QUESTION 99
A manager at an internet retailer wants to determine whether a recent change in the company’s supply chain strategy has affected the amount of time it takes for an order to reach a customer. The historical average amount of time from placing the order to final delivery is 5.2 days. A random sample of 60 orders taken after the implementation of the new strategy indicates an average delivery time of 4.5 days with a standard deviation of 1.4 days. The manager wishes to perform a hypothesis test at a 95% confidence level. Which option represents the correct calculation for the range of likely sample means? Please note that the function for confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).

QUESTION 100
A company provided the following information on its financial statements for 2013: What is the company’s accounts receivable turnover ratio for 2013?

QUESTION 101
Why are prices typically higher when a firm has monopoly power than when firms are perfectly competitive?

QUESTION 102
An individual interviews 15 people under the age of 40 and asks each for their age and salary. The resulting scatter plot is shown below.

Based on this graph, the correlation between age and salary appears to be approximately:

QUESTION 103
Deferred Taxes can be which of the following account types? (Select all that apply.)

QUESTION 104
Based on the histogram below, order the mean, median, and mode of the data from smallest to largest.

QUESTION 105
In finance, beta is a measure of the systematic risk of a security in comparison to the market as a whole. Beta can be found by running a regression analysis of the monthly returns of the security versus the monthly returns of the general market. The regression output table below shows the relationship between Boeing’s monthly returns and the monthly returns of the Standard and Poor’s 500 (S&P 500) which is a stock market index of 500 large companies.

If beta is the average change in Boeing’s monthly returns as the monthly returns of the S&P 500 increase by one, what is Boeing’s beta?

QUESTION 106
A company bought a piece of land in 2012 for $200,000. In 2013, the piece of land temporarily reduced in value to $150,000 but then appreciated in value to $220,000. How would the company report this piece of land on its balance sheet for 2013?

QUESTION 107
The assets of Company A at the end of their fiscal year are shown on the following common-size table.

Company A is MOST likely to be which of the following types of business?

QUESTION 108
Which of the following options would MOST likely be considered a variable cost?

QUESTION 109
The owner of a chain of convenience stores is concerned that store-level marketing expenditures are not increasing its stores’ sales. In addition, the owner believes that an especially cold winter has caused sales to drop. The owner collects data in Dec. 2013 for a random sampling of 50 stores in the Midwestern region of the United States; a portion of this spreadsheet is given below.

In the regression specified above, which cell range belongs in the highlighted region?

QUESTION 110
If an analyst looks at a start-up’s statement of cash flows for the past three years, it is MOST likely that the analyst will find:

QUESTION 111
Individual orange farmers in a country decide to pool their advertising money and collectively release a new series of advertisements for oranges. Why would the farmers do this?

QUESTION 112
A tech company has just completed market research on a potential new project that would last three years. The research cost $150,000 and determined that the project is expected to bring in $200,000 of revenue annually. The company will have to lease a plant for a total three-year cost of $100,000 and calculates that materials and labor will cost 60 percent of revenue. Given this information, what will economic profits be for the three years, and should the project be adopted?

QUESTION 113
The electric car market is expected to grow significantly over the next few years due to new technologies making electric cars more affordable. Which of the following types of companies would MOST likely benefit from the substitution of electric cars for traditional vehicles?

QUESTION 114
The management of Company A, a consumer products company, is forecasting revenue as part of their internal budget exercise. Which of the following factors is of the LEAST value in arriving at the forecast revenue amount?

QUESTION 115
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A student is interested in which factors affect the U.S. poverty rate and develops a model using the following independent variables:
The unemployment rate The percent of the adult (over 25) population with at least a bachelor’s degree The percent of the population without health insurance
The student collects data from each of the 50 states in the U.S. and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below. Based on these results, what does the model predict the poverty rate would be for a state for which the unemployment rate is 6%, 20% of all adults over 25 have at least a bachelor’s degree, and 5% of the population does not have health insurance?

(Note that all percent values are given as numbers between 0 and 1.)

QUESTION 116
A student conducts a two-sided hypothesis test and is looking for a confidence level of 65%. For which of the p-values below would the student reject the null hypothesis? (Select all that apply.)

QUESTION 117
Why would an entrepreneur want to operate a mobile food truck instead of a restaurant?