a particular product. . Size of Firm-size relative to others in this market (0=small; 1= large). Responses to the first seven variables were obtained using a graphic rating scale, where a 10-cm line was drawn between endpoints labeled "poor" and "excellent." Respondents indicated their perceptions using a mark on the line, which was measured from the left endpoint. The result was a scale from 0 to 10 rounded to one decimal place. Using the tools in this chapter, conduct a complete analysis to predict Usage Level. Be sure to investigate the impact of the categorical variable Size of Firm (coded as 0 for small firms and 1 for large firms) and possible interactions. Also stratify the data by firm size to account for any differences between small and large firms. Write up your results in a formal report to HATCO management. REQUIRED: Analysis of the excel data attached with formulas, calculations and graphs. And a report of the results.

Problems 3-17 Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by a fac- tor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil because of competition. His alternatives are shown in the following table: EQUIPMENT Sub 100 Oiler J Texan FAVORABLE UNFAVORABLE MARKET MARKET ($) ($) 300,000 -200,000 250,000 -100,000 75,000 -18,000 For example, if Ken purchases a Sub 100 and if there is a favorable market, he will realize a profit of $300,000. On the other hand, if the market is unfa- vorable, Ken will suffer a loss of $200,000. But Ken has always been a very optimistic decision maker. (a) What type of decision is Ken facing? (b) What decision criterion should he use? (c) What alternative is best? 31%

5-14 The Southern Rail Company ships coal by rail from three coal mines to meet the demand requirements of four coal depots. The following table shows the distances from the mines to the various depots and the availabilities and requirements for coal. Determine the best shipment of coal cars to minimize the total miles traveled by the cars. Table for Problem 5-14 From Parris Butler Century Demand for cars To Columbia Albany Springfield Pleasatanburg Supply of Cars 50 20 100 30 30 80 40 45 60 10 80 25 70 90 30 20 35 60 25

Q1. Summary Information and Basic Counts a) How many different store units does Mr. Macky's currently have? b) How many different large market store units does Mr. Macky's currently have? c) How many different medium market store units does Mr. Macky's currently have?

2. Using the Form 10-K and annual reports, answer the following questions: (a) Craft a short succinct narrative of Intel's business including what the company does and what are the major product segments. Explain the major product transition taking place at the company. (Hint: this is described in 2019). Do not cut and paste from the annual report, this narrative should be in your own words. Points will be deducted for this. Your source should only include the annual reports. Do not take information from the internet or Wikipedia. The goal here is for you to be able to read and decipher and translate an annual report. This will be a base for you to later assess Intel's competitiveness in their industry. You are limited to three sentences for this description which will require you to be very precise. Points will be deducted for a description with more than three sentences. (15pts) (b) Provide a bar graph of revenue for the past 5 years (ie. 2017-2021) detailed in the financial statements. Overlay the revenue growth rates on your bar graph. Do not cut and paste any graphs from the financial statements. Your graph should be visually clear and appealing and accurate. Include proper labels and title. You should have a label on each data point. Points will be deducted for improper labeling. (20pts) (c) Explain how and when revenues are recognized? (Hint: Notes to Financial Statement) Provide details (ie. Not just accrual accounting). Discuss the accounting change made in 2018 and how that would affect the revenues reported in 2018. Focus on top-line sales only. No need for a detailed description of rebates, etc. (15pts)

7. The following table shows data on the average number of customers processed by several bank ser- vice units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and mate- rial cost is $5 per customer. Unit A B C D Employees 4 5 8 3 Customers Processed/Day 36 40 60 20 a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor produc- tivity rates for each unit.

The President's Inn Guest Database provides a list of customers, rooms they occupied, arrival and departure dates, number of occupants, and daily rate for a small bed-and-breakfast inn during one month. 4 Room rates are the same for one or two guests; however, additional guests must pay an additional $20 per person per day for meals. Guests staying for seven days or more receive a 10% discount. Modify the spreadsheet to calculate the number of days that each party stayed at the inn and the total revenue for the length of stay. Calculate the total sum of revenue from the bookings in the database.

The Microprocessor data shows the demand for one type of chip used in industrial equipment from a small manufacturer. . Construct a chart of the data. What appears to happen when a new chip is introduced? Develop a regression model to forecast demand that includes both time and the introduction of a new chip as explanatory variables. • What would the forecast be for the next month if a new chip is introduced? What would it be if a new chip is not introduced?