Embry mgt524 module 1 activity 1.8

Q. 1-15 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even?

Q. 1-19 Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farries, the production manager, is currently investigating the production of a standard pool cue that could be very popular. Upon analyzing the costs, Mysti determines that the materials and labor costs for each cue is $25, and the fixed cost that must be covered is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break-even point?

Q. 1-21 Mysti Farris (see problem 1-19) believes that there is a high probability that 120 pool cues can be sold if the selling price is appropriately set. What selling price would cause the break-even point to be 120?

Q. 2-17 Evertight, a leading manufacturer of quality nails, produces 1-, 2-, 3-, 4-, and 5- inch nails for various uses. In the production process, if there is an overrun or the nails are slightly defective, they are placed in a common bin. Yesterday, 651 of the 1- inch nails, 243 of the 2- inch nails, 41 of the 3- inch nails, 451 of the 4- inch nails, and 333 of the 5- inch nails were placed in the bin,

a. What is the probability of reaching into the bin and getting a 4- inch nail?

b. What is the probability of getting a 5- inch nail?

c. If a particular application requires a nail that is 3 inches or shorter, what is the probability of getting a nail that will satisfy the requirements of the operation?

Q. 2-21 The oasis outpost of Abu Ilan, in the heart of the Negev desert, has a population of 20 Bedouin tribesmen and 20 Farima tribesmen. El Kamin, a nearby oasis, has a population of 32 Bedouins and 8 Farima. A lost Israeli soldier, accidentally separated from his army unit, is wandering through the desert and arrives at the edge of one of the oases. The soldier has no idea which oasis he has found, but the first person he spots at a distance is a Bedouin. What is the probability that he has wandered into Abu Ilan? What is the probability that he is in El Kamin?

Q. 2-27 In a sample of 1,000 representing a survey from the entire population, 650 people were from Laketown, and the rest of the people were from River City. Out of the sample, 19 people had some form of cancer. Thirteen of these people were from Laketown.

a. Are the events of living in Laketown and having some sort of cancer independent?

b. Which city would you prefer to live in, assuming that your main objective was to avoid having cancer?

Q. 2-33 Gary Schwartz is the top salesman for his company. Records indicate that he makes a sale on 70% of his sales calls. If he calls on four potential clients, what is the probability that he makes exactly 3 sales?

Q. 2-41 The time to complete a construction project is normally distributed with a mean of 60 weeks and a standard deviation of 4 weeks.

a. What is the probability the project will be finished in 62 weeks or less?

b. What is the probability the project will be finished in 66 weeks or less?

c. What is the probability the project will take longer than 65 weeks?