Note: to simplfy the analysis, we will assume that jobs within each grade comprise equal work.

The ongoing question that the weekly assignments will focus on is: Are males and females paid the same for equal work (under the Equal Pay Act)?
Note: to simplfy the analysis, we will assume that jobs within each grade comprise equal work.

The column labels in the table mean:
ID – Employee sample number Sal – Salary in thousands
Age – Age in years
EES – Appraisal rating (Employee evaluation score)
SER – Years of service
G – Gender (0 = male, 1 = female)
Mid – salary grade midpoint Raise – percent of last raise
Grade – job/pay grade
Deg (0= BSBA 1 = MS)
Gen1 (Male or Female)
Compa – salary divided by midpoint, a measure of salary that removes the impact of grade
This data should be treated as a sample of employees taken from a company that has about 1,000
employees using a random sampling approach.
Mac Users: The homework in this course assumes students have Windows Excel, and
can load the Analysis ToolPak into their version of Excel.
The analysis tool pak has been removed from Excel for Windows, but a free third-party
tool that can be used (found on an answers Microsoft site) is:
http://www.analystsoft.com/en/products/statplusmacle
Like the Microsoft site, I make cannot guarantee the program, but do know that
Statplus is a respected statistical package. You may use other approaches or tools
as desired to complete the assignments.

Week 1. Describing the data.
<Use right click on the row numbers at the left to insert rows below each question for your results and comments.>
1 Using the Excel Analysis ToolPak function descriptive statistics, generate and show the descriptive statistics for each appropriate variable in the sample data set.
a. For which variables in the data set does this function not work correctly for? Why?
2

Sort the data by Gen or Gen 1 (into males and females) and find the mean and standard deviation for each gender for the following variables:
sal, compa, age, sr and raise. Use either the descriptive stats function or the Fx functions (average and stdev).

3

What is the probability for a:
a.
Randomly selected person being a male in grade E?
b. Randomly selected male being in grade E?
c. Why are the results different?

4

5

Find:
a. The z score for each male salary, based on only the male salaries.
b. The z score for each female salary, based on only the female salaries.
c. The z score for each female compa, based on only the female compa values.
d. The z score for each male compa, based on only the male compa values.
e. What do the distributions and spread suggest about male and female salaries?
Why might we want to use compa to measure salaries between males and females?
Based on this sample, what conclusions can you make about the issue of male and female pay equality?
Are all of the results consistent with your conclusion? If not, why not?

W eek 2
Testing means with the t-test
<Note: use right click on row numbers to insert rows to perform analysis below any question>
For questions 2 and 3 below, be sure to list the null and alternate hypothesis statements. Use .05 for your significance level in making your decisions.
For full credit, you need to also show the statistical outcomes – either the Excel test result or the calculations you performed.
1

Below are 2 one-sample t-tests comparing male and female average salaries to the overall sample mean.
Based on our sample, how do you interpret the results and what do these results suggest about the population means for male and female salaries?
Males
Females
Ho: Mean salary = 45
Ho: Mean salary = 45
Ha: Mean salary =/= 45
Ha: Mean salary =/= 45
Note when performing a one sample test with ANOVA, the second variable (Ho) is listed as the same value for every corresponding value in the data set.
t-Test: Two-Sample Assuming Unequal Variances
t-Test: Two-Sample Assuming Unequal Variances
Since the Ho variable has Var = 0, variances are unequal; this test defaults to 1 sample t in this situation
Male
Ho
Female
Ho
Mean
52
45
Mean
38
45
Variance
316
0
Variance
334.6667
0
Observations
25
25
Observations
25
25
Hypothesized Mean Difference 0
Hypothesized Mean Difference
0

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There are a total of 4 problems. this is for a business statistics class.

There are a total of 4 problems. this is for a business statistics class.
1. 4.4 Suppose that a couple will have three children. Letting B denote a boy and G denote a girl:
a. Draw a tree diagram depicting the sample space outcomes for this experiment.
b. List the sample space outcomes that correspond to each of the following events:
(1) All three children will have the same gender.
(2) Exactly two of the three children will be girls.
(3) Exactly one of the three children will be a girl.
(4) None of the three children will be a girl.
c. Assuming that all sample space outcomes are equally likely, find the probability of each of the events given in part b.

2. 4.20 John and Jane are married. The probability that John watches a certain television show is .4. The probability that Jane watches the show is .5. The probability that John watches the show, given that Jane does, is .7.
a. Find the probability that both John and Jane watch the show.
b. Find the probability that Jane watches the show, given that John does.
c. Do John and Jane watch the show independently of each other? Justify your answer

3. Chapter Five
5.12 Suppose that the probability distribution of a random variable x can be described by the formula
p(x) = x/15
for each of the values x= 1, 2, 3, 4, and 5. For example, then, P(x=2) = p(2) = 2/15.
a. Write out the probability distribution of x.
b. Show that the probability distribution of x satisfies the properties of a discrete probability distribution.
c. Calculate the mean of x.
d. Calculate the variance o2, and the standard deviation, ox.

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Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers.

Problem 1:

Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers.

# of Setups # of Orders Machine Hours Packing Orders  
Brushes 30 35 2,000 100  
Combs 10 65 6,000 150
Cost per Pool $20,000 $10,000 $280,000 $60,000

Required

1.       Compute the allocation rates for each of the activity drivers listed.

2.       Allocate the overhead costs to Brushes and Combs  using activity-based costing.

3.       Compute the overhead rate using machine hours under the functional-based costing system.

4.       Allocate the overhead costs to Brushes and Combs using the functional-based costing system overhead rate calculated in part (c).

 

Problem 2:

A company’s sales volume averages 4,000 units per year. The current Price is $60 per unit.
Recently, its main competitor reduced the price of its product to $48.
The company expects sales to drop dramatically unless it matches the competitor’s price.

In addition, the current profit per unit must be maintained.
Information about the product (for production of 4,000) is as follows.

Standard Quantity Actual Quantity Actual Cost
Materials (pounds) 5,800 6,000 $60,000
Labor (hours) 1,800 2,000 $20,000
Setups (hours) 0 225 $8,000
Material handling (moves) 0 400 $5,000
Warranties (number repaired) 0 300 $15,000

Required

1.       Calculate the target cost for maintaining current market share and profitability.

2.       Calculate the non-value-added cost per unit.

3.       If non-value-added costs can be reduced to zero, can the target cost be achieved?

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Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

  1. Determine the year-to-year percentage annual growth in total net sales.
  2. Based only on your answers to question #1, do you think the company achieved its sales goal of +10% annual revenue growth in 2009? Determine the target revenue figure, and explain why you do or do not feel that the company hit its target.

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2008. Download the file here and answer questions 1 and 2.

  1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure.
  2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Assignment Guidelines:

  • Download the financial statements and consolidated statement of operations by clicking on the links above in the assignment description.
  • Analyze the statements and then answer the four questions listed in the assignment description.
  • Show all work including calculations and formulas. If applicable, provide a detailed explanation of how you used Microsoft Excel to arrive at your answers.
  • Organize your answers, mathematical calculations, and Microsoft Excel data into a Word document of 1–2 pages.

Your submitted assignment (125 points) must include the following:

  • A double-spaced Word document of 1–2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, provide your Microsoft Excel data table(s) along with an explanation of how you arrived at your answers if applicable.

Grading:

You will be graded on the accuracy of your financial calculations as well as your demonstrated understanding of financial statement analysis.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Unit Materials

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