Below is a decision table for Gregor's Tennis School. Director Gregor Anderson is considering expanding his school to accommodate the potential increased interest in youth tennis lessons, camps and teams. The decision table below describes his situation. Alternatives Add a new building Extend hours for existing building Do Nothing Answer Decision Table High Demand 25,000 10,000 0 Step 1 of 3: What is the estimated payoff for adding a new building during high demand? State of Nature Moderate Demand 5,000 3,750 0 Low Demand -50,000 -6,000- 0 Keypad Keyboard Shortcuts Tables

O Macmillan Learning Credit card companies earn a percentage of the amount charged on their credit cards, paid by the stores that accept the card. A credit card company compares two proposals for increasing the amount that its customers charge on their credit cards. Proposal 1 offers to eliminate the annual fee for customers who charge $1800 or more during the year on their card. Proposal 2 offers a small percentage of the total amount charged as a cash reward at the end of the year. The credit card company offers each proposal to an SRS of 100 of its existing customers. At the end of the year, the total amount charged by each customer is recorded. The table displays the summary statistics. Group Proposal 1 Proposal 2 n 100 OP = 0.1629 100 X $1319 $1372 S $261 $274 Calculate the two-sample t statistic. Give your answer to three decimal places. Find the P-value using Option 2 and Table C. Select the choice that correctly represents the P-value.

If a company has excess capacity, it is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur? O Both fixed and variable costs will increase. Net income will increase if the special sales price per unit exceeds the unit variable costs. There are no incremental revenues. Incremental costs will not be affected.

A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a. What is the percent capacity required to break even? b. When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c. There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer. Answer Solution- 9a. 58.3% 9b. $2,500,000 9c. $3,100,000