Anheuser-Busch InBev is attempting to reduce its water usage. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful?

The general manager of a supermarket chain believes that sales of a product are influenced by the amount of space the product is allotted on shelves. If true, this would have great significance, because the more profitable items could be given more shelf space. The manager realizes that sales volume would likely increase with more space only up to a certain point. Beyond that point, sales would likely flatten and perhaps decrease (because customers are often dismayed by very large displays). To test his belief, the manager records the number of boxes of detergent sold during 1 week in 25 stores in the chain. For each store, he records the shelf space (in inches) allotted to the detergent. Discuss how well the model fits.

A manager of an industrial plant asserts that workers on average do not complete a job using Method $A$ in the same amount of time as they would using Method B. Seven workers are randomly selected. Each worker's completion time (in minutes) is recorded by the use of Method A and Method B.

$$\begin{array}{|c|c|c|} \hline \text { Worker } & \text { Method A } & \text { Method B } \\ \hline 1 & 15 & 16 \\ \hline 2 & 21 & 25 \\ \hline 3 & 16 & 18 \\ \hline 4 & 18 & 22 \\ \hline 5 & 19 & 23 \\ \hline 6 & 22 & 20 \\ \hline 7 & 20 & 20 \\ \hline \end{array}$$

a. Specify the null and alternative hypotheses to test the manager's assertion.

b. Assuming that the completion time difference is normally distributed, calculate the value of the test statistic.

c. Find the $p$-value.

d. At the $10 \%$ significance level, is the manager's assertion supported by the data?

A concession stand manager ordered 20,280 souvenir cups. He wants to divide the cups evenly among the 24 concession stands. How many cups will each concession stand receive?

Danna Lumus, the marketing manager for a division that produces a variety of paper products, is considering the divisional manager’s request for a sales forecast for a new line of paper napkins. The divisional manager has been gathering data so that he can choose between two different production processes. The first process would have a variable cost of $10 per case produced and total fixed cost of$100,000. The second process would have a variable cost of $6 per case and total fixed cost of$200,000. The selling price would be $30 per case. Danna had just completed a marketing analysis that projects annual sales of 30,000 cases.

Danna is reluctant to report the 30,000 forecast to the divisional manager. She knows that the first process would be labor intensive, whereas the second would be largely automated with little labor and no requirement for an additional production supervisor. If the first process is chosen, Jerry Johnson, a good friend, will be appointed as the line supervisor. If the second process is chosen, Jerry and an entire line of laborers will be laid off. After some consideration, Danna revises the projected sales downward to 22,000 cases.

She believes that the revision downward is justified. Since it will lead the divisional manager to choose the manual system, it shows a sensitivity to the needs of current employees—a sensitivity that she is afraid her divisional manager does not possess. He is too focused on quantitative factors in his decision making and usually ignores the qualitative aspects.

1. Compute the break-even point in units for each process.

2. Compute the sales volume for which the two processes are equally profitable. Identify the range of sales for which the manual process is more profitable than the automated process. Identify the range of sales for which the automated process is more profitable than the manual process. Why does the divisional manager want the sales forecast?

3. Discuss Danna’s decision to alter the sales forecast. Do you agree with it? Is she acting ethically? Is her decision justified since it helps a number of employees retain their employment? Should the impact on employees be factored into decisions? In fact, is it unethical not to consider the impact of decisions on employees?

A machine is supposed to fill bags with an average of 19 ounces of candy. The manager of the candy factory wants to be sure that the machine does not consistently underfill or overfill the bags. So the manager selects a random sample of 75 bags of candy produced that day and weighs each bag. The mean weight of these bags is 19.28 ounces and the standard deviation is 0.81 ounce.

A 99% confidence interval for $\mu$ is 19.033 to 19.527 ounces. Explain how this interval is consistent with the test in the previous part.

Discuss how Dell laptops' product manager should handle the (i) Catholic, (ii) Protestant, (iii) born-again Christian, (iv) Jewish, (v) Muslim, and (vi) Buddhist subcultures.

Explain the foodservice manager's role in maintaining profitability.

Recall that a bank manager has developed a new system to reduce the time customers spend waiting for teller service during peak hours. The manager hopes the new system will reduce waiting times from the current $9$ to $10$ minutes to less than $6$ minutes.

Suppose the manager wishes to use the random sample of $100$ waiting times to support the claim that the mean waiting time under the new system is shorter than six minutes.

The random sample of $100$ waiting times yields a sample mean of $5.46$ minutes. Assuming that the population standard deviation equals $2.47$ minutes, use critical values to test $H_0$ versus Ha at each of $\alpha = .10, .05, .01,$ and $.001.$

The piston diameter of a certain hand pump is 0.5 inch. The quality-control manager determines that the diameters are normally distributed, with a mean of 0.5 inch and a standard deviation of 0.004 inch. The machine that controls the piston diameter is recalibrated in an attempt to lower the standard deviation. After recalibration, the quality-control manager randomly selects 25 pistons from the production line and determines that the standard deviation is 0.0025 inch. Was the recalibration effective? Use the $\alpha$=0.01 level of significance.

Tell what kind of data is needed to make an estimate. Explain, using the mean, median, and mode. A restaurant manager wants to advertise a dinner item on the menu that will attract new customers.

A toy store manager wants to display 7 identical stuffed dogs, 4 identical stuffed cats, and 3 identical stuffed teddy bears on a shelf. How many different arrangements can be made?

Anheuser-Busch InBev is trying to reduce its water usage. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful?

The manager’s most important food safety responsibility?