Consumer Demand Analysis and Estimation Applied Problems

Consumer Demand Analysis and Estimation Applied Problems

Please complete the following two applied problems:

Problem 1:

Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type of restaurant she is going to start. If she opens a restaurant in a suburban area of Los Angeles, then taste is the most important attribute, three times as important as location, and two times as important as price. If she opens a restaurant in the Los Angeles metropolitan area, then location becomes three times as important as taste and two times as important as price. She is considering two venues, respectively, a steak restaurant and a pizza restaurant, both of which are priced the same. She has rated each attribute on a scale of 1 to 100 for each of the two different types of restaurants.

Steak Restaurant Pizza Restaurant

Taste 80 70

Location 55 80

Price 65 50

Show all of your calculations and processes. Describe your answer for each question in complete sentences.

Which of the two options should Patricia pursue if she wants to open a restaurant in a suburban area of Los Angeles? Calculate the total expected utility from each restaurant option and compare. Graph is not required. Describe your answer, and show your calculations.
Which of the two options should she pick if she plans to open a restaurant in the Los Angeles metropolitan area? Describe your answer, and show your calculations.
Which option should she pursue if the probability of finding a restaurant venue in a suburban area can be reliably estimated as 0.7 and in a metropolitan area as 0.3? Describe your reasoning and show your calculations.
Provide a description of a scenario in which this kind of decision between two choices, based on weighing their underlying attributes, applies in the “real-world” business setting. Furthermore, what are the benefits and drawbacks, if any, to this method of decision making?

Problem 2:

The demand function for Newton’s Donuts has been estimated as follows:

Qx = -14 – 54Px + 45Py + 0.62Ax

where Qx represents thousands of donuts; Px is the price per donut; Py is the average price per donut of other brands of donuts; and Ax represents thousands of dollars spent on advertising Newton’s Donuts. The current values of the independent variables are Ax=120, Px=0.95, and Py=0.64.

Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary.

Calculate the price elasticity of demand for Newton’s Donuts and describe what it means. Describe your answer and show your calculations.
Derive an expression for the inverse demand curve for Newton’s Donuts. Describe your answer and show your calculations.
If the cost of producing Newton’s Donuts is constant at $0.15 per donut, should they reduce the price and thereafter, sell more donuts (assuming profit maximization is the company’s goal)?
Should Newton’s Donuts spend more on advertising?

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Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting

BUSN603 Week 3

Part 1 of 3 – Part 1

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 factor 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    Favorable Market ($)
with probability 70%    Unfavorable Market ($)
with probability 30%
Sub 100    300,000    –200,000
Oiler J    250,000    –100,000
Texan    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 unfavorable, Ken will suffer a loss of $200,000. But Ken has always been a very optimistic decision maker.
Although Ken Brown is the principal owner of Brown Oil, his brother Bob is credited with making the company a financial success. Bob is vice president of finance. Bob attributes his success to his pessimistic attitude about business and the oil industry.

1)  If Bob would want to base his decision on the Maximin criterion, then which equipment would he choose? 

A) Sub 100   B) Oiler J    C) Texan   D) The same as his brother Ken`s choice

2) Based on the above information, the Expected Monetary Value (EMV)
of Sub 100 is   . (Please round to a whole dollar.)
3) Based on the above information, the Expected Monetary Value (EMV)
of Oiler J is   . (Please round to a whole dollar.)
4) If Ken would want to maximize the Expected Monetary Value (EMV),
then he should choose __________.
A) Sub 100   B) Oiler J     C) Texan

5)  If Ken believes that Sub 100 cannot get $300,000 even in a favorable market, then this figure needs to be at least   less for Ken to change his decision. (Please round to a whole dollar.)

Hint: You may want to use the What-If-Analysis Goal Seek Tool in Excel as described in Week 1 PPP Slides (1-30).

Part 2 of 3 – Part 2

Megley Cheese Company is a small manufacturer of several different cheese products. One of the products is a cheese spread that is sold to retail outlets. Jason Megley must decide how many cases of cheese spread to manufacture each month. The probability that the demand will be six cases is 0.1, for 7 cases is 0.3, for 8 cases is 0.5, and for 9 cases is 0.1. The cost of every case is $45, and the price that Jason gets for each case is $95. Unfortunately, any cases not sold by the end of the month are of no value, due to spoilage.

Hint: You need to fill in the following table and be careful with the waste whenever production exceeds consumption or the forgone revenue if supply/production falls short of demand.

Profit    Demand is 6    Demand is 7    Demand is 8    Demand is 9
Probability
Production is 6
Production is 7
Production is 8
Production is 9

6) The Expected Monetary Value (EMV) of producing 6 cases of cheese  spread is   . (Please round to a whole dollar.)
7) The Expected Monetary Value (EMV) of producing 9 cases of cheese  spread is   . (Please round to a whole dollar.)
8) John should manufacture _________ cases of cheese spread.
  A)  6    B) C)  8    D)  9

Part 3 of 3 – Part 3

A group of medical professionals is considering the construction of a private clinic. If the medical demand is high (i.e., there is a favorable market for the clinic), the physicians could realize a net profit of $100,000. If the market is not favorable, they could lose $40,000. Of course, they don’t have to proceed at all, in which case there is no cost. In the absence of any market data, the best the physicians can guess is that there is a 50–50 chance the clinic will be successful.

9) Construct a decision tree by fill-in the blanks below in reference to the following chart.

The decision choice at Decision 1 is   and that at Decision 2 is   Event 1 is   and Event 2 is   .

The probability for Prob1 is   and that for Prob2 is   .

Payoff 1 is   and Payoff 2 is   .

EMV 1 is   and EMV 2 is   .

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HSCO 511 REFLECTION PAPER INSTRUCTIONS

HSCO 511 REFLECTION PAPER INSTRUCTIONS

Watch all the segments in the First and Second Program on the Groups in Action DVD while following along in the workbook, reading the commentaries by Corey et al. (2014), and reflecting on the questions. You will then write a short Reflection Paper which must be submitted as a Word document on Blackboard. The paper must be engaging, substantive, and interesting. It must include self-reflection and personal application, not merely a summary and critique of what you viewed and read. Examine new insights about yourself as an emerging group leader from the perspective of a biblical worldview.

The paper must be 3–4 pages (1,000–1,300 words), not counting the title or reference pages (no abstract is necessary). Although you may use first person in this paper, remember it must be in current APA format. The paper must be well written, well organized, and free of grammar, spelling, or other writing errors. Address the following 2 topics by integrating relevant ideas from Corey et al. (2014) and Jacobs et al. (2016). Subheadings are unnecessary.

1. Identify, by name, the group member in the first or second program with whom you identify with the most. Explain why you identify with this person, i.e. what experience or issue were you able to relate to? Briefly describe 1–2 situations in which this member was working. What thoughts, feelings, fears, etc. did the member articulate? What skills and techniques did the group leaders (Jerry and Marianne Corey) use to guide the working member and to deepen the focus? How were other group members involved in this process?

2. The Coreys established specific group norms in the beginning stage by encouraging group members to speak up, articulate their feelings, talk out loud, address one another, look at each other, and actively participate. These norms laid the foundation for interpersonal learning involving direct talk and role play in the present. Note how the leaders asked questions such as “Is there someone here you can relate to?” and “Who in here are you aware of right now?” to deepen the focus. Discuss your observations and reflections on how these and other leadership techniques used by the Coreys promoted therapeutic benefits for the group members.

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ACCT 525 COURSE PROJECT – Current Issues in Accounting, Auditing, or Tax

ACCT 525 COURSE PROJECT – Current Issues in Accounting, Auditing, or Tax

Objective   

The objective of this project is for you to research a current issue in accounting, auditing, or tax that interests you in depth. The topic could be one that we will discuss in class, such as a specific topic within IFRS, XBRL, ethics, or another topic that you will find interesting. It is important that the topic be extensive enough that eight-to-ten pages can be written on it.
Paper Outline

Section    Points    Description
Title Page    5    Title of your research paper, your name, e-mail address, course number and title, instructor, and date.
Introduction    10    Provide an overview of the topic that you are researching.
History    50    Present the history of the topic including what events led up to the topic coming into being. If applicable, present the history in multiple countries.
Current Status    50    Present the current status of the topic.
Future     50    Describe what you think the future of the topic will be.
Conclusion    15    Present a conclusion to your topic.
References    20    You must use no fewer than six library resources.

All references must be cited in two places: within the body of your paper and on a separate reference list. Choose references judiciously and cite them accurately. Cite all sources using APA format.

Do not use Wikipedia as a reference source. If you find useful information from Wikipedia, triangulate your research and find other, more credible source(s) which provide the same (or better) information, and then utilize the information from that more credible source in your paper and reference page/bibliography.
Total    200

Research Sources   

1. All papers must have a minimum of six scholarly sources cited within the text of the paper and identified in the references section.
2. Additional research sources can be attached in a bibliography.

Paper Format   

1. All papers should be single sided, double-spaced, and using a 12-point font.
2. Length of the paper should be between eight-to-ten pages, counting the cover page and bibliography.
3. The first page should include the title of the work, student name, course number, date, and instructor name.
4. Follow APA style for general format and citations.

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As a financial analyst for National Engineering, you are required to estimate

Cost of Capital Homework Problems

Q1.1. As a financial analyst for National Engineering, you are required to estimate the cost of   capital the firm should use in evaluating its heavy construction projects. The firm’s   balance sheet data and other information are listed below. Assume a 35% corporate tax  rate.

a. What is your estimate? What assumptions must you make to calculate this estimate?

b. What qualifications to this estimate should you mention in your report when National applies this rate to its various projects?

Selected Balance Sheet Items

Bonds  (see market data)

Preferred stock     $400,000

Common Stock        $800,000

Retained Earnings   $2,000,000

Market Data

Market Value     Yield

 Bonds:

8%, 10-year $250,000         12%

12%, 15-year $1,000,000       15%

21%, 1-year  $250,000         11%

Common stock:

Average dividend growth (5 years) = 10%

Current Dividend Yield = 7%

Price = $47.25

Shares = 100,000

Preferred stock:

$4.50 preferred dividend

Price = $22.50

Shares = 20,000

Q 1.2. Given the following information for Columbia Power Co., find the WACC. Assume the company’s tax rate is 35%.

Debt: 3000 8% coupon bonds outstanding, $1000 par value, ten years to maturity, selling for 101% of par; the bonds make semiannual interest payments

Common Stock: 50,000 shares outstanding selling for $62 per share; the beta is 1.10

Preferred Stock: 10,000 shares of 4% preferred stock outstanding, $100 par value, currently selling for $60 per share

Market: 5% market risk premium and 6% risk-free rate

Q1.3. Independence Mining Corporation has 7 million shares of common stock outstanding, 1million shares of 6% preferred stock outstanding, and 100,000 9% semiannual bonds outstanding, par value $1000 each. The common stock currently sells for $35 per share and has a beta of 1.0, the preferred stock currently sells for $60 per share, and the bonds have 15 years to maturity and sell for 89% of par. The market risk premium is 8%, T-bills are yielding 7%, and Independence Mining’s tax rate is 34%.

a. What is the firm’s market value capital structure?

b. If Independence Mining is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows?

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The marketing director of a small chain of specialty coffee

Question 1:
1) The marketing director of a small chain of specialty coffee/pastry “cafés” collected data on 120 customers at random (offering a free cup of coffee if the customer filled out the questionnaire) in a study to determine whether satisfaction with various attributes of the café (e.g., quality of service) (Y) is related to various demographics of the customer (X). The data considering quality of service (a value ranging from 0-4, by tenths and the  demographic, AGE (in years), are in the Excel file named “sat vs. age”. (e.g., first responder: AGE=21, SAT=3.9)

a) Obtain the Least Squares line.
b) Obtain a point estimate of the mean satisfaction for customers with age = 30.
c) What is the point estimate of the change in satisfaction when age increases by one year?

Question 2:
Refer to the “sat. vs. age” data of “Question 1”.

a) Obtain a 95% confidence interval for the mean satisfaction for customers age 28. Interpret your interval.
b) Mary Jones is 28 years old. Predict her satisfaction and find a 95% confidence interval for this value.
c) Is the interval in part b) wider than that of part a)? Should it be?
d) Run an F-test to test Ho: B = 0 vs. H1: B≠0 with a = .01. What is your conclusion in practical terms?

Question 3:
The data in Excel file named “Advertising Recall” represent the number of ads for a product recalled (Y) over time (X). There were 900 people in the study, divided into 9 sets of 100. Each set of 100 people were polled after a certain number of days, three groups after 1 day, three groups after 3 days, three groups after 5 days, three groups after 7 days, and 3 groups after 9 days. The Y values are the average number of ads for the product recalled (e.g., first data value, Y = .07, X = 9).

a) Fit a OLS line to the data.
b) Perform the F-test to determine whether or not there is a lack of fit to a linear regression function. Use a = .05.
ADVERTISING RECALL

Question 4:
The data in the Excel file, “Brand Awareness” represent the relationship between a “brand awareness measure”* (Y) and age (X) for 8 children. (e.g., value 1: Y = 63, X = 5)

a) Obtain the OLS regression line.
b) Examine the standardized residuals. What is suggested about data point 7?
c) Omit case 7 from the data and then obtain the OLS regression line.
d) Using the regression results from part c), find a 99% confidence interval for the Y observation when X = 12.
e) Does the Y value for case 7 fall inside or outside of this interval? What does this suggest?
*A complex measure using a large multi-item scale

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Grindstone Paving has the following information for one item they sell

Grindstone Paving has the following information for one item they sell. At the beginning of July, they had 50 units with a cost of $25 each. Grindstone uses the perpetual inventory system and uses FIFO for inventory valuation. Grindstone charges 5% sales tax on all sales.
Prepare the following journal entries. Use the table below the transactions to calculate inventory valuation.

Date    Transaction  
Jul 8    Purchased 500 units at $26 each on account, terms 2/10, net 30.
Jul 10    A portion of the inventory from the above purchase was defective. Grindstone returned 100 units to the supplier.
Jul 12    Sold 300 units to SouthShore on account at $60 per unit plus tax, terms 2/10, net 30.
Jul 14    The customer from Jul 12 returned 30 units that were not needed. Process the return, including sales tax.
Jul 18    The customer from Jul 12  paid their amount owing and claimed their discount. Note the discount is not taken on the sales tax amount.
Jul 22    Purchased 350 units on account at $27 per unit with terms of 3/10, net 30.
Jul 23    Sold 200 units for $60 each plus tax. Received cash.
Jul 25    Took advantage of discount offered and paid up amount owing from the Jul 22 purchase.
Jul 31    Remitted the sales tax owing to the government.
Jul 31    Grindstone provides warranties on the products they sell. They estimate the warranty to be $2 for each item sold (less any returns).

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Charles Austin of the controller’s office of Headland Corporation

Charles Austin of the controller’s office of Headland Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below.

1. The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31, 2017, 2,000,000 shares had been issued and were outstanding.

2. The per share market prices of the common stock on selected dates were as follows.

Price per Share

July 1, 2017 $20.00

January 1, 2018 $21.00

April 1, 2018 $25.00

July 1, 2018 $11.00

August 1, 2018 $10.50

November 1, 2018 $9.00

December 31, 2018 $10.00

3. A total of 662,400 shares of an authorized 1,320,000 shares of convertible preferred stock had been issued on July 1, 2017. The stock was issued at its par value of $25.00, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30.

4. Headland Corporation is subject to a 40% income tax rate.5.The after-tax net income for the year ended December 31, 2018, was $11,580,000.

The following specific activities took place during 2018.

1. January 1—A 5% common stock dividend was issued. The dividend had been declared on December 1, 2017, to all stockholders of record on December 29, 2017.

2. April 1—A total of 433,200 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2018.

3. July 1—A 2-for-1 split of the common stock became effective on this date. The board of directors had authorized the split on June 1.

4. August 1—A total of 290,400 shares of common stock were issued to acquire a factory building.

5. November 1—A total of 22,800 shares of common stock were purchased on the open market at $9.00 per share. These shares were to be held as treasury stock and were still in the treasury as of December 31, 2018.

6. Common stock cash dividends—Cash dividends to common stockholders were declared and paid as follows.

April 15—$0.30 per share

October 15—$0.20 per share

7. Preferred stock cash dividends—Cash dividends to preferred stockholders were declared and paid as scheduled.

(a) Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2018. (Round answer to 0 decimal places, e.g. $1,500.)

Number of shares to compute basic earnings per share

(b) Determine the number of shares used to compute diluted earnings per share for the year ended December 31, 2018. (Round answer to 0 decimal places, e.g. $1,500.)

Number of shares to compute diluted earnings per share

(c) Compute the adjusted net income to be used as the numerator in the basic earnings per share calculation for the year ended December 31, 2018.

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IHP 430 Module Three Group Discussion

IHP 430 Module Three Group Discussion Guidelines and Rubric

Multi-voting Process Tool

1. Review the following scenario. Choose a multi-voting process tool you will use to complete the analysis of the scenario. Then, work through the scenario to determine which project you will select.

2. Next, discuss the process and the tool you used to complete the multi-voting process analysis with your group on the discussion board. 3. Finally, discuss the four criteria that should be considered when problem-solving: risk, economy, timing, and resources.

Using a multi-voting process tool, address the following problem:

Ten projects are being considered by the QM team. Based on team member preferences (below), if a single vote is held, Project D will be selected. The chair wants to consider team member preferences beyond simply their first choices. Use a multi-voting process and assign three points to each member’s first choice, two points to the second, and one point to the third. After the first vote, options that receive fewer than three points should be eliminated and the remaining options re-voted. In subsequent rounds, two points will be given to the first choice and one point to the second. Continue to eliminate low vote-tallying options
until all but two options have been eliminated. On the final vote, each team member will get a single vote worth one point. Which option will be selected?

Jacob D, I, B, C, A, F, E, J, H, G
Isabella A, C, E, F, G, J, D, H, I, B
Ethan H, G, E, D, B, I, J, A, C, F
Emma D, I, F, A, E, G, B, C, H, J
Olivia B, G, A, J, H, C, F, E, I, D

Multi-voting Process Tool Peer Feedback: As healthcare managers, there are two important skills to master: working in groups or teams, and giving and receiving constructive feedback. For this project, each team is composed of three to five team members. Individually, complete your multi-voting process analysis to select the best approach in identifying problems and post it to your group’s discussion board to share with your team members during Module Three. During Module Three, you will go to the group discussion to review your team members’ multi-voting analysis responses. When reviewing your peers work, offer constructive feedback (to at least two peers).

You are expected to provide feedback on the content of the multi-voting analysis and compare and contrast each peer approach with your own. The communication tone of the critique must be professional and respectful, and contain a rationale that supports your critique. Make content recommendations that are focused and relevant to the multi-voting process analysis, and use proper mechanics of writing. This must be completed before the end of Module Three. Your final product will be graded individually.

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions

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Career communications are the same as any professional business

Resume and Cover Letter Package

Career communications are the same as any professional business communication. Like memos and emails, when you write a cover letter to accompany your resume, you need to spend time planning how you’re going to write this unique communication.

Your task:

1. Find a help wanted ad/job posting you’re interested in. This could be from any source, i.e., it could come from a career search site or directly from a company’s website.

Copy that posting into a Word document.

2. Write a cover letter in response to that job posting. This would be considered a solicited cover letter. Refer to page 519 for how to flow your text (intro paragraph, body text, last paragraph. You will lose points if you do not follow this organizational structure.

3. Upload the job posting and your cover letter to Canvas by the deadline noted.

Assignment tips:

- Upload each individual item as a separate Word document. (1. Job posting, 2. Cover letter).

- Format your cover letter in the proper business letter format Use the letter format on page 519. You must include:
o Your address
o The hiring company’s address
o As a salutation appropriate to your particular job posting
o Left justified text
o Spaces between paragraphs
o A closing line with spaces for your signature, and your name.

- Proofread, proofread, and proofread.

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