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Q:
Imagine that as an engineering intern you have been assigned the task of selecting a motor for a pump. After reviewing motor catalogs you narrow your choice to two motors that are rated at 1.5 kW. Additional information collected is shown in an accompanying table. The pump is expected to run 4200 hours every year. After checking with your electric utility company, you determine the average cost of electricity is about 10 cents per kWh. Based on the information given here, which one of the motors will you recommend to be purchased? Assume i = 8%.CriteriaMotor XMotor YExpected useful life5 years5 yearsInitial cost$400$500Efficiency at the operating point0.750.85Estimated maintenance cost$12 per year$10 per year
Q:
You are to consider the following projects. Which project would you approve if each project creates the same income? Assume i = 8%, and a period of 10 years. Project X
Project Y Initial cost
$65,000
$90,000 Annual operating cost
$16,000
$11,000 Annual maintenance cost
$5,000
$3,000 Salvage value at the end of 10 years
$10,000
$15,000
Q:
Imagine the company that you work for borrows $12,000,000 at 8% interest, and the loan is to be paid in seven years according to the schedule shown. Determine the amount of the last payment. Year
Amount 1
$1,000,000 2
$1,000,000 3
$1,000,000 4
$1,000,000 5
$1,000,000 6
$1,000,000 7
$?
Q:
Imagine, your car loan payment extends for 5 years at 8% interest compounded monthly. After how many months do you pay off half of your loan?
Q:
What nominal rate, compounded monthly, would yield an effective rate of 10%?
Q:
You have loaned your roommate $2,000. Your roommate has agreed to repay the loan in two years. What is the monthly payment if he agrees to pay an interest rate of 6% compounded monthly?
Q:
You have taken out a mortgage for a new home in the amount of $200,000. You have agreed to repay the mortgage in 30 years. What is your monthly payment if you agree to pay an interest rate of 6.0% compounded monthly?
Q:
How much money will you have available to you after four years if you put aside $120 a month in an account that gives you 3% interest compounded monthly?
Q:
What interest rate, compounded quarterly, would cause an investment to double in twelve years?
Q:
How many years will it take an investment to double at an annual interest rate of 4% compounded quarterly? Express your answer in years to 2 decimal places.
Q:
In early 2013, $2000 was invested at a certain interest rate compounded annually. One year later, $1200 was deposited in another account at the same interest rate, also compounded annually. At the end of that year, there was a total of $3573.80 in both accounts. What is the annual interest rate?
Q:
In engineering, the term that refers to the sum of all costs that are associated with a structure, a service, or a product during its entire life span is
a. life-cycle cost.
b. life-span cost.
c. sustainability cost.
d. total cost.
Q:
The Straight Line and the Modified Accelerated Cost Recovery System (MACRS) are examples of
a. accounting schemes.
b. depreciation methods.
c. investment strategies.
d. profit schemes.
Q:
The percentage of par value that is paid to the bond holder at regular intervals is known as
a. par rate
b. par dividend
c. interest rate
d. annuity payment
Q:
The par value of a bond is
a. the amount originally paid for the bond.
b. the amount that will be repaid at maturity date.
c. all of the above.
Q:
When a bond is issued, it will have
a. an issue date, a maturity date and an interest rate.
b. a maturity date, a par value, and an interest rate.
c. an issue date, a par value, and an interest rate.
d. an issue date, a maturity date, and a par value.
Q:
There are many different types of bonds, but basically, they are loans that investors make to government or corporations in return for some gain.
a. True
b. False
Q:
How much do you have to put away each month, at 3% compounded monthly, to have $5000 in 5 years?
Q:
If you put $4000 in a CD (certificate of deposit), what fixed interest rate compounded quarterly would yield $5000 at the end of three years?
Q:
You walk into a bank with $1,000 that you wish to invest in a CD (certificate of deposit). The bank gives you two options:
Option #1: 3.97% compounded monthly
Option #2: 4.00% compounded annually
Which option is better for you? Compare the two options by comparing their effective interest rates.
Q:
What is the effective interest rate of a credit card corresponding to the nominal rate of 21% compounded monthly?
Q:
What is the effective interest rate corresponding to the nominal rate of 5% compounded monthly?
Q:
What is the effective interest rate corresponding to the nominal rate of 5% compounded quarterly?
Q:
What is the effective interest rate corresponding to the nominal rate of 5% compounded semiannually?
Q:
The stated or the quoted interest rate is called the nominal interest rate, and the actual earned interest rate is called the effective interest rate.
a. True
b. False
Q:
A bank charges interest at a rate of 21% per year, compounded monthly. If a senior in college borrows $4500 from the bank to pay her last tuition bill and intends to pay it 3 years later (after she gets a high-paying engineering job), how much will she have to pay?
Q:
If you deposit $5,000 into a CD (certificate of deposit) that pays 3% interest compounding quarterly for 5 years, what is its value at maturity?
Q:
If you deposit $100 into an account that pays 5% compounded quarterly, how many years will it take to reach a value of $444?
Q:
If you deposit $100 into an account that pays an interest rate that compounds quarterly, what is the interest rate if the value in the account after 30 years is $444?
Q:
If you deposit $1000 into an account that pays 3% compounded daily, what would be the value in the account after 10 years?
Q:
If you deposit $1000 into an account that pays 3% compounded monthly, what would be the value in the account after 10 years?
Q:
If you deposit $1000 into an account that pays 3% compounded quarterly, what would be the value in the account after 10 years?
Q:
If you deposit $1000 into an account that pays 3% compounded semiannually, what would be the value in the account after 10 years?
Q:
If you were to take out a $10,000 student loan for 5 years, and promise to pay 4% interest compounded annually, how much interest would you pay?
Q:
If you deposit $1000 into an account that pays an interest rate that is compounded annually, what is the interest rate if there is $1343.91 in the account after 10 years?
Q:
If you deposit $1000 into an account that pays 3% interest compounded annually, what would be the value in the account after 10 years?
Q:
Your parents give you $12,000 as a college graduation gift. They tell you that it's from a $3,000 investment they made when they first got married that paid 10% simple interest. How long ago was their investment made?
Q:
Your parents give you $12,000 as a college graduation gift. They tell you that it is from an investment they made 30 years ago that paid 10% simple interest. What was their original investment?
Q:
If you were to take out a $10,000 student loan for 5 years, and promise to pay 4% simple interest, how much interest would you pay at the end of the fifth year?
Q:
If you deposit $5,000 into a CD (certificate of deposit) that pays 3% simple interest for 5 years, what is its value at maturity?
Q:
If you deposit $100 into an account that pays 6% simple interest, what would be the value in the account after 10 years?
Q:
When the interest paid on the initial principal also collects interest, this is called
a. initial interest.
b. simple interest.
c. compound interest.
d. present value interest.
Q:
The interest that would be paid only on the initial borrowed or deposited amount is
a. initial interest.
b. simple interest.
c. compound interest.
d. present value interest.
Q:
Visual aids that show the flow of costs and revenues over a period of time are known as
a. cash flow diagrams.
b. cost " revenue diagrams.
c. Venn diagrams.
d. business plans.
Q:
For normal distribution, what percentage of the data will fall in the interval of two standard deviations above and below the mean?a. 50%b. 65%c. 68%d. 95%
Q:
For normal distribution, what percentage of the data will fall in the interval of one standard deviation above and below the mean?
a. 50%
b. 65%
c. 68%
d. 95%
Q:
In statistics, it is customary to normalize the mean and the standard deviation values of an experiment and work with what is called the standard normal distribution, which has a mean value of zero and a standard deviation value of 1.
a. True
b. False
Q:
The area under a normal distribution curve should always be equal to
a. 1
b. 0
c. the standard deviation.
d. the arithmetic mean.
Q:
The detailed shape of a normal-distribution curve is determined by its mean and standard deviation values. An experiment with a small standard deviation will produce a tall, narrow curve; whereas a large standard deviation will result in a short, wide curve.
a. True
b. False
Q:
The probability distribution for many engineering experiments is approximated by
a. the average (mean) value of the data.
b. a normal distribution.
c. the standard deviation.
d. none of the above.
Q:
For any probability distribution, the sum of probabilities is always
a. 0
b. 0.5
c. 1
d. equal to the standard deviation.
Q:
A probability distribution shows the probability values for the occurrence of the outcomes of an experiment. A probability distribution that has a bell-shaped curve is called a normal distribution.
a. True
b. False
Q:
A list of temperature readings (in degrees Fahrenheit) is shown below. Calculate the standard deviation for these data:
72, 76, 81, 69, 73, 76, 75, 82, 83, 68, 69, 76, 74, 65, 62
Q:
A list of temperature readings (in degrees Fahrenheit) is shown below. Calculate the variance for these data:
72, 76, 81, 69, 73, 76, 75, 82, 83, 68, 69, 76, 74, 65, 62
Q:
The standard deviation is
a. the square root of the variance.
b. the square of the variance.
c. the root mean squared of the variance.
d. the absolute value of the variance.
Q:
A common way of measuring the dispersion of data is by calculating the
a. spread
b. scattering
c. mode
d. variance
Q:
A list of temperature readings (in degrees Fahrenheit) is shown below. Calculate the median temperature:
72, 76, 81, 69, 73, 76, 75, 82, 83, 68, 69, 76, 74, 65, 62
Q:
Median is the value in the middle of a data. It is that value that separates the higher half of the data from its lower half.
a. True
b. False
Q:
A list of temperature readings (in degrees Fahrenheit) is shown below. Calculate the mean temperature:
72, 76, 81, 69, 73, 76, 75, 82, 83, 68, 69, 76, 74, 65, 62
Q:
The arithmetic average of a list of numbers is known as the
a. median
b. mode
c. mean
d. root mean squared
Q:
Random errors
a. can be detected and avoided by properly calibrating instruments.
b. are generated by a number of unpredictable variations.
c. rarely occur in a properly designed experiment.
d. can be removed from the data set through proper statistical analysis.
Q:
Systemic errors are errors
a. that occur throughout the entire system.
b. that occur on a frequent basis.
c. associated with using an inaccurate instrument.
d. associated with the design and setup of the experiment.
Q:
There are basically two types of observation errors:
a. personal and professional.
b. systemic and random.
c. partial and complete.
d. visual and measured.
Q:
The cumulative frequency does not show the cumulative number of data with values up to and including those in the given range.
a. True
b. False
Q:
A histogram is a way to show the range of data and their frequency. The height of the bars shows the frequency of the data within the given ranges.
a. True
b. False
Q:
In statistics, one way of showing the range of values and their frequency is by showing a mean value.
a. True
b. False
Q:
One simple way of organizing the data better would be to identify the lowest and the highest values, and then group the data into equal intervals or ranges:
a. True
b. False
Q:
In statistics, smaller portion of the entire data or population is commonly called a
a. subset
b. group
c. data set
d. sample
Q:
In statistics, something with a large number of data points is commonly called a
a. population
b. group
c. data set
d. sample
Q:
Statistics deals with methods and techniques that can be used to draw conclusions about the characteristics of something with a large number of data points sing a smaller portion of the entire data.
a. True
b. False
Q:
That area of science that deals with collection, organization, analysis, and interpretation of data is known as
a. probability
b. statics
c. statistics
d. mathematics
Q:
There are 20 red marbles and 10 blue marbles mixed together in a cloth bag. If you reach in and pull out a marble, without looking, what are the odds of selecting a blue marble?
a. 1:2
b. 1:3
c. 1:4
d. 1:5
Q:
There are 20 red marbles and 10 blue marbles mixed together in a cloth bag. If you reach in and pull out a marble, without looking, what is the probability of selecting a blue marble?
a. 0.75
b. 0.50
c. 0.25
d. 0.33
Q:
This question has four possible answers listed below and only one of them is correct. If you select one at random, what are the odds that you pick the correct answer?
a. 1:2
b. 1:3
c. 1:4
d. 1:5
Q:
This question has four possible answers listed below and only one of them is correct. If you select one at random, what is the probability that you pick the correct answer?
a. 0.75
b. 0.50
c. 0.25
d. 0.10
Q:
In probability, a random experiment is one that has random outcomes that cannot be predicted exactly.
a. True
b. False
Q:
In probability, the result of an experiment is called
a. the end product
b. an outcome
c. the answer
d. the product
Q:
In probability, each time you repeat an experiment is called a
a. trial
b. test run
c. measurement
d. guess
Q:
Manufacturing engineers use statistics for quality control assurance of the products they produce.
a. True
b. False
Q:
Civil engineers use statistical models to study the reliability of construction materials and structures and to design for flood control and water supply management.
a. True
b. False