1. Your office complex has two independent electrical control switches in parallel monitoring the security system. Their reliabilities are 0.90 and 0.88. What is the probability the system will activate if there is an attempted burglary? If a third switch with a reliability rate of 0.88 was added to backup the system, what is the probability the security system would activate?
2. The mother board that you are manufacturing uses 25 grams of 10 Kt gold. Look up the current cost of gold on the international market and determine the cost of the gold for each motherboard. Assuming your company intends to produce 95 motherboards per day, what will be the required selling price and percentage markup on the total cost of gold-to achieve a profit per motherboard of $200.00? The labor and administrative costs average 55% of the cost of gold per item, and other material costs are negligible.

3. The company expects to purchase a piece of equipment that will cost 650,000. They feel the equipment will depreciate in value by 20% per year. What will it be worth after 5 years?

4. Last year, a small computer data warehouse company made $150,000 in Net Income. This year they made $490,000. What is the percentage increase? Next year, the economic conditions indicate that their net income will he reduced by 18%. How much do they intend on making next year?

5. As the owner of Computers for Learning, you are contemplating adding a new line of computers for 8 to 10 year-old children to your production line. The new equipment can be leased for $7,000 per month. The variable costs will be $115.00 per computer, but we expect to be able to sell them for $255.00 each to our distributors. What is our percentage markup on variable costs? What is the number of computers we must sell to break even? What would the profit or loss be if we produced and sold 400 computers per month? How many computers would we have to produce and sell if we wanted to make a monthly profit of $10,000 per month from this new line? What would our profits or losses be if we produced 3000 computers in month, but we were only able to sell 2500?

6. A company decided to borrow $1,100.000, which is 90% of the value of the property on a 10-year note at 6.25% per year APR. What will be their monthly and 'annual payments? How much will they pay for the property over the life of the loan? How much will they owe after 5 years? The company decides to sell the property after 5 years for $1,600,000 after all closing costs. What is the amount that they will receive at closing to invest in another project? How much did they make or use in actual dollars and in depreciated dollars at inflation rate of 3%/yr?

7. The following are the data from a test: 86, 90, 93, 74, 88, 96, 51, 97, 53, 87, 97, 96, 82, 79, 89, 85, 94, 96, 75. What is the Average (Mean, Median, and Mode)? What is the standard Deviation? What is the Variance? At the 95% level of significance, are there any data points that are significant?

8. A computer system has four routers that are in series and they must all work for the system to be reliable. The failure rate for each router is computed at .06, .05, .07, & .08. What is the percentage of the time the system is expected to function normally? Your boss indicates that she wants the system to function 99% of the time. What will be your backup plan?

9. The following are the sales and expenses totals of a corporation for six consecutive years beginning in 2002: Sales: $55M, $58M, $115M, $110M, $130M, $140M; Expenses: $25M, $43M, $105M, $110M, $125M, $132M. Plot an excel line diagram that shows the Sales, Expenses, and Profits lines on a single graph as well as the data displayed in a box. Insert a linear regression line for each. What is the dollar change and the percentage change of each between each year? What is the total percentage increase in sales from year one to year six? What are the totals for all six years? What are the average dollar amounts for all six years? What is the average percentage increase in sales per year? What is the compounded average growth rate in sales per year from year 1 to year 6? Plot a second graph using only profits and insert a linear regression line. What is your interpretation of the data displayed regarding sales, expenses, and profits? Forecast the corporation's next year's data. Show your work as well as to how you arrived at your forecast.

10. The following are the expected revenue and costs from developing two different computer products over a five year period. At the end of five years, each system will have to be replaced. The salvage value for each is the taste at $50,000. The fixed costs over the five year period for system I is $1,000,000 per year, and for system 2, it's $1,500,000 per year. The variable costs per unit for system 1 are $350 per unit, and for system 2 is $150 per unit. The selling price for each unit of production is $500. What are the Break Even Points for both systems? How many units would each have to produce and sell in a year to make a profit for each year of $500,000? Which system would you choose and why? After you completed 'your analysis, the sales manager added one more bit of information. She indicated that it is easy to make a profit that averaged $500,000 using either system. However, she felt there might he an opportunity to sell an additional 1000 units in either system. How does this change your analysis?

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