Question 1

General Motors claims that its new full-size models get 17 mpg (miles per gallon), its mid-size cars get 25 mpg, and its compact cars get 33 mpg.If General Motors sells 138,000 full size models, 291,000 mid-sized cars, and 482,000 light passenger cars, what is the average mileage for the of vehicles sold by the company?

Accepted Answer

The answer of General Motors claims that its new full-size...

Question 2

Crenshaw Investments uses three factors to evaluate the attractiveness of an investment alternative.The three factors carry different weights.Suppose the company wants a weighting scheme that will make Factor A twice as important as Factor B and five times as important as Factor C.What weights should it use?

Accepted Answer

To make Factor A twice as important as Factor B and five times as important as Factor C, we can set the weights relative to each other. Let's denote the weight of Factor C as x. Then, the weight of Factor A would be 5x (five times as important as C), and the weight of Factor B would be 2.5x (half as important as A, or twice as important as C). To find a common set of weights that are whole numbers, we can choose x = 2, making the weights for A, B, and C 10, 5, and 2, respectively, which matches option D.

Question 3

Sales of the hybrid Toyota Prius grew from 5,562 in the year 2000 to 140,928 in the year 2010.Use the geometric mean to compute the average annual growth rate of Toyota Prius sales.

Accepted Answer

The answer of Sales of the hybrid Toyota Prius grew...

Question 4

Angela has $10,000 to invest.She hopes to have $15,000 at the end of 5 years.Use the geometric mean to compute the average rate of return that she will have to earn to reach her goal.

Accepted Answer

The answer of Angela has $10,000 to invest.She hopes to...

Question 5

Assuming that the interest is compounded annually and no money is withdrawn, what interest rate would be required in order to double your savings in 12 years?

Accepted Answer

The rule of 72 is a simple way to estimate the number of years required to double the investment at a given annual rate of return. By dividing 72 by the annual rate of return, investors get a rough estimate of how many years it will take for the initial investment to duplicate itself. In this case, 72 divided by 12 years equals 6, which means a 6% interest rate is needed. However, since the actual formula for compound interest is more precise, the closest answer to this estimation is 5.95%.

Question 6

Andrew Costanzo has a stock portfolio that contains 24 shares of stock A and six shares of stock B.Over the past year, the value of a share of stock A went up to $3.00 and the value of a share of stock B fell to $50.Apply a weighted average approach to produce the current average value per share in Andrew's portfolio.

Accepted Answer

The answer of Andrew Costanzo has a stock portfolio that...

Question 7

Over the past eight years, Sky Western Airlines has increased their sale of seats from 61,000 to 1,440,000.Use the geometric mean to compute the average annual growth rate for Sky Western sales.

Accepted Answer

The geometric mean is calculated as the nth root of the product of n numbers. In this case, we have 8 years of data, so the geometric mean is:(1,440,000 / 61,000)^(1/8) = 1.4847The average annual growth rate is then:(1.4847 - 1) * 100% = 48.47%

Question 8

Plantar Pharmaceuticals produces an anti-inflammatory medication that contains 8 parts cellulose, 6 parts meloxicam, and 2 parts povidone.Ingredient costs are as follows: Cellulose, $2.50 per ounce; meloxicam, $5 per ounce; and povidone, $12 per ounce.Using the weighted average approach, compute the cost per ounce of the medication.

Accepted Answer

The cost per ounce of the medication is calculated using the weighted average approach. The total parts of ingredients are 8 (cellulose) + 6 (meloxicam) + 2 (povidone) = 16 parts. The total cost is (8 parts * $2.50) + (6 parts * $5) + (2 parts * $12) = $20 + $30 + $24 = $74. The cost per ounce is $74 / 16 parts = $4.625.

Quiz 3: Descriptive Statistics II: Additional Descriptive Measures and Data Displays

Sales of the hybrid Toyota Prius grew from 5,562 in the year 2000 to 140,928 in the year 2010.Use the geometric mean to compute the average annual growth rate of Toyota Prius sales.

Angela has $10,000 to invest.She hopes to have $15,000 at the end of 5 years.Use the geometric mean to compute the average rate of return that she will have to earn to reach her goal.

Assuming that the interest is compounded annually and no money is withdrawn, what interest rate would be required in order to double your savings in 12 years?

Over the past eight years, Sky Western Airlines has increased their sale of seats from 61,000 to 1,440,000.Use the geometric mean to compute the average annual growth rate for Sky Western sales.