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One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family held department store selling furniture and flooring had undergone a major expansion in the past several years. In particular, the flooring department had expanded from 2 installation crews to an installation supervisor, measurer, and 15 installation crews. The store had the business objectives of improving its response to complaints. The variable of interest was defined as the number of days between when the complaint was made and when it was resolved. Data were collected from 50 complaints that were made in the last year. It follows:
a. construct a 95% confidence interval estimate for the popultion mean number of days between the receipt of a complaint and the resolution of the complaint.
b. what assumption must you make about the population distribution in order to construct the confidence interval estimate in (a)?
c. do you think that the assumption needed in order to construct the confidence interval estimate in (a) is valid? Explain
d. what effect might your conclusion in (c) have on the validity of the results in (a)?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
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