Question 1. José is in fifth grade. His grandfather gave him $1000 to invest for college, so he will invest it for seven years. He has one opportunity to invest it at a yearly interest rate of 8 percent compounded annually and, of course, he will put the interest back into the account. He has another opportunity to invest his $1000 at a yearly interest rate of 7.5 percent, compounded daily with, again, the interest put back into the account. José must decide where to invest his money. What is your opinion of how he should invest.
Question 2. You are in charge of the hot-dog stand for home football games. Because home games are not played every week and because you cannot resell leftover food, you don't want to order too much. On the other hand, you want to service the customers who want refreshments. You need to decide how much food to order. What statistical method would you use to make this decision?
Question 3. John just inherited a truck from his father valued at $350,000. Another trucking firm has offered him a position as a driver at $5,000 a month driving one of their trucks. He can lease his truck for $2,000 a month; however, he is responsible for the maintenance on the truck that totals $3,000 a month. If he drives an as an independent he can make $8,000 a month. He needs to decide which direction to go. Provide an analysis of which direction he should pursue?